The Washington herald., 1920-09-14
.GERMANSBEAT
ON POTASH BUY
Attempt to Hold Up" US.
Farmers Fails, Boche Fl
nally Captivating.

Eerlin, Sept. l2.-Eight millions
of dollars have been saved for the
American farmer by the Successful
'holdout on the purchase of Ger
man potash for fertilizer. The
German potash syndicate, after
aggeratedly high price for this i'm
portant constituent of commerciar
fertilizers and cndeavorlng to
charge American consumers ma
terially higher rate than the Dutch,
British and Scandinavian buyers
for the same grade of potash salts,
because the American dollar had a
higher exchange value than the
currenCies of these European coun-
tries. finally gave in and abandoned
tation of SIPS ton and consented
to consider a lower price.
Price stiII in Air.
The exact price is still a matter
of negotiation. but figures now un-
der consideration will in all prob
ability run at least twenty per cent
below that which the mine owners,
superconfident in the strength OF
their near monopoly, have been try
ing to exact. II may be even lower
so the saving on the supply for 1921
alone will run well into seven fig
uTC'
German producers by their price
policy and obStinacy have lost
golden opportunity. They could
have closed "A contract early in the
year. when negotiations were start
cd for the 1920 supply, for 100000
tons Of muriate concentrated pot
ash containing fifty per cent of pot
ash Salts) or its equivalent in low
or grade salts at the high price.
The dollar then was worth ninety
| five marks. They overestimatcd
the urgency of the American de-
mand and the strength of their own
position. For they stood out for
more advantageous terms although
! the price then offered was three to
! four times higher than the prc-war
quotations on American shipments.
Syndicate BIuncd.
The negotiations were interrupt
ed for 4 time and when they were
resumed the syndicate found the
American purchasers had rCconsid-
/ cred the situation in the light or a
/ poor agricultural outlook and no
! longer were willing to renew their
! former offer.
The syndicate managers capltu-
| lated but the negotiations were
! complicated between the syndicate
and the German government over
the question of export tax which
| the government imposes on cN-
| ports to countries where the Ger
! man mark is at a discount. In or
der to share the profits from the
| high rate of exchange the owners
! Of the mines fought hard against
| the government demand of five per
cent contribution and declined to
contract for exports unless the ad-
ministration abatcd its demands.
even though the government
| threatened to take over the mines
under the socialization plan.
Socialist Menact Persists.
The menace of socializstion by
the way still persists. the majority
/ of the socialist party in particular
| holding that 4 start in sOCializa-
ton Of German industry should be
made with the potash mines and
coal industry.
The American market. for which
Germany with its potash monopoly
before the war was the sole source
of supply will now absorb decided
ly less potash than when the offer
to purchase the 100000 tons was
made at the beginning of the year.
The American production has de-
veloped materially in the mean
time and considerable amounts Of
potash are now available from the
Alsatian mines which France ac-
Quired with the lost provinces.
The German profits therefore will
be lessened, not only by the lower
price but by the smaller quantity
it will be able to export to the
United States.