New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-12

ReAexes Of War

.
OF London. Il consists IN an attempt
a fortnight or 30 ago 20 get two-year
treasury bills taken up IN Holland on
the basis OF a discount which really
worked out az worse than IS per cent
Before allowing itself 20 be forced BY
public opinion into sending gold 70
Holland, With view 70 arrestiHg the
heavy depreciation there IN the value
OF the mark, the German financial au-
thortiss had devised an ingenious
scheme, which was put before the
Dutch banks, for the same purpose. II
was known shat q number o. Dutch
firms had for some time back held
credit balances In marks m Germany,
amounting 10 the aggregate % very
considerable amount. Beng In marks,
these balances already represented 20
them 4 very heavy loss, owing 20 the
decline IN the value Of the mark since
they had been established. A pr0-
Posal was accordingly made by Ger
many which purpOrted 20 provide q
method FOR recoup.ng them. Every
Dutch holder of a cred for 1000
T
was offered a German treasury bill for
I 400 forms, at 8 per cent per annum,
-edeemable in two years. The bills
were also 20 be guaranteed by deposit
OF municipal securities, and further in
dorsed by various German banks As
this offer ostensIbly meant that Dutch
holders Of the 1000 marks would get
bill for 500 forms, which would be the
pre.war rate o. exchange for marks, 10
was expected, no doubt, that they
would Jump AZ u, while Germany would
az the same time be borrowing afresh
n horins in Holland Cor two years al
reasonable rate The Dutch banks and
Dutch fnanc.ers generally we're unable
20 agree to this scheme Tor fresh Ger
man borrowing, which assumed an en-
t.rely fictitious value for the marks
which would be taken In part payment
FOR the bills, and a highly improbable
German sOIvency AZ the end OF Two
years. when the Dutch forms would
have 20 be forthcoming from Germany.
The proposal was rejected, and conse-
quently the Reich bank was driven 20
is last resource and reluctantly sent
rs gold 20 Amsterdam But this does
not alter the essential interest Of the
offer having been made. Since the ac-
tual exchange value Of 1000 marks az
that moment in Holland was not 592
but only 800 dorius, the German Treas
u-y bills for l,4OU forms would have
mean. a loss 90 the RcchsDa1k or ~
a0rins, so .haJ, allowance being made
Tor the twO-years term az per cent,
the borrowing would really have been
effected on worse than 10 per cent
interest bass.
Among the many economic changes
that The present war conditions have
brought ab0u- 10 Germany, the com
binat.on OF German Iyes-It interests,
effected Boo 1915 and operating since
Jauary 7. 1915, .s OF special Importance
90 Americans. because DO means d -9r-
mitab.e competitor for our MAN,
American 4raa-IE Industry .l every
foreign field, as wei. as in our own
domestic market. The rapid growth Of
the American dyestuf industry during
the war has been given serious aJten-
ton by the German concerns chat -1r-
merry Ou-ro.led our market. and has
assisted go uniting -hese great rivals
in Germany Cor mutual protection.
Rca.izng the difficulties Of reconquc--
ing The lost market OF the various
foreign countries after the war, the
German GvestuH manufacturers 20 the
fall Of 1915 organized a combine OF the
seven leading Companies, which prac-
ticallv control the output and pooled
interests 10 the aAteu. of securing uni
form prices and wages, ystematzng
production, and also Insur-ng n rar-
monious policy FOR all other interests
involved This implies lnlorm ty ~
all endeavors 20 regain the former
German looJnod IN foreign market,
and will apply 20 the new competition
IN The American market particularly.
The Importance OF German exports ~
chemicals prior % the war can be
seen from the statistics. Their annual
value averaged almost S2l4,OOOO 600, &C
cord,0g 20 estimates OK German 'T4de
organ cations OF :be companies p
rbe combination, To- Hoecas.er FAr5-
w-rk. recorded rct profits OK 81
-e6.G00 n 1918. a. against S300l,-
$50 % 1915 - dividends were
20 per cent in 1915. % per cent in 1914
and 90 per cent IN 1918. The El5er-
fielder FarbwerSc had net profit agures
OF S4,g69440 for 1915 and S3,6s9 900
for 1914. rs div bends were 20 per
cent in 1915, l9 per cent IN 1914 and
% per cent N 1913. The Bad:scne
Anilinfabrik showed net profits Of ga
6lg.640 for 1915 and s3,760,AOO Tor
1914, the 1915 dividend, however, being
% per cent only. Gs against 10 per cent
for 1914 and % per cent for 1913.
Important shipping changes are being
made in Australasia in preparation Tor
the postwar competition mat is gen
orally looked for. and in this the New
Zealand government is taking a deep
interest. An order in council has just
been issued prohibiting the transfer Of .
New Zealand shipping 20 other flags.
The consolidation Of steamship lines
trading with Australasia has continued F.
until practically all Of the British ship
ping visiting this part OF the world is
under one combine, known as the
Peuiasular and Oriental Navigation .
Company, the Union Steamship Com .
panv, Of New Zealand, being the last
10 Join the ranks. The combine now
controls sos steamers, with a tonnage .
o. 1.654.132. I. is understood that the
different units will operate their re-
spective lines as formerly, but under
the general management az headquar-
.ars. m London. IL IS anticipated that .
this will give better service in general, .
but is not expected % improve freight
rates Few of the steamers Of this com
oina touch American ports for bust
nerg. 50 American interests viii not be
affected 20 any great extent, for the
present az least. A few Of the steam
ers Of the Union Steamship Company
regularly visit the west coast Of the
United States. and viii continue 20 do
so. Negotiations arc under way for the
organization o. a new steamship com
pany N New Zealand. with a capital .
OF $4,000, 600. II rs said 20 be backed
by prominent members Of the Yelling