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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (April 7, 1918)
THE SUXDAY OKEUOMAX, PORTLAND, APR1X 7. 1918. 5 REIGHSBANK GOLD HOARD IS AT HIT German People Have Given Up Virtually Their Last Ounce to the Fatherland. WAR CHEST WELL FILLED fgrrrutn; Circulation of Vote- Con Merrily On Wit boot Any Mors BarLinc Than It Had Three Year Ago. BT CTRILi BROWN. CBHillM, 11, b the rrni I'obll-Mng Co. rublahM hy arrangement witb the 2tw Tor World. The Relschsbank had la Ita vaults a January 1. 2. 40e. 600.000 mark la gold.t wtc aa much aa at the out break of the war. - Uerraanya golden war cheat of 204.000.00 mark! and the rapid withdrawal of sold from circula tion Increased the Kelschbank'a stock of aold from l.St-v.vOO.OOO marks at the outbreak of tbe war to 2,000.000. Oce marks at the end of DM. a further patriotic fold drive carrying It beyond the 2.30.l)0t,00 mark by the middle of 1JH. From then on. however, the flow of cold from patriotic pockets and all other sources. Including the melting down of sold articles, has just about kept pace with the inevitable drain of Cold to neutral countries. More than 1 . 1 io .000.000 marks In sold have been shipped abroad to bolster up Oermanya credit and that of her financially weak er allies; while for the last three years the Ketschbank a cold reserve has hov ered around the present figure, showing no material upward or downward movement. The significance lies In Its mark Ins time while the increasing circulation of Relachbank notes goea. merrily marching on. increasingly denuded of Sold covering. Last Oaaec of Call Give ts. Nor can the Relschbank expect any appreciable accessions to its sold hoard In 1I or the balance of the war. The tine tooth comb of propaganda and patriotism again and again run through the German people bas missed few coins; the bullion value of unpatriotic gold toothpicks, watrhchams and other paraphernalia, still la ue or la hiding, is negligible. The ;erman people hare given up virtually their last ounce of gold to the fatherland: nearly half a billion In gold flowed Into the coders of the Kclchs bank during 1917. but the stream was fast drying up toward the end and In JH should be Uttle more than a trick ling of gold. Thouchiful Germans harbor no de lusions about the staggering monetary and financial problems being heaped up for the vaguely distant peacetime solution under the present dolce far nlente policy, which yet with typical Teuton tenacity will be clung to for the balance of the war. By continuing the war with loan piled on loan and recent covering up of deficit. Germany Is going Into voluntary bankruptcy, with the grand liquidation postponed until the reconstruction period. The one speedy, radical cure for Im perial war finances admission of de feat, capitulation, and acceptance of Americas generous terms has oc curred to no normal German; the only other, at least partial, remedy Imita tion of Great Britain's example, part payment of running war expenaes out uf war taxes has occurred to many Herman specialists, ts admittedly the logical thing to do. looktne at the case only from the financial and economic . viewpoint. Hut there la also the hu man point of view. -Were Taxes Set Feasible. No financial stratectst dares even to try this rUky. radical remedy on a peo ple already reeling under a super-burden of food and other war hard5hipa. Though It might affect a partial cure. It would almost certainly kill. There la a very real and reasonable fear that super-war taxes sufficient to pay any apprectble part of the current cost of the wsr would prove the last straw to break the German people's back. It Is fully realixrfl In Germany that the phenomena of Inflation and rising prices could at least be mitigated by a revolutionary tax reform during the war: that the Kelchsbank note presses could be slowed down If Incomes were ruthlessly war taxed: that turning the thumbscrew of tried old and Ingenious ly new war taxes unttl the nation winced would nevertheless have the salutary effect of screwing down not nly paper circulation and war debt. Against these certain benefits Is the unanswerable militarily significant ar gument that the German people might crack were excessive taxation strsin added to food pressure and nervous tension. laeosso Tax "Mala Soareeu There Is, too. the further valid arru meat that under the federal constitu tion the Income tax is the exclusive prerogative of the several federal slates; It constitutes the main source of revenue, the backbone of their war budcets. and part tcu La