The Goldfield news and weekly tribune. [volume] (Goldfield, Nev.) 1911-1947, 1917-09-01
GERMANY'S FINANCES

In the early days of the war the German government I'M
dertook to explain the empires financial position and prospects
when floating the first, second and third war loans. The war
lords did not dream of a four years war. Their early plans
were based on capturing Paris in six weeks or less, and they
had good reason for so thinking. The resistance offered by the
Belgians at Liege and elsewhere upset the German plan of cam,
paign and enabled the French and English to mobilize and win
the battle of the Marine.
When the early war loans were floated the German gov
eminent assured the people that they would never be taxed to
pay off the national debt, because indemnities sufficient to re-
tire these bonds would be collected from conquered foes and
that England was rich enough to pay the bill if the rest were
bankrupt.
Germany was also to derive financial aid from the United
States and several millions of dollars were raised here by the
sale of notes and warrants for bonds certified or endorsed bv
the German ambassador at Washington. The proceeds were
probably used by him and such agents as Boyd and Won
Plapen in the campaign against the United States while we
were still neutral.
The German government never dreamed of reaching the
limit OF its resources when it permitted the publication of a
statement that the empire could not incur a debt of a hundred
billion marks, or about twenty four billion dollars, without be-
coming insolvent. When that statement was uttered the pos
slbnity of such a debt seemed as remote as the stars in outer
realms of space whose distance from our earth is measured in
thousands Of light years.
Germany has almost reached the limit of a hundred billion
hdrhs Her war DEBT now amounts to ninety-four billion
marks and her floating debt probably makes up the balance.
Germany borrows money to pay debts and not to finance fu-
lure operations, which, in her position, is a good system be-
cause it does not tie up idle funds in the imperial treasury.
Her government and people cannot fail to be impressed by the
accumulation of a national debt that will soon exceed the
breaking point that was set early in the war.
The financial experts who made the original calculations
have not revised their estimates and the German empire has
been sc weakened, in a financial and commercial way, by more
thah three years OF war and severance from the outside world
that it cannot now bear a load which it might have shouldered
at the end of one year. The interest on this war debt is now
i've billion marks a year. War taxes are levied at last after
a long struggle to finance the war by endless chain loans. The
German people now feel the financial strain as we'll as the
pangs OF hunger and the wounds of battle.
This financial crisis probably caused the German govern
ment to encourage the pope to make another attempt to pro-
cure peace. PruSSian militariStS still talk of indemnitieS as
well as anneXatiOns. Count zu ReventlOW says that Germany
cannot bear her own war burdens and that therefore she can
not renounce indemnities, and that guarantees for Belgium's
independence cannot be found. He says also that the carrying
out of the papal program would mean an end to the middle
European alliance and Germanys ruin. He and his faction
realize and admit Germanys financial weakness. Their rem
edy is reimbursement by plundering their foes, and the rich
est of them is the United States. This is now our war and we
must win it or pay its entire cost if we lose.-New York Com
mercial.