New Britain herald., 1917-07-02

being exported into Germany from Holland and Scandinavia. That the German government maintained ma chinery for the importation of food stuffs was known and one particular subdivision of the department of the interior, called the Central Buying Agency, was entrusted with complete charge of the purchase with food stuffs from neutral nations.
 "1nasmuch as importation of food stuffs through Switzerland ceased when Italy entered the war Holland on the west and Scandinavia on the north were the only countries from which these supplies could later be received. The figures of consular agents in Holland and Scandinavia. confirm the statements of exportation from these lands into Germany of considerable amounts of foodstuffs of vital importance. In particular it was pointed out that the Germans were especially active in importation of fats, the one type of foods1uff of which they had been most heavily deprived through the operation of the blockade.
 That Germany imported consider able amounts of these materials was we'll known to Americans residing in Germany prior to the declaration of war by the United States. Dutch cheese was plentiful and Dutch and Scandinavian importation Of butter were everywhere to be seen.
 For a time the German authorities attempted to stimulate the importa- tion of these articles by excluding the imported foodstuffs from the opera ton of the maximum prices. In other words, the importer was encouraged by being permitted to sell his wares at a higher price than the maximum fixed to the retail purchaser of the same German commodity. Later on. through the protests of the German agrarians, this favoritism was el1m1- mated.
 "Germany has always been averse to purchasing for cash since she de- sired to protect the value of the ex- change rate. She has utilized indus- try to procure supplies and to some extent these coercions have been Of such nature as to be recognized by the authorities in charge of the blockade. In particular coal has en- abled Germany to exact from Scan dinavia and Holland food in return for this fuel for which they were al- most absolutely dependent upon Germany.
 But in addition to this there has developed organizations of producers and merchants in Holland and Scan dinavia who circumvent the food re- strictions of their own countries, vio- lating laws against exporting sup plies. All of the nations named have regulations limiting the trade in foodstuffs with Germany but on ac- count of the large profits to be de- rived from such trade certain classes of producers and merchants have al- ways been active in such trade through evasion of the local restric- tions of their own countries. From the returns of this trade these mer- chants have become extremely wealthy and for them has been coined new term by which they are known, 'Goulash millionaires.'
 Tt was fully recognized in Ger many that the entrance of the United States into the war would put an end. in large part at least, to this prac- tice, since it was recognized that the food articles imported by Germany from Holland and Scandinavia were ] derived in large part through direct or indirect importation from the United States. Dairymen imported of cake, etc., from the United States with which to operate their dairies, and. the products of these were sold ,o Germany Thus the importations of butter and cheese, while really derived from Danish dairies, were actually obtained from the United States.
 The United States now being In the war, faces the problem of re- strioting exportation to the neutral countries surrounding Germany in such a way as to prevent the cit izens of these countries from using the supplies for the preparation of food for Germany"
 Conferences on the export regula- ton question will be continued this week. in order to determine just how far the government can go without l working a real hardship on the neu- trals, and still supply an effective l weapon against supplying Germany ] with foods