New-York tribune., 1902-05-24
GERMANY'S HARD TINES.

The German Empire is to-day suffering an
economic crsis-euphemism for hard times
just such other aud older nations have suf-
fered We have had the same experience here,
arising from almost exactly the same causes.
The first cause, in order of time, as explained
by DR.. Braun, of Stuttgart, in The Yale Re
view," the stJpendOus development Of Ger
man industries. manufacturing and commercial
Here we should call ii BOOM" Between 1882
and 1895 Germany was transformed from an
agricultural into an Industrial and commercial
country. In those years the increase of work
ing population was us per cent, of which agri-
culture received a gain of only OF per cent,
while manufactures, mining and building trades
were increased by go and commerce by 4S9
per cent. To turn 10 other data, In 1895 there
were 20104 men engaged in shipbuilding In Ger
many, and IN 1900 there We're 40S0s At the
same time emigration was largely checked. In
1881 the number of emigrants to the hundred
thousand 4S6, and in 1899 by a pretty
steady decline, it had fallen 10 forty-four Trade
unions increased in membership from 255,922
in 1895 to 6S0,427 in 1900. and, was 10 he ex
pected, strikes similarly increased in number
from 73 in 1892 to 967 in 1899.
This first cause led 10 the second, to wit. over
production. From 1872 10 1900 the population
of the empire increased by 30 per cent At the
same time railroads Increased by $50 per cent
and their earnings by 400 per cent: shipping by
500 per cent coal production by 2GO per cent
and pig iron production by nearly $50 per cent.
The increase OF exports was at the same time
actually enormous, yet proportionately II was
small, being little more than 100 per cent. 1t
is evident, therefore, that production in
dicated by coal and iron figures, considerably
outstripped both consumption and expectation.
In dc 4hap Il GfiO
and enormous surpluses of commodities were ac
cumulated. This latter process was not noticed
so long as prosperity continued. But when the
unstable equilibrium of prosperity was disturbed
great was the crashl Meantime n third cause OF
trouble arose In the imitation OF industrial Sc
curities and-worst of all-inveStment in them
by the banks. In 1897 the listed "ndustrialS'
at the BOerse amounted to $S90O0,O0O, and in
1900 TO S167, 100000. while the issue of domestic
securities of all kinds averaged no less than
81, 900, 10000 n year. Then the banks every
where took TO investing In "industrIals" and
giving their chief attention to the promotion OF
all sorts of speculative schemes. The crisis
arose when the Pomeranan Mortgage Bank
failed through maadmnistratiOn. Then the
Leipzig Bank, one of the oldest and supposedly
most trustworthy in the empire went down.
Just before its failure its shares were quoted at
a "get rich quick" concern which allured dupes
by paying 80 per cent dividends out of its CAPT
tai. After that the deluge.
Shares of the Leipzig Bank fell from 1850
to /; Of the Berlin Weissbier Brewery from
126.10 to 60; OF manufacturing concerns of all
kinds, from far above to far below par. An
alphabetical list of n score, taken at random,
shows for the first q fall from 1913 to 80 and for
the last from go to -. Even such a con-
cern as the great electrical works of Semens
& Halske suffered n decline from 1900 to no.
Government securities, on the other hand, ap-
preciated in value, the imperial loan to 101.90
from 9275, and Prussian consols, Berlin mu-
nicipal bonds, Bavarian State bonds and all the
rest In like fashion. There Were corresponding
increases, too, in the securities of other Cont
mental States. Foreign loans were eagerly over
subscribed in Germany that of Russia a hun
dredfOd though the state OF Russian finances
did not Justify such confidence. The people were
simply wild with eagerness to get their money
out Of banks and stocks and into safe public Sc
curties. But, of course, such a transfer of cap
ital aggravated the distress in the industrial
and commercial world where there was griev-
GUS lack of capital for the conduct OF ordinary
business. Now finally, upon all this come the
new tariff proposals, the attempted repeal of
| the sugar bounties and the necessity of max
| ing new commercial treaties Beyond doubt the
German Empire, with its vast resources. inteli-
gence and energy, will presently rise superior to
all these troubles and regain prosperity. But
the task is hard one, and it calls for putting
forth of the best qualities of the German people.
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