, 1875-02-28
TIE LESSOR OF GERMANY.

We published the other day letter from
hr. I. L1sGE!;nEaG, in reply to recent edi-
torial on the effect Of the French indemnity
upon Germany, in which we took the ground
that this indemnify had stimulated specula-
ton, greatly Inflated the rates of wages and
price of commodities, created habits Of ex-
travagnnce, and made production and manu-
factures more costly than in competing coun-
tries, so that exports had fallen of and i'm
ports had increased Alr. L1NGENoEEos lot
ter did not contradict or refute these state
nents, although apparently written for tha
sake Of doing so; it confirmed them. Wa
quite agree with our correspondents predlc-
ton thnt the commercial condition Of
the Empire will hencefozth improve
It will do SO because, as We haya
already said, prices and wages in Germany
are now not far from where they were before
the payment Of the indemnity. The Empira
has eaten, and drunk, and worn, part of the
wealth poured in upon it, and has consumed
the rest unproductively in forts, and cannon,
and speculative stocks and bonds, and ln1u-
ries Of every sort. Before the Franco-Ger-
man war, Germany Was rlva1lng England
everywhere in the sale Of many lines Of man.
,1factures. The English press acknowledged
the fact With dismay. One Of the most
effective arguments urged in behalf Of better
popular education in England was the way IN
which Ger1nans-thanlzs to their superior
training-were driving Eng1ishmen out Of
the worlds markets. Then came the war, aud
the indemnity. just as soon as the cost Of
production became higher in Germany, on
account of higher wages, monetary imitation,
more unproductive enterprises, than it wasin
competing countries, the latter undersold
Germany, not only abroad, but in the home
market. Imports increased, exports decreased
Now the overstock Of money and the specnla-
tive fever it caused have largely disappeared.
Prices have fallen neaaly to the ante-war
basis. A financial revulsion has forced the
nation into its old-time industry and thrift.
It will doubtless now retake its old place as
an exporter Of manufactures.
The moral Of this is plain. In America,
we have Increased the cost Of production,
first, by the imitation Of values and impulse
to speculation caused by q ductuating, dep7e.
(l4t3u Gu11GAEJ aC|04Aet7 ~ a AAAAo~<A4A~A
ssprotectiys policy" which, by making ths
manufacturer pay more for his raw materials,
his tools, his labor, his every aid, has effect
ually harmed the industries it was intended
to benefit. Our manufacturers, ike those OF
Germany, have been driven out Of ths
foreign market, because they were undersold
there Wehave, therefore, been unable to pay
the interest on our enormous foreign debt
with merchandise, and have been drained OF
our gold. If We would regain prosperity, We
must do as Germany has done. We must
remove the causes which have raised the cost
Of mechanical production to such an u1-
healthy pitch. We must get rid Of the evil
currency which turns Legitimate business
into gambling, and we must get rid of the
falsely called "protective system" -" which
shuts Us out Of the markets OF tho world
Then we cen export goods instead Of gold.
Cheap production means abundant produc-
ton and national prosperity, and labor fo1
eli who are willing to work