Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-29
j. S. FACTORIES /
IN EUROPE MAY
HAVE TO CLOSE
Depreciation of German and
Austrian Money MenaceS
Branch Plants and Dis
tributing Houses.
tBy Tho Associated I1e.,J

Berlin, Oct. 2S.-Some Ameri-
cans in business in Germany say
that the continued depreciation OF
German and Austrian money
threatens to force American
branch manufacturing plants AMI
distributing houses in the two
countries to close or operate at n
heavy loss in the hope that condi-
tons shortly will improve.
A number of smaller German
businesses, principally dependent
upon iniportations OF raw mate
rials. also are facing crisis and
to avoid bankruptcy WHICH they
see five or six months distant whel
the exhaustion OF reserve funds
and stocks has been completes
are seeking to consolidate with
larger, more firmly established
institutions.
Can't Fill Orders.
Two American manufacturing
concerns, dependent on German
raw materials, are faced with the
peculiar situation OF having huge
outstanding orders in adjacent
countries which they are unable
to fill because the Germans insist
on delivering raw material at cur
rent prices, more than double In
the prices at which the ma
terial was contracted for, and
which wonld make impossible the
filling of outstanding orders at a
profit.
1nsistence by the foreign con-
Germs on delivery at contracted
prices has been without avail, pro-
testations either being ignored or
the foreigners being frankly told
that such procedure would almost
Immediately bankrupt the Ger
man firms, in view of the recent
depreciation of the mark.
America distributing houses also
are embarrassed by the fact that
they have large contracts to fill at
prices based on previous values of
the falling mark.
TO make the situation worse.
certain German interests have
started cut throat competition to
secure and hold the export trade
n manufactured articles, which
mas enormously increased within
he last few months" the repre-
of an American branch
manufacturing plant said. This
competition fails to take into con-
;ideration the fundamental propo-
'ition that funds must be set aside
'or depreciation but is based almost
solely on the desire for immediate
profits. The unavoidable conse-
luence will be that within six
months or SO these firms will face
he necessity of repairs or improve
nents, without money to pay.
lnless the capital stock Is drawn
ipon. Such a condition cannot
ong continue. unless there is
improvement in Ger
nan money
Nation Faces Bankruptcy.
Industrialists hardest hit by the
conditions have again resorted to
he argument that the nation will
)e bankrupted IL the entente in
lists on collection of future indem-
lities in sums agreed upon I'D in
his connection point to -re dam
>oS NS'o SSOiiohiiC 1tIIidNN bN titS
payment of the last 1,0J0.u00, 900
marks gold, which cost apprOxi-
nately 53.000.000,000 pa,.er marks
md was credited with for,'ng the
'alue OF the mark down score of
points.
The efforts of the government
md the big bankers ., agree upon
. method of raising the next n0D.
100000 gold marks, and che evil
lent willingness of the bans.ers to
tand by the government, ire dis.
ounted by these financiers, some
Il whom profess to hope the re
'arations commission will decide
ull payment Is impossible without
disturbing the economic situation
I Europe and accept part payment.
In the meantime discussions be-
ween the bankers and the govern
ncnt's economic experts have been
behind locked doors.