New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-04-12
German National Debt
$2z,4OO, 100000

That this estimate is very mod
crate one is apparent from discussions
OF the matter by high German authori
ties. In Q highly interesting debate in
the Bavarian Reg chsrat on February 9.
Count Preysing said that the German
national debt had already, reached ST.
400, 100000. Another speaker, Rcichsrat
Won Mueller. admitted that this was
correct, but regretted that the publica-
tion OF these figures would cause the
impression abroad that Germany was
confronted with a financial breakdown.
From the total as given by these two
authorities must be deducted the peace
debt Of $l2O0,000,O0O. This would
leave the war debt at $4,000 100000.
As already shown. the total raised by
loans was 100000. According to
these figures. The floating debt would
amount to $3.50, 100000 or consider
ably more than my estimate of $8,000,-
900.
From the estimates Of the national
debt made at Munich and from Count
Roedern's latest statement of the
monthly cost OF the war it may BE
safely assumed that the German debt
will amount by the end of April to
$4,000, 100000. That would be nearly
40 per cent of TIE national wealth OF
Germany, as estimated by DR.. Helffer-
ich a year before the war. He assumed
total wealth OF around S76,000,000,-
600, but he has raised his guess since
the war began. Another German au-
thority. Georg Bernhard, less eau
tious statistician than Hcutferich. as
sumed recently q total Of 500 ,0O0,0 O0.-
600. In any case the debt bears an
alarming proportion to the national
wealth. it will take Germany far more
imam Il century to nav if off
Inc success OF the German loans
las by no means been left to the play
Of natural financial forces. The CAPT
tai market has been carefully pro
tected against general demands. The
restrictlon upon raising new capital by
.ollt stock companies was already
mentioned
Municipal and state loans have also
been held back. When the municipal-
ties need money now they 20 mostly
to the Darle and the high
level Of their operations is explained
largely by advances to the cities. pri-
vate building operations .have also
been prohibited: In this way it has
come to pass that Germans have al
most no other way to invest their
money than in the war loans.
Money for the loans has come from
all classes of the people. The great
manu- actuEerS who have been making
such large profits from war contracts
have been heavy subscribers. Farmers,
too. have been earning much money
and putting it into war loans. Laborinr
people, even household servants, and
other humble folk have subscribed in
remarkably large number. The wide
support Of the loans by the broad
masses of the people may be Illus
trated by the Sixth Loan, raised lust
a year ago, when more than G.7OO. 600
individual subscriptions were received
In discussing their war loans Ger
man authorities always take comfort
in two thoughts. One is that The
great bulk Of their borrowing has
been in the form Of funded loans:
hence the borrowing after the war to
take up floating debt will be Of rather
limited volume Comfort is further
taken from the fact that the German
loans are held almost wholly by Ger
mans. Hence the heavy interest pay-
ments to be mot hcnceforth will re-
main at home. German financia! wit
ers argue that this will have an inn
portant bcarin" upon future efforts
TO restore the mark to its normal
value. inasmuch as it will tighten
the volume of payments to be made
abroad. '''"No