New-York tribune., 1918-04-15
Germany Expects
Big Response TO
Call for Funds
Financial Conditions in
Enemy Empire ON Eve of
Eighth Loan Campaign
The Nc,o yo'h Y1(bune


Georg Munich. financial editor Of the
"Vossischc Zeitung," writes that Ger
many is ready Immediately to begin
her campaign for the eighth German
war loan, of the success of which he
expresses his confidence. He declares
that Germany's financial condition is
excellent at the present, and as an
illustration discusses the finances of
the Imperial German Bank. He says:
"The month which We have just en-
tered will bring us the eighth German
war loan. This has been clear for a
long time, and with this consideration
many preparations for that great ma
tional task have been made. Caoital
and the money market have had time
and rest to get ready for that; they
have done it to considerable extent.
Every bank balance, every savings bank
statement announces this fact. In the
German banks the deposits have multi
piled very greatly during the last year.
The Secretary Of the Imperial TIeas-
ury, Count Won Roedern, in his speech
in the Reichstag on February 26 placed
this increase at 100000 marks
Also there is an additional increase of
$500, 100000 marks in the savings
banks. And all took place in 1917,
when German capital brought a total
of 25,750,0 100000 marks for the sixth
and seventh war loans! The sources
from which the money for our war
loans flows are inexhaustible.
"In this connection it is interesting
to point out the remarkable changes
in the condition of the Imperial Bank.
At the end of 1917 the institute had
bills Of exchange to the amount of
1886, 100000 marks. From week to
week this amount was decreasing very
considerably. The Imperial Banks
statement Of February 23 showed bills
OF exchange only TO the value of 49,
356, 900 marks. Thus. in the course
OF the first seven weeks of the present
year the total sum Of bills of exchange
has decreased by 2,500,0OO,OOO marks.
How did that happen? Chiefly thanks
to the sale of imperial Treasury bills
OF exchange to the private banking
world. In addition, this readiness to
take over the Treasury notes is not
fully explained until we remember
that, in order to cover it's war needs,
the empire is continually issuing
notes to the Imperial Bank. These
additional notes, together with the
100000 marks mentioned above,
have been taken up by the banking
world. Furthermore, the Imperial Bank
has large sums of foreign money Its
account of daily due obligations
(check accounts) reached on February
70 not less than 6,069, 100000 marks.
in contrast to the 1885, 100000 marks
of last year and of 1,7S7,00O,OOO marks
OF two years ago.
The unusual banking conditions
which are shown in the balances of
large banks at the end of 1917 seem
te be exactly the contrary to large
check accounts in the Imperial Bank.
"Wherever we may turn we see every-
where proof that the German capital
and the money market are very we'll
prepared for the new war loan. There
tore we cannot doubt its success. This
guarantee is strengthened by the way
IN which the war loan is to be con-
Quoted. In spite of the large money
currency. the old type of per cent
war loans will be repeated"
Then the German writer goes on to
show that another reason for the great
success of the coming war loan is the
favorable military situation in which
Germany is at present. thanks to peace
treaties concluded with Russia and
Rumania.