The Washington herald., 1918-11-15
HUNS FINANCE
In DIRE STATE
Holland Points to Wide Dis
aster Complete Collapse
Would Bring. ,.,,- s.,-

Eighteen months ago scme Of
, those who are directing one Of the
largest o, American corporatfons
. received intimatiOns from a reliable
source which justified them, they
believed, in predicting that the
European war would be speedily
ended. They were in close touch,
probably by way OF Switzerland or
II may be through Holland, with
some OF the internal conditions in
germany. The adyices which they
. received were in accord with som.
OF the Communications which the
more influential bankers OF New
york had also received. and they
felt sure that Washington was slso
IN possession OF like Information.
They were told that the internal
economic, banking and fiscal con-
ditions in Germany and the PROP
pective continued loss OF world
trade had greatly alarmed many of
the industrial leaders and almost
all the bankers OF Germany. II
seemed as though Germany was
strained economically at that time
to the breaking point Therefore
the presumption was strong that
irresistible pressure would be
brought by the economic leaders in
/ Germany upon the military party
which would result in sincere and
responsible attempts to secure an
early peace. IL appears. however.
that the military party was too stroHg
at that time and that its feeling
Of strength was based upon the belief
that il would drive its army 70 the
French and Belgian coast and sso
10 Paris. and in that way secure
peace by victory. t-
Conditions Appalling.
The economic condition in Ger
me'y two yesps ago was very
threatening. Our bankers and IN
dustrisl leaders believe that when
the whole truth is known. as Il
will be pending negotiations FOR
pecce or the conclusion OF peace by
I treaty, should there be any re-
sponsible government in Germany
with which 10 negotiate. the world
will be appalled, at the maFnitude OF
the economic. fiscal and inHnciHf
oistuT banCe which the war has
caused in Germany. IL is said BY
leaders in the financial district that
the German military party 4wesz
confident that such terms OF peace
as Germany would exact would fns~
volve the payment 20 Germany -ar
indemnitiss great enough to make
IL possible 20 repair the internal
damage done in Germany BIZ the
war.
II seems TO some Of the financial
leaders as though II is Inevitable
/ that the colossal debt accumulated
! by Germany. chiefly with itf own
people, whereby funds were secured
I to carry on The war. must be re-
! pUdiated. The hope H. that with
l the assistance OF the United States
I ard Allied governments a financial
catacIysm OF that kind la Germany
can be prevented. To repudiste Ohe
debt would be TO involve not only.
] the German people themselves but
/ Indirectly at least. and possibly 70
an alarming extent the peoples or
I other countries.
Debt May simply Lapse. ..af
Serious as is the danger which
would be caused by the repudis ton
Of her great debt. nevertheless II isr
not. in the view OF financial leaders,
the most serious Of the conditions,
which will confront Germany. After
the war between the States was end
i ed the great debt created by TIE Con-
] IltNtThAN k0NNN lIAlrLA anu Inv NhlA-
I cations amounting TO some millions
which were sold in London were not
Irepudiated. because there was no gov
ernment to repudiste them. They-
simply lspsed, as did the continental
currency issued at the time cf the
! war Of the revolution. II may be
that with a change OF government in
Germany none Of these obligations
wiz he openly repUdiated. but they
will be allowed 10 become eGuinguish-
ed as was the debt created by the
Confederate government
But Germany stands to lose enor-
nous territory and millions OF popO-
lstion. She is TO lose AIsace-Lorraine.
and probably there is no German
! possession whose loss will occasion
greater anxiety than that which will
be .occasioned by the return OF Alssce
and Lorraine to France For in these
provinces Germany has found abuu-
dant supplies OF ore, and In them she
has highly developed her steel and
iron industries So also one OF these
provinces contains vast and probably
ineNhaustible resources In potash. The
full development OF these potash
mines will 20 far towards relieving
the world OF dependence upon Ger
many for potash supplies. Then. too,
D
inces Of Silesia and Posen and per
haps West Prussia She will lose all
OF her colonial possessions and her
total population, by reason Of these
losses. viii be reduced from about
0 100000 20 a little over 600lo.O00
Folly TO Destroy Foe.
The wisest men IN England and
France and many Of the leaders
IN this country have spoken oecs-
sionslly OF the folly Of attempting
TO reduce Germany to a condition
OF impotence Baron d'EstourneUes
De Constant. who is well and fAv-
I orably known in the United States.
and who has professed the fondest
admiration for the American sys-
tenn OF democrstic-republica gov
/ erment has been since the war
started n strong sdvocte Of the mil
itafy activities OF France. although
before the war he was distinCuish-
ed as one of the worlds leading ad-
vocates OF peace. In a letter to
friend In New York the Baron
stated. some months ago that he
would deplore coy attempt 70 re-
duce Germany 20 a condition Of In
dustrial and commercial impotence.
He said that the world needed Ger
man products and Germany needed
world products. and that possibly
the peace OF the world might de-
! pend upon obtRsling a Just equiii-
brium between the German trade
and that OF the worlds great COM
m rrisl and industrial uafforS