CONDITIONS IN GERMANY.

New Zealand Herald, Volume LVI, Issue 17269, 19 September 1919, Page 6

CONDITIONS IN GERMANY.

Significant evidence of the condition of Germany, industrially and commercially, is contained in two cable messages published to-day. An American correspondent states that the average wages of the German workman have increased to over four times the pre-war standard, but the currency has a purchasing value equivalent to more than one-seventh of the 1914 mark. This estimate of the depreciation in the German currency is confirmed by the report from Holland that German bills of exchange are selling at the rate of 2d for the mark. There have been numerous

accounts recently of a vigorous revival of German trade activity, of the replenishment of home markets and of preparations for the invasion ojvforeign countries. The suggestion has been made that the depreciation of the mark, combined with the acceptance of a greatly reduced standard of living among German workmen, would give German goods an overwhelming advantage in overseas markets. Presuming that the New York World's estimate is based upon a reasonably comprehensive survey of German industry, it now appears that the nominal increase in wages in the Empire has been in virtually the same proportion as the decline of German credit abroad, and that the mark is worth very little more in Berlin than in New York or Rotterdam. The Dutch exchange is a reliable index of the position. The, quickness and ease of communication between the two countries tend to facilitate the resumption of trade relations and the restoration of German credit in her j neighbour's markets. The fact that the exchange is so heavily depreciated shows clearly that the output from German factories is still inadequate to influence the markets beyond her frontiers. Ever since the conclusion of hostilities, Germany has been torn by industrial strife and crippled by transportation difficulties, unemployment is general in spite of the high wages, raw materials cannot be obtained. and the depleted reserves of gold are being jealously husbanded for the purchase of food from Britain and America. Another factor which is probably delaying the revival of industry is the policy announced by the Government of huge levies upon property and commerce in order to meet the Empire's enormous liabilities. The prospects of stable conditions in German industry are no brighter than the outlook last November, and, if the American correspondent has even approximately gauged the present position, there seems little likelihood of serious competition from German manufacturers and merchants for some considerable time.