Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1922-08-15

washington. Aug. 15r--so much mas
been said TO tho business men 81 tne
United States and other countries
about the busbear OF German cornpe-
tition that the Department OF Com
merce has made a special invcstisa-
ton OF the subject. It has led 10 the
conclusion that there IL nothing 10
fear from Germany in tho foreign
trade field.
The basis Of this conclusion Is the
high cost OF production OF German
goods which compete with American
goods I'm the worlds markets. The
facts assembled by the American
government make II clear That stories
OF extremely low costs OF production
In Germany are erroneous and that the
American workman's job In not mem
aced by the competition OF the Teu-
ton.
What makes the German cost or
production appear low and what has
enabled Germany to make show Of
competing with the United States,
Great Britain and other foreign traders
with Indications OF success, IL the fact
that German industry IL subsidized In
various ways These subsidies, II II
1 true, enable certain lines OF goods u
1 be exported at low figures, but in ar
economic sense, Germany is the loser
and the actual cost Of production can.
not be leesened by such bookkeeping
legerdenain. II the German govern
4 Ill. ctv-if ~ ord
that they may produce cheaply. Ger
many is none the less paying the cos
because the taxpayers must furnish
the funds with which to pay the sub
sidy.
i The railways OF Germany nave bee
Subsidized TO the extent of S5,0Oo,o0o,
600 marks a year. This has mean
that the government has paid 10 IN
] railroads what otherwise the indus
J tries would have had TO pay, addin
the amount to the cost Of producho
Of their products. Nearly 100000
600 marks have been paid in the las
year as subsidy to the telephones an
telegraphs. Here again the industri'
, are spared a cost by virtue OF +
= assumption by the government.
Public utilities have received billior
:. in government subsidies and tn
g means that they have been enable
TO charge lower rates to industries Il
= power.
Save Also In Rents.
4 An extremely important indire
Y subsidy to the industries producir
q German goods has been the body
i laws limiting the prices Of goods Z
Internal consumption and the rate
Il house rents. BY keeping rents dow
the government keeps wages down a.
n therefore contributes to the ches
> ness OF production. Before the W;
~ the average German workman pa
l. about 10 per cent OF his weekly wsg
it for house rent. Under the RESTRICT
y laws which have forbidden landlor
Of to increase rents, the proportion
ie weekly earnings paid for rent
l. decreased materially.
It Will be seen that II manufa
: turer's workmen have TO pay or
: low rents. the wages for which tn
~ Thera has been strong pressure fro
. the landlords upon the governme
50 authorities to permit increases IN re
=, but this has been met with the sta.
ment that TO increase rents wp'
a. mean a general increase OF wages a
consequent increase in the cost
production OF German goods.
It is recognized that these condit,t
cannot long obtain. The taxpay
- and the landlords will weary of pi
II ing a large percentage indirectly
Ii the cost of production of the Germ
factories. The German people h,
| stood solidly together in attempt
II TO keep down production costs 1
| enable Germany to re-enter the I
II eign trade in such a way as to unc