Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-11-25
GERMAN TRADE STATUS
BOOM IN ALL LINES OF MANU-.
FACTURE.

BERLIN. November 24-Although Ger
many is on the top wave of prosperity
skepticism as to the duration of the boom
has been increasing for several months and
the outside public has kept aloof from
speculative investments in Industrial
stocks. notwithstanding the continued pub
LEGATION of unusually brilliant annual re-
ports by the companies. showing large
gains, the declaration of dividends. in
creases in orders and higher prices for
manufactured products. This sober atti-
tude on the part of private investors ia
beginning to gain the support of the manu-
1acturers and bankers. who, being able To
glance behind the scenes of Industrial ac-
tivity, express fears that the boom has al
ready exhausted itself.
When asked to give reasons for this view
the manufacturers and bankers point to
the dearness Of money, the high prices Of
commodities, the high wages and the ex-
pensive operations to which all the indus
trial establishments have been committed.
The industrial conditions are everywhere
admitted to be sound. Every branch of
manufacture is taxed to its utmost pro-
ductive capacity and in the coal and iron
industries supplies must be purchased I'm
increasing quantities from abroad. chiefly
from Great Britain. in order to make up
The mines and furnaces have booked
orders months ahead. but they are unable
to deliver the goods in time. The state
railroads In the coal regions are far from
being able to cope with the traffic re-
quirements. and in the Essen district a
shortage Of coal cars results in preventing
from $4,000 to $1,000 tons of coal from
reaching the consumers.
General Condition Sound.
The receipts Of the railroads for October
are 100000 above those Of October, 1905,
an increase of II per cent. and the foreign
trade Of Germany shows the heaviest
movement ever known in both exports and
imports
The business activity In all directions
causes an unusual scarcity of labor, the
production in the coal and iron trades In
particular being kept down through that
cause
Nevertheless, both these industries are
breaking all records. Many of the coal
and iron companies are seeking additional
capital to build new plants or enlarge old
ones. but most of the enterprises Of this
description are delayed on account Of dear
money.
The general conclusion. which seems justi-
fed, is that Germany's industrial situation
is still thoroughly sound and that the pros
perity will continue, although the rate of
EXPANSION may ne decreased through In
ability to obtain additional capital in view OF
the stringency of the money market. The
bankers do not eypect The Improvement i'm
the money situation after January l which
usually follows the autumnal stringency.
The tendency is rather to expect continued
stringency when compared with previous
years. 1t Is felt that much depends upon
the developments in New York. While
great relief is felt at the fact that the
American demand for gold In London has
been relaxed nobody here, 1t is asserted.
can feel certain that the demand will not
soon be resumed and continued on the
strength of the view taken In the United
States of the world 5 economic position.