Evening star., 1921-08-07
BY G. GOULD LINCOLN.

reports that are brought
here by American business
~ men dealing with govern
men bureaus. and sometimes by
agents of the government itself, can
be credited. are Saving WOOD.
They are working overtime. producing
much and buying little. Burdeneo
with a staggering war debt and repa-
rations running into the billions that
must be paid. nevertheless they are
bending every effort, with no little
success, to re-establish their markets
throughout the world and to win new
markets.
The German mark is at low ebo
when it comes to foreign exchahse'
But as a matter of fact this Is ald-
ing the Germans in their campaign
for capturing markets in the United
States and other countries. Also. 1t
explains why the Germans are buying
as little as possible and selling all
they can of their own products.
Not "DumpinE" Goods.
Instead of attempting to dump"
their goods on the American market.
for instance, at prices below those
charged for such goods in Germany
or even in nearby countries. the Ger
mans are putting higher prices on
the goods they ship here. But they
can do this and still sell them at
lower prices than the American pro-
ducer can sell, for the simple reason
that the cost of production in Ger
many is so much lower, aided and
abetted by the cheap mark and the
dear dollar.
The Germans. of course, must pur-
chase some raw materials from the
United States. But take the case OF
raw cotton. Cotton today is away
down to 13 cents a pound. as COM
pared with the high mark OF 43 cents
not so long ago. Then there is cop
per. But the bottom has fallen out
of the copper. market. and the Ger
mans are able to buy this commodity
at comparatively low rates. So they
are lucky when it comes to the pur-
chase of these raw materials
AS illustrative of the way in which
Germans are declining to go into
American and other foreign mar
kets and are relying upon themselves,
q little story about jam-ordinary
fruit janis told here. call Tor
Jam at store in Berlin developed the
fact that no jam was to be mad
Moreover. the would-be purchaser was
informed that if he wanted jam he
fruit crop had come along and been
turned into jam. In other words, the
Germans are not importing jam from
the United States or elsewhere.
German Cheap Products.
An American recently returned
from Germany brought with him two
dolls for his little girls. One of these
dolls was of the ordinary variety that
used to retail here for about dollar.
with eyes that opened and shut and
hair more or less real-a doll which
would sell here now for about %.
This doll had cost in Germany. how
ever, exactly 80 cents in American
money. The other doll was a me-
chanical toy, somewhat larger, but
capable of being wound up and. after
winding, of moving it's arms and legs
and turning it's head. Such a toy, 1t
is said, would cost in the neighbor-
hood of $50 if it were purchased at
one of the large stores in this coun-
try, provided it could be purchased
at ALL In Germany the price paid
for the doll was $2.25.
This gives an idea, not only OF the
lower cost of production of manufac-
tured articles in Germany, but also
OF the tremendous difference in the
rate of exchange of American money
and that of Germany. Various plans
for stabiliIing the exchange have
been advanced. but so far nothing mas
been done, and it does not appear
likely that it will be possible to bring
about such stabilization in view OF
the disturbed after-the-war condi-
tions throughout the world. But as
cermany continues to develop her
markets and to sell goods. necessarily
she will become more prosperous and
the mark will grow in value, Whetn-
ar the Germans desire it or not.
Cutting Into U. 8. Markets.
How much German goods are to-
dav cutting into American markets.
both in this country and abroad. IS
problematical. 1t is frankly admltteo
at the United States tariff commits
sim that it's information along these
lines is fragmentary in the extreme
the bureau is not given sufficient
funds by Congress to make a scien-
tific study of such conditions
But word comes from manufacturers
in this country, in various lines'
that German goods are cutting. IN
roads, For instance. 1t is said that
bronze powders, used in lettering on
candy wrappers and cigar labels etc.
ara coming here from Germany at
nrices that make it impossible Tor
American producers to compete with
fhe German article. Testimony be-
fore tho House ways and means COM
unittee, when the tariff bill was un-
aer consideration, showed that the
Germans had the better of the argu-
nnent by about 20 cents a pound, when
All the costs Of production and trans
nortation had been added up.
OF course, the competition In Amer
nan markets IL not coming from
earmany alone. For instance, word
comes from New England that large
IH