The New York herald., 1921-01-16
Peasants Have Paid Off
Mortgages and Large Es-
tates Are Breaking Up.
INDUSTRY PROFITS HIGH
Not Alarmed at Low Exchange
as 1t Furnishes Subsidy OH
Finished Product.
By GUSTAvE MILLER.

DSicdecu III tlle NOilu NdI VI arms,
the Germans may still become the
.victors in the never ceasing world
war for economic supremacy Their
losses in political and military power,
as well as in money, goods and men.
than those of this country or Great
Britain, but smaller than those of
Russia or what is now Poland, Czecho-
Slovakia, Austria, Hungary, Jugo-
Slavia or Rumania. Germany's losses
are peculiar in so far as many of them
are blessings In disguise.
Germany had to deliver large part
of her railroad rolling stock to some
of the Allies. Thereby her long planned
railroad improvements were fastened
and foreign countries that formerly
produced the locomotives and cars they
needed We're forced to buy from GqA
man factories. German railroadiNg
and railroad equipment, were the best
on the European Continent Tfior to
the war. France and Belgium re-
ceived large quantities of German
locomotives and railroad cars. At the
present time. and probably for quite
a number OF years the French are not
able to make repairs or build new
rolling stock of the German type and
cannot afford to build new railroad
materials of an inferior type.
The consequences may be seen from
the financial page of the FrdnhtHrter
Zeitnng. the German Wall Street Jour
nal, which reported that negotiations
are being carried on between the Ger
man railway car factories and the
French railroad companies. The negotia-
tions aim at organizing a French-Ger-
man concern 1t is further planned to
have 10000 new French standard cars
built by the German factories II must
be noted that the French members OF the
concern expressed their willingness to
furnish the necessary coal and raw ma
terials to the German factories"
German Locomotives.
Stripped of large part of her rolling
stock Germany manufactured Tor her
own use locomotives and cars OF the
newest type and of increased efficiency
That Improvement had been planned for
brought about slowly step by step with
out the armistice conditions. Already
in November, 1919, the German rail-
roads. though run down by reckless
utilization during the war regained 80
per cent. of their pre-war effiIency ana
are to-day able to handle larger traffic
than prior TO, August, 1914. Steam rail-
roads are being rapidly replaced oy
electric railroads since the monthly de-
livery of 100000 tons OF coal acceier-
ated utilization OF water power for the
generation of electric current and the
extensive use of subbituminous coal and
peat which are burned on the spot i'll
steam-electric power plants.
While it is true that the German
Reich and its component States as well
as the German municipalities are bank
rupt the situation of German industry.
commerce and agriculture was never so
favorable as to-day.
The agricultursts, who received eX-
cessive prices during and since the war.
paid off the mortgages on their proper
ties. While encumbrances on land were
the rule prior to the war. the opposite
is true to-day. One of the consequences
was decreased production. Thes1armer
is not inclined to accept paper cur
rency. and coins have disappeared from
circulation since 1915. Free from debt
the peasant had not to sell much of his
products to obtain the cash he needed.
Land was practically not on sale, so
the peasant saw no opportunity for safe
investment, as he is not inclined to risk
his money in any undertaking except
agriculture. Conditions will soon change
as the control prices OF agricultural
products have been withdrawn. Within
a few years Germany will be able to
produce the food she needs. while she
used to import about 40 per cent. OF
the breadstuff her population consumed
prior to 1914.
Large Estates Broken Up.
The process of cutting up large
estates in Germany Is quietly going on.
The small peasant works more intensive
IN than IT Is possible for the owner of
a large estate and produces more per
acre and at less cost. OF course. n
greater number of workers is neces-
sary on small farms than on large
estates. and Germany's losses OF men
during the war we're chiefly laborers,
industrial and agricultural, because the
hulk of the skilled workers was needed
for the production of war materials.
But about half of the 100000 Rus
sian prisoners of war decided TO stay
in. or return to- Germany, and the over
wheln1ing majority OF these Russian
prisoners are agricultural workers.
While industry as "A whole made large
profits and accumulated great surplus
funds during the war, the profits have
increased since the armisticc and are
at the present time higher thSr arms
and ammunition manufacturers-vfca
OF when they furnished war materials
to the Kaser's army at their own
prices. Annual dividends OF from 80
TO 100 or more per cent. are the rule.
To evadc payment OF the war excess
profit tax the big Industrial concerns
conceal their profits by increasing their
capital and selling the new shares to
stockholders at a nominal price. In
dustriaI shares of moro than 1000, ,000.-
600 marks were thus issued Curing the
months of April. May and June last.
That Is why the stock OF the Frank
furt Gold und berscheideanstalt--par
value 100 marks--was quoted sos marks
after II had been announced that the
annual dividend would be 6 per cent.
A Few Figures Cited.
Here may be quoted a few figures
from one single copy OF the Fronkfurtor
Zeituno taken at random:
Dcutsche Maschinenfabrik, Dulsburg
increased It's capital from 10000, 600
marks to $4,000, 600 marks after hav-
ing paid an annual dividend of per
cent. it's stock (par value 100 marks)
advanced from 265 TO 800.
Eisen und Stahlwerke Hoesch. Dort-
mund. has a capital of 1000. 900 marks