The Financial Crisis in Germany.

Taranaki Herald, Volume XLIX, Issue 11824, 22 November 1901, Page 1

The Financial Crisis in Germany.

• . The depression in Germany, v»i which the cable advised us a few days back, has been developing for boine timesome time, je'roin the Financial Times, of late date, .we take the following :—: — The American Consul at Bremen, Mr Henry W. Dledrich, takes a very gloomy view of the present commercial position in Germany. In a recent report he deals separately with the chief branches of industry -and cities some remarkable evidences of the period of depression through which the country is passing. The coal trade, he remarks, had hoped early in the season to derive great advantages from the export duty which the English Government put on its coal. It was expected that this measure would bring on many strikes, thus vastly reducing the output of English coal and increasing the demand for the German article. But these expectations failed to be realised. There is but little demand for ooal at the present, and the stocks in the coal yards are increase ing to an alarming degree.?/ The syndicate has succeeded in kipping up prices fairly well, but it is believed this cannot last much longer. In the iron industries the difficulties in the main have grown rather than decreased , It is true some large orders have been placed and much activity^ has been shown ip certain quarters in order to deliver on time, but such orders were few, and they had been kept back to the last moment, because everybody knew -that they could be filled at once, an-d by wait-ing till the last moment there was always a chance of cutting r rices. . The same condition prevails with the manufacturers of machinery, many of whom have beed j obliged to discharge their men; I while others have had to reduce thi ] • time of running t^eir works. Unusually gloomy, Mr Diederich continues, has been the condition of affairs in the textile branch of German industry for the past twelvemonth. In <a convention of iron men retently 'held it 'was ascertained that in 66 ■mills in Southern Germany . with (37,142 looms not less -than 618? looms were idle. It was* at once rsr 'solved to reduce the output and to ■ induce • other districts devoted to spinning and weaving to do the same things This has been- doncij but in spite of all efforts the general (situation has not improved. , The prices for manufactured goods are dropping, and orders are very slow in coming, ' because everyone 'feels that he 1 may look for 1 still lower prices. The, situation prevails in all branches of the textile industry, including the knitting mills. In some manufacturing towns of • Saxony*, which had been kept very busy, for' ■the past 10 years, one-fourth of tho looms and other machinery are, now idle. In some ;of the factories for, lace curtains the men .work on < balfjtime only, and must be content with wage's of 18 to 10 marks (1,90d01. to 2.38d01.).pcr week. Evert'thelacd trimming district in the .Erzgebirge. is suffering more than - it has lor years. The great German industry in chemicals, which' for years was exceedingly prosperous 1 , is now be? ginning co complain, 'of ' lack '< o£ orders and poor prices'. ' The same is true of the large electrical- enter;: prises, which' considered : themselves beyond the reach of hard times, With the advent of spring it had been , expected that, as is usual at this time of the year, a great impetus would be given to building ; but "these hopes have* alsc been . (doomed to disappointment, and thousands of -foreign.- mechanics and labourers, who- annually flock to this country at xhis season, , have been compelled to return to. their .Ihomes. The factories of cement, too in spite of their abundant capital 1 have encountered many difficulties, [ and the failure of the Reichstag to [•pass the canal bills has not brightened their prospects. The manufacturers of glassware and .furniture, in various districts, rfind it extremely 'difficult to employ help, even with wages and time much reduced. In .consequence of th.is condition in al>most every branch of German ir Idustry many labouring men, especially those with families, barely succeed in keeping body and soul l to^ gether, while the monthly reports as to the number of men who are idle and seeking employment are alarming. In addition to all this Germany must be prepared to harvest the poorest crops it has -had for many a year. . .*■ . r -