Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-08-15

Washington. D. c., Aug. 12.-So
much has been said to the business
men Of the United States and other
countries about the bugbear Of Ger
man competition that the department
Of commerca has made a special in
v~estigation OF the subject. It has led
to the conclusion that there is moth
ing to fear from Germany in the for
eign trade field.
The basis Of this conclusion IL the
high cost Of production of German
goods which compete with American
goods in the worlds markets, The
facts assembled b ythe American, gov
eminent make it clear that storfes-of
extremely low costs of production in
Germany are erroneous and that the
American workman's Job is NJ men
aced by the competition of the leu
ton.
What makes the German cost of
production appear low and what has
enabled Germany to make a show of
competing with the United States,
Great Britain and other foreign trad
ers with Indications Of success, is the
fact that German industry is sub
facts assembled by the American gov
sides, it is true, enable certain lines
of goods to be exported at low figures,
but in an economic sense, Germany is
the loser and the actual cost Of pro-
d%uction cannot be learned by such
bookkeeping legerdemain. If the
German government is subsidiIing in
dustries in order that they ma pro-
duce cheaply, Germany is none the
less paying the cost because the tax
payers must furnish the fundLwith
which to pay the subsidy.
The railways Of Germany have been
subsidized to the extent of $4,000
600, 900 marks a year. This has
meant that the government has paid
to the railroads what otherwise the
industries would have had TO pay,
adding the amount to the cost of pro-
Lduction Of their products. Neatly
5000, 000. 600 marks have been paid in
the last year as subsidy to the tele-
phones and kilograms. Hero again
the industries arb spared a cost by
virtue Of its assumption by the gov
eminent.
Public utilities have received bill
lions in government subsidies and this
means that they have been enabled to
charge lower rates to industries for
power. /se
I Save Also in Rents.
An extremely important indirect
subsidy to the industries producing
German goods has been the body of
laws limiting the prices of goods for
tlnternal consumption and the rate of
house rents. BY keeping rents down.
the government keeps wages down
lcheapness Of production. Before the
war, the average German workman
paid about 1s per cent Of his weekly
wages for house rent. Under the re-
striettve laws which have forbidden
landlords to increase rents. the pro-
portion OF weekly earnings paid for
rent has decreased materially.
It will be seen that If a manufac-
turer's workmen have to pay only low
rents. the wages for which they can
afford to work. need not be high.
There has been strong pressure from
the landlords upon the government
authorities to permit increases In rent,
but this has been met with the state
ment that to increase rents would
mean a general increase Of wages and
a consequent increase in the cost OF
production Of German goods.
II 10 recognized that these conditions
cannot long obtain. The Taxpayers
and the landlords viii weary OF pay
ing 4 large percentage OF the cost OF
prcduetion Of the +GsYynan factories.
The German peorls have stood solidly
together IN attempting to keep down
! ~ w. ANkAOl 1SO0SO 0bbo p SUG IIA6lIy
Ito re,enter the foreign trade In such
way ~ to nndsrsell the United
EtAtas and other competitors, but 1t IL
apparent that the farce cannot con-
tinue Indefinitely:
The government Sxpsrts who made
1.-THE Investigation OF Garman produc-
ton costs assert that the situation Ii
based Of 90 false an economic Struc-
Iture that u must collapse soon and
that the LONGER the auhsidized indus
tries operate, the sharper VIII be the
FRACTION. One special report described
1.-THE hectic prospaFaty which these fic-
itttioualy alcW production costs stimu-
lAAAd % i ""faSAatFophic boom.
vA1ne ~ MARKS Imporfant.
The value OF the German mark has
ihsen failing rapidly IN international
sxchAnss bot n mr. not fallen so rap
HAY within Germany. This means
that Germany has enjoyed {areigr
trade for another fictitious reason,
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