The New York herald., 1921-01-25

Special C0bfe 10 THE NEW \ ORR HERALD
Copyright 1921. by THE New York HERALD
New York Herald Bureau.
Paris. Jan. -.
Frances theory that Germany's pro-
fessions Of poverty are unjustitled and
are merely attempts to evade the pay
ments of reparations is stoutly sup
ported by Prof. Georges Blondel, head
of the school of economics and political
science Of the College de France. who
has just returned to Paris after max
vestigation in German industrial CEN
tres
He has just made report to the
French Government which becomes
highly significant in view of the ap-
preaching conference Of allied Pre-
miers. The investigation OF this widely
known economist bears out all recent
reports Of the remarkable strides made
by German business and the plans her
industrial captains have for reconquer-
ing the worlds markets by ingenious
cartel and dumping systems.
Would Capture World Trade.
Prot Blondel wrote many books on
Germany before the war and in his pres
ent Investigations undoubtedly delved
deeper than any outsider into Germanys
real economic condition. His conclu-
sions. impaired to-day TO the corre-
spondent for THE New YORK HERALD
here. may be sumrns rized thus:
/. Germany's wealth was little dimn-
ished by the war but this is being
camoufiaged by excessive increases in
capitalization. auadrupled dividend pay
ments and failure of the Berlin Govern
ment to stress a differentiation between
public and private wealth.
.. Germany can pay fully Frances
claim for damages. but Will not do so
unless the Allies exert the utmost Arm
ness. as Germany's modern democracy
Ii still cinging TO the Hohenzollern
theory that right is the only logical con-
sequence OF force.
.. Industrially. Germany is recuperat-
ing at phenomenal rate OF speed. this
being facilitated by exchange favoring
expectations as well as by extending the
system of super-trusts, which will en-
brace every line of Industrial production
4. Germany's economic manoeuvres
are all directed toward one aim-name-
ly. TO exceed her pre-war economic pros
perity before she is willing TO deliver a
single mark to aid France in the re-
habilltation OF her devastated regions.
Prof Blonders assertions should
carry weight in America, where. during
the ST. Louis Exposition. he conducted a
searching investigation into American
Industries from the middle West to the
Atlantic coast while lecturing before
universities, chambers Of commerce and
big financial groups on the dominant
phases of European economies.
Germany to-day is the worlds centre
OF camoufage. although the Germans
have developed the habit of misrepre-
sentation with the naivest sincerity"
Prof. Blondel said. They are trying to
make the world believe they are ruined.
but few months visit In the interior
Of Germany will convince students that
this Is impossible. Steinmaun Bucher
estimated Gernmnys wealth before tho
war at $50. 900. 900. 600 marks. This still
exists. Although a small portion may
have left the country since the arrnis-
tice. this has been overcome by indus
trial development But the danger lies
In failing to distinguish between public
and private finances.
Public Finances Weak.
Undoubtedly tho situation Of the
public treasury is very bad. Germany
paid 10000, coo0c0 marks for war ex-
penses In four years. To-day she is
floating a debt which exceeds 146,ooo.-
10000 marks. and although the ordinary
budget has been balanced. there Is a
deficit of 67.50o.oc 900 marks in tho
extraordinary budget. which nothing
but levy on capital is likely TO sta
bilize
But the Government is showing "a
remarkable tenderness and tolerance
for industries controlled by men such
as SHINES Thyssen. Mannesmann,
voetgler and Kirchdorf. whose great
enterprises arc paying out 10 20 20 per
cent. and In some cases more. In dlvi-
dends. which before the war seldom
exceeded or per cent.
For instance, Mannesmann's fac
tories in Essen paid % per cent last
year, as compared with 6 per cent.
previously, while % per cent. In divi-
dends prevailed also in the following
industries, despite German contradic-
tions:
THE Rhlneland steel Mills. the Duis-
burgward- Durlach Machine Works. the
Dresden lace factories and the Faber
Pencil Company. which is proposing TO
pay at least 20 and possibly p per cent.
''The Saxony machine works In
Chemnitz, the largest In Germany. led
the long list. paying 20 per cent"
Rathenaus General Electric Com
pany. according to Prof. Blondel. ex-
ceeded IA per cent in earnings. the
wunsdorf factories. near Hamburg. II
per cent: the Mullheim textile indus
tries l5 per cent. the Bavarian cloth
mills at Augsburg IS per cent. the
shoc factories at Offenbach u per
Continued on Third PAGE.
ayr ORJDA SPECIAL" DE LUxE TRAIN.
a ri. fs.r asster g.