Show MAGAZINE'SECTION THE SALT LAKE HERALD-REPUBLICA- N ' vy& 'h" v - - Money Raised on Long Loans in Which All Classes Have magazine section UTAH SUNDAY JANUARY 28 1917 C1T5T j- - Upper left Chancellor tok Bethtaua-Hsllw- eg and Herr voa Jaron two liCScnMB7s Matrvas meat” right Em- Peror William aad kla eklrf of ataff oa " kottoa the German enmi ' komebtfkj prince aad Frlace Henry of :rranl-- Poured Into Im- Huge Sums ' Taxes perial Treasury Have Increased but Are Patiently Borne - ':' l y i - ' Shared Many Loans Oversubscribed QfWM Pwxml g ' ' " f V " 'v i i 'C By Prof Dr M J Brown f'vF all the surprisea which the great war so rich in surprises has brought none has been greater than the huge financial resourceful-nessnesa of ' the German nation Before the war practically everybody was of the opinion that a world war such cs the’ one of today conld only be borne for a short time as it would have to be conducted should it last longer than a few weeks with paper money if the necessary means were not secured from neutrals Since nearly two and a half years the German nation has been at war it - has not conducted this war with paper nicney it has not borrowed from neutrals Up to October 27 1916 the "German reiehstag has granted credits of 72000000000 marks ($12380000-000- ) To this must he added the new credits of an additional 12000000-CO- 0 narks or $2000000000 In view "cof a ninthly expenditure of about 2750090000 marks approximately 50000000009 to f7 000000 000 marks have therefore until now been ex- other of the kalwr Ci V J - - ' j - - si- ' v" a' - ' ' j’’ s ' i jmStts i but also to a considerable extent to the ' English blockade The English paper blockade interfered with almost the entire oversea trade of Germany Of the 20000000000 marks reached by it1 in the last years only firo trade with Germany’s allies so-call-ed ' and osear £' w' x 1 - : ? ! - : hs : - v i ( financial policy on the hand to mouth basis It covers obligations which are promissory permanent by short-ternotes which Ihave to be renewed constantly and as the events have shown can only be renewed under increasingly onerous conditions Germany’s financial policy has on the contrary been a domestic and sober one It has essentially been of £h'e inner-polittype A small ‘loan was raised in the United States it has promptly been paid when due and has not " been renewed Some banking credits exist in the United States' in Scandinavia in Holland and in Switzerland but on the whole Germany is financing this war through its own resources while England and the allies have built up heir entire financial system on foreign assistance England has liquidated a large part of its foreign securities — about $1500000000 —another large part has been pledged - in order to secure foreign credits It has on the whole credits secured ' foreign more $1000000-00than 0 amounting to Altogether the allies today owe to the United States about $1800-0000m Ar £ PULE PEDMOND MAY BE PPEMIEP H O'M ic - : -- m 1 m - l ' : 83-8- 95-9- - m o ( -- V- T - oS Golitzin-Muraavl- ln - - - ' the?-Boston- m : e - - attempts $12-5000000- 00 - - s J - - secretary1 - - - m - - - - ' ' ‘ - ' 1 ‘ a ' new' loan it- - could not retain the 4yz per cent feature It would have to promise a rate of interest of from " o to per cent The issue of a 6 per cent loan—corresponding to the rate of interest on the last exchequer ’ bond— would As importation were suddenly available was possible to free them for the domestic needs within a comparatively short time Without the blockade things would have gone as they have in England merchants and manufacturers would have insisted upon the continuation of their concerns To what extent the English blockade has helped our financial strength German exchange rates readity prove In normal times the rate of exchange in New' York on Germany is 952 cents for 4 marks It has during the time of war slowly but steadily declined nntil it reached a few weeks ago its low level of 66 cents From allied sources it is explained that the falling rate of exchange did of necessity prove the economic ' exhaustion of Germany Through an issue of paper money unduly large German currency had been devalued Within Germany this to be sure could not be seen as one could force the population to accept a hundred mark bill at the old value and as one might prohibit a premium on gold ' Paper Currency Increases Foreign counttjes on the contrary had long recognized the devaluation of the German mark which showed itself in the low valne of the German rate of exchange in practically all countries Undoubtedly it is cor- rect that the German paper currency has greatly increased Yet it is much smaller per head of the population than the outstanding French paper currency even