class=”sc-cffd1e67-0 iQNQmc”>
The Swiss military needs money, and fast. At least that’s what army chief Thomas Süssli (57) says – and that’s how most security politicians see it. But because federal money is tight, the military must be patient. Or?
The Bernese SVP Council of States Werner Salzmann (61) has an idea how the army can quickly raise billions. With a proposal he has just submitted, he calls on the Federal Council to investigate the introduction of a military band. – A what?
A great success in 1936
Salzmann was inspired by the past and the parallels with today are striking: in 1936, in view of the looming threat of war in Europe and massive rearmament in Germany, the federal parliament decided on an extraordinary armament program. The army would receive 235 million francs.
To finance this, the Federal Council did not dip into the public treasury, but rather issued a military bond: collateral that allowed citizens to invest in the military. The interest rate was 3 percent. That was slightly less than a classic government bond, but the denomination was small. This means that you could invest in the military even with little money.
The military band was marketed to men (and maybe one or two women) with a major advertising campaign. With resounding success: instead of the required 235 million francs, 335 million was raised in just over three weeks.
Good investment
But this was certainly not just a “patriotic sacrifice” by the citizens for the army. By historical coincidence, the military band became an interesting investment! During the subscription period in the fall of 1936, the franc was massively devalued, increasing the value of the bond.
Anyone who lent money to the military profited handsomely. For Salzmann, his initiative is less about an attractive investment opportunity than about “alternative financing solutions in the interests of the security of our country.” But there should be a small gain in helping to eliminate the military’s “liquidity problem.”
Source:Blick
I am Liam Livingstone and I work in a news website. My main job is to write articles for the 24 Instant News. My specialty is covering politics and current affairs, which I’m passionate about. I have worked in this field for more than 5 years now and it’s been an amazing journey. With each passing day, my knowledge increases as well as my experience of the world we live in today.
