GERMANY'S FINANCES.

Dominion, Volume 3, Issue 622, 27 September 1909, Page 8

GERMANY'S FINANCES.

Sir,—l read with much interest your articlo in a recent number of The Domnion on "Germany's Finances," based on an article in the American "Baview of Eeviows," by * Frederick Austin Ogg. I have recently delivered an address in Blenheim on this subject,' under the auspices of tho National Defence League, and, although my figures and deductions therefrom agree with yours in the'main, there is one important point on which we differ. , You state "that about, half, the. indebtedness of. the Empire is represented by', reproductive works, but the other half is utterly unproductive." This statement is n0t,.1 think, correct. ' The Imperial and State debts of Gevmany are given in Whittaker's Almanac for 1909 .as £819,952,686, of which' more' thatf ■£600,000,000 was .incurred for railways, and is interest-producing. ' Whittaker ~ gives : the amount of;each State debt incurred for railways, except Prussia; The Encyclopaedia Britannica (artiole Prussia), however, supplies this information up to-1899. £390,550,100 was invested by Prussia in railways at that date, and the .amount is no doubt much greater now. Again, Whittaker states (articlo Germany): "The total length of the railways of the Empire at tho end of 1905 extended'to 83,956 miles, of which .about' 92 per cent, belong to' the State. The total cost of construction was .£20,918 per mile. The expenses in 1905 were .£75,539,215, and the receipts £119,460,800." The mileage multiplied by the cost per mile and 92per cent, of the product taken equals £656,000,000, "which represents the State's share of the railways. The net 'income from the railways is £43,921,585, 92 per cent, of this amount equals the State's share, namely,. £40,107,948.' As most of the German debt is held at 3| per cent.,: this railway revenue is sufficient'to pay.the interest on the whole of the Imperial and State debts, and leave a-substantial credit balance besides; So - that, with regard to interest oninational debt; Germany is in a much happier, position-than Great Bri tail, which has to pay £29,500,000 for: interest on-her debt, nearly all. of which-was incurred for. foreign wars, and is, therefore, not interest-producing. —I am;,,etc., , ~ K. F. GOULTER. : Timaru, Blenheim, ' .. September 20,- 1909.;'.'''-.: -'';'.'''-.: ' ' ,'