nam la Jealously guarding this profitable prerogative. Psychlogtcally and constitutionally motivated, imperial policy of taxing capital la first line (particularly swollen war profits), of sparing incomes and eking out Imperial revenue with Indirect taxes must be continued for the balance of the war as In the past. In the opinion of specialists war tax ation of the masses of the German peo ple has already approached the limit of the bearable under prevailing war conditions. The Increased Imperial war taxes will net t.Aoo.ewn.dOe marks In 1MI. In cluding the slldtnr scale tax on war HE DARKENED HIS GRAYHAIR Tsey t eed to rail Hiss Craadpai New They tall Hiss Rid. Telia How lie Did It. Mr. J. A. McCrea. a well-known resi dent of San raac!sco, who was called Daddy and Grandpa on account of his white hair, and who darkened It with a simple home-made mixture, recently made the following statement: "Anyone can prepare a simple mix ture at home, at very little cost, that will darken gray hair and make It soft and glossy. To a half pint of water add 1 ounce of bay rum. a small box f Barb Compound and V ounce of glycerine. These Ingredients caa be bought at any drug store at very little cost. Apply to the hair talc, a week until the desired ahade la obtained. This will make a gray-haired person look 2 years younger. It doee not color the scalp, la not sticky or greasy and does not rub off. My friends now call (a 'Kid." " Adv. profits, running close to a fa per rent maximum, increased tax on cigarettes, coal tax and tax on transportation freight and passenger) as principal Items. All of the 8. 000.000. 00 marks thus rali-able will be needed to pay the In terest on war loans and floating war debt, particularly as there Is a beavy drop In the yield of the normal peace time taxes. Nor are Incomes being overlooked be the federal states, which are milking incomes to the tune of at least I.eoo.oftO.OOO mark mora for 11 than In 117. Flaaae aa I averted Pyramid. Cnless imperial fiance streatgy can overcome Its constitutional and psy chological scruples against an Imperial war Income tax. there ts no surplus tax money to be squeezed out of the Ger man people either for part payment of primary war costs or for amortization of the funded war debt. ' The policy must continue to be piling war loan on war loan, expedient on ex pedient, deficit on deficit, and trying to keep up appearances of sound business, brilliant financial jugglery and sleight-of-hand work combined. To achieve this feat In the past, the strategic dispositions have been scien tific and masterful. All Germany has been dazzled by the "phenomenal suc cess" of the first seven war loans; most all Germans are as confident that the next seven will be an equal or greater success, aa they are confident that Ger many cannot be beaten by military means. Fashions In German war loans never change; you might say that they raise themselves automatically, once th complicated machinery Is set In mo tion. and they all show an astonishing family resemblance aa to size and makeup. All war Industries, all legitimate war proniteera who hope to make further profits out of military orders subscribe the same amount loan after loan, else a shade better; so that today there are many concerns In Germany whose holding of war loan bonds exceed thel entire capital stock, war loan holding in some cases being six times create than their capitalisation. Lea as Fixed Assessment. In rare Instances only do war loan subscriptions of war profiteers show declining tendency. The amoun subscribed to the last loan la tacitly considered a fixed assessment to be subscribed to the next. There is no doubt that Krupp will continue subscribing 40.v00.00v marks to every war loan for the balance of the war and that the smaller fellows will toe the mark with their quota. Nor are the corporations and enter prises Indirectly profiting out of the war overlooked. All these, too, have their tacit assessment for future war loans, to be equaled or beaten. Insur ance companies, savings banks, all-res ervoirs and accumulators of capital. paid or easily convertible into cash, are morally bound Jnd officially stimu lated to keep up the subscription pace set during past war loans. Mutual ben efit and other benevolent associations, unions, leagues and what not. every organization likely to have reserves In the cash drawer is shown on the list for a fat assessment. Capital la eblllaed. For the -Spring and Fall war offen elves capital Is mobilised with thi ruthless inevitability Mf a military mo bilization. The complicated war loan