The Washington herald., 1917-08-04
HOLLAND LETTER
The Biggest Daily
Financial News Feature of
the Country's Best Newspapers.

The view is still entertained in
financial circles and Is growing
that we may be nearer peace than
many believe to be possible. 1t is
the view OF those who in the f1nan-
cial district have had opportunities
to get fairly accurate knowledge of
certain economic conditions in Ger
many. 1t is based upon the suspi-
cfon that the German bankers and
the leaders OF German industries
and especially those who built UP
the wonderful foreign commerce
which Germany had secured Just
before the war began, are begin
ming to be very anxious, contem-
plating a breakdown Of some kind
in the financial strength of Ger
many. a great impairment or her
Industries and especially the loss
of her foreign commerce which
presumably it will require years
to regain.
This was the view taken by the
late Norman B. Ream, who spoke
for himself and others who had
been endeavoring to enlarge our
foreign commerce. Mr.. Ream,
shortly before Germany began her
march through Belgium to France.
said he did not see how the Ger
man authorities would dare to i'm
peril foreign trade which had
been built up with such efficiency
and skill and which promised to be
so greatly increased within a few
years, by beginning a war which.
in his view. would be likely to as
sumo colossal proportions. Mr..
Ream had accurate knowledge of
the difficulties which the United
States Steel Corporation met with
when 1t began its march toward
the markets Of the world about the
year 1903. German competition, al
ways aggressive. sometimes utter
ly ignoring the ordinary standards
of honorable trade, was met with,
in South America, in Africa and in
Australia. The American export
ers were able fairly we'll and upon
honorable struggle to meet the
competition which England offered.
But they found It very difficult to
match and over-match German
competition.
of the export department of the United
States Steel Corporation he under
took to learn in detail what the Ger
AhdaA AictAlOuS VI markets
were. He did not fail to be impress
ed with the sagacity, far-sightedness
and imperious ambition to dominate
the markets Of the world and could
not overcome some admiration for the
highly skilful efficiency which the
leaders in German commerce and the
wonderfully skilful German statesmen
were revealing in all parts of the
world where they were seeking mar
kets.
Upon one occasion about four weeks
after the war began Mr.. Ream spoke
OF the claim made by the Germans
that they were seeking among other
things to secure the freedom of the
seas. He did not know exactly what
they meant by that statement. saying
that they possessed such freedom of
the seas as enabled them to enter
and command in Australia, in India
and In South Africa English colonies,
markets which presumably would have
favored the mother-country. Had
there been no freedom of the seas
Germany could not have accomplish
ed this.
Representatives Of the two large
American electric companies who at.
eSAhPteu " secure fndrkets IN south
America repeatedly referred to the
sometimes bold and aggressive and
sometimes insidious methods adopted
by Representatives of German indus
tries who were seeking markets in
South America. These Americans re-
ported, among other things, that Ger
many was always ready to assist her
foreign commerce by establishing
banks which afforded reasonable &C.
commod ations.
Ernest H. Wands, who during the
administration Of President Taft serv-
ed as the confidential agent of the
State Department at Washington in
South America, frequently reported to
Secretary Knox the highly efficient
and aggressive methods adopted by
the Germans in South America to
gain and then increase trade.
Mr.. Farrell learned in the course of
his investigations that Germany had
been occupied for thirty years in de-
veloping the highest degree of sales
naanship efficiency and Of methods
whereby control Of the markets could
be secured. How successful the Ger
mans were in these attempts is shown
BY " fact that IN the year prscsdins