if one does not take into consideration that German paper currency circulated in Belgium and in Poland in Serbia anw now in all likelihood also in Rumania The paper currency per head of circulation amounts in France to $85250 and in Gezmany to $32 It has increased in consequence of the enormous increase of economic activities Prices have increased in practically every direction the gold supply of the Reich has been doubled by drawing the gold out of the public channels which has of course necessitated its replacement by paper currency At gold premium nowhere exists not because it has been forbidden by law but because the population has entire confidence in the soundness of the German currency Were it otherwise it would hot be thinkable that it should continue to exchange gold for $12-0000000- s-b- ank s New Police Chief Has Record That Worries Criminals 00' - - DARK - - Mol-kows- : - ki pro-Germani- sm - HERMAN - - - - - - v A‘nlNaYWll rrW " Sacrifice and Industry This enormous financial accomplishment on the part of Germany is due to the spirit of sacrifice and to the industry of the German nation as well as of the German organizations paper probably depress the quotation of the former loans to 60 respectively 75 thereby resulting in a loss to the owners of the English loan of frpm $1000000000 to notrto speak of the huge loss which would accrue on the old English debt In order tef evade this sad hour England now conducts a Jan' 27 —“I always have CINCINNATI able to cope with in the polices dethings and I arise shall be able to cope partment with that arises while I am chief"anything: This was the confident prediction of Herman F Schuettler new chief of police of Chicago whose promotion followed the resignation of Chief Charles trial on awaiting Healey ofHealey is and blackmail and bribery charges many at the mouth of the Danube and is under bonds of $100000-- 'Schuettler’s doesn't doubt German Influence supreme at Con Chicago to with the huge problems cope on ability and the stantinople Tigris now He has for years face which may tall such a course intrinsi- been regarded ashim one of this city’s great cally Impossible And yet' the entente policemen His fame has been identiallies well know that: the Influence' of fied for all time with such celebrated Sturxner the ' lace : conservative pre- cases as the Cronin murder the Luet-ge- rt murder- the Alolkowskl murder mier who triumphs now in the fall of the ‘Krug poisonings the llaymarket Trepoff was for a separate peace The anarchist bomb tragedy the tracking whole group of these reactionaries— down of the car bandits and the Golltzin Sturmer Protopopoff the fiendish crime of barn Richard Ivens monk Rasputin (who may or may not Chief Schuettler’s first famous case have been' assassinated)— is tinged was the Molkowski murder case' with had killed a man in Russia and at least In the Siberia His reca sentence incame popular thought Nothing but a great served out when he ord across the sea doubt can emerge from the return of murdered Miss in Chicago Kletzeck men to bower so far as the lib- State’s these Julius Grennell made Attorneys eral nations of western Europe are con- his on this case Molkowski reputation ' cerned was hanged The danger of the situation may and On the night of the Haymarket riots arrived on the scene doubtless will be maintained by the in 1886 Schuettler czar’s personal power so far aa the sep- a half hour after the bomb was thrown ai rests in the investiarate peace is concerned but one of He made twenty followed Among those he that the worst features of the change is gation arfested was Louis Ling who blew his that It Indicates that the czar does not head off with a dynamite fuse in jaiL know his own mind and that he is He captured street Ling at 80 Ambrose between two courses came near after a fight in which floundering Ling It his captor ' The Haymarket may well be supposed that he has been bomb killed twelve led to regard the liberals as rather killing policemen and Parsons more concerned with Russian political wounded sixty-tw- o anand Fischer were Engel convicted Spies changes than they are with the proseFieldSchwab archists' hanged cution of the- war to prison They ing and Nebe went Governor He cannot forget that the country were by pardoned Altgeld was on the verge of a social revolution Neebe the last of them alive died only when' the war broke out and that it a few months ago Lawrence Krug was a taxidermist may be conducted by the radicals to or nine persons 'killed another such" crisis before the war is who He eight murdered a number by over This fear doubtless inspires his poison women for their Insurance but later of It of the to reactionaries callings he killed a number of power was believed ' But the