The sun., 1919-07-16
BLOCKADE LIFTING
PRODS THE GERMANS
Trade Circulars Reach U. s.
via Holland as Proclama-
ton Is Issued.
OUTBID BRITONS ON DEAL
Aided by Low Exchange Value
of Mark, Big Dutch Con-
tract Is Captured.

Germany Is losing no time in attempt
Ing to get into her pre-war business
stride or as near to 1t as possible, as
Is well known by importers and export
ers here. besides persons in the United
States of German birth or descent. One
OF the many letters, circulars and 'in-
formation sheets" turned out in Germany
and mailed from Amsterdam to reach
the United States at about the time the
Peace Council announced that the block
ade on Germany had been lifted was in
part as follows:
America will not have forgotten that
1t was Germany which during the Amer
lean War of Independence. when Amer
lean. currency was deprecated by $50
per cent. and American undertakings
could be purchased at ridiculously
low price. made great Investments in
America and pocketed considerable
profits. The Americans are good BUSH
| ness men. They will not miss the chance
now open to them in Germany.
But this chance exists only so long
as the machine is in motion and Is not
| totally> destroyed and cast aside as old
iron by the strangling peace conditions
or the fall Of the Damocles sword OF
Bolshevism. Then. to be sure. 1t would
be too late for America also. Germany's
disaster, which would carry infection
abroad, would prove no blessing for the
rest of the world either. But our sociali-
zation theorists would not enjoy such
an end"
At the same time the German Ian
guage newspapers here contained adver-
tisements appealing to friends OF the
| fatherland to send to friends and rela-
| tives in~Germany the things most needed
in the stricken country" Coffee, arti-
Giles rich in fats and the many foods
barred for five years because of the
blockade were asked for especially.
Presents of money also were requested.
In some of the propaganda the Ger
mans made n bad guess. as they outlined
| the extensive supplies OF dyestuffs they
have on hand ready to be shipped They
could not foresee that President Wilson
| In his proclamation pulling down the
| bars on trade with Germany made an
| exception In regard to dyes with the OBJ
ject of giving aid and protection TO an
infant industry. born largely as result
of the war and now n lusty, full grown
business.
U. s. Turning Out Good Dyes.
That the American dyes now being
turned out In large quantities are of high
grade Is even admitted by inference by
the Germans in their circulars. for they
say only that the German dyes have
always been noted for their high
quality"
In their early battle for trade Ger
many will have a large advantage in
In lou Nhava ol,,A .
help to exporters. This was exemplifed
| a month ago when German Arm outbid
an English firm for a large engineering
contract in Holland.
Payments to the German firm on the
contract presumably will be made in
forms, while in turn the German con-
tractors will make their own payments
in marks. Normally In Amsterdam the
exchange rate on Berlin Is 53.93 forms
per 100 marks, but the present rate is
about 1910 per 100, quite Il large differ
cree.
Should the payment on the contract
of about 100000 forms be made to
the German firm in Dutch currency the
German firm would remit this to Ber-
lin and obtain about 10, 900, 900 marks
for 1t instead OF about $4,000 marks,
However. against the profit which the
German firm will make on the exchange
rate mas 10 De set the INTERNAL eUect OF
rising wages and the cost of raw mate
rails.
All things considered. though, II is not
considered probable that the Increased
cost of production is sufficient to nullify
the large profit on exchange. The fact
that the German firm captured the con-
tract strengthens the belief.
Although the internal purchasing
power OF the mark was greatly reduced
by war imitation the German workman
by resorting to substitutes and getting
along without many things that he
formerly enjoyed enabled the cost of
production to be kept down below. the
average increase In the cost of COM
modities.
Like the rest of the world Germany
is suffering from too much money and
too little production. Germany is rolling
in money. but nobody outside of Ger
many wants 1t. Even the Germans
themselves think little of 1t compared
with the manner in which they view the
American dollar or the British pound
A large bundle OF the German currency
is needed to obtain a piece OF soap or
small ration. Unable to produce any
thing else the State can put out tons
OF paper money.
Germans Not Discouraged.