PAYMENTS IN PAPER.

Star (Christchurch), Issue 11685, 29 April 1916, Page 1

PAYMENTS IN PAPER.

GERMAN APPREHENSION. According to a Zurich dispatch to the ■'Corricre della Sera," a good deal of perturbatiou prevails in Government •and financial circles in Germany in connection with the proposed new war loan. It is generally recognised that the new loan will prove a completefailure if offered* at tho same rate of interest as the preceding loans; indeed, it is doubted whether even 5 per cent will be enough to ensure ia- sufficient sum being forthcoming to provide for the essential military deeds.of the EmP* re - The same dispatch asserts that the number of workmen in the German State factories where banknotes are manufactured has been largely augmented, and that paper money is being put into circulation to the extent of iianv hundreds of millions of marks m excess of tho country's gold reserves. All German payments and loans to her allies are being made in paper. The feature of tho financial situation which is causing most concern to the German Government, in view ot the projected new war loan, is the fact that the feeling is rapidly gaining ground among tho population that after the war Germany will be completely bankrupt and' unable to pay her debts, with the result that the Government will be compelled to repudiate its war loan liabilities.