Evening star. [volume] (Washington, D.C.) 1854-1972, 1921-01-02
GERMANY COMING
BACK|NDUSTR|ALLY
Is Now a Factor of I'm.
p0rtance in Our For
eign Trade.
Daily Financial America.

rUH Da1ly rlndncl1l AmeTlcd
A crisis seems impending in Americas
trade with most of Europe. Yet Ger
many has vastly increased her dealings
and improved her position here by sub
stituting barter of finished goods for
our raw materials. While others are
dropping out Of our markets for lack
Of credit, German buying Of American
raw materials and foodstuffs has risen
fast.
ported, our purchases from Germany
were exceeded in Europe only by those
from Great Britain and France. Ger
many sent to America chiefly finished
goods valued at 100000. In nine
months these shipments have reached
$67,7O0,000.
Germany in this period has succeeded
in buying goods valued at 1S5 millions
from America. That 10 about six times
as much as we allowed her in the same
months of 1919. She has again become
one of Americas best customers. Com
pared with this result, Europe as
whole reduced her buying to 1,244 mil
lions in four months ended with Sep
TENDER, against 1885 millions in the
same months Of 1919. America has thus
lost almost one-third OF her sales 10
Europe for four months.
sun 0AAAKuRAs
Yet Germany as government ID
bankrupt. Her national debts exceed
her entire assets. Her currency Is vast
in volume and runs a race for worth
lessness with the ruined paper money
Of Austria and Russia. The marx Is
quoted here at about per cent OF It's
normal value in gold The exchange
for nearly all German buyers OF our
products. But Germany's buying has
far exceeded that of any of the former
neutral countries whose currency rates
are far above her own in the foreign
exchange market.
while the mark lately has been
quoted at only 5 per cent of its normal
value in gold, Hollands money sells
eli rs per cent. Denmark's at SO per
cent, the Greek at 4S per cent, NOR
ways crowns at SO per cent. Swedens
and SPANS above 70 per cent. Yet
the resourceful German found means
to buy far more American goods than
any OF these nations.
Pay for Finished Product.
How does Germany accomplish this
financing? Apparently 1t Is the IN
dustry Of the German workman that
is being exchanged for our goods by
enormous factory combinations or
enough German goods to Offset our
exports. though the volume is rising.
Rut our exporters of raw materials
are practically accepting German nm
ished goods until they are sold In
other countries. The proceeds are
then used to pay the American cred
itor.
other foreign raw materials in
process of manufacture and sale have
been created in several German in
dustriea. The $4,000 German knitting
mills, for example, have created the
ditag, as it is known, for financing
and selling. Foreign hnanciers are
members of its board. Ditag sells
American cotton to German firms on
credit, redeemed when the goods are
marketed. The ditag acts as bank
ing agent for the American seller.
The German manufacturer deposits
corporate securities with the ditag
for the cotton inhusted to him.
Credit is extended only to the ability
Of the manufactured to export. The
yarns or textiles he makes remain
thu property of the American until
draft in gold is given, cancenng the
debt As the goods rise in value at
every stage OF manufacture, the
creditors security is increased. Be-
hind the ditag is the united strength
It was by such enterprise that
bankrupt Germany was able to buy
American cotton worth $4,000, 900 in
seven months for her textile mills,
almost as much as France. She also
bought copper worth 81, 100000, oil
products of $4,000. 900, grain Of 3d.
100000 value. meat and dairy prod
schemes Of barter she increases her
trade with US. despite our trade bal
anoe Of $11s,000.000 againstA her for
nine months.