New-York tribune., 1919-11-30
countries. German consumers them

10 get foreign orders, il only to estab-
ish connections which may prove vaiu-
able later on.
This selling-out process will neccs-
sarily continue as long as the goods
in question can be made Of materials
obtainable in Germany; and in such
goods Germany will continue to cut
considerable figure in competition
abroad, but where the materials must
be bought abroad with the deprecated
German mark, or where the Ger
man supply of raw materials Is
insufficient. the case will be dif-
ferent. For example, rawhide
cost at the recent auction sales
about 1,100 marks, comparing with bo
to 100 marks in 1915. Manifestly the
leather tanned in eight or ten months
from such a hide cannot be worked up
into leather goods and sold abroad ex-
cept at an enormously increased price.
Can't Export Cotton Goods
In an equal degree will it be impos-
sible for German cotton manufacturers
to export goods with any considerable
success when they must pay about
marks for pound of cotton. The same
is true of wool, of which Germany does
not by far produce enough Tor Its own
population.
One of the greatest hindrances to the
recovery of the value of the mark IS
the fact that Germany is not in posi-
tion to control it's own frontiers in
customs matters; and the "hole IN the
west" by which is meant the part of
the frontier held by the armies OF
occupation, is talked of from day to
day in the press as threatening ruin
to the whole finances of the country:
In two respects the "hole in the west
is iniuring the country. In the ilrst
place the government decided to collect
the customs duties in equivalent gold
value, holding that it was taking only
the same value in customs as before
the war; but General Foch and his ad-
yisers refused to permit this and IN.
sisted that the duties must be collected
in paper marks at the old rate.
This means that the import is largely
diverted from Hamburg and Bremen,
to come In by way of Cologne and
other southwestern towns. In the sec
ond place it has been made impossible
for Germany TO prevent the import Of
articles of luxury, which the people
could easily dispense with TO their ad-
vantage in the present Impoverished
state Of the country.
American Cigarettes Imported
Thus it is mentioned that nearly
1000. 600. 900 marks worth Of American
and English cigarettes has come into
Germany through the occupied terri.
tory, besides enormous quantities OF
French soaps and rerfumery. This oc-
Cured at time when the government
had the greatest difficulty in getting
bills Of exchange with which to pay for
about 10000 900 marks WORTH of pro-
visions bought abroad.
All this indicates that commercial
circles abroad are exerting themselves
to trade with Germany. The English
have been most active in securing Ger
man trade ever since the Allied armies
marched into the Rhine country year
ago. Trading agents, il is asserted,
came along with the British army; and
the British government has encouraged
travellers in coming to Germany to es-
tablish trade connections. Hence some
three thousand British commercial trav-
clers have core into Germany by way
of Cologne since the army established
its headquarters there.
And the Americans? 1t is reported
to me that about 100 have come in by
way of Coblenz. While our State De-
partment was sitting back the British
were giving their agents every encour-
agement; and consequently they have
got the cream of the trade. Even the
American goods that are sold in Ger
many are mostly imported from the
United States by the British and then
shippcd TO Germany. So active have
trade relations between England and
Germany become that a direct line of
steamers between England and Cologne
is to be established soon.
Boom on Stock Market
The depreciation of the mark has had
another very natural result. 1t has
caused n remarkable boom on the Ber-
lin stock market. During the last three
months certain classes Of stocks have
been making new records in skyrocket-
ING. This refers especially to such
shares as have or may have market
abroad. Thus the shares of a German
diamond company operating In what
was formerly German Southwest
Africa rose from September 10
October 81 from 1,050 to 4,5O0;
and another from 100 TO $500.
number of other stocks in this class
more than doubled their quotation In
the same time. But even most German
industrial stocks also made considerable
gains. including steamship companies
that are without ships.
This whole movement has been carried
forward by two classes of buyers. Ger
mans themselves have been buying
stocks having foreign market, with
view TO selling them at profit abroad;
and many Germans also decided TO IN
vest their ready money in stocks, includ-
etA oI,
seemed securer against depreciation
than the German mark. But foreign
BUYERS also were attracted In large
number. They also invested to con
siderable extent In German stocks. be-
lieving them to be comparatively cheap,
in view of the huge depreciation of the
mark.
May Be Catastrophe Boom
Thus the Berlin Boerse has been hav-
inc very lively sessions for some three
months but this month has begun at a
uuieter pace. The boom has been much
discussed in the financial press as one
Of the ominous signs Of the times.
Some call it catastrophe BOOM fore
casting the probable state OF things
that the whole German economic system
seems TO be approaching.
The depreciation OF the marx mas
naturally called forth much discussion
Of possible remedies. On one view near
ly everybody is agreed. namely,
that the only effective means TO lift or
stabilize the mark is TO get a very large
foreign loan; but as there is no imme-
date prospect Of getting help In that
shape. other means are discussed. One
OF these to undertake what is called
here liberalization" which means to
fix the gold value Of the mark at about
its present value. In other words, in
stead of mark with normal value OF