GERMANY'S DAMPING CAMPAIGN

Dominion, Volume 9, Issue 2579, 29 September 1915, Page 14

GERMANY'S DAMPING CAMPAIGN

EFFORT TO RECAPTURE OLD . MARKETS PLANS BEING, HATCHED ' Germany, we are told, has already laid her plans to recapture tho markets which she lost on the outbreak of war, and to invade new markets. From time to time we have heard of immense stocks being stored in tho German warehouses and manufactories because of the impossibility of export, and it seemed strange that these surpluses should continue to be piled up when tho owners knew that export would not be possible for many months, and that their capital could be more profitably employed than in producing what for a long time would be dead stock. Tho "Sydney Morning Herald" says it is now asserted that these accumulations have been made of set plan, and they are for the purpose of enabling Germany to command the trade of the world when peace is declared. It is recognised that there must be a vast reconstruction of all kinds of factories, which even in uninvaded portions of their enemies' countries, and, perhaps, in neutral countries, have been allowed to run down through tho stress of war. So Germanyintends to be first in tho field with the commodities which will be purchased for this reconstruction. Some financial authorities believe that Germany is very near bankruptcy. To confirm this opinion they point to the immense issue of paper currency, according to latest returns a little over three hundred millions ■ sterling—although it is not as much as the issues in France —to the mortgaging and remortgaging of. assets, which lias been encouraged to provide funds for'' the war loans and to keep industry in motion. Most of this description of • finance has been rendered possible by the war credit banks, established soon after the .outbreak of war; But there are no visible signs of this bankruptcy yet to the lay mind, nor will there be while Germany continues to be 0110 vast co-operative society as far as finance is concerned ,the members of the society being quite willing .to take the paper money which is served out to them so regulaily by tho Government. What the war loans have yielded is uncertain, the Finance "Minister declaring for 660 millions sterling, while a Berlin financial magnate at tho same time —the beginning of . July—put the total at'72-> millions.' To-day the German authorities declare that the war has already cost Germany one thousand millions ster-

ling, and .'mother War Loan Bill batf' been passed, the amouitii being indicated at five hundred millions sterlingTito people are still asked to believer that Germany will make her enemies pay for tho war expenditure—and they have warrant for tho belief in view, of the victories against Russia—and that is 0110 reason why war expenditure is not being defrayed in 6ome small part by additional taxation, which is tho policy of Great Britain. Hero we see one reason for the blow which was delivered on Russia, regardless of all costs in human life. Tho rulers of Germany, before announcing tho new loan, felt that they must be able to point to some telling and lasting victory to ensure its being taken up. They remembered the first days of the war when, according to a neutral correspondent- in the "Times," public confidence in'tho hanks was severely shaken, when hundreds of millions of marks were withdrawn, and a frantic realisation of securities threatened tho whole structure of credit. ■ It was not till a footing had been obtained in Franco that confidence returned slowly. So with the dramatic victory over Russia before them the German people will take up the third war loan with confidence and onthusiasm.

If this forecast by Germans of the future of their empire is baseless, as we believe it is, if 110 indemnity is obtained from the Allies against whom Germany and Austria-Hungary aro warring, what will bothe resilt when the time comes to redeem the immense issues of papar currency? To pre rent bankruptcy Germany has but one recourse. She must flood tho markets of the world with her exports, with tho manufactures of which she is now accumulating such vast stores. Manufacturers of iron snd steel and, dyes are to be poured out. Tho United States is looked upon as tho principal dumping ground, but without doubt Great Britain and her Dominions will also bo exploited if the British people are not awake. ; What will 'our action bo? The Australasian scc'tion of tho London Chamber of Commerce is considering the advisability of concerted action with Australian chain-' bers for recommendation to the British and tho Australian Governments.-' We have no doubt what the answer ought to be.. If there is one thing more than another which tho war has revealed, to us it is the necessity of the Empire being entirely self-sufficing in all necessary products and manufactures. The revelation of the extent to which the Empire was leaning on Germany for supplies of. some indispensable items for the waging of warzinc and dye, to mention, perhaps, the two most notorious examples —was staggering even to the well informed. Tho facts we.ro "known, but if was not realised what those facts implied. On this ground aloitc it would bo good policy to put all hindrances possible in tho way of the resumption of trade with Germany. But a higher ground may be taken. Can we buy goods manufactured by men whose bodies and'brains are stained with the outrage and murder of the helpless women and children of Belgium and' France? In our mind there is no doubt that, after the minute inquiries and careful research of the committee over wliich Lord Bryce presided, that these outrages wore premeditated and encouraged by the German authorities, that these outrages were part and parcel of ■tho German method of waging war.'To us, _tlien, until the present generation, perishes, all that issues from Germany will partake of the'blood guiltiness of the Goarman people.