The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1918-05-25
Z. S. Fjmamcie7~. Sees Germany
Bankrupt if the Kaiser Loses

New York. May 25.-If the allies
do not soon accomplish a crushing
military victory, sending the Hun
hordes scurrying back across the
Rhine into their own lands and there
Vanquishing them, how will the war
ever end? This is question on the
lips Of some American students of
the war and in the minds of a great
many more. They wonder how long
the war can go along with the forces
practically deadlocked on the west
front, the Hun winning a few hun
dred yards of devastated country
this month; the allies getting it back
next.
Thomas w. Lamont of ]. P. Nor
gan & Co. has been over there in the
various capitals. He has studied
finance, naturally enough, and his
answer to the question cited has to
do, just as naturally, with the inan-
cial aspect.
Commerce Will Dictate.
without a military victory the
war will end when the business men
Of Germany say to the military par
ty: Stop. You have gone far
enough; as far as you can go y
Lamont says. when 1 left the 9TH
whispered that the business men,
seeing the world trade Of Germany
getting further and further away
from them, would call the halt. They
will not end it because the people
are starving. They are not starving.
But without trade Germany. at war
or peace. would be Iifeless. Even a,
peace on allies terms would be bet
ter than commercial death.
For a long time folk over here
talked Of Germany being on the
verge of bankruptcy. That is mis-
take. We must not underrate her
resources. Nearly a billion dollars
month is being poured into the
Hindenburg program. Germany's
national debt recently was estimated
by former vice chancellor Of the
reichstag at thirty-one billions. Ger
many is taxed to death; Germany is
borrowing inordinately; but Ger
many keeps on getting the money
to keep up defenses on 1900 miles
Of front and occasionally start a ma
jor offensive.
with these figures in mind is it
any wonder that the question of fin
ance after the war is arousing more
and more excitement in Germany"
Lamont asks. 81 believe that in the
outset Germany figured on a short
war. victory and indemnities. Now
that victory is not so sure, even in
their own minds, what way out have
they?
Taxation Is Impossible.
Taxation on a scale commensu-
rate with their debt would be a con-
fession Of doubt Of final victory
and those indemnities.'
Lamont does not attempt to say
how Germany will eventually work
out it's finances, though ne says posi-
lively any peace other than a Ger
man triumph on all sides will see
Germany bankrupt. He calls atten-
ton to the fact that the eight war
loans Germany has f1oated have been
done artifcially on daring scheme
of pyramiding which has built up
$4,000, 100000 pyramid. This colossal
thing will crush the German govern
ment in it's fall should peace be die
tated by any but the kaiser.
In the purchase Of government
bonds citizens have been allowed to
pledge the bonds Of the first loan to
get money to purchase bonds of the
second; then pledge these second
bonds for money to buy thirds, and
so on.
However sorry may be the final
condition of the Teutonic alliance"
Lamont points out. 1--WE must not
bank on It too strongly in our pre-
dictions of German downfall. If
Germany wins at arms-and she
seems to be able to continue throw
ing men, guns and munitions into
the flght-the financial tangle will
straighten itself out all right, with
the rest of the world paying the
bills"