The Detroit times., 1916-04-24

the poorer working classes, IL en-
ployed in war industries and paid In
paper money. will find that their
money wages will OBTAIN for them
less real wages thar before. In
Germany. in spite OF maximum
prices fixed by the government.
prices have gone up from 75 10 100
per cent. Parts OF this rise must be
due TO the depreciation OF the incon-
vcrt!ble paper money. But whatever
the cause, the body Of workers are
suffering many hardships. When
will their patience cease. and when
sill they begin to clsmor for peace?
This Is psy Geological. not an
economic que stion. No one can fore
tell the time before these forces be-
gin to operate. In Germany the
strong government has people
trained TO obedience very well In
hand. and yet there are already open
expressions OF anger and unrest, and
even incipient rioting.
Gernany's Foreipn Trade.
In the case OF Germany We have
an example OF a people seemingly
united and willing to make extraor.
binary sacrifices to carry on the war,
but whose foreign trade and ship
ping have been practically wiped
out-with the exception Of trade
with Switzerland, the Balkans. Hol-
land. Denmark. Norway and Sweden.
aud some Illicit trade with Russia
Without doubt Russian wheat has en-
tered Roumania and thence has been
sold 10 the central empires. However
much production may go or to sup
ply the reduced demands OF domes.
tic trade-leaving ont OF account war
supplies--production for export must
have been reduced 10 relatively very
small amounts. Hence Germany.
with the exceptions noted, must rely
on what can be produced within
her own boundaries.
The fundamental thing Is always
the quantum of tangible wealth. In
the form of needed goods. on which
the country can draw. These can be
produced only BY the required labor.
capital, and resources In the form OF
materials AT home. As regards most
articles Of food, clothing, and hous-
ing, under the present practically
communistic system In Germany
produced by martial law Cor its
equivalent) non-combatants and sol.
diers can doubtless be provided for
Indefinitely: and while fats are
scarce, starvation is not likely; but
there must clearly be serious re-
duction In the use OF unnecessarfes.
Destroying Capital.
The destruction Of wealth In Es,.
hope. we all know. In going on to q
frightful extent. Great a. II L. how
ever, II is not so important ss the
destruction Of capital. The destinc'
ton between the destruction OF
wealth and the destruction OF capital
In Of the FIRST importance. The de-
struction Of wealth. hurtful "a It II,
II like the loss Of a farmers yearly
crop Of apples; he may get on with
out apples for . season. But the
destruction of capital, since 1t IL one
Of the factors by which wealth Ii
produced, 10 like the entire loss OF
the apple tree itself: the farmer can
never again have apples Of his own
until a new tree has been grown
The pivotal thing to know. then. r.
whether II Is wealth or capital which
is being destroyed In Europe.
At The outset we are met with the
fact that q very large part OF the
wealth produced In country In
times of peace is not saved, but ID
consumed without bringing other
wealth into its place. Indeed, the
destruction of actual wealth by ex
travagance In times OF peace Ia
probably nearly as great IA the
amount destroyed In times OF war
But in normal conditions, in spite OF
the waste Of wealth in unneces
sary consumption and extrava
gance. the thing important to the
growth OF industry is the steady In
crease OF capital. Capital Is nor
malIy increased by saving through
the annual sccretions OF those who
turn their wealth into production
and trade.
But the fact central to our study
/ II that capital used up In produc.
ton must be replaced. Suppose q