New-York tribune., 1919-02-18
Schiller, Minister of Finance.
Tells Assembly Interest
On Debt Is 434 Billions
Enormous Waste Alleged
People Are Urged to Prac-
tise Economy to Prevent
Danger of Bankruptcy

WE1MAR, Feb. IS (By The Associ-
ated Press s).-The German people gen
orally do not yet understand clearly
the financial situation in which the
war has left them and are too opti-
mistic, declared DR.. Schiller, the Min
lster of Finance, in an address to the
German National Assembly to- day He
apparently astonished the House when
he gave the statistics to show that the
war had cost $4,000, 900 marks
(S4o, ,250 ,OOO,OO0).
DR.. Schiller asked that the Assembly
vote a credit in the form of loan for
25,3O0,O0O, 900 marks (s6325 900, ,000),
the greatest loan the German people
ever have been asked to raise. He
explained that last october the govern
ment stood on the verge of financial
exhaustion. 1t asked for credit of
15.000,000,000 marks ($3,750, 900, ,00O),
but when this was refused raised it
by means of banknote issues. The
speaker was applauded when he re
marked that truth and openness should
be the bases of all politics and finance.
Shows How Debt Grew
The Finance Minister said that the
expenditures were divided as follows:
1914, 7,500,000,000 marks ($l l,850, ,00O,
0O0); 1915, 23,0OO, 100000 $3.50, ,000,-
OOO); 1916, 26,6oO, 100000 $3.50, ,O00,
0OO); 1917, $4,000 100000 ($9,875, ,000,-
000); 1918, 48,5O0,0 900 ($12 ,000,-
O0O). In addition 6.000000,000 marks
Isl 500 ,O0O,0OO) in treasury bonds was
issued and there were credits of $780,
100000 marks (S2,37b, b,000,000) to allies
of Germany, making a total of nearly
161 900 ,00O,0O0 ($4O,25O, 900, O,O00), which
exceeded by 14,OOO,0OO 900 (S3 500, ,000,-
0O0) the credits which had been
granted. Credits made available by
loans totalled 93,O00,0O0,000 marks
1923 200 OOO,OO0) and bonds and notes
issued totaled $4,000, 100000 marks
($14,500, 10000.
The daily expenditures during the
war, DR.. Schiller added, ranged from
49, 900 900 marks (s12,250,OOO in 1914
to 135,0OO00O 1888, ,750,000) in 1918.
The minister explained that there had
been a steady decrease in expenditure
since the signing or the armistice.
The minister condemned the waste
throughout the war and characterized
the war finances as "a programme of
desperation" He said that the Sol
diers' and Workmen's Councils since
the war had at times been accused
unjustly, but unfortunately too many
councils were not Of advantage to the
government financially.
Need of Economy Stressed
DR.. Schiller emphasized the impera-
tive need of economy and said that the
German people must look upon expen-
ditures in an entirely different man
ner than formerly. He said that the
government would need 100000 900
marks (s4,75O,0 ,O0O) during the cur
alone. He said the government ex-
pected to raise 3,OO0O0O,OOO marks
($750,000, 0,00O) from the sale of army
stores. This sum might have been
greater if the stores had not been
pillaged by the troops.
No one was in position to say
whether Germany would be able to
extricate herself from the present
financial situation, the Finance Min
lister said, but it would depend in part
on the kind of peace the Allied powers
decided upon. Germany must be pa
tjent and wait.
The minister added that Germany
needs social egeneraton, and declared
MS intention 10 punish frauds against
the government more severely than
against individuals. He pleaded for a
new conception Of property which
should eliminate the individual or put
him in the background, making the
individual feel that he was merely
administering his property for the
state
War Profiteers Gained
"Our expenditures have increased
not only because of our needs, but
because Of bad financial measures dur
ing the war" the minister said Con
the assumption of short war consid
cradle sums were wasted in enrichine
individuals improperly. In addition
the war programme of Field Marsha
Won Hindenburg was deplorable from
an economic point of view because o1
the manner in which he dissipatec
money. At the conclusion of the wal
unjustified strikes resulted in an in
sane struggle for higher wages, thus
increasing the expenses of demobili-
zation."
War expenditures, the minister
added, had been covered by loans OF
which only the interest was covered
by taxation. There was no question
Dr.. Schiller said, of annulling the wal
loans or of Selling savings or cash II
banks, but the government would have
to levy taxes in keeping with the eco
nomc situation.