New-York tribune., 1918-07-28


ceeds $22,0OO,OO0. For the first year
Italy fought her daily expenditures
averaged $3,000,000, against $12,O0000O
at the present time. Germany's daily
cost in the early days Of the war was
$16,000,000 and now it is estimated at
$31 ,250,00O. Austria's daily rate in
1914 was s5,000,00O, against $13,b00,o00
a day four years later.
Europe Debt
Reaches 100000,
The debt of the European nations
has multiplied SO rapidly that the in
terest charges and sinking fund
charges now exceed the aggregate pub
lie debt Of the Continent before the
war. According to the estimate Of M.
Alfred Neymarck, distinguished
French statistician, the present month
ly expenditure of the European nations
Is twice as large as their yearly outlay
was in 1912. This same authority re-
Gently estimated that, whereas the pub
lie debt of all Europe in 1914, before
the war, was about $29,O0O 100000, it
now approaches 100000, 100000.
Economic changes such as are here
suggested make a return to the status
quo ante-bellum impossible. even
If it were desirable. The war has
wrought fundamental changes in the
structure Of society. Peoples with
debts around their necks, such as they
will have when peace comes, cannot
resume diving as usual" after the
manner of the ante-bellum days. The
president of the Reichsbank touched
the pulse of striking truth when he
said that the German people would
have to work twice as hard and save
twice as much to meet their new obll-
cations. When the thrill of war is
over it is questionable whether even
the notoriously docile German people
will care to perform such miracles
without at least the compensation of
being free of any master.
Bankers who are trying to face the
economic future realistically point out
that there are likely to be compensa-
tions on the balance sheet to ease the
financial strain in all belligerent coun-
tries. For example, if the maximum
war aims of the United States and her
allies are attained, and it becomes
feasible vastly to curtail armaments.
the nations of Europe will be spared
enormous burdens which they had to
carry in the years of Latent warfarer
before 1914.
Inquiry into the financial condition
of the belligerents becomes more
valuable when each country is consid
cred separately. Because of varying
national resources and wealth and
varying Importance in the war, each
of the leading belligerents is con-
fronted with problems which are pe-
culiar to itself.
Germany's total debt, funded and
unfunded, as disclosed in the latest
statements from the German Finance
Ministry, now is approximately s34,-
ooO,o0o,o00. Germany's eight war loans
alone produced obligations exceeding
$20,OOO,0oo,o00. Her debt at the time
the war started was $5,2o0 900 900. The
per capita debt in 1914 was s76.45.
against $500 on August 1, 1913. The
interest charges on Germany's debt in
1914 amounted to $208,000,oO0, of s3.O6
per capita. In 1918 the interest charges
are estimated at $1,000, 900 900, or s22
per capita. The total war credits voted
by the German Reichstag amount to
$2s,6l2,OOO,o00, and it is about to vote
new credit Of 10000 900 marks.
Taxes insufficient
For Debt Service
Besides caring for herself, GERMANY
has been called upon to finance her al
lies in the war. and has made large
advances from time to time. The chief
item that makes Germany's daily ex-
penditures rise so rapidly is interest
charges. Existing taxes are no lonoer
sufficient to pay the interest. which
now is partly cared for by new loans
An analysis of Germany's financia,
condition, compared to what It was IN
1914, follows:
GERMANY
Total Debt