machinery, with Its tens of thousands of volunteer workers and cmplre-wlde propaganda, is so highly specialized that it even has specially printed forms of patriot 10 appeal for tapping the mall savings of servant girls, and an other circular letter form of appeal to housewives and mistresses to see to it that their servant girls patriotically sunscribe to the war loan. This complicated machinery func tlona as perfectly aa the military ma chine and can be counted on to raise war loans to the limit of the humanly possible. It Is probable that on the basis of the experience and statistical material gathered In floating past loans the Imperial finance experts can esti mate the yield of each new war loan to within a billion marks before it is even launched. Subscriptions to successive war loans tend to maintain their level, but under propaganda pressure and intensive of flclal stimulation frequently show i marked increase from loan to loan. Thus Germany's savings banks sub scribed lo the amount of 4.8VO.000.0OO marks In 1915. S J".000.nn0 marks In 11 and .00. 000. ooo marks In 1917. wealthy Individuals and corporate war profiteers, on the other hand, show the very general tendency to stick to a fixed figure in subscriblna to successive war loans. A partial limit has here been reached and successive war loans ran be boosted over the previous rec ord figure only by drawing a greater percentage out of the pockets of the public Elastic Money Market. - The capital requirements of the fed eral states, of municipalities, of corpo rations and private individuals are forced to keep in the background, per mitted to snap up such crumbs of capi tal as are left over after each succes sive wsr loan flotation. On the same principle everything possible haa been tried to check stock speculation and the emission of new stocks and to dis courage capital from wandering into other channels of investment than war loans. The practice of paying current war expenses with the proceeds of Imperial treasury notes discounted by the Reichstag acts as a shock absorber, preventing excessive strain on the money market during Spring and Fall flotation, permitting the Reichsbank to maintain unchanged Its official rate of Interest at i per cent; the elasticity of the German money market even under abnormal war conditions is felt in the increasing rate at which war loan sub scriptions are paid In. The banks of Germany do not sub scribe war loans liberally for their own account. Their function is considered to lie In Indirectly helping to absorb the huge loan by advancea to the pub lio for the purpose of subscribing war loan. The beginning of 1918 sees a marked tendency on the part of the banks to keep an increasing proportion of their resources liquid. The complicated suction pump appa ratus can. barring a military break down, continue extracting normal war loans out of the German nation Indefi nitely, and the past success Justifying future confidence is interpreted by Ger mans as proof of the tremendous eco nomle vitality of the German people. There Is. too, a widely held popular fal lacy that imperial finance is sound "be cause the money remains in the coun try. (Continued tomorrow.) "Jiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiimiinii .-Tff .W-- r'HI fir. 'in vl-JL. If-l w K- -- J . ' ; I LAURELHURST Owner lea-rlne; the cltv. and will make a genuine sacrifice in order to S make a hurried sale of his pretentious Colonial home, situated close to car in the most exclusive section of Laurelhurst. jr It has nine large rooms; every 'window in the house Is plate glass, S hardwood floors not thin strips, but solid oak flooring), solid brass hardware, the very choicest anil most expensive plumbing; and lighting fixtures, massive fireplace, larite entrance hall leading to unusually large living-room running the full length of the house, beautiful, dining- room with elaborate built-in buffet, dainty breakfast-room, irencn doors, a perfect Jewel of a kitchen vrith screened back porch. s An artistic winding hardwood stair leads from the front hall, with S rail of mahogany. A nice, large, comfortable sun porch or den opens off from the rear of the living-room. r Three extra large, well-ventilated bedrooms, with hot and cold water and a large enclosed sleeping porch, large bath with private entrance to main bedroom. , - . . , -, . NOTK THIS FEATI'HEi Inside woodwork Is old Ivory In seren-coat work, rubbed down with steel wool. THIS MEANS PIANO FINISH. The rooms sre beautifully pnpered and decorated. You'll find a full cement basement, with lots of light and room to' swing an ax. a guaranteed heating plant, a convenient garage with eolld concrete runway, a velvety lawn with trees and shrubs. In fact, this is one of the most complete homes in the city. Every- s thing Is right and Just as you would have it if you were building It s i-nr..lf If you were to attempt to erect this house on the present market It would cost you about $10. 