GERMANY

Taranaki Herald, Volume LXVII, Issue 16448, 31 May 1919, Page 9

GERMANY

GERMAN POST-WAR TRADE. THE USE OF SWITZERLAND. The Saturday Evening Post for February 8 contains an interesting article on the intrigues of Germany in Switzerland with the object of dominating tho trade of that country aud using it as a means for recovering her trade after the war. The whole, article is too long for publication, but the following extracts serve to show the Scope of tho German designs, _ Ton get some idea! of tiro extent of German buying in Switzerland when I say that the accumulated stores are valued at nearly two hundred million dollars. Very little of it was bought openly during the past two years. The Germans had their stool pigeons in the shape of Swiss, Austrian, Polish or Dutch buyers, .who not only bought the materia] in the names of firms in Switzerland, Holland and Sweden, but who resorted to every possible expedient to annex materia! lor the Germans. These buyers wore called “Schiebers.” Their pockets were lined with German money and they bought right and. left; and sometimes in mystifying fashion, ns this incident will show: In a. certain prosperous Swiss town a merchant bad ten. thousand francs’ worth of women’s blouses. One of these Austrian Schiebers came in and said: “1 hear you have some blouses to sell.” “Vos,” was the reply. “What do you want for them?” The shopkeeper, who had no desire to sell them, replied: “I’ll take twentylive thousand francs.” ' . “I’ll buy them,” replied the. buyer. The shopkeeper protested that be could not deliver them, whereupon tho buyer said: “All I want, is a receipt. I’ll send for them after the war.” The significance of the episode was simply this; The Austrian was buying; for a German house that wanted to hard au available stock immediately after peace. These blouses will go forth into the world with German labels and bearing the message that German trade is on the. job. It is a typical revelation of the Gorman hand; in Switzerland.

Despite the fart that it was legally impossible to got the raw materials into Germany the Gormans looked ahead to the moment that peace would release the Teutonic industry, and the great new world-trade competition woidd begin. Stores of the material segregated in Switzerland will bo used during tlje next year in the German-owned factories in Switzerland. As I have pointed out on more, than one occasion, the mark, “Made in Germany,” which for a. time will he the brand of a commercial Cain, will he succeeded by the stamp, ‘‘.Made in Switzerland”—if the Germans can get away with it. A neat little scheme is being framed up in Switzerland, however, to frustrate this camouflage, as you shall presently see.

Meanwhile wc can turn to what is in many respects one of the most picturesque and remarkable evidences of Gorman commercial subterfuge that the war revealed. In all my four years’ study of the methods by which the Gormans obtained material* for war purposes I have yet to discover an episode that ranks with this, in ingenuity and daring. THE TALE OF THE LORRAINE SHIRTS. To get the setting wo must go to the little Swiss city of St. Gall, which is the centre of the embroidery industry of the world. In peace time its annual exports amount to more than forty million dollars, of which a third comes to us. At St. Gall you get the one. real evidence of America in Switzerland, for tho reason that twenty million dollars of American capital is invested in her embroidery factories. As you walk down the streets you can see the names of New York houses on the walls and windows. In the- comfortable business men’s club—one of the best in Switzerland —you can hear American talk to your oar’s content.

Since St. Gull’s activity depends almost entirely upon cotton the war interfered with the oven tenor of her productive way. Export limitations added to her troubles. One of the first restrictions prohibited the export of plain cotton cloths into Germany. The reason was that plain cotton cloth could bo easily used for war work, and more especially in the manufacture of Zeppelins. The only cotton goods that could be sent into any of the Central Powers had to bo embroidered. Keep this fact in mind because it boars directly on the point of the story I am now to unfold. For years there had been a moderate manufacture in St. Gall of an article of feminine underwear known as the Lorraine shirt. In that mysterious phraseology, which is like so much Greek to most unmarried men, it is technically called a “combination.” In the ordinary course of underwear events—and because 'the shirt must/ he short—■ it never measures more than three feet in length. At the top of the garment there *is_ usually an embroidered design ol some kind. The garment gets its name, from the fact that it is made on a Lorraine machine.

Just as soon a,s tlio embargo was clamped down ou the export of plain cotton goods into the enemy countries an activity in Lorraine shirts suddenly developed. During the first quarter of 1!)17 more than three hand rod thousand pounds of these shirts went across the frontier into Germany. Ihis was; not surprising. Everybody knew that the consumption of goods in the empire, due to war needs, had been groat. No one paid particular attention to the steady stream of boxes that went out of St. Gall, all filled with these' shirts.

All goods from Switzerland into Germany are subject to a customs examination. When tiieso cases of Lorraine shirts began to como along in constantly increasing numbers the Swiss border authorities perfunctorily opened a box, eaw that it contained underwear with embroidery at the top—which met tho war time requirement—and passed on the whole lot without any further investigation. As the flood of Lorraine shirts increased one Swiss Customs oflicor, more conscientious than his mates, began to smell a mouse. He said to himself: “These German women who are complaining about the pinch of war aro certainly using up a groat many pieces of embroidered underwear. What is the moaning of this extraordinary demand for Lorraine shirts?”

