Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-08-01
GERMANY READY
TO UNDERSELL
ENTIRE WORLD
Country Is Industrially Eff
Gent, Says Traveller Just
Returned From Europe.


day is In q position to undersen the
world on NEST manufactured articles
said Charles G. du Bots president of the
western Electric Company, who has just
returned from six weeks Of intensive data
gathering in Europe He visited france,
Switzerland. Austria. Hungary, Germany
Belgium and England.
asIudustriaIly, Germany seems to be as
efficient as erer. With wages low as
measured IN the currency Of other coun-
tries. with highly competent workers
eager TO produce and with the reparatlon
ouestion in a more settled state, Germany
is in a position to 90 ahead In building
up her industries TO handle export busl-
ness. At present she can turn out many
lines Of manufactured articles TO sell
proftably for less money than any other
country.
As nearly as I can calculate it. the cost
Of German labor in the metal working
trades. measured in dollars, which is the
correct way TO measure it when II en-
ters into competition with the United
States for foreign trade. is about one
sixth Of the cost Of equivalent labor here.
- while in all probability this Will lead
to protective measures on the part OF
competing countries such as taxes on
German exports and other measures for
the encoura cement Of home industries,
yet wages IN such countries are now de
cressing and this tendency is likely TO
continue If they effectively meet German
competition in foreign trade.
SOCIAL OvERTURN
now POSSIBLE.
Looking NJ the other side Of the pic
ture. however. we see. not exactly unrest
but a grave question arising as 10
whether the working population can or
will continue TO accept its present low
standard of living. The danger in Ger
many. therefore. is OF a social overturn,
more than anything else. Politically, the
various Socialist parties seem 10 be in
the majority, but the antiSOclallsts are
In control Of the government; largely
because the Socialists do not care to as
sumo control at a time when they cannot
hope 20 maze good all their primises-"
Du Bots expressed the opinion that
the clearest view of current European
economic conditions is obtaina0le in this
country This was due. he said. TO the
large number OF trained observers by
American banks and financial periodicals
TO report such information, and the atten-
ton given here to snalyzing and pre-
senting the facts. The feelings and senti-
meDts OF the European peoples on public
questions he thought could best be stud
led az first hand
ait is almost impossible said he, 'to
think Of Europe as whole body today.
Each country is faced with different prob
lens In Germany. Austria and Hun
>Esry we find an extremely low exchange
rate; low wages even in the terms OF
what deprecated money will buy, and
paper money continuing 70 be Issued in
large amounts.
''In Austria the situation is serious,
but not Immediately critical The peo-
pie are not getting enough 10 eat, but
every one is getting something. Austria
produces only one fifth Of the food she
consumes. Her export trade. therefore.
must be built up before her position be
comes at all stable. 1t is an open ques-
ton yet whether this can be accomplished
and how the people can live until it is
accomplished.
Conditions in Hungary are quite DIFF
ferent This country, largely agricuItu-
raj. Is able to support herself. She has
passed through two terrible experiences
Communism and Roumanian occupa-
ton. She is done with Communism. Had
it not been for a temporary governmental
weakness she would never have had IL
She Is suspicious of her neighbOrs. and
proposes to be strong in military way
She wants king. but she does not know
who that king should be. She is break
ing away from German influence and
seeking favor with England
For the first time Hungary claims she
has balanced her budget and does not
want outside loans She Is preparing to
build up from within. If she follows
out this policy she is doubtless on the
high road to prosperity.
UEEAsINESs FELT
IN TRANCE.
''Csecho- Slovakia. among the central
powers. and Belgium. among the allies.
seem to be in the best condition. From
the beginning Of peace, Belgium has been
bright spot In Europe, industrially.
She is continuing to improve steadily.
''Uneasiness on questions OF foreign
>rslations is apparent in France. The mo-
tive which dominates all French policies
Is fear Of Germany, as well as lack Of
certainty in her alliances with other coun-
tries. and a certain doubt about the
efficacy Of the League Of Nations. Al
though she is trying to work in cOopera-
ton with other nations in the league, her
dominating motive frequently leads her
into situations where her own policy Is
not supported by the other countries.
Nevertheless, her condition is Improving
economically. Now. for the first time
sInce the war, her exports are more than
her imports. OF course. this trade bal
ance is Offset by interest," obligations, 50
that she cannot yet be said to be on the
upgrade. For France, the process OF re
turning TO normal conditions is slower
than she had supposed. Her people are
disillusioned. They have finally accepted
the principle that France must work out
her own economic salvation. Having &C
cepted this principle. the natural thrift
and industry Of her people are bound Ia
produce results"
Du Bots said that he had been advised
not 10 go to England on account of the
coal strike. Though this and several
other strikes were in progress while he
was there, he declared that the casual
traveller would hardly have known that
any industrial trouble existed.
Looking below the surface, the i'm
mediate situation IN England is serious.
he said. Hundreds of thousands are out
Of employment. Rail transportation IS
- seriously impaired The prevailing view
seems to be. a necessary part OF readiust-
ment in lower wage scale in order that
competition with Others for foreign trade
may be made possible The labor unions
as well as the employers. are agreed that
there must be lower wages. but the bone
Of contention is the amount by which
wages must be reduced. In due course
the British always appreciate the logic
Of circumstances and il seems certain
that an agreement will soon be reached
England in the meantime is losing
heavily in trade balance.
There is one thing, however. common