The sun., 1918-10-25
German Peace Preparations, Do
mestically Intended.

During the last Tour years Germany
has been recognizing her industries,
nd this preparation has now p o.
reeded so far that 1t must be closely
studied in Its relation to the different
peace proposals from Berlin. Accord
ing TO NJ. PETIT. Il professor in the SCI
ence faculty Of Nancy. the general be-
lief that military rea sons are dlctat-
ing. If not surrender at lest a
lefinite peace offer. Is far from ex-
planning the underlying reasons for
The present German policy. What he
ees is something different, although
his view does not exclude military
explanation. He cites the statement
" certain capitalists In Germany that
IN 1914 their industrial org,niza ton
was not as efficient rs Is commonly
supposed. and that they must be bet
Ter prepared for the next war.
I So far as known this preparation Is
now almost. l. aJt entirely, complete.
One Of the first steps WIS the unda-
ton Of the so-called Kaiser Wilhelm
institute. 10 which new and highly
significant section has been added re-
emily. known rs the Scientific InSti-
ute for War Technique. One of Its
departments alone employs two hun
Ired chemists whose sole work Is the
elaboration Of asphyxlating gases AMI
aggressive products" Another de-
nartment has perfected methods Of
manufacturing sulphuric acid without
the Of the ores usually imported
COR this purpose.
Another interesting development Of
this scheme is the union of the eyplo-
Ive End dye industries Of Germany IN
me gigantic trust. The result is thu
there is now but one organization
which sells these products and all
ntber chemical substances. including
articles Of ordinary commerce. drugs.
perfumes. and soaps. The avowed
i'm of the combina ton Is 70 sell al a
price so low that the protective tariffs
If other motions will be no barrier. 1t
Is even known that labels an cata-
logues. printed in French. Englt:h,
md other languages, mre now ready.
Under these conditions Of Industry it
will be possible to sell Mt the low pr'ce
mentioned and still obtain a return
ON capital.
Although dye industry and chem!-
ral manufacture have made great
progress In Allied and neutral coun-
tries. the Germans do not believe that
their rivals are yet in position to
compete with the German grade of
products. In this comparison coun.
tries like Fronce am England suff r
under another disadvantage They
still adhere to principles of individual
competition Tnd decentralized indus
try. The result Is likely to be TINT
many private concerns will be inclined
to accept raw and finished produ"ts
which are cheap. although they come
from Germany. The position, accord
ing to Professor PETIT, may be de-
ScflOed as rolloWS:
"In the face of the German combine,
which can sell at any price. II Is to be
feared that several concerns OF more or
| less financial strength. which manufac-
ture the same products, will accept Ser
man goods when they are short Of ot' "
art Giles OF trade. In this case, tariffs
are not a sufficient remedy. for duties.
however high, will prove powerles to
prevent the penetration OF the articles
| which the Germans will be able to sell
at Insignificant prices. and which may
not be supplied by other countries. We
/ may acknowledge that in relying on
high tariffs we may be m staken In our
calculations. while their establishment
against neutrals rails grave jifficu ties.
For this reason. II II well known that
the Intervention OF neutrals Is a part OF
the Germ n programme"
The careful preparations effected by
the Germans to meet the economic
competition which is ahead have an.
parently reached the stage when
trade with the outside world IL neces.
sary for their outlet and full develop,