Evening star., 1939-11-26
Europe's War Expenditures in
Excess of $85,OOO,OOO Daily
Neutrals as Well as Belligerents Face Bankruptcy
as Governments Distribute Slogans
Instead of Financial Data
By Constantine Brorvu.

A careful survey of the economic and
financial situation of the warning ma
tions has discouraged most of the invet-
crate interventionists in this country.
Little appears in the press regarding
the tragedy of the treasures of the
warning countries. The people are still
fed on war slogans such as 1--WE will
fight until the power of Great Britain is
broken" or I'VE will fight until Nazi-
ism is doomed" The emotions of the
people are played upon, but a careful
analysis of the financial and economic
situation of the warning nations and Of
neutrals close to those who are in
state of war shows that utter bank
ruptcy is facing them all.
Britain, Germany, France and the neu-
trails are all in the same boat. While
there are figures available regarding ex-
penditures in the allied states up to the
declarations of war. little positive is
known about the totalitarians.
Recently the French government an
nounced that civil expenditures of the
coming year will amount to close to
s1,700 100000. The war expenditure will
remain a closed book until the war is
over
The situation in France, once the
wealthiest and thriftiest country in
Europe, appears from figures published
by the French government to be tragic
one. The national debt of the country
amounts to 444,O00 100000 francs. This
figure does not include the foreign war
debts to the United States and Great
Britain, nor does it include 10l 900, ,0oO.-
600 francs Indebtedness of the railroads,
which are guaranteed by the state, or
another s0,000oo0 1000 francs in other
guaranteed obligations, such as the Com
pagnie Generate Transatlantique and
other serniprivate institutions.
French Debt Crushing.
In other words, the total national in
debtedness of the French Republic up
to the outbreak Of the present war
amounted to more than 100000 900 900
francs. What that represents in dollars
is difficult to estimate because of the
lack Of definite relationship between
the franc and the dollar But one NAV
easily understand how crushing that
Indebtedness is when one keeps in mind
that the national income of France In
1888 did not exceed 225 900 900 900 francs
This means that the national debt ex-
ceeded the national income before the
outbreak of the war by more than
~ to /.
The situation in Britain, which since
the Napoleonic wars had been the most
stable country in the world, is not bet
ter. According to figures published bv
the exchequer. Britains public debts
amounted, in September, 1899, to ss s.5oo-
100000 sterling. At the rate of exchange
OF that date this figure represented about
$42,OO0,000,000 Here again it is diff
cult to establish relation between the
pound sterling and the dollar. and the
formidable Indebtedness must be looked
upon In comparison with the national
income OF the United Kingdom. That
income amounted to shade under
f4,500, 900, 900 in 1898.
That is to say. the declared national
debt exceeded the national income bv
exactly $4,000 100000. The British. WIN
are sticklers for formality, still include
in their debit ledger the debt to the
United States. but they also include
in their credit ledger the debts from
France, Italy, Yugoslavia, Armenia and
such other debtors who have put a
cross over the last wars Indebtedness
Germany Reticent About Debt.
Not even the approximate amount of
Germanys public debt is available to anv
outsider. The United States commercial
attache at Berlin was instructed to send
a report about this question. He replied
that the question of the public debt and
the increased public expenditure are
matters of complete reticence in Ger
many, more so even than the military
secrets OF the Reich This writer tried
to pry into this sore subject during his
last trip to Germany. He asked friend
Close to DR.. Schacht-what the German
debt was and was told: IT can tell YOU
In all frankness that don't know. Even
II l had a chance to find out, would
rather not because the slightest indiscre-
ton would take me direct to a concen-
tration camp for the rest of my days"
But despite this secrecy 1t is known
that the Indebtedness of the Reich 1.
huge. OF course the fiscal system in
Germany is totally different from that in
the allied countries. There is no parlia-
ment to which Herr Hitler and his associ-
ates must give an accounting. Hitle,
took over the reins of government In
the Reich after the county had repudi-
ated its colossal internal indebtedness
and later abrogated the reparations due
to the allies. He had completely clean
slate when he became Germany's die
tator.
1t Is estimated that until the Polish
German war the Reich must have spent
Ia loval In them &C individ,,e1s uu,a,,