July 1919

World begins to count the cost of war

July 3

German Assembly Set to Ratify Peace Treaty

The Germans expect to ratify the peace treaty according to a note sent to the Allies. The note also requested that the Allied food blockade be raised when the treaty is ratified, and that German war prisoners will be released at the same time. The German National Assembly will deal with the treaty of peace between the Allies and Germany on Saturday and a majority for the ratification of the instrument has been secured.

"The terms of the treaty with Germany in some respects were terrible", the French Premier said, "but terrible were the deeds which justified it, and still more terrible would have been the consequences if Germany had succeeded." "The German army" the Premier said, "was a present an adequate to disturb the peace of the feeblest of the neighbors of Germany."

The Belgian Foreign Minister introduced bills in the chamber today ratifying the treaty with Germany and the agreements connected with the treaty.

Meanwhile the Prime Minister of Romania has left Paris for Bucharest to submit to his government the text of the treaty regarding that country. "It is no secret", said the Romanian Prime Minister, "that Romania claims concerning Transylvania are not satisfied by the treaty."

Public opinion in Romania and Transylvania is such that the Prime Minister considers it impossible to take upon himself the responsibility for signing the treaty without first referring the matter to the government.

An agreement between France and Great Britain concerning the division of the former German African possessions of the Cameron and Togoland will soon receive the approval of the two governments.

Elsewhere, mediation of the Allied representatives have resulted in an armistice between the Estonians and the Germans. It provides that all German troops shall leave Riga and that the German evacuate Lithuania at the earliest possible moment.

Ex-Kaiser to Face Trial Before London Tribunal

"The former German Emperor will soon be placed on trial." Announced Premier Lloyd George in the House of Commons. The Premier declared that the tribunal which would try the former Emperor would sit in London. German officers who had committed appalling acts the Premier added, would also be placed on trial.

The Allies appears to be firm in the conviction, which is held by military officials of the Allied powers, that the former Kiser are must be punished, as it would be impossible to secure the punishment of the military and naval and civilian officials in Germany who are charged with atrocities if the former Emperor is exempted. A list of those officials and officers is to be supplied by the German government soon.

Prince Henry of Prussia, brother of the former German Emperor, has now come to the aid of the dethroned warlord, and added his plea to that of others for the abandonment by the allies of their project to bring the former Kaiser to trial for his crimes against mankind.

Prince Henry, in a telegram to his cousin King George, bigged him to desist in the effort to extradite the former monarch, pledging himself to assist the King in bringing to light the truth regarding the war and its consequences. In his message, Prince Henry says that after his conversation with King George in July, 1914, he returned to Berlin and was with the Emperor until mobilization began. I can testify that the Kaiser and his counselors endeavored by every means to avert the war and disaster to mankind. I am ready to refute the calumnies regarding the German Kaiser, which have been circulated for years in contradiction of all truth, and I place myself at your disposal in order to assist your Majesty in bringing to light the truth regarding the war and its consequences.

However, the former Emperor, who remains in exile in Holland, outside the reach of the Allies, has decided to stay in Holland until the end of the summer and perhaps throughout the autumn, owing to the difficulty which has been encountered in finding a suitable residence elsewhere where he would be free from threat of extradition and subsequent trail. The healths of both the former Emperor and Empress remained good, despite the worries of the last few weeks.

The miserable weather has somewhat hindered the former monarch’s log sawing operation, but whatever the nature of the weather, the former Emperor passes two or three hours daily at his favorite occupation, taking shelter with his assistance beneath a garden shed when the downpour of rain is most severe. He expects to complete the sawing of his 6,000 trees this week.

July 10

Three Treaties in Making, Keep Europe Restive

Hesitation and confusion once again mark the proceedings of the Peace Conference. The hesitation is due perhaps to the desire of the Allied governments to see what happens now in Germany before proceeding with the treaties with Austria, Bulgaria and Turkey. The confusion doubtless is due largely to the general lassitude following the disposal of what everyone considers the principal treaty.

The fact remains that Bulgaria, Austria and Turkey have yet to be dealt with and until they are, Europe will continue in more or less a chaotic state.

Of the Bulgarian treaty no one speaks. The Turks have just been sent back home, presumably on the theory that they near Eastern question cannot possibly be resolved until it is definitively known whether or not the United States will accept mandates over Armenia and Constantinople, and this can only be known through action by the United States Senate.

