Manawatu Evening Standard. SATURDAY, JULY 8, 1922. GERMANY AND FOREIGN CREDITS.

Manawatu Standard, Volume XLIII, Issue 444, 8 July 1922, Page 4

Manawatu Evening Standard. SATURDAY, JULY 8, 1922. GERMANY AND FOREIGN CREDITS.

1\ a German paper, the Voss, there recently appeared an illuminating article entitled "What Yu> Need,” dealing with the reconstruction of German industry and trade. The requirement in brief is foreign credit. W bile there is more than a suspicion that the article is mere propaganda—the copj of the journal we have received is printed in English—the subject is of more than passing interest as showing the efforts made by Germany since the conclusion ol the war to again establish her foreign trade on a big basis. The writer traverses two crises with which German trade was threatened after the armistice—the “ collapse of the will and desire to work,” and the setback to industry by complying with the Peace Treaty in regard to the deliverv ot coal to France. improvement, however, came in 19-0, when the standard of living became better and (to quote the writer) this decided re-awakening of the desire to work is what permits us to believe m the re-establishment of German trade and Industry in the future. Owing to the present position ot the exchange question, ho points out that many articles of daily use and all foreign foodstuffs which are sent into Germany are enormously dear, and this is one of the country’s most important questions. As is the need in other conntries, increased production is stressed as the only., way in which tho proportion of German imports and exports can be changed, if conditions are to become decidedly better. ‘This mcrease in production, sa>s tho ai tide, “is dependent on a plentiful supply of foodstuffs and raw materials; in other words Germany’s recovery depends to a large degree upon the assistance—of other nations. It is not possible to ray tor what we receive from abroad in raw materials and foodstuffs for the rebuilding of German trade with goods (in kind); so we can only hope for credit from other countries. A groat international credit is up to this time the hope of the German people.” Elaborating his arguments the writer illustrates how private credits “play a great part in German industry,” and stresses the need ot, next to food, wool, cotton, copper, petroleum and iron. He urges firms in the same line to band together and build a co-opera-tive union in order to secure such credits. Pointing to the need of foreign capital, lie states that German shares can be acquired by foreign countries for small amounts either in dollars or pounds sterling and the buyer lias always a chance to profit by an improvement which “ must sooner or later take place.” But Germany, though seeking foreign capital, is the wily nation of old, for we learn that, so as not to lose any independence which would be possible if foreign capital dominated, she has “ insured herself by a form of organisation adopted by joint stock companies which grants preferred stock additional voting power. Also special agreements have been made with foreign stockholders so as to control their right of voting by a committee of German and American trustees.” It may be that Germany has become chastened .by the war—or again it may bo propaganda, which seems most likely—when the writer concludes: “Germany will again bo master of her own strength and will work for the development of her own fortune, as well as for the fortune of the worjd.” Statements which have been made that Germany is again aiming to win back her lost world trade, are undoubtedly strengthened by the opinions of the writer quoted in this article.