GERMAN FINANCE.

Manawatu Herald, Volume XXXVII, Issue 1431, 31 July 1915, Page 2

GERMAN FINANCE.

It is rather difficult to escape the impression that German war expenditure is on an even greater scale than is generally supposed, remarks the Morning Post (London). “On the whole we still incline to the belief that the German loans which have been offered for subscription have been genuinely applied tor, but all the same it is very difficult to trace any affluence on the part of the German Government as a result ot these subscriptions. On the contrary, all evidence is rather in favour of the Government living on a somewhat hand-to-raouth policy. When the war commenced in August last, nothing was more natural than that the Reichsbank should immediately be called upon to make large advances to tire Govcinmcni, aird accordingly the item of bills discounted and ad vanecs shown in the weekly returns jumped up from about ,£40,000,000 to After the flotation of the first German war loan partial repayments were effected by the Go vernraent, and by November 7 the total of lulls discounted, etc., fell to about /,i 34,000,000. From that dale, however, tire German Government again became in need of assistance, and by March 31 of this year the advances had grown to no less than Then came the great German loan, said to have yielded some /450,000,000, but although heavy re payments were made to the Reichsbank the total of bills discounted, etc., did not go lower than and now, in spite of the large proceeds of the last loan, there has been a steady increase during recent weeks under the bead of such advance. Briefly, it may be said that, while the oue ‘show’ item in the return of the Reichsbank, namely, the gigantic holding of gold of is probably genuine enough, all the other items signify not only a good deal of inilation but such huge outlays on the pari of the Gorman Government as to require constant applications to the Rerchsbank. Still, it must not be forgotten that, owing to the self contained character ot the country and the fact that Berlin is not a great gold centre like London, the financial problems ot Germany are somewhat simplified in the sense that the question of making payments for imports is of a less pressing character than in the case of the allies.”