Italy is in a nervous and perhaps even more dangerous condition because of the continued uncertainty as to the practicality of all her demands. The Italian Foreign Minister has arrived in Paris where the Adriatic question is as urgent as ever and no nearer solution.

Meanwhile the Austrian treaty is scheduled to be handed to the Austrian delegation on Monday. The treaty is not really concluded. The military and certain political classes may be made the subject of later agreements in order not to delay the signature of some kind of a treaty any longer than is absolutely necessary. The new Council of Four seems to think it can rush the Austrian treaty through within a few weeks, but most observers consider this doubtful.

Even the financial clauses, which were supposed to be ready Monday, are still being revised continually. At the present time it has apparently been decided that the Austrian Empire’s prewar debt must be borne entirely by Hungary and Austria. However, of the Empire’s debt, which alone reached some 9 billion crowns, or $12 billion, the liberated peoples, who constitute two thirds of the empire's former population, will be required to assume 20%, while the remaining 80% will be left to Hungary and Austria, the present population of which is about one third of the Empire's former 58 million. The newly liberated peoples will be entirely exempt from reparation charges, which must all be shouldered by Hungary and Austria.

Britain and the United States are apparently demanding a share of Austria's Navy. France is demanding money and ships; Italy, money, ships and railway stocks; Serbia, the same, while Romania is demanding financial reparations. Indeed everyone is asking for something where there is apparently very little available for anybody.

July 17

German Assembly Ratifies Peace Treaty

The German national assembly in Weimar has adopted the resolution ratifying the peace treaty. The resolution was adopted by a vote of 208 to 115. The resolution reads: "The peace treaty signed on June 28, 1919 as well as the protocol annexed in special agreements on military occupation of the Rhineland are hereby ratified."

Ratification of the peace treaty by the German national assembly removes all doubt of the acceptance of the terms by Germany. The national assembly, by ratifying the treaty makes it possible for the Allied and associated powers to raise the blockade. Official notification was sent to Germany June 29 that the blockade would be raised when the treaty was ratified. Placing this condition on the raising of the blockade was looked upon in peace conference circles as a sure plan for securing speedy ratification by Germany.

The peace treaty does not become effective for all the signatory powers until three of the great Allied powers in addition to Germany have ratified it.

No More War Funds Hun Leaders Told

Germany is to quickly return to a peacetime financial system according to the German Finance Minister. "The empire’s needs," the Minister said, "must be divided henceforth between home needs and paying the war indemnities, the year's expenditures confronting us will amount to about 17 billion Marks."

The German Finance Minister told the German National Assembly; "I am firmly resolved to tread the path of recovery and therefore have given out the watchword that from October 1st there should be no more items not detailed, and there showed be no more war funds. The war finance system shall cease; the regular budget system must be reestablished. The first guiding principle is that there must being no more unproductive expenditures. Therefore a gradual abolition of the non-employment grants must be faced.."

After reciting the returns to the Empire from taxation measures prior to and during the war in estimating the revenue to be derived from new taxes, the Finance Minister said there shall remain a sum of more than 10 billion Marks to be covered.

The Ministry of Finance has almost completed the drafting of two important bills levying new taxes which he intends to submit before the German parliament before recess. These call for large levees on property and a large tax on business turnover, but even if these bills are passed the money for the payment of the indemnities must be obtained in some other way. In the autumn new bills will be introduced in the national assembly with the final objective of covering the full deficit.

The Ministry of Finance said: "The burden of taxation will reach an absolute terrible height. A floating debt of 72 billion Marks is a constant danger, and the removal of this debt is one of the most urgent task before the present government. There are two ways in which to do it-either its conversion into off funded loan or its extinction the by big levees of heavy taxes. I do not indulge the hope that these two ways will immediately yielded the entire liquid amount of 72 billion Marks.

"It is the duty of property people to give up all riches and all that is superficial. Changes in the system of taxation will be speedily submitted to the national assembly, in this reform will represent the completion of the whole work.

"One of the first requirements relative to the restoration of liberty is the establishment of orderly finances. I will have nothing to do with suggestions for the declaration of general bankruptcy. My highest aim is to establish justice in the entire taxation system. The income from capital must be tax much more heavily then the income from work. An inheritance tax and a heavy tax levy or property will be the initial steps that will be taken."

