I am bound, however, in fairness to call the attention of the unwary dabbler in statistics to a point of grave importance in dealing with German finances. The German Empire, so far as expenditure and income are concerned, is merely an office, a clearing-house so to speak, for the states which together make up the empire. The expenses of the empire, for example, in 1910 were $757,900,000 and of the army and navy, including extraordinary expenditures, $314,919,325; this does not include pensions, clerical expenses, interest, sinking-fund, and loss of productive labor, as did the figures on a preceding page. To the ignorant or to the malicious, who quote these figures to bolster up a socialist or pacifist preachment, this looks as though Germany had spent one half of her grand total on the army and navy. But this is quite wrong. In addition to the expenditures of this imperial clearing-house called the German Empire, there was spent by the states $1,467,325,000: the so-called clearinghouse bearing the whole burden of expenses for army and navy, the separate states nothing except the per capita tax, called the matriculation tax, of some 80 pfennigs. To make this matter still more clear, as it is a constant source of error not only to the foreigner but to the Germans themselves, the income of the empire for 1910 was $757,900,000, the income of all the states $1,463,150,000, or of the empire and the states combined $2,221,050,000. In the same way the debt of the empire in 1910 stood at $1,224,150,000, and the debt of the states of the empire at $3,856,325,000, or a grand total outstanding indebtedness of all Germany of $5,080,475,000.
Of late years the imperial expenditure of Great Britain, for example, has amounted to some $935,000,000 a year; but various local bodies spend also some $900,000,000 a year. Some of this is cross-spending, but the grand total amounts to some $1,500,000,000 a year.
Before writing or speaking of Germany it is well to know at least what Germany is. To pick up a hand-book and to quote therefrom the figures relating to the German Empire, as though these covered Germany, as is often done, is as accurate and helpful to the inquirer, as though one should take the figures of the New York clearing-house as accurate descriptions of the total and detailed business of all the New York banks and trust companies. A clearing-house is merely a piece of machinery for the adjustment of differences between a host of debtors and creditors. The comparative cost of the German army and navy can only be figured properly against the income and expenditure of the total wealth of all Germany. And all Germany is something more than the German Empire, which in certain respects is only a book-keeper, an adjuster of differences.
“Was ist des Deutschen Vaterland?
Ist’s Preussenland? Ist’s Schwabenland?
Ist’s wo am Rhein die Rebe blüht?
Ist’s wo am Belt die Möve zieht?
O nein! O nein! O nein!
Sein Vaterland muss grösser sein.
“Des ganze Deutscbland soil es sein!
O Gott vom Himmel, sieh’ darein,
Und gib uns rechten deutschen Muth;
Dass wir es lieben treu und gut!
Des soil es sein! des soil es sein!
Des ganze Deutschland soll es sein!”
The official title of the sovereign is not Emperor of Germany, or Emperor of the Germans, but German Emperor. Thus the territorial rights of other heads of states are safeguarded. Even the popularity of the first Emperor, who wished to be named Emperor of Germany and who disputed with Bismarck for hours over the question, could not bring this about, and he was proclaimed at Versailles merely German Emperor.
However heavy the burden of armament may be, we must be careful to put such expenditure in its proper perspective and in its proper relations, not only to the German Empire, which for official, clerical, and statistical matters is quite a different entity, but to “das ganze Deutschland.” The German Empire is the clearinghouse, the adjutant, the executive officer, the official clerk, the representative in many social, financial, military, and diplomatic capacities of Germany; but it is not, and never for a moment should be confused with, what all Germans love, and what it has cost them blood and tears and great sacrifices to bring into the circle of the nations, the German Fatherland!
In 1910 the total funded debt of the empire amounted to 4,896,600,000 marks, and the debt in 1912 had risen to 5,396,887,801 marks. In the six years ending March, 1911, Germany’s debt increased by $415,000,000.
In 1910 the funded debt of Germany (empire and states) was $4,896,600,000; of France $6,905,000,000; of England $3,894,500,000, and of Russia $4,880,750,000. It is a curious psychical and social phenomenon that, though we are as suspicious as criminals of one another’s good faith in keeping the peace, we are veritable angels of innocence in trusting one another financially, for back of these huge debts we keep in ready money, that is, gold, to pay them: Germany at the present writing $275,000,000 in the Reichsbank; France $640,000,000 in the Bank of France; England a paltry $175,000,000 in the Bank of England; and Russia $625,000,000 in the Bank of Russia. We all live upon credit, an elastic moral tie which seems to be illimitably stretchable, and both a nation’s and an individual’s wealth is measured not by what he has, but by what he is, that is to say, by his character or credit. It is startling to find how we distrust one another along certain lines and how we trust one another along others. The total amount of gold in these four countries would just about pay the interest at four per cent. for two years on their total indebtedness!
From what we have seen of the proportion of expenditure that goes to military purposes, it cannot be denied that Germany is increasing her liabilities at an extraordinary rate, and largely for purposes of protection. In the last two years the interest on her increased debt alone, at four per cent., amounts to $5,000,000; while the interest at four per cent. upon military expenditures of all kinds amounts to the tidy sum of $20,000,000 per annum. The German, however, faces these facts and figures, not as a matter of choice, not as a matter of insurance wholly, but as a hard necessity. It is what the delayed conversion of the world is costing him, not to speak of what it costs the rest of us. He is surrounded by enemies; he is not by nature a fighting man; his whole industrial and commercial progress and his amassed wealth have come from training, training, training; and he sees no alternative, and I am bound to say that I see none either, but a nation trained also to defence, cost what it may.