The New York herald., 1921-12-27
GERMAN CUT PRICES
MENACEIN MEXICO
American Manufacturers Are
Advised of New Intensive
Trade Competition.


MEXICO CITY. Mexico. Dec. 26.-Low
priced goods sent TO the Mexican mar
kets from Germany have presented seri-
Gus problems for American manufacture
ers and business men for some time, but
1t is not believed that German importers
can continue at the present pace, as the
wholesale prices OF some classes of
goods seem to be actually below the
cost of production.
While 1t is believed that German
goods will advance after German houses
here regain command Of some lines
through offerings at extremely low
figures, 1t is said that American man
ufacturers must give close attention to
reduced cost of production and reduced
cost of getting goods here IL they
hope to compete with Germany.
German importers have been most sue
cessful in the sale of hardware, prices
In some lines being astonishingly low.
Well established retail houses here have
maintained prices to some extent and
have in this way profited by the diff
ference between the low wholesale prices
and the retail prices, but small shops
are Offering wares at figures that are
close to the wholesale prices.
AS an example, brass draftsmen's
thumb tacks are being sold in boxes con-
tanning a gross at retail price which
Is said to be below the American whole
sale price.
Book Publishers Active.
German book publishers are success
fully competing with American and Eng
lish publishers Of the works of American
and English authors. Volumes of the
"Tauchnitz edition." printed in Leipzig
by Bernard Tauchnitz, are being sold at
fifteen cents each. This is not a dump
ing Of unsold copies Of books published
long ago. Some Of the volumes offered
for sale were printed as recently as last
August.
The general opinion here Is that Ger
man importers, through an arrangement
with German manufacturers, have
undertaken to win back old patrons by
spectacular low selling. which will con-
tinue until they have succeeded in re-
opening relations with business men who
have for some years bought from the
United States. When satisfactory
condition is established prices will be
gradually advanced. it is thought. but
will be kept. If possible. below the prices
Of American manufacturers. Under such
conditions it will still be possible for
German importers to hold the business
obtained by low selling. the great prob
lem now being to crowd into the Mexi-
can field and open as many new ac-
counts as possible.
Although the Germans have the repu-
tation of being arrogant and testy when
prosperous, no other people know better
how to be agreeable when there Is a
point to be gained, and the most de-
lightful foreign business men 1t Is pos
siblc to meet in Mexico City are the
Germans. Anyone entering a German
place of business here departs with
heart aglow because of amiability and
the deep personal interest displayed. OF
course. something at times cracks this
pleasant veneer and discloses the struc-
ture beneath, but such incidents are suf-
ficiently rare to excite admiration for
German team work and the thorough
going manner In which popularity Is
being sought and won.
Germans Seem Prosperous.
Despite the low prices of German
goods, the German business houses are
showing evidences of increasing pros
perity. This, II Is said. is because the
low prices In some lines make 1t possible
to make advantageous sales in other
lines in which the low cost of produc-
tion in Germany makes 1t possible to
keep below the prices Of American man
ufacturers and still make substantial
profit.
Low wages in Germany. business men
here say, give German manufacturers d
decided advantage over American man.
ufacturers. They think that this ad-
vantage will continue for years, when
wages in Germany will advance to a
higher level. and, possibly. wages in the
United States will decrease to a point
which will do away with at least some
part of the present great advantage
held by German manufacturers.
But before this condition comes about,
these business prophets say, American
manufacturers will lose much ground in
Mexico and South America.
American manufacturers. II is said,
have lost less In Mexico than in some
of the South American countries through
the cancellation OF orders or the re-
fusal of buyers to accept shipments Of
goods after they have been unloaded
from vessels. But there have been such
cases, and one Of the peculiar incl
dents of the situation Is that some of
the American goods that have been dis
posed of at ruinous terms because buy
ers would not accept and pay for ship
ments have fallen into the hands Of
German business men, who have In this
way reaped profit through American
misadventures in foreign trade.