Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-28
GERMAN COMMERCE
COLLAPSES UNDER
PRESSURE OF WAR
DR.. Emil Lederer Virtually
Admits the Fact, But
Points to Good Harvest as
Some Consolation.

Whatever be the outcome of the IVA
the trade of Germany has been go crir
pied that it is now on the verge r
total collapse. The progress made
manufacturing In recent years was sirnpl
amazing. At the outbreak of the WA
Germany had probably overtaken Gres
Britain, so far as foreign trade was cor
cerned, and year hence would hav
relegated her rival to second place
the worlds commerce.
During the first six months of 1914 mer
chandise was exported from Germany I
the enormous value of Sl,Oi5, 900 OO0 n
compared with $1,O75,OOOO0O from Groa
Britain and Ireland. This was runnIn
England very closely, but whether Ger
many would have won or lost in IN
race Will now never be known, for th
war has changed the channel of th
whole worlds trade.
DIR. LEDERER's VIEWS
An article by DR.. Emil Lederer in th
vossische Zeitlng is an interesting reveIa
ton of the extent to which German in
dustry has been already hit by the war
He says:
The removal of all men capable of
bearing arms has smashed industry
to atoms. All the links uniting tho
various trades have been broken. The
crisis with regard to money and credit
which occurred in the first instance
was accentuated by the necessity of
financing the war by a single stroke.
Inc attempts made to meet the
Crisis by liquidating assets only made
matters worse. The unfortunate thing
Is that this liquidation, which Is GUS
tomary In all times of crisis, does not
In the present instance affect merely
small BODY of speculators but ex-
presses the fact that German indus
try and its production are on a flcti-
tious basis A complete transforma-
ton Is necessary In order to cope with
the new conditions brought about by
the war.
At present there Is little sign of
this. We see the apparent paradox
that. in spite of the increasing alb
sorption for military purposes of men
capable of working, there Is an in
crease Of unemployment among those
that remain behind. Even the much
sought-after labor of women cannot
find employment. Day after day un-
dertakings are shut down or their
output diminished. Those, indeed,
which continue at work are working
with aimless overpressure and uncer-
tainty, so that the net output Is di-
minished.
What are the decisive economic
facts? Does the complete breakup of
industry which threatens Germany
involve disruption also of agricul-
ture and Of the supply of necessities?
Ihe war means for Germany: First,
the prevention of exports, especially
Of articles of luxury; secondly, the
prevention of imports of the means of
subsistence, especially raw materials
such as cotton, copper. ETC.; thirdly,
the reduction or alteration in demand
by all at the front and the restriction
of demand by those remaining at
home There is no longer any demand
for articles of luxury.
LEHMAN HARVEST GOOD.
Against these facts. which apparently
Involve the Government outlook for the
near future, Dr. Lederer mentioned
others which tend to relieve the picture.
Germany, he says. has had a remark
ably good harvest. so that. on the whole,
the purchasing power of the agricultural
industry Is remarkably big.
The same applies to industries which
supply the needs of the army and other
public purposes. The problem is to use
this purchasing power in such n way as
10 revive all those branches which supply
the needs of the aforementioned indus
tries.
Dr. Lederer then applies himself to
discussion of some process OF develop
nent OF industries now dormant and
n this connection says
THE question Is how to build
around the sound kernel. 1t will re-
quire foresight and perhaps great ex-
pendtture for the forces which could
bring about this reorganization auto
matically, do not exist. Hitherto the
agricultural trades supplying the
army and public works and contracts
nave been stimulated; the decisive
problem is, how can the mass of pri-
vate industry be kept going or set go
ing again?
ut must be remembered. first, that
the amount OF available labour is con-
slderably reduced; secondly. that the
available raw materials will prob
ably not be sufficient for long time;
thirdly, that the needs of private in
dustry have during the war under
gone considerable dminution and
change These facts must first be
recognized. then a systematic plan
or reconstruction must be drawn up
with the help of Chambers OF Com
merce and similar organizations.
WHY GERMANY EXCELLED
The author concludes by recommending
ne formation of a Central Permanent
ommittee representing all the interests
see wnat can be done for the revival.
ven upon a comparatively limited basis.
the trade and industries ruined BY
lc war.
should the war be prolonged there would |
great dilhculty in accomplishing this, |
ut should hostilities cease and peace |
'lsn once more, there is no reason why !
ermany should not again become a |
feat factor I'm the worlds commerce. |
ermany eNcelled in every branch of in !
lstry, be it mining, forestry. agriculture, |
'al' IRON or machinery; textile or chem |
al Her magnificent training, patient |
aiming and tireless activity enabled her /
master every problem In production /
I'm success unryaled by any other !
iuoh. She owed her prosperity TO her :
Hehdld government, uniform, practical |
I'd technical education. public control |
the means of transportation and the |
instant application OF new scientific /
ethods in the process of manufacture.
lheFe are, Of course, other causes OF /
ccess but II can be said with certainty /
at a country which is favored By the
UT causes mentioned is certain to
QsDer.
OF WARSAW FORT,