GERMAN TRADE

New Zealand Times, Volume LIII, Issue 12393, 12 March 1926, Page 8

GERMAN TRADE

LOAN MONEY SQUANDERED BRITISH MANUFACTURERS IN FRONT A BANKRUPT POLICY Bv Telegraph.—Press Assn.—Copyright. Australian and N.Z. Cable Association. (Reoeived March 11, 10.45 p.m., LONDON, March 11. Mr G. Renwick, in his second article in the “Daily Chronicle” on German trade, says: “I have dealt with the position of the workers. The situation of the employers is equally tragic. Big industrial establishments must bear the blame for the bad ‘economic policy of the past few years. First, they extended factories and shipbuilding yards during war time, imagining 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 their machinery up-to-date. Thirdly, when inflation ceased they kept on turning out vast quantities of goods for which there were no

markets. Fourthly, they borrowed money, including part of the Dawes loan, and squandered it unproductively. This waste continues even when they remember the tax burdens, the result of unbelievably freakish extravaganca on the part of over-staffed, bureaucratic departments. THOUSANDS OF BANKRUPTCIES “It is obvious that the German industrial position is not enviable Their policy resulted in thousands of bankruptcies monthly. In 1925 the Sgure3 for January were 3779 and February 3720. Though the figures include many worthless, mushroom growths, it also includes many long-established firms which shared a similar fate. Though manufacturers agree that they must make a higher quality goods this has not been done, and in most lines foreign buyers are finding British goods superior. “German wireless manufacturers admit that British competitors are technically two years in front. British motor-cars at least are twice as good as Germans. Pre-war shares of German companies officially were quoted on the Stock Exchange at twenty-five thousand million gold marks. To-day they, together '- ; th many newly-form-ed companies, omy aggregate 6500 million gold marks.”