New-York tribune., 1919-10-17

for what she bought without touching
the foreign securities owned by her
citizens. Three hundred million dollars
in gold has been shipped out of the
country for this purpose. This illus
trates the way financial control has
been exercised.
Germany's Needs
"Germany's need for raw materials
outside Of foodstuffs, but including
cotton, copper, petroleum and tin. has
been placed at no less than s1,250,0O0,-
900. This quantity, however, is in ex
cess Of Germany's ability to pay and of
German lai-~- to rse the materials.
"Germany existed as a world power
only by peak of overproduction in the
past. Unless the peak of overproduc
ton can be obtained again 20,000,O0(
persons must leave Germany or starve
"Thc cost of production in Germany
o-day is high. The depreciation of
marks is so great that imports on
large scale are impossible. German
wool is now cheaper in Germany than
American cotton. Only longtime
credits or Germanys ability to ex-
change manufactured products for raw
materials can solve the situation, and
Germany is beginning to place much
reliance on the latter.
"Moreover, the production of coal is
only 65 per cent Of normal and it sells at
SO ton-three times the normal price
AS long as coal and labor remain so
high the cnterprising classes will not
go ahead and take the risks of in
dustry."
Charles Lyon Chandler, manager of
the foreign trade department of the
Corn Exchange National Bank of Phila-
dclphia, who spoke on "The New Ger
rly ;cto
though Germany is at present weak,
she still has powerful and subtle trade
affiliations in Latin America, in the
neutral countries Of Europe and in
Russia that make her potentially
dangerous influence in the markets of
the world.
owe shall find Germany whose ma
tionally organized efficiency has been
fearfully and wonderfully distorted"
said Mr.. Chandler "a Germany no
longer united at home. A Germany
whose competitors can truthfuly say
that they love her for the enemies she
has made. A Germany where wages
have risen almost more than raw ma
terials; where every industry must be
rebuilt on a different basis than be-
fore. A Germany which must resort
to camouf1age of the worst kind to re-
gain her position.
"But the other side of the picture
should be studied. The German is a
fierce hatcr. He knows he must get
his revenge through foreign trade We
must never undcrrate our competitors
He has advantages such as some of us
do not seem to appreciate. His repre-
sentatives broad, even during the war,
were paid more than ours.
AS Competitor of U. S.
at is my belief that the new Ger
many in world markets has merely to
take up many of these permanent
foundations which she still has abroad
to become a most active and persistent
and steady competitor OF the United
States in the long run.
'While the loss of German territory
during the war might seem at first to
indicate very serious permanent loss
of raw materials and of skilled work
men, closer analysis of this matter
and a knowledge Of the methods used
by the Germans in peaceful penetration
of the European neutral countries lead
us to believe that this loss to Germany
may not be as serious as would seem
at first sight. The loss of Alsace-Lor-
rainc politically may be more than
counterbalanced by the camoulaged
German control of industries in Hol-
land, Switzerland, and even Belgium. y
Various speakers, including NJ. A
Oudin, Of the international General
Electric Company; DR.. J. NJ. Goldstein
professor Of political economy at the
University of Moscow; W. G.. Hunt
ington, of the Department Of Com
merce; Alexander Zclenko. of the
American Committee of Russian Co
operative Unions; Frederick NJ Corse
vice president Of the New York Life
Insurance Company; Dr.. Sergius Korf
professor of international law, Pctro-
grad University; and Phil Norton, act
ing director Of the Russian division OF
the Committee on Public information
set forth their ideas on active trade re.
sumption in Russia.
The trend was that it would be i'm.
possible to deal with Bolshevik Russia
without accepting its social outlook
but that large sections of Bolshe-
vik Russia around Archangcl and ir
South Russia, which is controlled BY
General Denikinc, and most of Sibe ria
ought to be cultivated as trading