The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-10-30
NCLE SAM CAUTIOUSLY PREPARES FOR NEXT WA
American Firms
In BOChe Trade
Fearing Future

RBRBIN--Somc Americans ip
business In Germany say that the
continued depreciation OF German
and Austrian money threatens to
force American branch manufacture
Ing plants and distributing houses
IN tho two countries 10 close or
operate at a heavy loss I'm the hone
'hat conditions shortly will improve.
y number ut smaller German bus-
neSses. principally dependent on i'm
portations Of raw materials. also arc
racing a crisis and TO avoid bank .
TuptcN which they see five or six
months distant when the exhaustion
OF reserve funds and stocks has boep
Comp!etcd, are seeking to consoli-
date with larger. more firmly cs-
tablishcd institutions.
The American marufaciuripc
concerns, dependent on German raw,
materials. are faced with the pecu-
Ilar situation Of having huge out
standing orders I'm adjacent cuun-
tries which they are unable to IN
because the Germans insist ON do
hVcring raw material at current
prices. more than double in marks i'm
the prices at which the material
was contracted for, and which would
make Impossible the filling OF out
standing orders at profit
lnsistence by the foreign concerns
on delivery at contracted prices has
been without avail. protcstations
either being ignored or the foreign
ers being frankly told that such
procedure would almost immedi-
ately bankrupt the German firms
IN view OF the recent depreciation
OF the mark
American distributing houses also
are embarrassed by the fact they
nave large contracts to ill at prices
based on previous values M the fail
ing mark.
To make the situation worse. cor
tain German interests have started
cut-throat competition 10 secure
ana hold the export trade in manu-
factured articles. which has cnor-
mously Increased within tho last few
months" the representative OF an
American branch manufacturing
plant said. This competition fails
TO take into consideration tho funda-
mental proposition that funds must
he set aside for depreciation but Is
based almost solely on the desire for
immediate profits. The unavoid-
able consequence will be that within
six months or so these firms will
id't Nilt nectSSltN OF repairs or i'm
provements, without money to pay.
unless the capital stock Is drawn
upon. Such condition cannot long
continue, unless there is a sub
tantiai Improvement in German
money"
Industrialists hardest hit by the
conditions have again resorted to the
argument that the nation will be
bankrupt II the entente insists on
collection OF future indemnities in
sums agreed upon and In this CON
nection point to the damage donc
economic Germany by the payment
OF the last 1000 O0O.O 900 marks
gold, which cost approximately 53.- |
ooo,0oO,0O0 paper marks and was
credited with forcing the value OF |
the mark down n score OF points.
The efforts OF the government and |
the big bankers to agree upon /
method Of raising the next 1000 /
100000 gold marks. and the evident /
Willingness Of the bankers to stand |
by the government, are discounted |
by these financiers. some Of whom .
profess to hope tho reparations COM .
mission will decide full payment is
impossible without disrupting the .
economic situation OF Europe and .
accept part payment.
In the meantime discussions be-
tween the bankers and the govern
nent's economic experts have been
continuing, behind locked doors.