The New York herald., 1921-03-28
GERMANS SLICE US.
AND BRITISH TRADE
Their Aim Is to Undersell Il,
in Markets Of Latin and
South America.
Special Despatch 70 THE NEW YORK linR4Lp
New York Herald Bureau.
Washington. ID. g., March "a

Germany has made a startling com
nercial comeback Ia the markets Of
the world. official Government reports
from consular agents and diplomatic
representatives show.
The keen German competition already
is menacing the. foreign trade Of seN-
eral countries. including the United
States despite the fact that this nation
stlll is technically az war with Ger
many
The reports indicate that Germany
has determined upon commercial
policy that viii be directed particu-
larly OF the foreign trade OF Great
Britain and the United States. appar-
emily believing these two nations will
be her main competitors. II seems that
her primary trade policy at present is
TO underselI the United States in Latin
and South America. and Great Britain
IN India and Asia.
Large German industries which FOR
merly we're on a competing basis have
formed great trusts for the extension
OF foreign trade and are working d.
rectly through the German Foreign or
flee. All exporters have Joined an as.
sociation TO work in cooperation with
the anna carnations or the basic indus.
tries.
According 10 the reports, large num-
into the worlds markets and are under
bidding competitors, In addition to prom
ising long term credits and better goods
German undersolling is said to have
taken away already the tool and ma
chinery trade OF Holland which Was
rs per cent. American before the war
Already The American electrical business
in Chile is said 70 have been affected as
we'll as the general export business in
A .ssf
South American countries
Officials here estimate that SO Tar the
net result Of Germanys comeback has
been 20 regain more than half the for
eign trade she possessed before the war.
She Is now selling England twice as
many toys ~ at the peak OF the pre-
war period Reports show that despite
the state OF war Germany's foreign trade
with the United States increased -four
fold last year as compared with 1919.
end thai progressive increases have been
shown during the first months OF this
year.
The great advantage obtained by the
Germans Is due 10 extremely low pro
duction costs and Tie low exchange rate
OF the German mark as compared with
virtually all other money. These fac
tors have enabled bids much lower than
those OF the Allies or the United States
~ - ruAh thHA tfth - F&GhAhkr NtEt
normal the situation IN Germany to-day
is such that production costs are 20
much lower than elsewhere tho Germans
stil could uadersell competitors.
The new German trusts are said 20
be much larger than before the war.
and n trade continues 10 develop will
be gigantic commercial Institutions.
The biggest of these. according 10 the
reports are the potash. drugs. dye
chemical electrical, Iron, steel machin-
cry and shipping industries old time
Industrial riyalries are said to have
been submerged IN the common cam
30 Ign 70 obtain trade for Germany
German quotations on certain steel
products. cotton goods, enamel ware.
glassware. paper and other commod-
ties IN India sre Tar below either Amer
lean or British prices. Americans are
being underbid Ia practically every line
of goods that Spain imports. and In
many lines IN Mexico. Argentina Brazil
and Chile In Holland and the Scandi-
navlan countries the Germans are said
20 be underselling almost every other
nation
in addition reports indicate that the
Germans are attempting 10 negotiate a
preferred nation treaty with China
as means of gaining a commercial
foothold there. Unofficial reports are
that o similar agreement IN being sought
with Japan,