The Waterbury Democrat., 1937-08-20

implies, but also In the building Of
 factories, laying down of plant and
 machine tools and accumulation of stocks of raw materials.
 Some figures show in striking
 form the manner in which the great
 nations are spending the money
 they raise by taxation and by loans. The years 1911 and 1886 are used for
 comparison, because each was e year in which governments began to
 fear that a world war was inevit- able.
 The armament expenditures In
 these years were as follows:
 France .. .S27ooos,oo0 : 7i6,0oo,o00
 Germany 3le,0oo,0o0 2,e00,000,o 900
 Britain ... 34i,e20,000 e4e,000,000 Italy ..n. i20,e76,000 e7i, 100000
 Russia .... 3l9,770,000 2,e0b, ,000,0 900
 SMALL COUNTRIES
 REARMTNG ALSO
 But even these vast expenditures in 1886 are only e beginning. France frightened by German rearmament,
 Is preparing to spend Se00,000,000 more. Italy has increased her budg- ct by 727,000,000 lire over last year. Germany has made an immense in- crease, but figures are unattainable
 because the Nazi masters do not choose that they shall Do known. Great Britain is making Q gigantic effort. Her defense forces are to be increased by the expenditure of S7 ,b00, ,000, 900, spread over five years.
 The smaller nations are following suit. The Dutch, fearful that Ja- pan may cast covctous eyes upon the rich Dutch East Indies. are spending 100000 guilders on de-
 lenses of those valuable islands. Pc.
 land, trying to keep her land from
 being c possible battle-ground be.
 tw0en Germans and Russians, has just borrowed Si26,000,000 from Franc for defense purposes. Czecho- slovakia, threatened almost every
 day in Nazi newspapers, has just
 fleated c loan of about 9i26 ,0o0, 900
 to strengthen her army and pres
 pa'e great frontier defenSes. Ru-
 mania has arranged to get many millions of dollars worth or artil. icry and munitions from the great Czsch armaments factories.
 Che German Institute for Busi- ness Research estimates that six bil. lion dollars was the average annual expenditure on world armament during the period l02e-i034. Tn i036 fl estimates that this rose to fifteen billion dollars.
 GUNS INSTEAD OF NEW HOUSES
 h the past one of the greateSt factors for recovery from world trade depression was the boom In housing. Vast sums were spent in the building trade. But now in Eu' rope this B slowing down. Arma- ments have become the main stis mulus to business. Prices have been rising. There b world shortage ir. steel, tho basic material for all forms of armament.
 There is c world demand for raw materials, particularly for those needed in armament programs. It b this which is causing difficulties for countries like Ger. many and Italy. They are obtain. ing . large part Of their raw ma. terial imports, both for civil and armament purposes. by exporting goods made largely from imported raw materials. 4 rise in prices makes this circle increasingly hard to maintain.
 For e time this difficulty was skirted by Germany in Q clever way. She bought, for instance, c consid. erable part Of her food from c neigh boring country. But the seller found that the buyer had blocked It's money. Cash was not allowed to leave Germany. The creditor was invited to "unfreeze" his accounts by taking goods instead.
 in this way, Germany paid Yu- goslavia for wheat and meat by Sending 1t munitions, machinery