The sun., 1919-10-17
DR.. TAYLOR THROWS
/ LIGHT ON GERMANY
Export Manufacturers Hear
Truth About Real Trade and
Other Conditions.
PLEAS MADE FOR RUSSIA
Experts Tell of Opportunities
/ for American Merchants in
hnr.,ign Countries.

eCoHoHlic STATUS ana requirements, WHICH
seemed to be more illuminating than
several tons of literature ON the same
subject, was set before the American
Manufacturers Export Association at
| the Waldorf-Astoria yesterday by DR..
SAlonzo e. Taylor. chief of the research
recently returned to- this country after,
completing survey for the Economic
Council of the Allies.
The association is holding two days
convention, which brings together sew
eral hundred manufacturers and finan-
ciers, perhaps the most representative
gathering of American business men in
terested In foreign trade yet assembled,
and also members OF the trade commits
sions of Great Britain, France, Belgium,
Italy and other foreign countries.
DIR. Taylor said that Germany Is
empty of raw materials for commercial
operations: that unless the peak OF
over production whereby she existed be-
fore the war is restored 100000 Ger
mans have got to leave or starve; that
the present Government, instead Of be-
! ing socialistic. is now conservative in
trade matters socialism being as dead
as a doornail In the very houses of the
men who were its chief advocates" that
importations are limited In Ave ways,
which Americans have got to observe II
they want to send their wares to Ger
many: that II Germany Is compelled to
pay the maximum indemnity the Allies
may at the same time compel her to be
again one of the strongest nations OF the
world. IL not the strongest, and that she
has got to be allowed TO be at least sin
dustrially strong"
The Allies and associated Powers
know and those who have been in Ger
many know, DIR. Taylor said. that there
Is no truth in the notion that Germany
still has stores of raw material hidden
away
Country Completely Depleted.
Germany, he said, entered the state Of
srmstice a depleted country. Having
first combed her allies and the countries
she overran, she combed her own civil
ians At the time of the armistice
Germany was empty of everything.
Practically speaking. in the line of mate
rails for commercial operations"
DR.. Taylor said the German require
n,ents were enormous. They amounted
10 $3.50, 100000 worth of commodities.
outside of foodstuffs. They were far
In excess of the ability to pay or of the
present ability of German labor to uti-
lie. and for that reason they were not
being pressed.
1.-The present German Government"
he continued, ais not a harum scarum.
wlld-eyed government; 1t is about as
conservative a government in matters OF
trade and industry as its predecessor,
and just about as clever. because 1t has
at it's command the ablest men In Ger
many 1t is limiting the importations
. to commodities secured in one of five
ways.
First, they will not permit mark
to be offered for sale outside the German
boundary, but II marks are purchased
they will, against these marks, sell COM
modities. II the mark is purchased at a
distance and held for a rise, as is oc-
CURING here every day, this has the
double effect of tending to influence the
price of exchange upward and the very
much greater value Of carrying that mark
out of trade and limiting the volume OF
German paper currency. If the Ameri-
cans will buy 100000 worth OF marks
a day nothing will please the German
Government better. They will buy in re-
turn for that goods which will be shipped
to Hamburg and be paid for in German
mark, and they wau taye these German
marks to the Deutsche Bank in Berlin
and get a paper on a New York bank.
2 and the money is here in the form of dol
lars dollars paid for German marks on
. speculative Investment.
'.The second method is the use OF
a
attached to an import slip he doesn't
get it signed. The third method is by
sale of foreign securities In their hands
They don't care to sell their securities
now. As Melchier puts 1t, they must
not waste them, must not dissipate
them now in a period when they cannot
tell whether they are going to secure
anything or not. Nevertheless there
is a certain amount of this business
t. ana aN &hA AxrE
methods permitted.
Little Potash and No Coal.
'.rhe fourth method is an exchang,
of indigenous German commodities fol
imported commodities OF these Ger
many has only two. practically speak
ing, coal and potash. At present sh'
is not in a position to offer any larg'
amount of potash or coal at all.
1.-The last method is the exchange
method, the form of trade they ar,
trying to press II you will ship 10 Ger
many thousand tons of cotton she will
return to you 210 tons fabricated in 1
certain way. She Is having more sue
cess with this method in dealing witt
Scandinavia. Switzerland. Holland ant
Sweden"
How strong a world trade factor Ger
many will be, DIR. Taylor said, would
not De hnOWH until lIle dCCOinpllSnHleH
of German industry, reconstruction Of
the basis of the present German socia
theories, could be determined. He SAT-
the attitude toward Germany had change,
in the last six months and every on
now realized that II Germany is eve
going to pay the bill she must be al
lowed to be a going concern: II Eng
land, France and Italy want that repara
ton they have got TO help her to ear
It, In these circumstances talk o
paraiyzing Germany industry was idle
The people of Germany, formerly a
the Left OF the Government, were nov
at the Right and becoming more con
servative economically every month
.srhere isn't the slightest danger @
communism in Germany" he saiS
'-There isn't the slightest germ of tn
old time Socialism. Mere control of tn
excessive capitalistic activities OF tn
large corporations is all there Is left Q
the Socialistfc government. These me
have been absolutely sobered by the
responsibility.
'Those Of US who have been in Gel
many are inclined to feel that there
no militaristic tinge to the present Gov
eminent. However, one must alway
ask oneself: II Germany become
strong enough to pay these huge ir
IDENTITIES will she not at once again bt
come militaristic?
1--WE have got to face this fact Ever
nation will buy in the market who's
currencies are deprecated more tina
the currencies of every other countr,
20