The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1919-08-17
GERMANY PLANS
TRADE VAR IN
all RUSSIA

The question has been asked as "a
how Germany, with all her expendi.
, lures on war. her colossal internal debt
the unparalleled indemnities she INNS,
pay and the enemies she has made Is
going to finance herself through the
long period of recovery.
! 1t is not going to be an easv task
Neither is 1t impossible. One thing
that must. be considered first is that
in the expression of money there has
been one of the most remarkable
| changes In the last five years in all
| the history OF the world. Money is
equivalent only to its purchasing pow
er. Broadly speaking the pound ster-
ling. the dollar. the franc and the mark
are worth today only one-half of what
| they were before the war. Therefore
a billion pounds, or a billion dollars
or billion marks means today only
what half a billion meant five years
ago.
The ability of Germany to meet her
obligations and at the same time pros-
per depends solely on her power to
produce. Therein you have two eIe-
ments to consider, the material and the
human. In material elements Germany
has been weakened by the loss of the
rich iron and coal fields of Lorraine
and some Of the potash beds of Alsace
The iron ore loss is serious for there
are no better beds on the continent
than those of the Saar basin but Ger
many has other iron resources and
can draw on Sweden for what she re-
quires or, possibly, buy to some extent
from the French. In regard to coal shs.
is not SO badly situated; having many
mines. When her transportation ia
cilities are Impressed she will be able
to distribute coal to her full needs.
In fact the fuel situation today is bet
ter than that of Great Britain and
tie declaration is made that she ex-
poets by next fall to be able to lay
steel down in South American at a
lower price than the United States.
This does not seem possible but the
statement is made on high financial
authority
Germans Have Two Great Assets.
Two great assets the Germans have
as against some of the powers with
which. they were at war. The first
T., that Germany was not invaded Her
Industrial equipment is in as good.
IL not better, shape than before .t e
war The second and the greatest )
that the Germans are a homogeneous
u z
such a sense of order or such a faith
full regard to direction.
The same fidelity to order and sys-
tenn evidenced before and during the
war is manifest today. The banks
stand apparently solid. The finances OF
the country are in few strong hands.
the centralizing that started
before the war the Big Four-the
Deutsche Bank, the Disconto GeSsel- /
shaft. the Dresdner and the Darmstadt
control the bulk of the financing of
Germany paper written without the
Whatever may be said in derogation !
of the Germans no one has doubted |
the high ability of the Germany bank
er. Our federal reserve system is TAX |
EN- from a German model and we
might learn much from them in other
branches of financing.
Her internal debt will not trouble
Germany particularly. This amounts to
46 billion dollars. 1t probably never
will be paid. al least in full. 1t must
be held in allegiance until the indem- !
nifty is paid.
Feels Loss Of Merchant Marine.
Germany will suffer much through !
the loss of her merchant marine and .
through the lesser part she will play +
IN international banking and in the in /
surance field. Her ships brought
fine profit to her directly and. indi-
-ectly, in prestige which helps trade
but it was through her banks and her
companies that she was able
% aid her manufacturers and merch- +
ants by advising them of what the
,uppliers of rival nations were doing.
1t is the announced program of the
to enter upon big scheme
If shipbuilding. They have a large
in this field. They build
rood ships and there are few better !,
ards in the world than those they have Il
IN the Baltic. They are under oblf-
cations to supply a certain amount l
# tonnage to the allies for five years.
This will not trouble them If they can
control the coal situation, which at
present, seems likely.
In textiles, in dyes. in potash. in
hardware. railroad supplies and many
,ther lines they are far better fitted
or production than any other country
n Europe.
Despite the big indemnities and the
owering internal debt the credit of
probably is far better or will
'e considered SO than the situation
would seem at first to warrant Ger
many practically has no foreign debt
outside of her indemnity obligations. II
The few loans she negotiated here
arly in the war were trifling. There
5 little doubt of an extension of cred
/ for whatever she wishes to borrow
o cover her purchases in America
However much feeling there may be
n the world against Germany it is
ealized that Germany must be made a
going concern and must prosper in
rider to pay what she owes.
AS to her ability to pay no interna-
ional banker has expressed doubt for