The New York herald., 1921-08-07
GERMAN TEXTILES
STRUGGLE AGAINST
MANY OBSTACLES
Make Quick Part Recovery
After War. but Boom Has
Dwindled Seriously.
SEEK FOREIGN MARKET
Buying Less Cotton From
U. s., Exchange Being
Serious Drawback.
SEEK FOREIGN MARKET

JtGLb JGt years bifE Ut NUNttd ~ wv
900 bales a year. Buying is on a hand
to mouth basis. American acillingness
to ertend credit is greater than Ger
man aoiIlinoness to accept IT,
The third article OF the series ioll
dppedr in THE NEW YORK HERALD merit
Swnddy August IA. 10 tells Of the
4oork OF Or. Waiter Rathcnau, Ger
man Minister OF Reconstruction. and
tohat he Is called on to do in connec-
tio1, 1cfth the rebuilding OF German
industry.
The fourth and last article 1ciH be
printed on August 21 describing the
systematisdtion of employment achtch
makes 1t possible 10 "spredd misery
from, hard times thin ouer 10000, 900
aoorkers" and not permit 1t 10 become
so acute in any one area that rioting
and reuolt 1ooutd occur.
Special Correspondence to THE NEW York
HERALD.
New York Herald Bureau.
Berlin, July 25.
German textiles, formerly third in
the world market, then extinguished
during the war for want Of raw ma
terials. made meteoric return to in
ternational trade this last year. Ger
man textiles pushed forward to first
place on the Continent again. forcing
openings on all markets from Ru-
mania to Spain Trade reports from
South America indicated that German
firms had again resumed relations
with their old customers. They now
take more pains to please. and, with
cheap prices and attractive goods, are
pushing out less bending American
firms.
But closer study Of the textile indus
try in Germany in no way justifies the
belief that German manufacturers can
in the next decade again win leading
place in the textile market, or even
recover their old place.
Now rs before the war, German
spnners are dependent for three
fourths Of their cotton upon the United
States and must look to outside mar
kets for their other textile materials
excepting flax. This means that the
condition Of the German textile indus
try is directly dependent upon inter
national finance and credit-that is to
say upon the stability and soundness
of the German mark. II Is one of the
German industries which can least he
classed s self sustaining and fit to
weather A storm
Through the impoverishing OF Central
Europe the German textile industry also
has lost consumers at home Before the
war Germany imported more raw ma
terials and finished textiles than the
country exported because there was al
ways steady consuming public OF a
hundred million at home. But this buy
ing public. now that initial needs have
been met after five years OF clothing
famine, no longer exists. The need is
still there, but buying capacity has gone.
A Troublesome Triangle.
German textiles are not only depen-
dent upon foreign countries for raw ma
terials but now also for credit and for
markets. This makes a cumbersome
triangle which is bound to hinder a
return to flourishing conditions in the
German textiles industry.
There is another factor which must
be classed as unwholesomc and this Is
the hand to mouth way many German
textile manufacturers now run their own
industries. Their profits this last year
were immense, in some cases more than
100 per cent Instead OF sinking these.
however, in replacement of antiquated
and worn machinery. they put much Of
this money into foreign securities and
investments outside of Germany.
It is symptomatic Of the want OF
confidence many manufacturers now
have in their own industry that several
have gone TO South America to study the
possibilities Of setting up their factories
there. One Of the largest mill owners
proposes 70 move his main works there
soon.
+rgnf eor,,a rfeon oF ,ba ,or,,, al
state Of German textiles with present
conditions and an analysis OF the i'm
mediate market will give fair idea Of
German export capacity.
Before the war there were big and a
host Of little mills and shops. some
162. 600 in all, containing 100000 spin
dies and 100000 looms In the indus
try were 100000 persons German
mills consumed some 100000 balee
of cotton as compared with three times
this number used In the United States
German woollsn mills manufactured
about two-thirds as much as those OF
the United States.
In the course OF the war the German
masses we're literally reduced 70 their
last shirt When the possibility came
TO import cotton ard wool again the
whole population OF central Europe
abruptly became buyers. This boom
began after the prolonged blockade to-
wards the end OF 1919. For day
ragged buyers were ready 70 pay any
price for goods.
High Prices ouiclsly Drop.
Although the price of cotton SCARED
from three-auarters of n mark pound
In time OF peace to over nifty marks this
last year. buyers were ready not only
to pay this price but also to assure the
manufactures oftentimes 100 per cent
profit as we'll But when first needs
we're met the demand for cotton
abruptly fell.
The price OF cotton also dropped 10
twenty, and finally TO ten marks n
pound. around which figure n still re-
mains At this price the American
grower does not receive more than half
the purchasing value he had even when
-sompared with the low prices OF before
the war.
Although only the first needs In Ger
many and Central Europe have been
met. yet the ability of the people 70 buy
has fallen more rapidly than the price
OF the cotton. Prices OF textiles on the
German market have been cut In half.
but few buyers arc there.
This. therefore, obliges German tex
tile manufacturers to look to foreign
markets to take their goods. Here the