The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-12-03
PROSPERITY AND WHY,

The enormous production of the
United States, and the strides which
she is taking make the countries Of
Europe look to their commercial laur-
els. October was, as far as exports
are concerned, a phenomenal month.
There never was a greater export for
any one month from the United States
in the whole of it's history, and the ex-
ports We're not raw material, but were
in a large measure manufactured
goods. This new phase in the CONNER
cial world is causing uneasiness in
many directions. But this phase as
far as we are concerned, demands the
utmost care in our diplomatic relations
with many countries. Commerce is
the cradle Of diplomacy. The first di-
plomats were merchants.
There is no country. more interested
in the commercial advancement of the
United States than Germany. That
Great Britain is feeling the COMPETE
ton is a fact which cannot be contro-
verified. The cotton trade has largely
gone into the hands of the r -
States, or very consiG~ .ob,o .,iaa 80
it. but Germany fer 81 u
-ho 49,, - GELS the competition
~ i-O' cause Germany is push
or trade and is going through a
commercial crisis at the present mo-
ynent.
EHsEom 1891 to the summer of the pres
ent year the general course of German
industries, and especially the foreign
commerce Of the country has been rap"
id and substantial in development and
expansion. But the result of the pros
perity has been over production. The
situation has called forth the consd-
Grafton whether there is any efficiency
in syndicates and cartels for resisting
adverse conditions, and whether they
actually serve, as is claimed for them
the purpose of "a parachute to enable
the victims of over production to get
safely down to a solid basis" Popular
opinion in Germany says that while
German syndicates have been on the
whole conservatvely managed, and
have resisted to some extend the ad-
vance of prices during the flush years
of prosperity, they have not done this
sufficiently, but have yielded to the
result of attracting excessive capital
TO certain lines of manufacture and
creating over production from which
the whole country may have to suffer
Whether popular German opinion is
right or not remains to be seen.
That a reaction has set in is shown
bya recent article in the "Oest-deutsche
Presse." This paper points out that the
foreign market in textiles has dimin-
ished, and home consumption has been
reduced. This has meant reduced out
put and of course the dismissal of lab
orers. These are moving away, houses
and empty, stores which supplied them
are in difficulties. Wages have gone
down. In good times they were 70
marks per week (2.S5) in October the
wages had dropped to S1a marks per
week or $2.01 Out of this magnificent
wage the German weaver has to pro-
vide for his family, and pay rent and
taxes. How does he do it? There can
be no wonder at the migration of Ger
mans to the United States. A COM
merce built upon such wages is bound
TO fail at some time, when it comes
in contact with a commerce founded
upon the firm basis of United States
industry which pays high wages but,
through the skill of its workmen and
through its mechanical devices. is able
to make a cheap output. In spite of
the starvation wages of Germany,
American textile fabrics are better and
more eagerly sought after in the
worlds markets, especially in the East,
that great market to which all eyes are
turned, and which the Western world
is ready to fight over.
The cause of the present commercial
crisis in Germany is partly the South
African war, which has put an end to
exports in that direction. Then Ger
MANY has several billions of dollars in
vested in foreign countries which are
not bringing in expected returns. There
has been falling off in the exports
to the United States in almost every
line of goods, this owing to the fact
that the United States has herself be-
come a great manufacturer. Take for
example the wooden ,ods exported
from Greiz to the United States, as
shown in Consul John F. Winters re-
port. In 1895, the export of these
goods from this one place to the United
States was valued at 81, OOS, 800. In 1899
the exports were only $4S,842. And
what is true of Greiz is true of all
wooden centers in Germany. There has
t. is true been an increase in the ex-
ports of the empire to England. South
America and the Balkan States, but
these markets have fallen short of con-
Stunning what has been manufactured.
The crucial points are the immense
strides in United States manufactures
and the failure Of the markets in South
Africa and China. The latter, at the
present time looms up large. Ger
MANY presses the war in China with