When the next batch came-along he decided to make a real examination. The shirt on the top was mad© according to regulation size. It was neatly folded and was the usual plant for the unsuspecting customs officer. When tho vigilant official dug down into the case he discovered that every other shirt was exactly twenty-five feet long! Even the- giants that our old friend Gulliver 1 ound in his travels- -mlu not have worn them, jivery other case in this

consignment, was filled with these same fantastic garmets. As a result of this amazing deception Germany got more than two million yards of cotton cloth lor her war work every month. INow the particular reason for this performance was that Fricdrxchshafen, tho centre of Zeppelin manufacture, is on tho shores of Lake Constance, which . is only a few miles from St. Gall. A hundred thousand yards of cloth was needed for 'every Zeppelin. Tims through the device of manufacturing what purported to be Lorraiuc'sbirts the materjai for twenty Zeppelins was smuggled into Germany every thirty days. 1 need sfcarcoly add that the moment the fraud’ ivaa hared the German supply of cotton cloth suddenly decreased. The Swiss restricted the length of Lorraine shirts to eighty eentremotres, and one picturesque system of' smuggling came to an end. This oxtranrdinasy episode—and it re T presented merely one kind of smuggling that went on between Switzerland and Germany—was made possible, first, by the cupidity which knows neither rank nor cause : second, by the war-born German industrial enterprise planted throughout Switzerland as the cornerstone of a- new world trade. Here we roach the crux of the whole German economic penetration, which is to-day ono of the, principal assets of tho defeated empire now struggling for rehibilitntiou. W o can get a concrete manifestation of it without leaving the domain of the Lorraine shirt. Before the war St. Gall’s only rival, both in the manufacture of embroidery machines and in embroidery output, was tho German town ol Plauen. Just as soon,' as the war broke, her industry ceased, because practically all tho cotton stocks in Germany wore commandeered for actual war needs. Plauen did not sit with folded hands bemoaning the loss of her principal business. She did a characteristic Gorman thing. She moved Plauen to St. Gall. This is .not a figure of speech. She actually transferred her embroidery machines over on the Swiss soil. They worked day and night to jroduce the Brohdignagian Lorraine •shirts that 1 have just described. <s OTHER GERMAN .RECEPTIONS. 'The shirts represent merely a wartime expedient. These German faetories/are making “Swiss” embroideries to-day, and just as soon ns the markets of the world are open they will be on sale. More important, than this is tho fact that when their home industries are reestablished their product will also bo hawked about as “genuine Swiss” embroidery. The most inferior German'output will have the Swiss label, will bet sold as the Swiss article, and wilt servo to give German goods an opening that they would not have if they flew their own colours. Germany duplicated this procedure with cotton gloves. Chemnitz, in Saxony, is one of the headquarters of this industry. The Germans moved their glove machine to St. Gall am| sent over hundreds of German girls to work them. These factories with their will never go back. If tho Germans can possibly got away with it they will sell these gloves everywhere. The world diat will refuse to buy German gloves will be bounced into buying . these “Swiss” gloves made by German workers on Gorman machines in Switzerland.

In this matter Germany showed her usual trade ingenuity, as an incident concerning a well-known German buttonhole silk will show. This silk is sold throughout tho world, especially in England, and is known by a certain characteristic, trade-mark. During the second year of the war the manufacturers turned their business over to a. competitor at Basel, who iilledi all tho orders. It developed that the unwound silk was being sent from Germany into Switzerland, rewound, packed in tho original package, and stamped ‘‘Made in Switzerland.” This is one reason why a certificate of origin will have to be' required on all foreign goods hereafter. SWISS WATCHMAKERS BLACKMAILED. Throughout tho war Germany made every effort to control the Swiss cottongoods industry. Switzerland had a considerable export business with Holland and Scandinavia. The goods had *to pass through Germany on tho way to tho goodwill thus obtained will congreat highway to the sea. At once tho German authorities, said: “We caunot let you ship these goods through Germany. Why not let us Imvo thorn for our own use?” This procedure did'two things: It kept tho Swiss trade from expanding, which met the Gorman desire; and it also added to the German stores.

Still more arrogant was the attempt of the German Watch Dealers Society to dominate the Swiss watch industry. As most people know, one of the principal articles of Swiss export is her watches, which go to every section of jjie world. One important customer is Holland, who re-exports these watches to her numerous colonies; Just as soon as the war began the- Germans saw a good opportunity to control this whole export business. They delayed the transport of these goods, which, like, the cotton articles for Holland and Scandinavia, had to pass through Germany. The natural refeult was that the Dutch ■stocks dwindled. When Holland, protested to Germany she got a communication from the Gorman Watch Dealers Society, which said: “Give ns.your orders for Swiss watches and you will be given the assurance that yotrf- merchandise will roach you without any annoyance or delay.” 1 have said that Germany made every possible sacrifice to got and hold Swiss trade during the war in the hope that the goodwill thus obtained with continue with peace. I could give countless evidences. Two, however, will suffice. Despite her desperate economic, plight she furnished one million dollars’ worth of mains and insulators for the electrification of the Swiss railways during the spring of 11)18. The remarkable feature of this purveying was that Switzerland tried to get this materia] ip France, England and the United States without success. The only country who'would supply her was her nextdoor neighbour, then dace to face with scarcity of supplies at home and an embargo abroad; I cite this episode to show that whatever her handicaps Germany will make a surprising stab at re- j construction. J

THE HUB OF EUROPEAN TRAVEL

The city of Zurich wanted to build a bridge, and invited bids. To the great surprise of everybody the only bidders were Germans.

