Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1918-11-07
WAR LOAN
METHODS INDICATE
FIGHT TO A FINISH
JAMES W. GERARD EXPLAINS
Why HUNS ARE ABLE TO CON.
TiNuE THE STRUGGLE.
BONDS ARE SOLD BY FORCE
Disclosures Prove That Germany Has
Counted on Collecting Hugo
indemnitIes.

How vitality necessary 1t IL for the
Allies and America to fight the war to
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 q conversation with a
reporter. Despite all OF the assertions
Of German diplomats and state of.
ficials that Germany wishes no indem.
mites. Mr.. Gerard revealed that the
whole German policy of financing the
war IL based on the very definite plan
OF demanding all possible indemnities.
The taxes had not been very ma
terlally 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 a way that they
created a vast and constantly increas,
ing public debt--all in convenient
shape to be taken up out of the pro-
ceeds from indemnities.
German subscriptions"
"A German suhseribes say 100. 900
marks to a German war loan," said
Gerard. He then takes the bonds
which he receives to his bank and re-
ceives from the bank a credit of 80 per
cent of their value. which Is loaned to
him upon the understanding that he
will subscribe them to the following
German loan. And so 1t continues un.
til a low point Is reached. Thus an
enormou 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 1t Is quite apparent that the Huns
dAc lCpo1cu W ia6ht OA dS Ioh6 ds
they are able. The insincerlty 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 var after
a 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 me-
cessity of backing up their govern.
ment, the Liberty Loan Committee or.
ganizes a f%ar-reaching campaign. The
best experts in publicity~advertising.
craftsmanship and finance give OF their
brains freely. The whole country Is
also supplied with all information
which may in any way aid them In
having sufficient data on which to
base conclusions.
But In Germany the war loans go
forward very quietly. There Is no cam
paign. no publicity department. no
corps of expert bond statesmen. no
orators. no Liberty Theater. no Lib
erty Bell, no Liberty Bank. The gov
eminent simply notifies banks and
large insurance and Industrial corpora.
lions 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 II 1t refused?" Mr.. Gerard was
asked.
mo German corporation ever has
refused to subscribe" he answered. III
M ever did 1t would find itself put
out OF business by the government
very speedily. This is perfectly un.
derstood. The limitations 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 who
has money in the bank Is sent for by
his bank and told that his balance Is
no and 80 and that he must take q GER
tain allotment Of government bonds.
SO, in the opinion OF those who
know Germany best. 1t IL not surpris.
Ing that the Germans allow themselves
to be herded to slaughter. Those OBJ
servers declare that the Germans are
a nation which 80 far as the ordinary
citizens are concerned has lost its
sense Of volition and acts In blind
obedience at the command Of the rul-
Ing classes. They add that as a whole
the German nation Is q nation Of peas.
ants, provincial and without the cour.
Z to defy their masters. Such Q ma.
tion could never aspire successfully to
world leadership.
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