The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1918-09-27
GERMAN WAR LOAN METHODS
James w. Gerard Explains Why the
Huns Are Able to Continue Strug-
gle Through Enforced Loans.

How vitality necessary it is for the
Allies and America to fight the wa.
to a real ending with a decisive Ger
man defeat was revealed the other
day by James w. Gerard, the Amer
can Ambassador to Germany at the
outbreak of the war, in a converse
ton with a reporter. Despite all cf
the assertions of German diplomats
and state officials that Germany
wishes no indemnities, Mr.. Gerard re-
veals that the whole German policv
of financing the war is based on TIRE
very definite plan of demanding ali
possible ~indemnities.
The taxes had not been very me-
terlaliy lncreased-not even the il
come tax when Mr.. Gerard left tie
country. Germany was simply dom
as n is now doing-fnancing tie
war with huge loans which were e.
acted from the people but they wee
FUNDED and financed in such a VIZ
that they created a vast and cor
stantly increasing public debt-an n
convenient shape to be taken up o.
OF the proceeds from indemnities.
A German subscribes say 100000
marks to a German war loan" said
Gerard. HE then takes the bono
which he receives to his bank arr
receives from the bank a credit OF 81
per cent of their value which
loaned to him upon the UNDERSTAND
ing that he will subscribe them -
the following German loan. And so
IL continues until a low point Is
reached. Thus an enormous nations1
DEBT IS built up which is carried Nv
the paper money of the country sine
IN Germany they can issue paper
against property.
The high authorities in German
nave repeatedly stated that thew we
planning to finance the war on tra
OASIS OF a certain German victor.
they would exact the last penny -
lndemnlties and make some 9TH
nation or nations pay for the war >
80 1t is quite apparent that tt
Huns are prepared to fight on as lon
as they are able. The insinceritv -
their peace pleas becomes par
III the light OF their war fnancin-
Inc best observers, in the light -
the disclosures regarding their W..
financing assert that the Hun mere
wants peace to prepare for continu-
ing the war after a breathing space.
Another decidedly interesting poirz
developed by Mr.. Gerard. When
the United States issues a Liber-v
Loan the country is asked to SUI
scribe freely but there is 10 comprI-
SION. That the people may be fully
informed upon al points pertainir
10 bonds and The Liberty Binds n
particular and that they may full
feallZe the necessity of backing ID
then government. the Liberty Loan
Committee organizes a ~far-reachi1-
campaign. The best experts in pu
Hclty 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 10 base conclusions.
But IN Germany the wal loans 20
forward very quietly. There is 10
campaign, no publicity department,
corps of expert bond statesmen. No
orators, no Liberty Theatre. no Lii
Bell, no Liberty Bank. The gov
eminent simply notifies banks and
large Insurance and industrial cor-
p%oratlons that they are expected to
subscribe such and such an amount.
This is handled precisely as the il
dlvldual subscriptions are.
The banks lend TO the corporations
80 per cent Of their SUBSCRIPTIONS
with the provision that this 80 Pc
100000 l. xHyt into tho CI1H(nndlrC c.
The corporation always subscribe.
They have never been known to re-
What would happen to a corpora
ton if it rfused?" Mr.. Gerard IVES
mo German corporation ever has
refused to subscribe" he answered.
''If one even did it would find itself
put out of business by the Govern
ment very speedily. This is perfectly
understood. The limitations re-
ceived by the large institutions are
Obeyed implicitly and at once"
The banks also keep tabs on the
poorer classes of persons. Anyone
who has money in the bank is sent
lOT ny Ills DdIlh dIO IOlu CIldC Ills
is so and so and that he must
take a certain allotment of govern
nent bonds. These intimations r
obeyed too. During his stay
the country Mr., Gerard never
heard of an instance in which an in
refused to take the allot-
ment which was made to him by his
bank.
So in the opinion of those who
know Germany best, it is not surpris-
ng that the Germans allow them
selves to be herded to slaughter.
Those observers declare that the
German are afnation which so far as
he ordinary citizens are concerned
has lost it's sense of volition and acts
blind obedience at the command
If the ruling classes. They add that
rs a whole the German nation is 3
of peasants, provincial and
the courage to defy their
masters. Such a nation could never
.--s-- --z-~-c-1f- H. -.--I --I--