GERMAN INDUSTRIES

Evening Star, Issue 19196, 12 March 1926, Page 5

GERMAN INDUSTRIES

“BAD ECONOMIC POLICY”

FRAMED IN BELIEF OF VICTORY

Press Association—By Telegraph—Copyright

LONDON, March 10

Sir George llenwick, in his second article in the ‘ Daily Chronicle 1 on German trade, says; “1 have dealt with the position of the workers. The situation of the employers is equally tragic. The large industrial establishments must bear the blame for the bad economic policy of the past few years. First, they extended their factories and shipbuilding yards during wartime, imagining that a victorious Germany after the war would receive the bulk of the world’s orders. Secondly, they carried on extensions during the inflation period without bringing the machinery up to date. Thirdly, when inflation ceased, they kept turning out vast quantities of goods for which there were no markets. Fourthly, they borrowed money, including part ol the Dawes loan, and squandered it unproductivoly. Tills waste continues, and when wo remember the tax burdens the result is unbelievably freakish. The extravagance of the over-stafled bureaucratic departments is obvious, and the Gorman industrials’ position is not enviable. Their policy has resulted in 1,000 bankruptcies a month. The 1020 figures arc:— January 3,779, February 3,720. Though these figures include many worthless mushroom growths, many long-established firms shared a 1 similar fate. Though the manufacturers agree that they must make ihigher-quality goods, this is not done, and in most lines foreign buyers find British goods superior to German. Wireless manufacturers admit that their British competitors arc technically two years in front; British motor cars are at least twire as good ns German. Prewar shares in German comtmnics were officially quoted on the Stock Exchange at -2.1, 000, n0n,n0n gold marks. To-day they, together with many newly-formed companies, only aggregate 6,500.000,000 gold marks.”—A. ana N.Z. Cable.