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.


the trade OF Germany has been 30 cri,
pied that 1t Is now on the verge {
total collapse. The progress made
manufacturing In recent years was simpl
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 NOR
chandise was exported from GERMANY Z
the enormous value of s1,O45, ,OOO oOo a
compared with s1,O75, 100000 from Grea
Britain and Ireland. This was runnin
England very closely, but whether Ger
many would have won or lost in III
race will now never be known, for IN
war has changed the channel of tb
whole worlds trade.
DIR. LBDERER'S VIEWS.
An article by DIR. Emil Lederer in I'M
Vosslsche zeltlng is an interesting revela
tion of the extent to which German in
dustry has been already hit by the war
He says:
a
bearing arms has smashed Industry
TO atoms. All the links uniting the
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 q single stroke,
The attempts made to meet the
crisis by liquidating assets only made
matters worse. The unfortunate thing
io hot 1t.,,l 4
tomary in all times OF crisis does not
in the present instance affect merely
small body of spectators, but ex-
presses the fact that German indus
try and its production are on a fcti-
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 ab-
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 d.
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?
Inc war means for Germany: First.
the prevention of exports, especially
or 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
nome. There Is no longer any demand
for articles of luxury.
GERMAN 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,
Inc purchasing power of the agricultural
industry is remarkably big.
The same applies to Industries which
supply the needs of the army and other
pubic purposes. The problem ia to use
Lhls purchasing power in such a way as
10 revive all those branches which supplv
.he needs of the aforementioned indus
rics
lr. Lederer then applies himself to a
ilscussion 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-
cure foresight and perhaps great ex-
pehdlture for the forces which could
oring 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-
rate industry be kept going or set go
Ing again?
II must be remembered. first, that
the amount of available labOur Is con-
hlderaoiy reduced; secondly. that the
available raw materials will prob
AMY not be sufficient for long time;
thlrdly' that the needs of private In
uustry nave during the war under
gone considerable diminution and
change. These facts must first be
recognized, then a systematic plan
OF reconstruction must be drawn ND
win the help of Chambers of Com
merce and similar organizations.
WHY GERMANY EXCELLED
The author concludes by recommending
le formation OF Central Permanent
representing all the interests
see what can be done for the revival,
zen upon a comparatively limited basis,
the trade and industries ruined by
e war.
should the war be prolonged there would
great difficulty in accomplishing this.
~ should hostilities cease and peace
lsh once more, there Is no reason why
eIlnany should not again become a
car factor in the worlds commerce.
srInany excelled IN every branch of in
'suy' be 1t mining, forestry, agriculture,
a. IRON or machinery; textile or chem
Al her magnificent training, patient
ahnihs and tireless activity enabled her
master every problem In production
IN IN success unriysled by any other
iuoh' She owed her prosperity to her
'shuld government, uniform practical
"a technical education, public control
tne means OF transportation and the
.staht application OF new scientific
,lnus ,tnous In the process OF manufactures
Iere are, OF course, other causes of
~ ess' but II can be said with certainty
country which Is favored by the
'sDer. ~