The Dominion WEDNESDAY, AUGUST, 25, 1915. THE FINANCIAL BURDEN OF WAR

Dominion, Volume 8, Issue 2549, 25 August 1915, Page 6

The Dominion WEDNESDAY, AUGUST, 25, 1915. THE FINANCIAL BURDEN OF WAR

The brilliant success of the recent British war loan is the subject of wide comment in latest European and American newspaper files to hand. Our friends and our enemies alike were deeply impressed, by the magnificent response made'to the appeal of the British Government for money required for fighting the enemy with 1 ever-increasing vigour. It was impossible for German financial critics to explain away the plain solid fact that nearly £600,000,000 had been raised, and that this huge sum was new money, and did not include any stock to be presented for conversion. Germany is now issuing anqther war loan, and Dr. Helfferich, the Finance Minister, has assured the lleiohstag that the Government does not intend to imitate "England's sensational advertisements. ' This envious jeer is not at. all likely to hurt Mr. M'Kenna's feelings. He has publicly thanked the British Press for its valuable assistance, and he has the satisfaction of knowing that Britain's war expenditure for some time'to come has been provided for. Tile amount of the German war loan has not been disclosed. A cablegram dated August 13 stated that a Bill asking for. a new credit of £500,000,000 had been passed by the Federal Council, but it has not yet been announced whether the whole of this sum or only part of it is to be raised by loan at the present time. The loans of the nations up to date so far as is ascertainable are given by the Daily Mail as follow:— '£ United Kingdom 935,000,000 France 336,000,000 Germany 676,000,000 Austria 2-48,000,000 The figures for the United Kingdom, of course, include the loan of £585,000,000 raised in July. Germany's new loan will probably increase her total lo about £1000,000,000. In his speech in the House of Commons, 'Mr. M'Kenna remarked that the total of the British loan "is far and away beyond any amount ever subscribed in the world's history, and has only been obtained by the patriotic response of the whole of the people. ... All classes have been equally concerned. The individual, tne trading interests, and the great banks—joint-stock ana private—all have contributed." The result achieved is a most impressivo proof of the nation's determination to win this war at all costs, and also conveys some -idea of the immensity of _ Britain's financial strength. Within a year she has provided by loans ' no less than £935,000,000.'

In the course of his speech 'on the War Loan Bill, Dk. Helffekich said "this heavy burden of one thousand millions must be borne through the decades by the instigators of the war, not by us." The people of Germany are being buoyed up by the belief that the vast sums they are spending 'on tho war will come back to them in the form of indemnities Britain is the caief enemy, and the German idea is that she will be compelled to pav, even if she has to be "bled white. Tho Germans arc already reckoning up tho amount it will bo possible to extort from us. In his History of the War Mr. Btjchan writes: The war finance of all the belligerents was a mutter of gicantic loans, but tho security differed. With the Allies it was a. weakened, but in its main lines a normal, economic lifo; with. Germany it was solely tho prospect of victory and the fruits of victory. Defeat for Germany would mean a colossal bankruptcy. She had made all 3ier assets a pawn in tho game of war. In explaining the. curious methods by which German war loans are raised, Mr. Buciian states that by means of orcdit societies advances in notes arc made on every kind of property. ' Thcso notes are legal tender, and against them tho Reichsbank issues its own notes. The general result is economically not very different from what would have been obtained by a large increase of Government notes without gold security. These methods arc quite justifiable for a country in Germany's position, and. so long as her people look for victory so long are they justified in believing that indemnities and the spoils of conquest will' liquidate all the obligations which the State has incurred towards them. The more thoughtful section of tbc German people are, however, beginning t-f) I'n&liise that t,H<? L ond of thfl vw u not yet 17

in sight, and that the _ outlook is full of uncertainty, while all the time the war bill grows at a tremendous rate. Who is going to bear the burden? Dit. Helmerich is endeavouring to reassure the fearful ones by telling them that the enemy will have to pay. It is well for us to know that the Germans will spoil the British Empire if they can. Dn. Helfferick makes no secret of the fact that if Germany wins this war wo will have to pay an absolutely orippling indemnity. We will receive no mercy. And yet there are people amongst us who tell us that it would be wrong, to impose an indemnity on Germany. The Kaiser's Finance _ Minister has declared that the instigators of the war must pay the bill. The Allies will no doubt bear these, words in mind when the day of reckoning comes. Dii. Helffehich says that Germany did not instigate the war, but an overwhelming array of facts givo the lie to this statement, and if the instigator of the war is going to pay the bill, the bill will certainly be paid by Germany. .