confusion of rulers and the men for the pleasure of killing suspicion of disloyalty to the entente Schuettler sent him to the peniten&re certainly a greater embarrassment tiary where he died The Cronin murder perhaps Chicato Russia’s prosecution of the war than go’s most famous crime cama In 1889 else could be They must Dr anything was lured by a false sick raise most uncomfortable " emotions in JI call Cronin rooms and murdered in a from his councils of the allies : the cottage at Ashland avenue and Roscoe :f : - 00 ’ s remained - 9000-00000- PISH had It 000000000 marks have been7 covered term -loans Cv by 5 per cent long y j ' Loans on Long Terms Germany has therefore raised four-fiftof its war expenditures Jby long term loans Of the $16000000000 which Great Britaih lias expended for the war until January 1 1917 there'r have been covered by long tenn loans $850000000 through $4700000000 in loans foreign countries $5300-00000- 0 treasury bills through $2800000000 exchequer’ bonds etc In other words England has covered pended f only 374 per cent of its war expendiShould o:ic add all the paper curtures by definite internal :v loans — German ihc of impeempire rency Everything else has been covered rial bank notes notes of the private through short term obligations Such hanks treasury noteo and imiK'iial a cover however is 'no cover at all treasury notes— one should reach a Treasury bills must be renewed every total c: i rrenc v amounting to 9000- half year or at the latest every year 0 of the German financial policy could 090000 marks Kven if these They are justified as a financial n arks would represent uncov- not prove that the war expenditures measure only where they are thought ered paper money — in reality about of 50 009000 000 marks had beencov-ere- d of as a transitory measure i e the by these 9000000000 marks 7000000000 marks are in conformity bills occupy in the Of the 52000000000 marks which position treasury i t li hanking customs properly covThe Ger- ered by gold — the roost intense enemy were granted until Qctober 27 46- - German financial policy man empire places treasury bills due in three six or twelve months in the I open 'market with bankers or industrial concerns It pays the current market rate of interest which has been during the last few months about 4 Vfc per cent When the bills fall due they are repaid from the receipts of loans This has taken the long-terplace in such a way that every half year until now a eon version of treasloans 4 at a ury bills into long-terdefinite rate of interest has been acThe - 64000000000 complished marks so far granted should last until March When they have been used up the position of the German finances will probably be as follows: 47000- 000000 marks Have been raised the entire world and especially to the by loans at a definite rate of interest American money market' for when 17000- 000000 marks could be raised peace comes this ‘entire huge amount “ by treasury- bills Before this sum must be converted into funded debts will have been reached preparations It is the most reckless fiaanci&LpoU for a new loan- - will be ' under way icy whicli has ever been attempted from the proceeds of which a part of English Loazis isig these treasury bills will be repaid England lias placed two large long- Should the war not be finished then term loans a:3y3 per cent one at 95 the issue of treasury notes will again and a 4 one at '100 These loans be resumed have been placed comparatively Custom Business Sound but — easily 27 The London today they tire quoted at LONDON Jan of le4 is bills the Manchester 6 Use Should Engof treasury Such a ’respectively Guardian who is usually behind the gitimate and in li armony with sound land today come into the market with scenes in Irish affairs gives a foreThe method of t Le business custom cast of a new Irish administration which may be set up in Dublin English financial policy can only be characterized a s' reckless The sum VI have it tonight on good authority” he says “that negotiations for obligations is coa- of the short-terthe settlement of the Irish’ question I stantly increasing Only a year-aghave been reopened in certain direc4- it stood at $14000000 today it has tions and informal consultations and reached the amount of $5500000000 Russia Now the Cause of discussions of a significant character ' ore in progress Should Feace be established today Uneasiness ui the Concert “One thing is clear and that is would have outstanding Germahy’: that the exclusion of Ulster or any from! $l£6o000000 to $1?700(K)000 of 'rEurope i of its counties will no longer be conJv in treasury bills repayable some: time sidered by either Nationalists or HE resignation : of ' Alexander Tre- within the curirent year England