New-York tribune., 1918-05-20

measure, which only the war justifies
will probably have to be retained ever
after the conclusion of peace in order
to protect the money market in the
public interest
"A very significant measure has beer
taken by the imperial government ane
the representatives of the people by
the passage Of the law demanding the
reconstruction of the German mer-
chant marine after the war. The large
sums which are to be placed at the dis
posal of the now stagnant shipping
trade and help US to reconstruct our
fleet and enable us to compete with
neutral and enemy shipping. The ship
ping trades and shipyards are now pre-
pairing for this task which awaits them
Inc number of wharves has been very
conside rably increased, and the build
ing OF ships is greatly to be helped by
the ship loan banks. In this way the
German people may hope to be able
soon after the war to resume their
trade. in which they will be greatly
nielped by their extensive frontiers and
their numerous international railroad
connections.
lndemnities for Colonies
"Ot very great significance for Ger
manys economic situation is the law
now under consideration which pro-
v'oes Tor lndemnities for our losses in
the colonies; the aim of this law is
not to allow the dying out of the spirit
vi enterprise in connection with our
overseas commerce. The first step in
mat direction has been taken by the
advance payments made by the govern
ment to colonial firms.
Ministry of Economics, which deals
WIN WIN commerce, industry and naviga-
tlon' has satisfied the needs felt by
many circles. Considering the great
limitations due to the interference of
the state in private industries and the
increasing difficulties due to the short
age OF labor, raw materials, INSULT
clency OF substitutes and decreasing
en- efficiency of the railroads, the guam
t'ty OF our production has been aston
lshing. The difficulties in communi-
industries. in the case Of pit coal and
brown coal large heaps we're piled up
at the mines which could not be de-
llvered to the consumers on time or
could not in part be delivered at all
The needs of the ammunition indus
try had to be satisfied, and while the
Latter was developing and its needs
were increasing other industries had
TO be neglected and the lack of coal
Tor domestic consumption made itself
very strongly felt. But even in this
case it has been possible by CORE
spending measures to reduce these
troubles to a considerab degree. The
coal and brown coal industries worked
effectively during the past year, al
though the prices were not in perfect
agreement with the cost of production
AT present this is making itself felt
again.
Thanks to the strong concentration
the iron industry has been able to sat
lsfy the needs of the war and Of neu-
trail countries. The production of the
potassium mines has been higher than
In 1916. The results, however, are not
yet satisfactory. although the prices
have been raised. The troubles in rail
road communications had here also
their effects. In 1913, the potassium
mines gave 100000 doppel-zentner
double hundrcd-weights), in 1916
$500, 900 doppel-zentner and in 1917
100000 doppel-zentner. This devel-
opment has stimulated the purchase of
potassium by the public
"Of great significance for the con
duct of the war as we'll as for the per
lod after the conclusion Of peace is the
series of new industries which we have
been forced to introduce, because we
have been cut from other countries.
10 these belong the production of min
eral oils from brown and pit coal, the
finding of the substitute for Chile
saltpetre, the production of paper
from wood, the production Of artificial
hard rubber and artificial leather and
the new processes for the production
of acetic acid. azeton, sulphuric acid
and aluminium.
"The money market has shown the
same development as in former years
OF the war. There is no international
money market during the present war
The single money markets are entirely
unaffected by other countries. A proof
of the great liquidty of money in Ger
many is seen in the fact that during
the year 1917 not only fully twenty
six billion marks had been subscribed
but that before the end of the wear
95 per cent of the subscriptions had
been paid, while only so per cent had
been expected by that time.
"The German Imperial Bank has
again accomplished very much in fnanc-
ing the war and in caring for the Ger
man economic life. It's stock of notes,
checks and treasury notes has tremen-
dously increased. At the end of 1917 it
amounted, in round figures, to 14,5OO,-
0OO,00 marks, against 9500,OO 900
marks in 1916. Likewise the circula-
ton of notes has increased from g.
0OO,O00,000 marks in 1916 to 1900 ,0OO-
600 in 1917. Foreign money invested
in the Reichsbank has doubled, from a.
564 100000 marks in 1916 to $3.50 ,OOO,-
600 marks in 1917. There has also been
some increase in gold, although slight,
and the Imperial Bank exported great
deal of gold to foreign countries, on ac-
count of which the gold reserve has de-
creased in 1917 by 114,000OOO marks.
Nevertheless, our gold reserve of g.
4O6,6O0,000 marks is still nearly twice
as great as it had been before the out
break of the war.
i During the last year number of
important regulations were issued in
connection with the Stock Exchange
which give the trade in valuable papers
an official character. The trade on the
Berlin Stock Exchange was especially
active. AS in former years, industrial
stocks were in the foreground
Banks Successful
"The banking business was success
full, and most banks declared dividends
as high as those Of peace times or
higher. In higher degree than before
the profits were derived from interest
| payments"