July 24

U. S. War Debt Exceeds $23 Billion

The war debt of the United States amounts to $23 billion according to statistics submitted to the congressional appropriations committee by the Secretary of the Treasury.

The total cost of the war up to June 30, last, was $30 billion, of which $9.2 billion was met by taxes and other revenues other then borrowed money. "By rigid economy and the continued application of a comprehensive program of taxation", the Secretary told the committee, "no further issues of bonds will be necessary before the maturity other victory bonds in 1923."

"So large a part of the war expenditures have been paid are provided for out of taxes," said the Secretary, "and out of the issue of bonds or notes already sold, and so small part is unfunded that I can confidently expect that the government will be able not only to meet it's further temporary requirements for the decreasing scale of expenditures by the sale of treasury certificates of indebtedness bearing interest at the rate of 4 1/2%, or less, but also to find as many of those it is made be desirable to fun, by the issuance of short-term notes, in moderate amounts, as convenient intervals, we market conditions are favorable and upon terms advantageous to the government."

Germans Printing Paper Money

With Germany growing poorer every day and private notes becoming less and less negotiable, the flood of paper money is increasing. Just before his resignation, the German Chancellor order the government to print 30 billion Marks to fill the country full of paper money to meet emergencies arising from the refusal to sign the peace. When the new government came to power, it added to the flood of paper money by printing an additional 20 billion Marks. To meet this demand the German treasuries’ printing presses have been going full blast launching new wagon loads of brown and white slips of paper upon the nation.

The government has proposed a tax of 20% on all citizens. Investigation has revealed however that such a tax is impossible, in view of the fact that two thirds of the German people, although owning 20,000 Marks or less per person, would be entirely unable to pay a tax of 2,000 Marks or less per head.

Allies Ponder Fate of German Russian Prisoners

The Supreme Council of the peace conference today discussed the disposition of 40,000 Russian prisoners of war who are still in Germany. These prisoners were held by Germany at the request of the allies after the armistice and had been fed at the expense of the Allied Powers.

As many of them are badly infected with Bolshevism, Poland and other countries through which they would have to go on their way back to Russia, have objected to giving them passage, for fear of Bolshevik propaganda. Moreover, it is held they would be either forced into the Bolshevik army or killed if sent home. The expense of maintaining them in Germany, however, is becoming burdensome. The Council was unable to reach a decision with further information concerning the military phase of the situation referred the military advisors for report.

July 31

President Says Terms Or Severe But Can Be Fulfilled

In an address to the American people on the occasion of the signing of the peace treaty President Wilson, said:

"My fellow countrymen the Treaty of Peace has been signed. If it is ratified and acted upon in the full and sincere execution of its terms, it will finish the charter for new order of affairs in the world. It is a severe treaty in the duties and penalties it imposes upon Germany but it is severe only because great wrongs done by Germany are to be righted and repaired; it imposes nothing that Germany cannot do; and she can regain her rightful standing in the world by the prompt an honorable fulfillment of its terms.

"And it is much more than a Treaty of Peace with Germany. It liberates great peoples who have never before been able to find a way to liberty. It ends, once and for all, an old and intolerable order under which small groups of selfish men could use the peoples of great empires to serve their ambition for power and dominion. It associates the free governments of the world in a permanent league, in which they are pledged to use their united power to maintain peace by maintaining right and justice. It makes international law a reality supported by imperative sanctions.

"It does away with the right of conquest. It rejects the policy of annexation and substitutes a new order under which backward nations-populations which have not yet come to political consciousness and people who are ready for independence but not yet quite prepared to dispense with protection and guidance – shall no more be subjugated to the domination and exploitation of a stronger nation, but shall be put under the friendly direction and afforded the helpful systems of governments which undertake to be responsible to the opinion of mankind in the execution of their tasks by accepting the direction of the League of Nations.

"It recognizes the inalienable rights of nationality, the rights of minorities, the sanctity of religious belief and practices. It lays the basis for conventions what shall free the commercial intercourse other world from unjust and vexations restrictions and for every sort of international cooperation that will serve to cleanse the life of the world and facilitate it's common action in beneficial service of every kind. It further guarantees rights such as were never given, or even contemplated, for the fair treatment of all labor at the daily task of the world.

"It is for this reason that I have spoken of it as a great charter for new order of affairs. There is ground here for deep satisfaction, universal reassurance and confident hope."

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