When someone asked a Swiss contractor why he did not compete he replied: “To compete with the Germans would bo ruinous. They are determined to got the business.”

One more illustration will show that with the end of the war in sight and defeat inevitable the German manufacturer was looking ahead. The manager ot the Zurich branch of an American machinery firm showed me a postal card that ho had just received from a German'house at Mannheim offering a complete line of small tools. It stated: “As soon us tho war is over wo shall bo in

a position to serve you. We advise you to book your orders now.”

That Germany regarded Switzerland as one of her most important economic bridgeheads after the war. is evidenced nowhere else quite so convincingly as in Basel. This enterprising city on the Rhino, whose population of 150,000 includes 40,000 Germans, is the htfb of Continental travel. Of all Swiss towns it is second only toi Zurich in importance, being the centre of the industries in silk ribbons, chemical products and machine!'}’. With the exception of Frankfort-on-the-Main it was visited by more tourists in peace times than any other European city, for the reason that most of tho tide of travel flowing south from Germany scatters from this point to Switzerland, France and Italy. Germany has used Basel for social and economic penetration and it will be one of her principal strongholds ’during these years of restoration. With that uncanny foresight which helped to make, her industrially great she has a plant ready for business. Its uefvo centre is the great Badischo Bulmhof—the Baden railway station —which presents the remarkable spectacle of a vast German terminal built on Swiss, soil. Through its immense freight station conies all the Gorman coal for Switzerland,

One day last November I walked out and took a look at this towering, ugly', typically German mass of brick and stone. It was like a vast morgue. Despite the fact that no passenger’s footsteps echoed through its immense waiting rooms everything was spick and span, ready for the first train to come puffing in with its load of German visitors. This station is bound to be an important factor in the German rehabilitation, for the reason that with tho starting up of Gorman industry it will teem with German merchandise. The army of German agents, propagandists and citizens generally in Basel will see that it is passed on. ' Within eight of tho station I saw a succession of immense brick warehouses. They' were so jammed with bales of cotton that the staple had burst through some of the windows.

I asked an American who accompanied 'mo about them, and he replied ; “They are all Gorman warehouses, and the cotton you see is part of the immense hoard that the Germans have piled up in Switzerland. Germany owns these warehouses and they will fit into her commercial scheme after the war.” A STRAINER. FOR THE MELTINGPOTT To Switzerland there flocked during the final six months of .the war those mercenaries of unrest and discord who plot under the black banner of Bolshevism. No one need he tolc] • that this hideous movements was framed and financed by the Gormans. 1 was in Petrograd when Lenin first opened his Pandora. Box of trouble. 1 have found its poisonous fumes in half a dozen countiieavsinco thaj. time. Nowhere did they penetrate more deeply in some respects than in Switzerland.

All last summer Switzerland was inundated with Bolshevik propaganda. It was more than a, coincidence that the short-haired women and the long-haired men, all Russians, tfho established their revolution factory at Genova- associated almost exeusivoly. with the German agents there. Together they intrigued for' social and industrial upheaval in Switzerland. Their funds were unlimited. On the first of November it was, estimated that no less than ten million roubles were on deposit in various Swiss banks to the credit of these Bolshevik agents. The bulk of it came from one source —Germany. The whole burden of this Bolshevik propaganda was summed up in a single sentence: “Unless.the war ends at once the world will be plunged into a Bolshevism that will mean widespread economic disaster.” It was a crude German trick to force peace. The. Swiss workers were intimidated and a. nationwide strike developed. The Government adopted strong measures, however, and it was checked heforo.it had done much damage. But the virus had been injected into the industrial body and it is still working. The universal danger to-day lies in a Bolshevism that is the avowed enemy of credit, capital and order. What happen, ed in that little nation is likely to bap- I pen in the United States unless we 1 ‘rear a bulkhead against the tides of discredited humanity that will soon beat upon bur shores. If we do not convert that well-known melting-pot of ours into a straining-pot we shall find ourselves facing some of the troubles that have beset Switzerland. They lurk wbereever men labour and desire to -bo prosperous. Behind this Bolshevism is the German propagandist. If his task is made futile and the world of trade sterilised against him he will unfurl the slogan: “Rule or ruin.” Having failed in a war of masses it is not beyond him to instigate a war of classes. Let us take no chances.