New-York tribune., 1920-10-29
Germans to Revise
Export Taxation to
Aid Foreign ra,le
Find American Competition
a Formidable Factor in
Machinery Sales; Gloomy
Over Business Outlook

Reorganization of the German cx-
rort levy scheme has been effected rs
result of protests and petitions from
C'~~an industry generally. The Fed
Co. Ministry Of Economics has de-
c'dcd that no export levy is to be put
ON goods the export sales Of which
curing August, 1920, were over so per
cent less than the average Of the
months from August, 1919, to July,
1920. The most important action taken.
however, was the adoption of the
lrlnc'ple Of the sliding scale for fix
.Ng the various amounts.
There VIII be certain fixed duty
Tor each sind Of goods, with additions
or reductions VARYING accordinc to the the
fluctuations of the German exchange,
the position Of the foreign markets
and tho productive activity of the Ger
nan works. In cases where export
goods are partly or wholly made Of
foreign raw materials due considera-
ton viii be given to that factor in
fixing the duty
The outlook for German machinery
exports is regarded as unfavorable.
l'lgely because of the advance made
~ American industry n this line. At
the annual meeting Of the Association
o. German Machinery Manufacturers
Director Becker, of Cologne, stated
ln"f IN spite Of reductions in prices
German industry was unable to com
pete euectlVelN with tcreign machin-
cry manufacturers, the result being a
leading falling OIL and the cancellation
OF orders from abroad.
Renewing the export field, Becker
SAID that most of the former neutral
countries were well supplied with ma
chlhe.y products, while eastern and
southeastern Europe did not enter
INTO conSi deration as a purchasing fac
tor at all. Italy. France and Belgium.
ne added, were themselves able for the
most part to supply their industries.
such goods as had to be imported being
ordered chiefly in Great Britain or the
Onlted States. Becker said that it was
ms opinion that the two latter countries
naa lost their Importance as purchasers
from Germany, and. in fact, had become
nldable competitors in the worlds
markets, mainly through financial in
terests.
Dwelling upon the far reaching ef-
1ecis OF business stagnation in Ger
many, Becker stated that domestic sales
OF mac chlnery were negligible, many
works had reduced working hours and
some had had to cose down altocetbcr
for an indefinite period Unemployment,
he added, ght be even more pro
nounced but for the fact that many
were st' NsY On last years contracts
and were manufacturing stock.
M policy, he continued.
could no ge pursued much longer how
ever, a. large stocks of machinery
We're already in existence, valued at
ntAons Of marks, without any hope
OF speedy Clearance The principal
reason for The inadequacy of domestic
sales. be pointed out, was the enormous
expansion during the war Of plants
using machinery. As orders are few
and far between. he SAID, many of these
plants are selling their entire equip
mcnt, thereby ageravating the difficulty
OF the machinery exporters. Becker
lntlmated that legislative measures
were to be taken with view 10 stop
ping this practice
In conclusion he pointed out that no
improvement II the general situation
could be hoped for unless the machine
cry industry devoted its energies to
Standardization and specialization
while q recovery in export trade would
be closely linked with a reduction in
the price of raw material, the aholi-
tion Of the export levy, the Limitation
OF further wage claims and an improve
ment in the productive capacity and
efficiency Of the works