New-York tribune., 1918-07-28

twice as hard and save twice as much.
Then we shall master the future as we
mastered the past"
A less roseate view of the German
financial outlook was taken in a
pamphlet recently published by the In
dustrial Union of Saxony on German
debt. 1t is one of the most important
industrial organizations in the land of
Wilhelm. and its remarks are there
fore worth serious attention. After
pointing out that the war had added
l4,S00,000, 900 marks to the peace ex-
penditure of 4,00O,0OO,O00 marks, it
said:
Economic Strangulation
Faces the Enemy
"This total would absorb 60 per cent
of the whole national income. Capt.
talized at s per cent, it would then
amount to more than the entire pre-
war wealth of Germany. Such a bur-
den would completely paralyze produc-
tion and all spirit of enterprise and
completely ruin our life.
"Our foes are considerably better off
in this respect. They need entertain
no such apprehension, as their own
countries and colonial possessions af-
ford rich natural sources of valuable
raw materials and millions of work
ers, while Germany is dependent upon
herself"
All generalizations about financing
in this war remain controversial, ex-
cept perhaps that financially the Allies
are infinitely better off. AS the fourth
anniversary of the war approaches, the
general average of conditions among
the Allies Is heightened by the posi-
tion of the United States, which rela-
lively has, of course, just begun to
scratch the surface of her resources.
Moreover, Great Britain has succeed
ed in following a pay-as-you-go policy
to greater extent than any of the
other belligerents that have seen four
years of fighting. More than one fourth
Of Great Britain's war expenditures. in
met by taxation. France and Italy,
bolstered up by American credits, seem
robust financially, compared with the
four powers Of Central Europe.
Gambling With Finances
Of Teuton Alliance
On1r
solace in the fact that Germany's war
expenditures have been made up of
larger proportion Of long term loans
than England's. His attitude reveals
the German plan of war finance. "Af-
ter us the deluge," seems to be the
slogan of the men in charge of German
destinies. They feel that their war
financing is successful as long as they
can postpone the time of reckoning.
They are gambling on the fast dimin-
ishing possibility of Germany's mill
tarists' making conquests and reaping
in indemnities before the Fatherland
will have to settle its debts The Cen
trail Powers long ago lost their breath
financially, but they seem to have eff
fectively caught their second wind, and
may perhaps be able to keep up the
race as long as their armies can strike
out. But as soon as the bracing tonic
OF the war IL over, their financial heart
action may suddenly stop.
1t Is not the purpose of this discus
sion to exploit opinions about the finan-
cial strategy of the war, but to present
In concise form the data which furnish
the basis for judgments. This is to be
compact picture Of the financial status
Of the leading belligerents after four
years Of fighting.
And even this is almost an insupera-
BILE task at the present time. The CEN
sorship has made it difficult to ascer-
tain the true condition of the finances
of the Central Powers. Moreover, in
many countries the finance ministers
have perhaps been desirous of conceal
ing truth rather than revealing it in
their public statements. Where con-
ditions are precarious the managers Of
public finance have sedulousiy tried to
avoid giving that impression. In Ger
many the government has given the
people promises without limit for their
money. The people Of the Allied coun-
tries. when called upon to contribute,
were told how much it would cost to
free the world Of militarism and autoc-
racy.
Imitation Expands
Cost of the War
And incidentally, like most things,
the price Of war has gone up. 1t costs
nation much more to fight now than
1t did in 1914. Imitation is a factor
here. Moreover, as the war went on it
began to cover longer and larger area
and to affect more people. The larger
offensives on the battlefield soon in
troduccd new high marks in the con-