GERMAN'S FINANCIAL STRAITS

Southland Times, Issue 17764, 24 September 1914, Page 6

GERMAN'S FINANCIAL STRAITS

!i is o-unoun-ed that Germany ’s finding diiV’K-jlty in obtaining contributions ;■> ili- loan of IMO.iXrO.fOO which she has for-, and that only £10.000.000 lias b<-cii suhscribed. An interesting opinion a.s what Germany’s financial predicament wot*ld probably be in the event of is giv-n by ”Kn Avant.” in the Set.’.ember number of tl;e London Magazine. “Tlin w!io have studied the ■ uie.air.il closely." !■ says, “believe that. In tii- event of war. Germany has more to --a;- fr<-m financial difficultie-s than B-i.m the en.-m;--. Victciy on the battle-li--ld is nossible. but bankruptcy at home I- said to be inevitable. The evil of the system lies in the ■ (implicated system of i red it which German trade has t.-d in (inter t.. oust hep rivals from the \ arious nnii h-’.s she has coveted. Go an’'Where in the Near or Ear East, and yon will find German commercial houses offering six months' fi-dit to people an English moneylender’s tout would not trust for a day. If Germany suddenly finds herself at war witli some Great Rower, the first net oi ijifli citizen will t.e to withdraw all available cash from the bank, in order to ieaxe his family something to live upon while he is away fighting—the German soldier is only paid s tid per week. Ihe bankers will have to call in their loans from the traders, and these will p- unable to realise their assets. The trader who lias got £IOO worth of goods out on six months' credit in China or Turkey wonld bo glad to get £lO 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 : s going to count. We hay- won with a silver bullet before.”