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The General Staff and Its Problems

The General Staff and Its Problems

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Published by: Druid_ian on Sep 07, 2011
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01/29/2012

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other

hand, other

important branches of

industry are

suffering

from lack of labour and coal, as well as of raw material and

failing markets and other results of the war

(house property,

building, hotel

industry, shipping, etc.).

.

68. There is a

plentiful supply in the

country of the most

important raw materials, and, generally speaking, substitutes,

at least in sufficient

quantities to meet

requirements—

e.g.,

nitrates obtained from the air to

replace Chili

saltpetre are

already being manufactured in

quantities in excess of the

needs of German agriculture in

peace-time; arrangements

have

already been made for

doubhng the

output.

To increase the

supply of raw material to meet the needs

of

peace (wool, cotton, leather, metals, sulphur, india-rubber
and other colonial

products), as well as the

reorganization and

reopening of various branches of

industry, will involve

great

cost and labour.

For this also

rapid reorganization, safeguards in the

way of

commercial

treaties, distribution of the available

man-power

and

tonnage in

proportion to the

urgency of the

need, should

be in the hands of the State.

69. The new Government offfces, departments and

auxiliary

departments that have

grown up from the needs of war

(War

Bureau, Food Control Office, etc.) must continue their

activity until

military and industrial demobihzation is

complete.

70. German

transport, especially the

railways—to a less

extent inland water

transport also—has suffered a

great strain

as

regards both material and

personnel, in

coping with

goods

and

passenger traffic at home and the

transport of

troops and

war

material, both within and without the frontiers. How

heavy this

transport was is

proved by the

railway takings for

goods traffic in

1916, which exceeded those of the

peace year

71. Our merchant fleet has suffered

heavy loss

through our

being cut off from the

high seas and the isolation of

ships in

Provision for Men Returned from War 233

foreign ports. In view of the considerable reduction of

enemy

and neutral

tonnage attention to this matter

promises par-

ticularly profitable results. The German canal

system has

shown itself in need of

development.

72. The German

Empire has

up to now raised war loan

amounting to

79 milliard marks ; of this six issues raised about 60

milhard marks, and from

85 to

90 per cent, of the war

expendi-

ture was

provided for

up to

April, 1917, by long-dated loans

or

treasury bills with several

years to run. Thanks to careful

and

clear-sighted co-operation on the

part of

foreign countries

the rate of interest and issue

price have been

kept far lower

than has been the case with

enemy countries, which—

except

Japan—have involved themselves in

continually increasing

dependence upon England, but most of all on America.

73. It is to be

hoped that it

may be

possible to finance further

war

expenditure on

equally favourable terms ; the

very low

value of the German mark will

probably right itself at an

early date with the

resumption of the

import and

export

trade, foreign securities and other sources of income.

74. German

private national

capital has been estimated

by

the

Treasury at between

300 and

330 milliard marks. German

state

capital in

191 3/ 14 stood at

24 milliard

marks, the national

debt at 21 milliard marks; thus, per head of the

population :

Germany

3i4"9 M. national debt.

Great Britain. . . .

3i3"2 „

United States .... 47-0 „

The total burden of taxation in

191 1 amounted to :

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