The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-04-27
HARD TINES GAN
Be EXPECTED.
Balkan War Exerts Considerable In
fluence on Business IN the
Neighborins coun,
tries.
EVEN BREWERIEs LOSE
Germans Hoard Their Money and do
Not Buy Luxuries or
Patronize Amuse-
ments.

by Karl H. Won Wiegand, Berlin cor
respondent OF the United Press.l
BERLIN, April 26.-unless the in
ternaticnal skies clear up and the fear
of general war is removed from the
minds of the people, not only Ger
many but the greater part Of Europe
may look forward to hard times,
such as have not existed for many
years. Stagnation of business is al,
ready on and a complete paralysis
threatens to bring on an Industrial
crisis.
These views reflect the fears of
hard times prevailing in all classes
in Germany at present. The very
fact that such fears exist SO generally
is having the effect of rapidly intensi-
flying the conditions In business and
financial circles.
For many months business has been
practically suspended in the Balkans.
This had reactive effect upon Austria
which was the principal creditor OF
the Balkan business world. Unable
to collect for orders filed, unable to
take orders because of the small
chance of being paid for them, the
Austrian industries. partially Or Who'll,
ly shut down. This threw many
many thousands of men and women
out of work and who have now been
out of employment for months. It re
duced the buying capacity OF the Aus
TRAN public to a minimum.
For a time, Germany was little af.
fected. It's business with the Balkans
was comparatively small, but fairly
large with Turkey. The Austrian
banks and business houses fell back
upon Germany for money. Only few
weeks ago Germany sent $4,000, 600
to Hungary. Now the business stag
nation has spread from Austria to Ger.
many, and is spreading to France and
Russia.
Somehow the German people are
impregnated with the idea that the
wars in Europe are not over yet The
action of the French, German, and
Russian governments, the tightness OF
the money market and the steadily
falling stock markets, have but con
firmed that fear AS in time OF war
but two things are Of much value
food and gold Germans are hoard.
ing, those that have anything to
hoard.
According to the reports OF some OF
the big stores, leading business houses
and small shops, the buying Of the
public has dropped off fifty per cent
| in the last few weeks. The first and
hardest hit are the manufacturers
and dealers in articles OF luxury
goods and articles which the public
can at pinch dispense with for a
time.
Many Germans are striking luxury
goods from their buying list. The
manager Of one Of the piano houses
said that his business had fallen off
ninety per cent you can't pry mon
ley lose just at present. he remark
ed Absolutely nothing doing in the
/ jewelry business except the usual EN-
4 gagement or wedding rings, and there
/ is even disposition to save money by
buying less expensive ones was the
information given at one of the large
ijewelry houses.
| One of the big Munich breweries
reports that the consumption of beel
/ has fallen off % per cent. This is not
attributed to less thirst but rather tt
1 the increased price OF beer. Two bic
mugs of dark or pale now cost
what three formerly did The thrifty
German simply cuts out the third glass
lnow and some OF the brewerles com
plain that he even manages to gel
along with one where he formerly
put away three. And, beer can hard
! " be said to be on the Germans list
of "luxuries.''
| Times will not be hard In Germany
/ because CT lack of money. The
Germans have money--considerab OIL
Iit-as shown by the reports of the say
/ ings banks, but they are boarding it
1T is estimated that more than 800,
100000 has been withdrawn from the
banks since the beginning of the Bak
an war and boarded. This feeling has
/ been increased by the tendency Of the
banks to pay in paper instead of gold
Long credit is the rule in the Ger
man business world. And this makes
business very sensitive to tightness Of
money around the quarterly settle
ment days. Even the milk dealer and
the baker dislikes to make out bills
oftener than once In three months
Rents are paid three or six months al
/ a time-but In advance.
i Five theatres in Berlin have failed
in comparatively short time, indi
eating that besides "luxuries' ant
l'beer, the Berliners also are cutting
down on pleasure expenditures. Music
is almost as essential to the German
as beer and yet the concerts OF one