COST OF THE WAR.

Colonist, Volume LVII, Issue 13729, 18 March 1915, Page 7

COST OF THE WAR.

GERMANY'S FINANCE

I. In a lecture given at Auckland, Mr Meredith Atkinson, M.A., director of the tutorial classes at the University of Sydney, said (reports the "Herald"): German finance had never been very sound, though the conti-fuy opinion was generally held. The finances of the German banks had been strained to finance new industries in the effort to overtake countries which had a start of two centuries. Banking methods in Germany were crude and antiquated, the cheque-book being practically unknown. Taxation, especially for the army and navy, had been overwhelming and had caused grave discontent." Though far from being economically exhausted, Germany could much less afford to lose than any of her enemies. Her whole fortune had been involved in a rapid success, and that was now utterly impossible. Her defeat was ensured by two paramount weaknesses —'Germany was not a great creditor nation like France and England, to whom every other nation owed thousands of millions, and she had not command of the sea.

Loss of trade had already crippled Austria during the Balkan wars, when hundreds of banks and business firms collapsed. Her financial situation was worse than that of any other nation. Mr Atkinson said that though Belgium now presented the most pitiful spectacle of a nation of unemployed, there was no doubt that the primary condition of peace would be a considerable restoration of her economic resources. Russia possessed limitless resources and a power of recovery that was -unequalled. Her banking system was very strong,- and her wealth- was rapidly increasing. France was probably second only to England in actual wealth, and would, no doubt, again exhibit that marvellous power of national recuperation so clearly proved after the Franco-Prussian war.

Speaking of the probable final effects of the war, Mr Atkinson said that its cost could best be suggested by a statement of the facts that 20.000,000 men were engaged, and that. £10,000,000 was being spent daily. The total cost of one year's war would be at least £4,000,000,000, in addition to which must be counted the appalling wastage of men and the loss of trade and capital. He considered that Australia would enjoy a "boom" for two years after the war, since even exhausted nations must buy wheat, meat, and wool. It seemed that a slump was inevitable, though, no man could estimate the power of recovery of the world in its present advanced state of production. He did not agree with the pessimists who predicted a reaction of a century, for nations had at last become self-conscious, and a new era in social politics would be ushered in by tho declaration of peace.