GERMANY’S FINANCIAL STRAITS.

Manawatu Herald, Volume XXXVI, Issue 1300, 22 September 1914, Page 4

GERMANY’S FINANCIAL STRAITS.

It is announced that Germany is finding difficulty in obtaining contributions to the loan of which she has asked for, and that only has been subscribed. An interesting opinion as to what Germany’s financial predicament would probably be in the event of war is given by “En Avant” in the September number of the London Magazine. “Those who have studied the question closely,” he says, “believe that, in the event of war, Germany has more to fear frpm financial difficulties than from the enemy. Victory on the battlefield is possible, but bankruptcy at home is said to be inevitable. , The evil of the method lies in the complicated system of credit which German trade has adopted in order to oust her rivals from the various markets she has coveted. Go anywhere in the Near or Far East, and you will find German commercial houses offering six months’ credit to people an English, moneylender’s tout would not trust for a day. If Germany suddenly finds herself at war with some Great Power, the first act of each citizen will be to withdraw all available cash from the bank, in order to leave his family something to live upon while he is away fighting—the German soldier is only paid Bf4d per week. The bankers will have to call in their loans from, the traders, and these will fie unable to realise their assets! The trader who has got j£ioo worth of goods out on six months’ credit in China or Turkey would be glad to get j£io down in cash. The traders will thus inevitably go bankrupt, and the banks, unable to get In their money, will be obliged to stop payment. Therefore, money is going to cou.nl;, We have won with a silver bullet before.”