Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-08-15
GERMAN COMPETITION NOT FEARED

sell the United states and, other COM
petitOrs. but II Is apparent that the
farce cannot continue Indefinitely.
The government experts who rnads
the investigation Of German produce
TON costs assert that the situation
is based on 30 false an economic
structure that II must collapse soon
and that the longer the sutsidized ln-
dustrics operate. tho sharper viii be
tho reaction. Ono special report de-
scribed tho hectic prosperity which
these fictitiously low production costs
stimulated az Catastrophe boom"
value Of Marks Important.
I Tho value Of the German mark has
been failing rapidly in international
exchange. but II has not fallen so
rapidly within Germany. This means
that Germany has enjoyed foreign
trade for another fictitious reason.
Foreign buyers OF German goods could,
with a small amount of their own
money, pay substantial sums in marks.
The marks are worth more in Germany
than anywhere else. Therefore II has
been desirable for foreigners 20 buy
German goods and desirable for Ger
man Industries 70 continue this trade.
But II is impossible 70 maintain a one
way trade. Germany must buy as
well as sell and In buying the tables
are turned. WhiiS the declining
mark favors sales Of German goods.
Il makes Il more and more expensive
for Germany to buy.
The process stiii Is going on but Il
shows signs OF the inevitable explosion
which win bring a sorry end 20 the
: whole cycle. This collapse win drive
Germany out Of the worlds markets.
, In the opinion Of the government er-
perts. She win be unable to reenter
{ until she passes through a trying
e period Of defation and re-adtuetrnent
: which viii bankrupt thousands She
z has no financia0 strength TO Withstand
n the shock. 1t is obvious that no ono
= In Germany f. saving money, for saw
Z ing appears to be the most errant
d folly. n a man has 10 marks which
/. by tomorrow will have the purchasing
= power OF only 9, because Of the pro-
gressive depreciation, he has no in
10 ducement to save. Instead, ne is
IL eager to turn his 10 marks into SONS
q tangible article while he can.
,r II Is reported that some Gerrns rs
have bought az many ar 20 overcoets
suits Of clothes, and other similar
commodities for the purpose Of getting
U rid of their marks before they de-
y preciste. The life savings in marks
0i OF pre-war workmen would not SUD-
u port him for a month. perhaps not z
oi week, under existing conditions Of
n, deprecated currency and high com
10 modify prices.
D. While Germany is working hard Z,
u, restoSe her prestige in the foreign
10 markets, the American government ex
20 perts are convinced that American
We manufacturers need not fear compe
ln tition based on so fiimsy and insecur
vi a foundation. The economic collaps
as must come and when IL does the Ger
man cost Of production viii leap u
c. to its actual economic level, unobscur
ly ed by government subsidies. This Wi
BY give the steady American industrfe
n. the advantage. and they VIII in a,
IN probability be In a position TO under
Mt sell Germany on every hand For nc
ut. only must Germany return to norrns
PAcDoSAJ ~ dpcN
I'D them for a period because the arrea1
nd must In some way be made III
OF Economic law is inexorabIe. Il car
not be evaded- The burden OF full co:
ms OF production can be lifted from
srs commodity by such artificial near
n.y. as Germany has employed and carrie
Of for a temporary period. but sooner Z
an later it's full weight must sag dow
I've again. The weight. IN an -econorni
ing national sense, must be so great as
md equalize and make up the srrear
or before a normal level of cost can I
err reached again.