The Daily News. MONDAY, JUNE 25, 1917. DEPLETION OF GERMAN RESOURCES.

Taranaki Daily News, 25 June 1917, Page 4

The Daily News. MONDAY, JUNE 25, 1917. DEPLETION OF GERMAN RESOURCES.

Although prudence compels the Allies to Ignore the economical pressure in Germany as a factor beaming on the duration of the war and to rely solely on a victory by force of arms, there can be no question that the Central Powers are acutely feeling the strain of financing their military operations and providing a sufficiency of raw material for war purposes. Notwithstanding the elaborate preparations made for the carrying out of her ambitious and vain-glorious schemo of world-domination, Germany rieyer for a moment contemplated a war lasting for several years. As the result «he is feeling the pinch of the screw acutely though attempting to bluff the world into believing that her resources are ample for all purposes no matter how long the war lasts. Of late we have obtained an insight into her real condition, but it is very probable that the more weighty affairs on the fields of bat' tie have overshadowed the internal troubles. On June 15 a cable from Berne stated that the German mark had again fallen remarkably, it being quoted at sixty-seven francs fifty centimes,-where-as the normal quotation is one hundred and twenty-three francs forty-five ,tentimes. A few days later we find the Vorwarts lamenting over the depreciation of tjie mark and asserting that &n improvement was impossible "so long as Germany wages war against a league aiming at her destruction." Then there was a message to- the effect that municipal finances in Germany seemed to be reaching a desperate state, for towns were borrowing from Swiss banks on terms that meant taking the mark at about seven pence and repaying it at the rate of over a shilling. There is a close connection between the municipal finances and those of the Government, for the former have to make certain payments on account of the Imperial authorities on the understanding that they will be reimbursed monthly. The failure cf the Government to carry out its part of the bargain has forced the communal authorities to borrow and the enormous fall in the value of the mark has made that operation ruinous. It is stated that in Prussia alone the arrears due amount to one hundred and twenty-five millions sterling, so that some idea of the speed at which Germany is drifting to hopeless bankruptcy may' be obtained. It must be remembered that the German war

U-sns'R-oro'raised on the understanding that the indemnities to be wrung from her enemies would allow of a handsome profit on the investment. It was one of those unscrupulous methods of gambling that Germany has adopted to nteet her desperate needs, and the immediate result is the constant lessening of the value of. the mark,'while the ultimate result will probably mean a ruined and dismembered country the people of which will be ready to rend their betrayers. It might at least have been expected that

■.». German Government would have . strained a point to meet its financial commitments in regard to the maintenance of the dependents of the men who are called upon to Sight. This liability falls in equal proportions on the funds of , the Empire, the States, and the Communes, but the Imperial authorities have no more care for the dependents than they have for the lives of the thousands of men sacrificed needlessly in order to carry out arbitrary orders, so the Government's contribution remains unpaid and again the Commpes have to borrow, every loan forcing down the value of the currency. In the last eight months the value of the mark has declined nearly as much as it did in the whole of the first two years of the war. On the top of this the people have to bear the grew rise in the prices of goods in neutral countries where the mark is regarded as worth little more than half its normal value. Harvest prospects are said to be bad, copper is almost unobtainable, all iron, steel, tin and wood in Plunders is being confiscated, and Germany's power is on the wane. The Germans have been doing a large trade with Switzerland, evidently at great profit to the Swiss who, it may be assumed, give no credit, but have hitherto exhibited a neutrality which was considered to have strong pro-German tendencies. The Hoffmann episode, however, has revealed'an undercurrent of feeling that is decidedly inimical to. the Germans. A recent cable from Geneva reported that fifteen thousand persons made a demonstration at which they demanded further investigation into Hoffmann's action, and disturbances followed outside the German, Austrian and Turkish consulates, the German coat of arms being torn down and thrown into the lake, while all the windows were smashed Possibly the Swiss people, apart from those who have been reaping a rich harvest out of trade with Germany, are now realising that they j have backed the wrong horse. The outj burst of animosity is certainly indicative of Germany's loss of prestige in Swit- > and is not without its bearina.

on the declining fortunes of the Hohonzollerns. Austria is even in a worse plight than Germany, for the people are saiil to have become apathetic as to the result of the war. These side lights, while not worthy of undue weight, are still sufficiently important to note as factors hi the growing desire for peace. The entry of America into the struggle and the improved conditions in Russia cannot fail to make a great impression cn the people governed by the Central I'owers who must surely discern the near approach of the day of reckoning.