Evening star., 1921-05-29
BY SHELDON S. CLINE.


national trade the world
ever has known soon will
be in full swing. 1t is the
judgment of informed students of
the situation that in that battle
Germany has a big advantage over
the United States and England and
the other "allied and associated"
powers. with the possible exception
of Japan.
Germany's chief advantage lies in
cheap labor, made possible by
low standard Of living. Her people
are reconciled to that low standard.
are willing to endure it for what
ever number Of years may be
tions debt to the allies and free
the "Vaterland" from the penalties
OF the war. They are looking to
the future. to the day when, the
war debt discharged. Germany will
stand greater. richer and more
powerful than she was before that
fateful day in 1914 when, in a
gray hordes swept into Belgium
and the north of France
1t is the almost unanimous testi-
mony of foreign travellers in Ger
many that deutschland uber
Allies" still has power to quicken
the pulse and stir the Teutonic
Imagination.
In this warfare Of the nations for
commercial existence there will be
no brotherhood among the spears
Of trade. The nations alongside
which America battled to preserve
civilization are going to fight
American competition just as re-
lentlessly as they fight that of the
FORMER enemy peoples. No nation
every ounce of energy and re-
sourcefulness into the contest For
in this case the race will be to the
swift and the battle to the strong.
parable generalities to the contrary
notwithstanding.
While our commercial sympathtes
may be with England and France
as against Germany and Austria.
and those Of England and France
with us. sympathy will play but a
minor role when it comes to barter
and exchange. So in taking stock
OF the fitness Of the nations for the
fray America must take into ac-
England and France as we'll as that
Of Germany.
England and France are estimated
to have an advantage over the United
States almost II not quite as great
as Germany and Austria have over
England and France. In other words.
IT the central powers have a o5 per
cent advantage over England and
France their advantage over this
country is so per cent
Unless margain can be overcome
by greater American efficiency and
productivity the German advantage
over us in the matter Of labor is even
greater than so per cent The cost
OF living in Germany is estimated at
about one-half the cost in this coun-
try. figured in terms of gold The
gold wage Of the German working
man will average about one-fourth
OF the corresponding wage in this
country.
This forces the German working
man to a lower standard of living,
but not a great deal lower than the
standards Of American workingmen
prior to the war. The wages Of no
class Of workingmen will enter into
the world trade problem more large
ly. probably. than that Of machinsts
A high-grade nachinist in this coun-
try will get about dollar an hour
and the eight-hour day is standard
giving him daily wage of IS. A
similarly Skilled machinist In Ger
many will gst Is .cents an hour, but
will work ten to twelve hours day,
making his daily wage $3.50 to SO.
With a SO per cent advantage in liv-
ing costs. therefore, the German ma
chinist has the American equivalent
Of a daily wage OF s. to $6. which
doesn't involve an unbearable reduc-
duction in living costs. judged by pre-
war standards A great many Amer-
can families are forced to scrape
along. even at present price levels,
on average incomes of less than IS a
day.
But the difference between 81 an
hour and 25 cents an hour for ma
chinists gives Germany an almost
incalculable advantage when it comes
to selling goods in the neutral mar
kets Of the world. II the labor cost
figures at one-half the cost of pro-
ducing an article. which is not ex-
cessiVe, and the cost is equal as to
raw materials. the German manu-
facturer can underbid the American
manufacturer 37k per cent in any
market which is free to both of them
at equal transportation charges.
The German manufacturer is doing
that very thing in South America
today. with the result that German
factories are busy while American
factories producing similar goods are
idle or working only part time. And
il it is true today. handicapped as
Germany has been by the conflict
and uncertainty over reparations. it
is not comforting to contemplate
what the situation will be when
Germany really settles down to the
Job Of paying or her debt to the al
lies in the fewest possible number Of
years
Nor is the disparity in wages the.