The Adair County news. [volume] (Columbia, Ky.) 1897-1987, 1918-10-16
JAMES w. GERARD EXPLAINS
WHY HUNS ARE ABLE TO CON-
TIME THE STRUGGLE
BONDS ARE SOLD BY FORCE
Disclosures Prove That Germany Has
Counted on Collecting Huge
lndemnties.

q real ending with a decisive German
defeat was revealed the other day by
James w. Gerard, the American Am
bassador to Germany at the outbreak
OF the war, in conversation with a
reporter. Despite all of the assertions
of German diplomats and state Of
ficials that Germany wishes no indem-
whole German policy of financing the
war is based on the very definite plan
of demanding all possible indemnities.
The taxes had not been very ma
terially increased-not even the in
come tax-when Mr.. Gerard left the
country. Germany was simply doing
as she is now doing-financing the war
with huge loans which were exacted
from the people, but they were funded
and financed In such way that they
created vast and constantly ipcreas-
ing public debt-all in convenient
shape to be taken up out of the pro-
ceeds from indemnities.
German "subseriptIons."
"a German subscribes say 100000
marks to a German war-loan," said
Gerard HE then takes the bonds
which he receives to his bank and re-
cedves from the bank credit of so per
cent of their value, which is loaned to
him upon the understanding that he
VIII subscribe them to the following
German loan. And so 1t continues un-
til low point is reached. Thus an
enormous national debt is built up
which is carried by the paper money
of the country, since in Germany they
can issue paper against property.
The high authorities in Germany
have repeatedly stated that they were
planning to finance the war on the
basis of a certain German victory;
they would exact the last penny In
indemnities and make some other ma
ton or nations pay for the war;"
So it is quite apparent that the Huns
are prepared to fight on as long as
they are able. The insincerity of their
peace pleas becomes apparent in the
light of their war financing. The best
observers, in the light of the disclos
ures regarding their war financing, as
sert that the Hun merely wants peace
to prepare for continuing the war after
breathing space.
Methods contrasted.
Another decidedly interesting point
was developed by Mr.. Gerard. When
the United States issues a Liberty
Loan the country is asked to subscribe
freely, but there is no compulsion
That the people may be fully Informed
upon all points pertaining to bonds
and the Liberty Bonds in particular
and that they may fully realize the ne
cessity Of backing up their govern
ment, the Liberty Loan Committee or
ganizes far-reaching campaign The
best experts in publicity advertising
craftsmanship and finance give of theil
brains freely. The whole country is
also supplied with all information
which may in any way aid them in
having sufficient data on which tC
base conclusions.
But In Germany the war loans &c
forward very quietly. There is no cam
paign, no publicity department, nc
corps of expert bond statesmen, nc
orators, no Liberty Theater, no Lib
erty Bell, no Liberty Bank. The gov
eminent simply notifies banks and
large insurance and Industrial corpora
tions that they are expected to sub
scribe such and such an amount. This
is handled precisely as the individual
subscriptions are.
They Never Refuse.
The corporations always subscribe
They have never been known to re
fuse.
What would happen to a corpora
ton If it refused?" Mr.. Gerard was
asked.
mo German corporation ever has
refused to subscribe" he answered. II
one ever did 1t would find itself put
out Of business by the government
very speedily. This is perfectly un
derstood. The intimations received BY
the large institutions are obeyed i'm
plicitly and at once"
The banks also keep tab on the poor
er classes of persons. Anyone whs
has money in the bank is sent for b,
his bank and told that his balance Il
SO and so and that he must take a Ger
tain allotment of government bonds
So. IN the opinion of those WHIT
know Germany best, it Is not surpris
ing that the Germans allow themselve,
to be herded to slaughter. Those OBJ
servers declare that the Germans arr
nation which 30 far as the ordinar,
citizens are concerned has lost It,
sense Of volition and acts In blint
obedience at the command of the rul
inS classes. They add that as who'll
the German nation is nation Of peas
ants. provincial and without the cour
age to defy their masters. Such ma
ton could never aspire successfully b
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