Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1916-10-17

BY Professor MEoritz julius Bonn,
President of the Commercial
University OF the City
of Munich.
(Continuation.)
COMMERCIAL WAR TO COME.

DFOkCn eCOnOnllcdlly OF uuducldlly ny
the results OF the war. Whilst they
are writing hard TO convince the neu-
trails that Germany is near bankrupt
cy, they provide with great energy
for a commercial war on Germany
after peace is made If there were
the slightest chance Of Germany's
financial exhaustion during the war,
the economic proposals of the Allies
made in Paris would be superfluous.
They have been made, as Mr.. Asquith
acknowledged quite openly, because
Germanys economic situation after
the war will be strong and sound,
and because England's economic
situation in the world has received
a blow from which she will never
recover.
Before the war London was the
clearing house of the world, partly
on account Of England's trading
facilities, partly because England
was the creditor of all nations, es-
pecially the new ones. They sent
their goods to England, not because
they were likely to be consumed
there, but because they used them
for paying interest to their British
creditors. The draft on London
ruled the world. Moreover, London
was the great investment market,
where the capital from all the world
converged, to be distributed to all
countries waiting for Development
This financial supremacy has gone
After the war England will not be
the great creditor country she was.
The longer the war goes on the
greater will be the shrinkage Of her
foreign investments. If she goes on
fighting until she has released Bel
gium and Northern France, there IS
q fair chance that they will disappear
altogether. In future there win not
be the same necessity of sending
goods to London; there will not be
the same amount of remittances to
be made.
The year before the war England's
imports surpassed her exports by
f133, 100000. That was the price
foreigners paid to England for the
use Of her shipping, her banks her
insurance companies and especially
for the capital she had lent them.
This capital Is greatly diminished
She has sold large blocks Of her best
securities; her government is direct
ly indebted tc the United States alone
to over $500 600, 900. Notwithstand-
ing the prosperity of the war trade
she imported 9178,000,000 more
than she exported for the last half
year4that would be 1896, 900 900 a
year. Whilst her income from abb
road is getting smaller, her adverse
trading balance for the last half year
is 80 per cent bigger than 1t was for
the last whole year before the war
Formerly shc had an excess of inn
ports over exports, because she was
a creditor nation; this excess is grow
ing today, because she is getting into
debt. It has been estimated that
Germany alone paid to England for
acceptances only, commissions on
s600,000,000 year.
DEALINGS WITH THE GERMANS.
Even if England had dealt fairly
with her German customers, few OF
them would use the London market
in the future as they have done in
the past; for that market is losing
its international Importance. But
England has despoiled them ruth
lessly She has cgnfiscated the ac-
ceptances for which they had paid;
she forced the companies they owned
into the hands OF the receiver, wan
tonly destroying their value in many
cases; she robbed them Of their
patents; she confscated the capital
they had invested in British securi-
ties and in neutral securities listed in
London. She has adapted to deal
ings on land the law Of seizure of
private property, which up to now
was restricted to naval warfare. 1t
may be possible for shrewd lawyers
, to produce arguments why such ac-
tion was lu.te fair That will not
help the London of the future. The
Germans and the Austrians, who
have been despoiled once, will not
wish to repeat their experience, es-
pecially If they are assured by COM
petent lawyers that what was done
to them was right and fair.
A large stream of German savings
has always gone to London for in
vestment In international securities.
| South American securities, for ex-
ample, were regularly subscribed in
London by Germans. And England's
own oversee development was greatly
helped by German capital. The pro-
moters of the Canadian Pacific Rail-
! road found their early supporters in
Germany. The builders OF the great
South African Empire drew freely
/ on German financial brain and on
/ German financial cooperation. Ger
man capital has co-operated largely
in the building of the British Empire
to the benefit of both countries.
If it had not been for the financial
! genius OF the Germans settled in
! England, London's international
! trade would not have been what it
; was, for though English fnanciers
have splendid qualities, information
alism is not British gift.
! These links have snapped once for
J all, not on account of the war, but
because England carried the war
: against the private property of every
| German and Austrian citizen and Of
every neutral living in Germany.
| And no country can be the center Of
! future international finance whicn
/ has failed once in it's obligations as
England did when the war began.
| No amount Of talk will do away with
/ the fact that England not only