GERMAN GOODS.

Star (Christchurch), Issue 16327, 17 January 1921, Page 7

GERMAN GOODS.

j WORLD-WIDE DEMAND. EXPORT TRADE REVIVING. The assertion so frequently made during the war that German manufacturers wero accumulating vast stocks of goods with which to capture the markets of the world when the war ended and normal international trade relations could be resumed, have been falsified by events. When the war ended and the commercial blockade of Central Europe was raised it was found that these vast stocks or manufactured goods had no existence. It was found that German industries, like the industries of the Allied countries, had been engaged almost exclusively on the prr>duetion of war stores, and that Germany, like the Allied countries, lvad to face the task of rebuilding her industrial life on a peace basis. The industrial transition from war to peace has been a slow one iir Germany, as in other countries. In fact, the process has been slower in Germany than in the Allied countries, with the exception of France, whose northern industrial areas were devastated by the Germans. The slow progress in the industrial recovery of Germany is due partlv to the fact that ! she lias not been able to secure the supplies of raw materials shle reouires. and because the great, depreciation of German currency restricts her purchasing power in the world's markets. EAGER FOREIGN BEYERS. Two years have elapsed since the armistice, was signed, and German trade is now showing signs of recovery in increased exports. The export trade of Germany has hitherto been hampered by restrictions imposed by the German Government with the object of meeting the home demand for manufactured goods, t-lie stocks of which were exhausted during the war. The German export trade is now being rapidly revived, and owing to the fact that the depreciation of German currency enables importers in other countries to purchase German goods at a lower price than the goods can bo manufactured elsewhere, foreign buyers are eagerly purchasing goods in Germany- The “ Frankfort Mess-Zeituncr. ,: ’ the official newspaper of the Frankfort Fair, states that German manufacturers are beino* deluged with orders from buyers in European, Asiatic and American countries. It j gives the following illustration of how German manufacturers are able to undetrsebl British competitors. {£ A great South African firm asked for offers in England for the construction of gas works, and received British offers for delivery in two yea vs at a cost of C 160.000. Thereupon the firm made inquiries in Germany, and was able to obtain a contract for delivery in throe years, at a cost of only £90.000. This experience Is certainly not isolated.” GOODS BOUGHT. According to this official organ of the Frankfort Fair, seventeen countries are eagerly competing for German goods, and among ihe most pager buyers are Great Britain. Italy and Switzerland. Among the goods asked for by British buyers are motor-cars, motor wheels, . optical glasses of all kinds, porcelain ware, linen goods, lace, clocks, laboratory equipment, paper of all kinds, felt hats, hosiery, fountain pens, pencils, mauicure sets, pins and needles. British manufacturers of these goods are finding it difficult to compete against cheap imports from Germany. Although German industry has by no means recovered from the disorganisation caused by the war. and the output of German factories is still far below the pre-war output, the competition is being acutely felt in Great Britain, particularly in those industries which were started during the war to supply British consumers with goods previously obtained from Germany. Fancy goods, toys, optical glasses, hosiery, fabric gloves and similar goods which Germany supplied to Great Britain before the war are now being placed on the British market at prices considerably below the actual cost of manufacture in Great Britain. DEPRECIATED CURRENCY ADVANTAGES. Contrary to all the precepts of the dismal science of political economy, Germany’s depreciated currency is giving her an immense advantage in the markets of the world. The dismal science had never contemplated a European catastrophe, which would depreciate tho currency of a large manufacturing country like Germany. According to the laws of political economy, the currency of a country exporting large quantities of manufactured goods to other countries ought to stand above par. instead of far below it. The German mark, which before the war was the equivalent of the British shilling, is now worth only a penny in exchange between Great Britain and Germany. Therefore articles which cost a mark to produce in Germany can be bought in that country by British importers at the exchange value of a penny. DEMAND FOR PROTECTION. British industries, and particularly those industries started in Great Britain during the war to supply goods previously obtained froiri Germany, are demanding protection from German competition. This protection has repeatedly been promised, and is still being promised. But so far nothing has been done, although the Government has repeatedly promised that legislation to give j effect to this trade policy will be inj troduced in Parliament before the end of the present session. The cause of the delay is that Mr Eloyd George's coalition Government is afraid of losing tho support of the L/iberal section of the coalition. The Liberals still cling to the fetich of free trade, and are opposed to the fulfilment of the Government’s pledges to British manufacturers.