The New York herald., 1921-08-07

Germans despite obstacles at home and
barriers OF all kinds encountered abroad
had a signal victory. The low value
OF the German mark combined with
the traditional facility of German in
dustry to make cheap. attractive goods
greatly facilitated this campaign.
In an attempt to profit to the max
imum by exchange they Inundated
neighboring neutral markets with cheap
German goods. This became an over
flow in March of this year. when il was
announced that the Allies proposed APP
plying special tax on wares imported
from Germany The result has been
that similar industries in the Soandina-
Wan countries. and. to q somewhat
lesser degree those of Holland and Swift
zerland, have been put out of business
by German dumping.
The Germans. despite deprecated
currency. found a limited market in Cen
trail Europe to the East. But here they
were In sharp competition with the cot
ton manufacturers of CZecho Slovakia.
Little Business With Russia.
There has been much talk here In
Germany of extensive business with Sow
iet Russia. AS yet, however, nothing on
a large scale has been accomplished.
and no very positive preparations are
being made for the future. In this the
Czechs have proved themselves more
enterprising. having concluded prelim-
mary arrangements for a large export
to Russia.
The Allies market has not meant
much to the German textile industry.
For time Germany found an outlet for
cheap textiles in England. This was,
however completely closed by the new
4. .t-g
Also French import duties were too high
for German goods to enter France in
large quantities.
There has been. however a thriving
business between Germany and the oc-
cupied area. Firms here were In the
habit Of sending raw cotton to unoccu-
pied Germany for refinement. and fair
part of the goods eventually found their
way to the Aisatian and Belgian mar
kets. But the new customs frontier in
troduced BY the sanctions lcvies double
tax on this refinement trade, practically
killing II. Buyers in the occupied area
preferred to stop buying to payment OF
the heavy customs charges.
Owing to high import taxes and the
sanctions the Germans therefore are do
ing practically no textile importing from
France. On the other hanad the French
through Alsace-Lorraine are still send
ing quantities OF textiles to Germany.
Article 6s OF the Treaty OF Peace gives
Alsace- Lorraine access to the German
market free from customs barriers for
period or five years. Although the
Alsatian textile industry Is partly para
iyzed none the less quantities of wares
to which a ribbon or button has been
added but which were really manufac-
tlred in France or elsewhere are COM
ing In by the carloads. The English, for
example, are sending in large quantities
of thread and cloth through this indirect
way.
German textiles after the war reached
a high water mark about November of
last year. Manufacturers have continued
to produce about the same amount of
goods since then. But they are COM
pleting old orders now, and have hardly
more than half as many new ones to
look forward to.
Present status of Indrstry.
Briefly, the present tempo Of textiles
as compared with normal peace time
production is Spindles, 10 per cent.
carded yarn and thread. 45 per cent.
flax, so per cent jute spinning, So per
cent, and weaving. so per cent The
present monthly consumption OF cotton
in Germany is $4,000 bales, as compared
with 500 600 bales in the United States.
Manufa cturers calculate that they Will
have to drop back at least to 50 or 50
per cent. Of their normal output IN the
near future.
The home market is satiated without
being satisfied. Cutting of retail prices
only began a short time ago and has
been precipitous. But this has not
greatly stimulated buying. ! walked
through two Of the largest Berlin dc
partment stores the opening day II their
summer sales. Prices were marked down
t. half Of what they were year ago
There was however. no eager crowd OF
buyers.
Mr. Tietz. the largest department store
owner in Germany, stated that the buy
ing capa city of his public to-day Is bu.
IS per cent Of what II was in the OLD