ECONOMIC GERMANY

Evening Post, Volume CIX, Issue 119, 22 May 1930, Page 12

ECONOMIC GERMANY

SEED FOR CAPITAL

DEMAND FOR HIGHER DUTIES

'•Evening Post," 22n'd May

Tariffs are .far-reaching iv their effects, for at first sight it might not be clear how New -Zealand would be affected by iucreases in the duties levied on agricultural produce entering' Germany. Such is the case, however.■■with butter in particular, . for the sequel to imposition of the new German.duty on that commodity is seen iv the. large quantities, of Danish butter available for the British market, because of the high' duty it iias~ to face .on entering Germany, hitherto-,a highly important cvs a - tomer for Danish butter. The Imperial Chemical, Industries, Economics Department ! has been' looking, into the matter of German trade, and it has observed a deiifahd for. protection become vocal in many industries in that" country. ; The demand was heard throughout the whole of 1929, but for various ■ reasons the Government turned a deaf ear to.the leaders of industry.. When, however, in December last, the German Parliament had before it a Bill to increase duties on agricultural products, it .was somewhat difficult,to refuse to industry what was about to.be given to agriculture. A protectionist wave seemed to have swept over Germany, and it is alleged that it owed a certain amount of vigour to the League of Nations' plan for a tariff truce. ' . > COMMERCIAL TREATIES. ,The principal obstacle in the way of the Government was that Germany had of recent years been able to enter into commercial treaties with a number ..'of her neighbours, in which special tariff rates were agreed upon. Many of these commercial treaties .came into being only after difficult' and delicate negotiations, and the Government feared that if the treaties were denounced, the situation of the German export trade might become impossible; i Industry, on the other hand, is loud in proclaiming that it is suffering because of effective competition of foreign goods ill tlifi German market, and that it can be freed from this competition only by higher tariffs. For certain yarns double the pre--1 sent'tariff :rate is demanded; for motorcars a treble rate is suggested. Highertariffs, oil-motor-cars are directed principally against United States competition; it remains to be seen, however, ~,what attitude will be taWen by the manufacturers i*i the United States^ no less than by the German Government. The position of the latter is the' more.. uncertain .'for political reasons., . ; THE YOUNG PLAN. / ; One" paramount consideration will :piiobably weigh with the Government, viz., ;the Young Plan, which is workable, only if German export increases in volume. ■' It Germany denounces commercial treaties with, a view to raising duties on foreign goods, such a policy will.not make for expanded, exports. For'the moment /German commercial policy is in-the melting pot. . - ..■-'.■ i ASIATIC COMPETITION. / Imperial Chemical Industries reviews the difficulties of the German cotton and textile industries generally, which are riot confined to Germany, but are acute in Great Britain and the textile manufacturing countries. . ; ■ The great progress of the cottciti industry in-Asia is referred to. Apart from a'great increase :in the numberof /spindles, hours of work in Asiatic countries are greater than in Europe, and wapes lower. Moreover, some of the machine cy in Asiatic countries is, more modern ,-than, that in Eiirope. Hopes of rediictio'a of taxation in -Germany have ' completely vanished. The Government will liave to increase a Jarge number of taxeij, additional to recent increases and new tepees. A sop is, however,'held I out to the /taxpayer in that- as ■from Ist. April,-1931,, -the mini- ■ mum taxable income will hip increased from ■ 1200 to 1440 marks. / . The review concludes: "It| is becoming more and more apparent t'fcat Germany will not be able to make tlrogress without ; the assistance of foreign capital. The growth of capital in the ecijmtry itself is most disappointing, and.ag.tiri the idea is taking- shape and form that capital from abroad must of necessity cdme to the rescue of' Germany." ■'(.."