on Unionists Home rule all around is as the ' czar’s primA minister xthe basis of the new proposals and the contrary would have outstanding withpoff his replacement hy so dark ' a my informant (whose name would be Above John Redmond (left) and $5500000000 of treasury bills Con- representative of the forces of reaction recognized as of Veight) is confident Lord Wimborne below Sir Horace ditions in France are Is a disnot any better as Prince’ TL‘ that both Mr Redmond and Sir western the indication for quieting the French war expenditures have so allies of Russia- By one fell swoop: nr- will view Carson ward of the It in ’ duma and all the forces of far amounted to $13000000000 of puts the In geney of an Irish settlement from the 'Russia completely out of )Hint of view' of the prosecution of the executive would include seven these $2000000000 to $JU00000000 progress business' says Transcript Unionists Here six home and rulers tlie war be persuaded to agree to' atends for a It the short-terhopeful Much are obligati"n ' me: reached is the forecast as it V a at rihem fpr-thcoalition tempt prosecution of ' the war ' between the conservative Lord Wimborne worse are matters in Russia" The to- and “A forecast of Ihc composition of Lord lieutenant progressive Influences in RusWilli&m Moore K C tal expenditures of the Russian ' gov- sia tjie Sn Irish administration which Speaker And it raises at yonce the spectre what once would have been Prime minister J E Redmond ernment have been estimated at of a separate peace ‘to be negotiated between Russia and the central powers the impossible task of pleas- Lord chancellor Sir James Campbell thought $400()-00000- 0 these Of only It is not really likely that any such ing all parties lias also been given to Minister of finance Wm M Murphy will or can be negotiated Russia peace a covered been have longy me from the same source It bears Education Mr' John Dillon Is too deeply: committed to the prosecution at least two or three 'on the face of it long and intimate Agriculture of the war on the basis of enSir Horace Plunkett term loan while 'I have ' bean covered by shortt- tire agreement with the British and the Mr Joseph Devlin billions knowledge of Irish affairs The of Labor French It is evident that any other 1‘ices of importance are evraly dis- - Industries and mines Mr Barry ermcourse any desertion of her allies on obligations tributed between the forces of the Home Russia’s part would inevitably expose Major Craig Irish nation— in fact the administra- - Postmaster general Mr MacVeagh 'To this debt in treasury bills: there Russia to a future German advanco Into vitals: !dion is drafted on lines of equal rep- Attorney general D S Henry K C have to be ’added about $10000000- - her very ’ to negoRussia If 'were Solicitor general John Clancy K C 000 short-terresentation bonds Running from tiate separately weak'enough with v Germany and Austria now she could not hope for “Of the proposed executive seven ‘‘It is of course a fal cry to the one to ' five years-any terms which would not be humilare Iioman Catholics and six are construction of a new Irish governdoes debt which: would not result in th This not floating only iating Protestant and of the high court ment but the whole list is I think extension of: German' influence' over judges (not counting the lord chan- worth giving as showing how strong represent a danger to the finances of Poland and ovef the Slavic racea of the Balkans lt would mean- farewell to cellor) seven members are chqen of the tide is running for an agreed so- this country when peace is and presumably fareeach domination Politically classified1 lution of the Irish problem but it represents a danger to Constantinople well to Persia ' It would : mean Ger PLANS neighbors grave as this loss appeared daring the first weeks of the war as great has now proved its blessing All the industries which were wdrking for ths oversea trade all the great financial means which were necessary for the - ‘ ' ' F SCHUETTLER I street His body was found In a man-ho- le The spot was uninhabited prairie then Schuettler did come of his In chasing down best w°rk Dr Cronin s murderers as celec8 almost as tne Cronin brated Illet£ert murder was solved chiefly through the Instrumenof Schuettler It was his evl-otality that fastened wife murder on the ' old German sausage maker him to prison where he died and sent Schuettler tracked down car barn bandits He obtained a theconfession from Gustav Marx and which led to the arrest of the others— Peter Nieder-melVan Dine and Otto Rieske Harvey Niedermeler Van Dine and Marx were hanged Rieske was sent to Joliet for life He went crazy a few weeks ago and was removed to the hospital for insane criminals at Chester Pc er |