Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-10-28
/. /. FACTORIES
NGERMANY ARE
NOTPROSPEROU
The Depreciation of Money
Causes Heavy Losses,
Says Report.

Berlin, Oct. 10.-Some Americans in
business In Germany say that the
continued depreciation of German
ana Austrian none threatens to
!orce American branch manufactur-
mt plants and distributing houses in
}tnn0 swo countries to close or operate
atsa heavy loss In the hope that con-
d1tlons shortly viii improve.
number of smaller German BUSH
nesses. principally dependent on Inn
portations OF raw materials, also are
facing a crisis and to avoid bankrupt
cy, which they see I've or six months
distant when the exhaustion Of re-
serve funds n stocks has boon COM
pIeted. are seeking to consolidate with
iarSer. moro firmly establish institu-
tons
Use German Raw Gooda
Tho American manufacturing con-
Germs dependent on German raw ma
terials. are faced with tho peculiar
attuadon OF having huge outstanding
rde In adjacent countries which
they are unable to NIL because the
Germans insist on delivering raw ma
ter1al at current prices. moro than
double IN marks the prices at which
tho material was contracted for, and
which would make impossible the
hliing OF outstanding orders at a pro-
At,
Insistence by the foreign concerns
on delivery at contracted prices has
been without avail. protestations eth
er being ignored or the foreigners be-
Ing frankly told that such procedure
would almost Immediately bankrupt
the German firms. in view Of the re-
can't depreciation Of the mark.
American distributing houses also
are embarrassed by the fact they have
large contracts to I'LL at prices based
on previous values OF the falling
mark
tain German interests have started a
eut.throat composition to secure and
hold the export trade In manufacture
ed articles, which has enormously In
creased within the last few months
the representative Of an American
branch manufacturing plant raid.
This competition fails to take into
consideration tho fundamental prop
osftion that funds must DO set aside
for depreciation but Is based almost
solely on the desire for Immediate
wtll be that within SIX months or 50
these firms Will fac the necessity Of
repairs or improvements. without
money to pay, unless tho capital stock
IL drawn upon. Such a condition can
not long continue. unleas there is a
5upstant1a improvement IN German
money"
Use Old Argument,
Industrialtsts hardest hit by tho
conditions have again ~reaorted to the
Argument that the nation will be
bankrupted II the entente insists on
collection Of future indemnities in
sums agreed upon and In this connee-
ton point to the damage done eco-
nomic Germany BY tho payment Of
the last 1900, 100000 marks gold,
which cos approximately $4,000, ooo,-
900 paper mark and was credited
with forcing tho value of tho mark
down a score Of points.
The efforts of the government and
the big bankers to agree upon a
method Of raising tho next 1905, ooo,-
900 gold marks, and tho evident viii
ingness Of the bankers to stand by
the government, are discounted BY
these nnanciers, some Of whom pro-
fc<s to hope tho reparations commits
sion will decide full payment Is i'm
possible without ~disruptins the SEQ
nonic situation of Europe and accept
part payment.
In the meantime discussions be-
tween the bankers and the govern
n1cnt's economic experts have been
continuing, behind locked doors.