Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-05-13
Germans s AzIpprehensive Of
IsthdmIian Waterway.
KEENL'Y J INTERESTED
LOOK TO LOSS OF TRADE WIFE
PORTS OF THE PACIFIC.
Regard the United States as Their
Most Dangerous Commercial Rival
Relations With South America.


BERLIN, May /. 1903.
Although the construction Of the Panama
canal by the United States government
presents no direct commercial or maritime
problems to German trade, there Is no
country more keenly interested in the big
waterway project than Germany. The only
manner in which the Panama canal will
AFFECT German trade directly will be on the
west Pacific coast. German merchant YES
sells and steamship lines control one-third
OF the coast and oversee commerce from
Cape Horn, and reaching as far north as
the west coast of Canada, including San
Francisco. But it Is mainly feared here On
account of the fact that it will give the
United States an incalculable advantage
In outstripping European trade rivalry IN
the east Asiatic and Chinese markets.
No European country is at present so ac-
tive In exploiting new colonial extension
and commercial enterprises as Germany.
The banks are SO heavily supplied with
cash at low percentage that over 5oOO0ooo
MARKS worth or money was shipped WITHIN
the last two months to the United States
to supply the stringent market. Neverthe-
less German financial syndicates are shy
of investing in South American enterprises
now. 1t Is not only because OF the fear
that not sufficient protection is guaranteed
their property and capitalist investments
owing to internal strifes and revolutions
while the Monroe doctrine opposes any
drastic prosecution Of indemnity payments,
But this retirement of German capital in
South America, as already evidenced by
the declining trade reports, is due to the
general conviction that South America Is
the natural and logical prey of the Yam
kee commercial agent, and that with the
construction of the Panama canal and
trans-American, railway across the isthmus
Germany must take rear seat.
Apprehension as to the Canal.
No effort Is made to disguise the fear
that with the construction of the Panama
canal the United States would outstrip and
Its vessels practically destroy German conf
merce with the west coast Of North and
South America. which now amounts in
value to approximately 20O,00O.OOO marks,
The Hamburg South American. de F'reytas.
kosmOs and HanSeatic lines under German
control would all be seriously affected. But
1t Is not the direct influence upon German
trade apprehended so much in Germany as
the indirect trade. .inasmuch as the water
way from New York to Shanghai will be
much less than from Hamburg and Bremen
to that port: The Panama canal will at
ford the United States shipper an UNI
doubted advantage In commanding trade
with east Asfatic markets. with Australia
and all Oceanfa, where German commerce
Is striving with might and main for
stronger foothold. German commerce with
these markets Is roughly valued at &C.,
100000 marks, and the large export cartels
and syndicates give large premiums for
exports to these markets in order to gain
ground at the cost OF its competitors, es-
pecially the British merchant marine.
Frequently In the financial summaries, in
the reports of the leading chambers of
commerce and annual meetings Of the large
syndfcatesl the expression Is freely used,
I'VE have only one commercial rival to
fear and that is the United States" Owing
nf
porting interests through the sale and ex-
port cartels its leading spirits are able to
get together and discuss ways and means
to discount the advantage which the United
States expects to reap by the construction
of the Panama canal In these discussions
the chief question is the best way of
meeting American competition in the mar
kets from Singapore to Valparaiso and from
Sidney to Vancouver. Government assist
ance in the granting of subsidies to steam
ship lines conducting trade with East Ash
attic markets Is one of the chief assets. At
present the subsidies granted by the gov
North German Lloyd hardly pay for the
expenses of transporting the mails. Never
theless the large exporting syndicates are
SO closely identified with the steamship
lines that they may be expected to work
hand in hand to further German commerce
in the eastern markets.
That German exporters and economists
fully realize the Importance Of the Panama
Canal III lurlneTlHS United states commerce
is shown by the mass of literature on
Germany and the Panama Canal" which
might be seen in the windows Of bookstalls,
as we'll as the numerous addresses deliv-
cred before the East Asiatic Society and
the leagues for the extension of German
oversee interests These texts are all
written in a scholarly and academic man
ner, giving the comparative distances be-
tween competitive markets in which the
German and American merchant-laden
ships are struggling for supremacy. That
the public is also vitality interested may be
gathered from the manner in which every
scrap Of Information regarding the Panama
canal proceedings at Washington is dilated
upon, and the anxious manner in which
United States commercial rivalry is dis
cussed.
Clash in South America.
The most vital center where German and
American commercial aggressiveness clash
at present is In South America. That the