The Birmingham age-herald., 1916-10-08
GERMAN BUSINESS CONTINUES GOOD
 DESPITE THE WAR
Is Conducted on Restricted Basis, But Seems to Be Sound-Very Little
 Unemployment

Aliou III OerIndny DeBlnnlng the third year of the war is more satisfactory than could be expected in view of the long continuance of the war and the practical stoppage of the country's oversea trade Business is naturally upon a restricted basis, except where ministering directly or indirectly to requirements created by the war; but that basis appears every where to be sound one. The number Of business failures has kept remarkably small, having ranged considerably less than before the war. The employment of labor is also more complete than before the war began. The number of unemploy- ed workmen reported by about 40 labor unions Is only 2A per cent of the total, which is also the figure for the cor responding time last year.
 There Is a big demand for skilled la borers in the coal and iron industries in machinery shops of almost all descrip- tions, in the chemical trade, and even in shipbuilding. In some of these industries production is necessarily restricted below the requirements of the market by req son of the scarcity of laborers. Large numbers of the 1,65O,O GOO prisoners of war have been put to work in various capaci- ties, and this has tended to relieve the pressure for help. Most of these men fall, of course, under the category of unskilled labor, this being especially the case with the Russians, who constitute
 the great majority of prisoners of war; but considerable numbers of them have been found serviceable workmen in coal mines, in some of the work of iron com panies and other industrial callings. Probably most of them, however, have found employment on farms, where they have contributed largely toward relieving the felt scarcity of labor. Women are
 also everywhere doing much of the work done by men before the war.
 The railway traffic indicates that the volume of business keeps remarkably close to the standard set before the war
 began, despite the great shrinkage in shipments for or from the foreign trade. The same thing is indicated by the clear ing house receipts. but in less marked degree. While the Boerse is officially closed, trading still goes on, but without the publication of quotation list and this trade reflects a considerable degree of confidence. The successes of the Eng fish and Fraench on the Somme are re- garded in financial circles as far less than what might have been expected under all the circumstances; and al- though the Russians have succeeded in making much greater headway than the other allies, the Boerse has not yet deem- ed 1t necessary to take a pessimistic view of the changes on either front. Trading indeed, has been light for some weeks
 but that was chiefly due to certain re- strictions adopted by the managing com mittee in June, precisely for the purpose of checking what was regarded as an ex- cessive amount of speculation. Through out the spring, great wave of bull specu- lation was in progress, due partly to optimistic views of the military situation but still more to the fact that industrial companies were then publishing ller an- nual reports showing for the most part considerable increases in dividends.
 The money market is now easier than 1t was in the spring. The rate of call money is about to 31A per cent. which corresponds to the abundant supplies of- fered. The rates of foreign exchange are now tending against Germany though they haven't yet reached the high levels touched last spring.
 Perhaps the best sections of business in Germany are to be found in the coal and iron industries, together with the sub ordinate or related branches of the lat ter. The production of coal is greater than at any time since the war began, and this is also true of both iron and steel. The industrial demand for coal is heavy, and producers and shippers find 1t difficult to satisfy on time the re- quirements of the trade. The production of coke, which has been critically stilnu- lated by the extraordinary demand for the hy-products, is now actually at higher rate than prevailed before the war Con- trary to the case with all the ally coun- tries, the prices of coal and coke have been kept within moderate bounds; the advances are in no cases more than 50 to 75 cents ton
 in ho marked up much more sharply. especially in those branches of the trade where free competition rules. A strong upward ten dency prevailed throughout the first half of 1916. and it finally reached such a point that the government made it known that it was considering the question of fixing maximum prices This stopped a further rise in the home market but export prices for steel bars and struc- tural goods have just been further raised There is a big demand from Switzerland, Holland and Scandinavian countries for German iron and steel, Germany being now the only country from which sup plies can be obtained at all.
 The price movement since the war be- gan best be indicated by comparing bars and billets. The prlce of the former Is now little more than $46 a ton, or fully 100 per cent higher than two years ago, whereas billets-the prices of which are controlled by the great organization of the steel works-stand at $29, which means a rise of only about $6. The production of steel during the first half of this year amounted to 7766,00C tons, or a gain of 25 per cent over the parallel months of 1915. Pig iron was produced to the | amount of 6, 496,000 tons, or an increase of 171a per cent. The larger production | of steel than pig iron is due to the fact | that there has been a great increase during the war in producing openhearth | steel, in making which much old steel | rails and similar waste are useo
 As a rule iron companies distributed | considerably better dividends than for | the previous year. A few days ago the | leading company of Bochum declared a | dividend of % per cent, as agalnst IA | for last year. A rolling mill has just | raised It's dividend from to 10 per cent. and another iron company, which has paid nothing for two years, is now ex- pected to distribute 15 per cent. Many iron companies and most machinery com panies have made good profits upon war contracts Companies turning out cars and locomotives are kept very busy. More locomotives for example. were l. made in Germany during the first six months of this year than ever before in an equal period.
 The shipbuilding industry too. is well employed in building not only for the navy. but also for the commercial ma already taking care to bring their ton- mage up to the heavy requirements that are expected after the war. Shipbuiiding are even enlarging their ca pacity in view of present and expected future demandS. The inCrea spd dcmapd :,