Every evening, Wilmington daily commercial., 1918-04-30
KAISER DRAINED HER
ALLIES OF ALL GOLD
Austria, Turkey, Bulgaria at Finan-
cial Mercy of Their Lord and
Master in Berlin.

Headquarters, American Expedition
airy Force in France April 5.-Since
1914 Germany has placed her allies III
a state of fiscal dependency OF such
character that the Kaiser holds IN his
hands the power To paralyze the indus
trial and financial life of Austria, Bull
garia and Turkey, and IT is the opinion
OF experts who have given conditions IN
the Central Powers great deal of study
that Germany holds her allies III line
largely because they fear the effects oi
the Junkers' anger should any oi them
quit the war and make n separate peace
Germany has pursued the same policy
with regard to territory she has con-
qucred, draining it of gold and leaving
rs the only medium of exchange Ger
man-isstlcd hanknotcs based on gold de
posted in banks in berlin, Hamburg.
and other hig German citcs
This policy of financial domination
has not only given Germany m cnor-
nous power over her allies and con
qucrcd territory. but II hts helped the
fiscal situation in Germany 10y gather
ing in the great German banks more
gold to protect her own inflated cur
rcncy.
In connection with the financial treat
mcut Of conquered territory, II IS inter
cSting To note that ISSUE banks have
hcpn established IN brussels, and also IN
Warsaw. which issuc notes against an
equal value nl marks deposited IN the
Rcichshank In Poland It has been III
rcctcd hy the Hun authorities that no
payment Of any Kind shall be made cN-
ccpt in Polish paper money nus the
gold and the marks exchanged tor thiS
paper money are gradually Withdrawn
to Germany In Belgium the export OF
any gold and marks to any country cN-
ccpt GERMANY Is ~irlctlS forbidden aud
violation nf tins rule = punishable h}
heavy penalties Precisely tn" same
prnrram has boon followed ~ the occupied
TERRITORY o{ Rumauia and ~crhla
The effect nt this Is ~ leave the CON
1rIprti territory entirely dependent g.
nauuallv on Germany Not only IS this
true todav. b,It the effect q the German
plan j. to make i possibly true after
The war no matter who vlus Nuppos"
b> Il flight uf the IMAGINATION, that Ger
many wins and decides to hold territory
~hr ar,.sinlr- The valuc of the paper
money comprising almost the sole cnr
rene, 81 thr conquered tcrrtorIe- would
lave 49, other ha~s than credit ~
marks dcpa~ltrd within GERMANY and IN
thc control ol crrruany
Now dcal with an ahcd vlttor> Nu-
tnu,Atpall> the credit VI the conquered
t,rrtur, i affected jIrcrtl> IN tho fall
ul Rcch~hanh credit which would be
p,>~blv an immediate result "a 2 t'cr-
man defeat Not uul, this hiu Il the
EcIrhsbs.uk. under the thumb ot the
kascr. should sec fi, IL the case cithor
ol German defeat ~ victory, 60 cancel
Its Obligations it, the conquered terri
tories the paper money ISSUED there
wuuld hc absolutely worthless IN addl-
tIon. Germany would gam 4 reduction,
uf icr uvu excessive circulation through
tho decrease II her ohhcatnn@
There i excellent reason to suppose
THAT fiscal conditions have much t. do
with thc attitude oi Germany alhcs ~
sticking III tic war \u>jrIA long ago
allowed hcr entire gold reserve T. be
transferred tp Germany She began
and has continued thc issue 81 an cnor-
NOUS paper money clrculation which, III
reality Is based on gold nnw III Germany.
-Ihc Turkish government has hect forced
hN the kal~rr tn b1iy Gcrman bonds
paving for them IN gold The Ottoman
fiscal machine today works on au Issue at
l2anoO.O Oou pounds of paper money ISSUED
against he German bonds which she holds,
hiit Germany holds Turkey gold The
Turkish pound II worth about 81 Is
Take the ease 81 Bulgaria That co,lu-
Try more than q wear ago had issued
3NS. 900 O0n lcvas II paper money against
German bonds. and now not only Bul-
cariau gold paid for the bonds Is IN
Germany hut German bankers hold the
bonds themselves Bulgaria got into 50
much informal difficulty With her own
papor money that The army had been
importing German hanknotos for IT'S
isc 4 recent German order forbade
tho further Importation Of German
bauknotcS hl Bulgaria The lcya IS worth
about 20 cents Amcuc.n money
Now. suppose Austria Turkey OF Bul-
garlu or All three should start ncgotIa-
tions for separate peace Germany
could cancel obligations IN such a way
is 10 leave each and All Of her allies with
out gold and without amy fiscal system.
In word the result Of Germany
war financial policy haS been not only
70 c9mcsh conquered territory financially
but il has enabled Berlin Ia hold over the
heads Of Germany allies financial
club of such proportions Is 10 make them
ever wary Of taking steps toward a Sc
paTatc peace lest Germany III retaliation
cancel her obligations and bankrupt her
former allies
OF course when the Allies have won,
It VIII be settled at the peace table that
Germany will 30 no such thing, but the
situation is presented rs Offering one
more additional reason why the future
economic welfare Of the world, not only
OF allied and neutral nations but of Ger
mauys own allies, demands that we win
the war