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Press, Volume LIV, Issue 16267, 18 July 1918, Page 6

In the New York "Post" there is a description, by the paper's Zurich correspondent, of the curious character of the German Budgets. On August 4th, tho Reichstag agreed to a ref arrangement of the National Account, the Imperial Budget being divided into two parts —one called the Extraordinary Budget, for war revenue and expenditure, and the other the Ordinary Budget, showing the normal peacetime items on both sides. This second Budget makes a good showing on paper, but this iji because it is falsified, or "faked." At the beginning of tho war the Reichstag agreed that, in order to conceal the amount of imports, the financial result of the Customs duties should be regarded as being the same each year as in 1913. Actually, the real receipts from this source are far smaller than this fictitious figure, for two reasons. In the first place, all import duties on focdstuffs were abolished, and in the second place tho Allies' blockade has enormously reduced the actual imports. On the expenditure side, also, of this "normal" Budget there was some manipulation. The ordinary Army and Navy expenses, the main item on the expenditure side, were completely transferred to the extraordinary Budget. As a result, the normal Budget of the Empire for 1915 was a splendid one.

♦ The Budgets of 1916 and 1917 also balanced splendidly, the sum on each side being in thoso years respectively 3659.3 million marks and 4941.9 million marks. This insane method of finance was adopted because in August, 1914, Germany believed that the war would not last long, and that tho vanquished nations would pay all the oosts. Another consequence of this error was that the Government left for the ordinary Budget the interest on war loans. This has grown to an enormous figure, and it cannot be doubted that if they had only known they would have put this item also—which is mainly responsib'e for the heavier figures in the ordinary Budget— in the extraordinary Budget. However, they neglected to do this, with the rosult that for 1918 they had to provide in tho ordinary Budget for 7333.7 millions of marks. They have done this on paper, but they simply cannot get the money. It is little wonder that when thoy look into the dreadful financial future, the clearest-headed Germans can see no way out of bankruptcy, except through collecting indemnities. What the feelings must be of those Gormans who are sensible enough to see that Germany will get no indemnities we are unable to imagine.

* j A reminder of the continued oppres- ' sion of the people in Belgium came a few days ago in a cable message reporting a fatal demonstration in Brussels j against the seizure of all the vegetables I in the markets for the use of the GerI man officers. The Germans have not ' for a day eased their biuta] pressure on the unhappy population. As recently as last month particulars were received from a reliable souroe concerning the conditions in various Belgian tosvns. At i Yirton the German officers behave with

wanton brutality to the civilians, and any retaliation, or even threat of such— the mere act of raising tho hands in self-defence —means deportation or

death. In this town a child was sentenced to ten days' imprisonment because its ball broke a window through which a German officer was looking. In various centres deportations of the malo population are still carried out with systematic brutality. The least thing suffices for deportation to the fighting zone. The smallest infringement of a German order, as, for instance, the cleaning of tho streets that must bo done twice a week, or as regards remaining out of doors after eight o'clock, or the covering up of a light left burning so as to be visible from without —any of these things ensure being sent to the hard labour of the trenches. The mortality of those condemned to work in the front trenches or behind the lines generally is enormous. In 6omo placcs it has amounted to two-thirds of the total employed.

An interesting story is told by a Swiss correspondent of an attempt by a German agent to get peace offers sent to President Wilson. Professor G. D. Herron, who is living in Switzerland, was visited by Professor Quidde, of the University of Munich, who is a friend of Count Hertling, upon whose behalf, ho said, ho had como to prepare tho way for a merciful peace. The terms he was authorised to offer included tho granting of autonomy to Alsace-Lorraine, the restoration of the German colonies, and the abandonment of any idea of economic war after peace comes. Professor Herron expressed his surprise at the effrontery of the offer, which, ho said, instead of conciliating America, would merely strengthen tho American resolve to destroy the Prussian military power. "When I listen to your false and treacherous ovortures," ho told Professor Quidde, "I feel ashamed of humanity." Professor Quidde, it is said, left the house in tears, but Professor Herron continued to be bombarded by offers. He expresses the opinion that tho Germans are now really convinced that America has como into the war in earnest, and has come to stay.