00 for the house without the lot. In order to make a quick sale we will sell it at a price that makes It an ' LABtATABLLi bargain. J. L. Hartman Company NO. T CHAMBER OF COMMERCE BLDG. PHONE MAIN 208. A 3050. Branch Office) Open Sunday Only 45th and Saady Blvd. Ne Phone. Hliilll-lllllllllIllllllllllllllllllllllIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIinilllllllimillllr: OZERNIN OWN UP Austrian's Disregard for Truth Fully Demonstrated. DIPLOMATIC SECRETS OUT French Government I.ncs State ment That Confirms Clemcnccau's Denial of Alleged Talk Re garding Peace. PARIS. April . In an official state ment Issued by the government Pre mier Clemenceau's denial of the truth of the assertion of Foreign Minister C'z.rnln that a conversation concerning peace had been held between Austria nd France was given confirmation. The note follows: 'Premier Clemenceau. on assuming the duties of I'resldnnt of the Council. found that converi-alions had been en tered into in Switzerland, on Austria's nitiative. between the Count Kever- tata, a personal friend of Emperor Charles, and Commandant Armand. of he ctcond Bureau, the French Gen eral Staff, designated for that purpose by the French Minister at the time. 'M. Clemenceau did not wish to as- suits, but which might furnish useiul sources of information. Commandant Armand thus was allowed to continue his Journey In Switzerland on the re quest of Count Kevertata. "Instructions were as follows: "Lis ten and eay nothing.' Count Kevertata, becoming con vinced that his attempt to bring about a German peace was doomed to failure. order fully to characterize his mis- ion. gave Commandant Armand a let ter written in his own February 25, 1918, the first sentence of which reads: "During the month of August, 191 . ith a view to obtaining from the French government a proposition to Austria which might lead to future peace and be of such a nature as to be usceptlble of neing Indorsed oy Aus tria and presented to the German gov- rnment. conferences have been . en tered upon.' Count Kevertata. being himself the solicitor, acknowledged In the follow- ng terms. That the purpose was to btaln from the rencn government nronosltlons of peace, under cover of Austria, for transmission to Berlin.' Such Is the fact estahiishea Dy an authenticated document which Count Czernin has dared to refer to in the following terms: ginning of the offensive onthe west i crn front, had me asked whether was ready to enter upon negotiations and upon what basis.' " 'In speaking thus, not only he did not tell truth, but told the opposite truth, which In France is termed 'ly ing." . WASHIXGTON", April 6. Emphatic denial that any overtures looking to peace discussions have been mad to the American Government by repre scntatives of the centnal powers was made at the State Department today. If any come forward, it la said, they will be lanored. On numerous occasions unauthorized peace workers have hinted to officials that negotiations migti be welcome to the enemy aovernments and have sug gested that they had reason to believe a basia for negotiations mignc oe found easily "These suggestions have been ariven no consideration, it is stated. Premier Clemenceau'a repulse of Austria's advances will serve to force the adoption of other tactics by the enemv. in the opinion of State " partment officials and entente diplo mats here, but will not entirely stop the movement. The French statesman's repudiation of the Austrian claim that it was he who made overtures is regarded as blow that will make the diplomatic drive of the Teutonic Foreign Offices comparatively harmless, but it is be lieved similar efforts will be con tinued in one way or. another to create in the minds of the peoples at war with the central powers the impres sion that the blame fon the war's con tinuance rests wholly on the allied governments. MARK J. H1NDMAN, 93, DIES Wealthy Baker County Resident Loner Engaged In Stockralslng. BAKER. Or., April 6. (Special.) Mark J. Hindman, one of the oldest residents of Baker County, died at age of 93 years at the home of his son. Albert Hindman, at Durkee yesterday. His death resulted from a complication hand, dated !of diseases due to his advanced