German Bid for Trade

Hawke's Bay Tribune, Volume XI, Issue 242, 17 October 1921, Page 5

German Bid for Trade

STINNES PLANS GREAT TRUST. TO SMASH COMPETITION. TAKING OVER OF STATE ENTERPRISES. [By Cable.—Press Association.—Copyright.] London, Oct. 16. A correspondent of the “Observer” states that von Stinnes is organising a vast trust aiming at the control of every German industry and turning the State into a powerful business combine, which will retaliate against any country discriminating against German goods. For instance, if a country keeps out German electrical goods the trust will refuse to purchase anything from that country or supply it with other German goods essential to it. Berlin information states that von Stinnes’ Thief newspaper, “Allgemeine Zeitung,” says private enterprise must take over the management of concerns which were hitherto administered by the State or public bodies. This supports current rumours that von Stinnes’ trust is arranging to take over the State railways, post office and other public services, placing them on a paying basis and relieving the state of huge deficits. The post office’s annual deficit amounts to four milliards of marks and the railways to fifteen milliards.—(A. and N.Z.) BUSTLING- INDUSTRIAL TOWNS. The stark, outstanding fact of my inquiries is this; that, at the present rates of exchange, it is practically impossible for British or American manufacturers to do business on the Continent, writes Alexander M. Thompson, the Special Labour correspondent of the London “Daily Mail” who recently investigated conditions in Germany and Poland.

Here is the position: Labour* which would have cost British manufacturers £5O before the war now costs, roughly, £lOO. £5O before the war represented 1000 German marks. To buy the labour which would have cost him 1000 marks before the war the German manufacturer now pays 10 times more —that is, 10,000 marks'. At the present rate of exchange 10,000 marks are equal to £34 —that is to say, that the German manufacturer buys for £34 labour which costs his British competitor £lOO.

Even assuming that the British employer in certain industries pays no more now than he did in 1914, even then he pays £5O for labour which cost his German rival only £34. Moreover the German workman’s productivity, according to Herr Sassenbach and Herr Leipart, of the German trade unions, is much nearer the pre-war standard than that of the British workers.

German industry has had no big strikes to disturb and dislocate it. These are the reasons why our workshops in the Black Country are standing idle while those in the Dortmund and Essen region are brightly lit up as one passes them in the train during the night. These and the shortage of German ships are the reasons why the Hamburg and Bremen shipyards are full of bustle while some of ours are quiet as graveyards. These are the reasons why the numbers of the German unemployed are so small as compared with ours. There is some poverty in Germany of course.

“The apparent prosperity of Germany,” said one of our own Consuls, “is largely superficial. It is true that the German industries seem very busy, and it is true that the workpeople are earning good wages—-better,' I think, than before the war; but one must remember that their production is mostly to supply domestic requirements.” In reply, 1 asked what else a nation need desire. If the people can find work, and find means by their work to satisfy their necessities those people are, in the fullest sense of the word, prosperous. “Jawohl” said a Hamburg journalist to whom I stated this point of view, “work is plentiful and wages good. But look at our taxes. I pay 10 per cent tax on my income.” “And I,” I replied, “pay 30 per cent.”

“Ja,” he retorted, “but there arc increased duties on other things—cigars, tobacco, wines, und so weiter.” “The price of our tobacco,” I answered, “ip doubled. Cigars we can’t afford. Our national wine—whisky—costs 12s 6d a bottle which before the war was sold for 3s 6d, and there is talk of increasing the price still further.”

Then he very wisely closed the argument by ordering two more dunksle.

What I have seen and heard, I have said. What I have said, I have seen and heard. There has been no purpose in my writing of proving a case or backing a policy. What I have seen and heard has convinced me of the absolute truth of the proud boast uttered to me by a Berlin theatrical manager of my acquaintance that “there is no example in history of a nation’s recovery from defeat so swift as ours. While you victors are still discussing the effects of the war, we Germans have forgotten iu.”