ance is $6,000,000,000. Therefore a 12 per cent tax
on this income would very nearly produce the entire fixed charge on the
war debt. France looks into the financial future unafraid.

Financially, Russia ambles along like the Big Bear she typifies. In one
respect her method of financing the war cost differs distinctly from her
Allies in the fact that she has received heavy advances from England and
France. From England alone she borrowed $1,250,000,000 which was
expended for arms and ammunition and field equipment. The Czar's Empire
has put out five internal loans while the rest of the money needed has
been raised out of the sale of short term Treasury Bills, paper money
issues and tax levies.

Except for the few millions of dollars obtained in the United States,
Germany's financing--like her whole conduct of the war--is
self-contained. Through five Imperial 5 per cent loans ranging from one
to three billion dollars each, she has established a war credit of
$12,500,000,000. This money--to a smaller degree than in France--has
come from the great mass of the German people.

Other sources of revenue that are enabling the Kaiser to pay for the
war are Treasury Bills sold at home and a taxation that is moderate
compared with the colossal pre-war taxation which spelled Germany's
Preparedness. At the time I write this chapter her war expenditure had
passed the $14,000,000,000 mark. Tack on to this Germany's peace debt of
$5,000,000,000 more and you begin to see--with all the uncertainty of
the war's duration--the immense burden that the Fatherland will have to
carry. The war's drain on the German future is perhaps greater than that
of any other country because all her war loans are long term. She has
also loaned nearly $1,000,000,000 to Austria, Turkey and Bulgaria.

The Teutonic war cost has one distinct advantage over all others in that
it is confined within the German borders. Hence Germany can do as she
pleases with regard to its settlement. If the Mailed Fist obtains after
the war she can clamp it down on her loans, wipe them out as she chooses
and no one can offer a protest.

Now let us dump all these statistics that represent so much blood, agony
and sacrifice into the middle of the table and strike a final balance
sheet.

On one hand you have the assets of the warring countries as represented
by their national wealth. For the Allies, including Roumania, they show
a total of $273,000,000,000: for the Central Power