age. Air. rxinuman, wnu spent nis early youth in Kittaning, Pa., where he was born, crossed the plains to Oregon in a prairie schooner in 1S64. He located in Baker County then' and with the exception of two years spent in Cali fornia, has made his home in the Baker vicinity ever since. For many years he was engaged in ranching and stock raising at which he was very successful and became wealthy. He is survived by three sons and two daughters. Albert and Oscar Hindman. of Durkee; Mark Hindman of Buckeye, Ariz.; Mrs. John Dorsett, of Baker, and Mrs. Fannie Kurtz living in California. Centralia Company Inspected. CEXTRALIA, Wash., April & (Spe- " 'Clemenceau. shortly before the be-cial.) Company O. Third Washington. WOODLAND SAILOR HOME W. Peterson Forced to Leave Service Because of 111 Health. WOODLAVP, 'Wash, April C fSpe- rlal.) Arthur W. Peterson, of Wood land, arrived home a few days ago. after having spent some months In the Naval Hospital at 'Washington. D. C where be was taken from the cruiser New Orleans suffering with rheumatic fever, which later developed . into valvular heart trouble. He was honorably discharged from the Navy on March 19, where he had served since April li. 1917. as an en listed fireman. Toung Peterson re grets being compelled to leave the service at this 'time, and says he will get back in the service in some capac ity If psosible after he fully recovers. fruguay haa organized a government Institute of geology with a director and aJuunla from Ui United Malta. 1 rar vjhI PS mm Your Country Calls V for Three Billion Dollars to win the war. AMERICANS! Lend Your. Savings to YOUR COUNTRY, BUY A V Third Liberty Bond Right Away Yoa can buy one on time if you haven't the cash. Any bank will help you free of charge. Space Contributed by Dr. A. P. De Keyser Your God, Your Coun try Your Family call upon you to support your Flag A Liberty Bond Bought Means the Continuation of TJiis Trinity. YOU are'now privileged to exercise the greatest suffrage in the, world. . ; YOU MUST BUY To buy is a vote for all that is dear to mankind ; not to buy is a re . f usal to accept the great heritage left by our fathers, REMEMBER Liberty Bonds save soldiers' lives Liberty Bonds are the one road to victory Liberty Bonds make the cash you value worth 100 cents on the dollar. , The Money of a beaten nation is worthless. Back of you is your credit; back of your credit is all you possess and all you are. Your credit is good because the United States is a strong and undefeated Nation. If Liberty Bonds are not good the credit of the United States is not good, and the credit of every man in the United States is W orthless. This Cannot Be will not be if you will Be an American and Subscribe to a Bond Today; God gave our American soldiers the spirit, the purpose and heart to fight. Would you refuse them food? Liberty Bonds clothe, feed and support our soldiers, who are pro tecting our wives, children and physical possessions. ACT NOW! Subscribe through any bank or trust company, or investment banker, or through the Federal Reserve Bank of your district. This space contributed by Ben Selling. 3 was inspected at the local Armory last nlc-ht bv AdJutant-General Moss and Colonel McClure. commanding the reg iment. Sergeant M. W. Daubney, Company G, has been notified of his nrnmntinn to a First iLeutenanev, the commis-ilon dating from March 18. It Is expected that the assigned to duty as a tant. officer will be battalion adju- Apartment-IIouse to Rise. CENTRALIA, Wash.. April '6.- (So cial.) Plans have been drawn for tha erection of a modern apartment-houso in Centralia. It will contain IS apart ments. It is said that Portland people are behind the venture, and that a deal for a site for the structure is beiner closed. General thrilled Fersoing France- when, bending over Lafayette's tomb, he whis pered, "Lafayette, we are here." he spoke for America. , buy a liberty bond and back Pershing. liberty bonds are United States bonds, they pay 4J4 per cent interest. the best way to'save is to put aside a little each week or month toward a liberty . bond, you can buy a liberty bond that way. all you have to do is to step into any bank and tell the man at the window you want to buy a liberty, bond, buy it out right if you can. if you can't, the bank will help you buy it on time. the bank does not profit, it charges no commission or fee for its services. your country calls for $3,000,000,000 to win the war. Americans, lend your sav ings to your country. third buy a liberty today; bond m w- a. "aa iiiillo 331 Washington street, near broadway ET 1 04.0