Omaha daily bee., 1918-09-23
GERMANY READY
TO FLOAT ITS
NINTH WAR LOAN
For Four Weeks Huns Will
Drop Their Coin in Order
TO Aid in Financing
War in Europe.

ninth war loan.
The loan. opens September %,
five days before the United States
starts on its fifth Liberty loan. and
for the next four weeks Americans
and Germans will be engaged in a
race to drop their dollars into the
hopper of the war mill.
The amount of the German loan,
is not known here, but it is known it
will be made in the form of bonds
at 5 per cent interest and treasury
notes. Both securities are to be
issued at SO, which is about the aver
age at which all the German war
loans have been Aosted.
Tax Burden Light.
1t is through the war loan--a long
series of them in fact-that the
German empire has financed its part
of the world struggle. Taxation
has been resorted to, of course, but
as compared with taxation in Eng
land and France, or in the United
States, the extra tax burden, which
has fallen to the lot of the German
people, has been light indeed.
Before the war Germany had
adopted some rather stringent laws
for taxation. The war once a real
ity, the government decided to meet
actual expenses by loans and i'm
pose only enough extra taxes to
meet the interest on the loans. But
as it fell out Germany was building
her hopes on a poor foundation. 1t
was believed by the German people
that the war would be over in a
few months; that Germany, by
means of the tremendous military
machine which she had been build
ing throughout the years, would
crush her opponents before the end
of the year, 1914. Belgium. France
and England were to pay heavy in
IDENTITIES to recoup the German
treasury.
German Debt Piles Up.
Had this plan materialized the Ger
man idea of war finance would have
worked but the war went on, it is
still going on, and the German debt
is piling higher. Present-day Ger
many is worrying little over the fin
ancial straits in which the nation
finds itself. Posterity must pay the
penalty.
Today the German public debt is
$27.757000.000, about $l000.00O,0 600
less than that of Great Britain and
$17,000000, more than that of the
United States.
Austria has a public debt of
$l2,782000,000, while the debt of
France, despite the fact that this
country has been torn by the ac-
tual fighting. has contracted about
8000,000,000 less than that of Ger
many. Before the war Germany
had public debt of only little over
81 900 100000, less by narrow
margin, than that of the United
States. 49,
Figures NOT Available.
Actual figures as to the amounts
of the various German war loans
are unavailable. but it is generally
known that they have been larger
than those of Great Britain. The
total English expenditure at the
end of March, 1918, has been
97.000,0O0.OO0.
Through her present method of
taxation Germany cannot even hope
to pay the interest on her war loans.
The attempt to levy an increased
tax met with stern opposition on the
part of the federal states and a tax
on increased incomes was then re-
sorted to, while an ad valorem levy
was made upon all property. In
comes were then capitalized and
taxed, and an excess tax similar. in
a way, to that in vogue in the United
States, was adopted But tile Ger
man corporations did not respond.
Attempts at tax evasion through
false bookkeeping and other means,
were brought to light and punished,
The personal property tax called
for certain exemptions. Among
these, jewels are included, and the
German financiers made huge invest
ments in pearls and other precious
stones. These were taxed in turn,
but other means of tax lodging
were discovered. The German will
freely lay down his life for the
fatheriand, but he will not lay down
his money unless it is reasonably
secured and fair rate of interest
is promised. rst
Public interest in the German war
loans has been stimulated by Amer
lean publicity methods. When it
was discovered during the early
loans that the farming class was not
buying bonds to the extent expected,
an educational campaign was inaug-
urated for their especial benefit.
The third and fourth loans were de-
signed for the special benefit of the
laboring classes. Bonds as low as
SIS were placed ON the market and
met with ready sale. The last loans
have been for. the big investors
and since the bonds were sold at
from 971a to 9Sh it has not been