Evening star., 1922-06-19
BY HIRAM n. MODERWELL.
Snecial Corresnnndence of The Star and Chi

Germany
BY HIRAM n. MODERWELL.
Especial Correspondence Of The Star and Chi
Cago Daily News.)
BERLIN, Germany, May 12.-Can
Germany pay the war Indemnity? The
smoking chimneys and the bubbling
champagne give the impression that
she can. But there are certain fur
ther facts, easily ascertainable,
which have bearing on the ques-
tion. First, labor Is not so productive
in Germany as it was before the war.
In some branches of industry. such as
coal mining. labor, under great pres
sure, has increased its output per
man per hour above the pre- war level.
But this is Overbalanced by slow
Gowns in other industries and by the
eight-hour day. which is universal in
German industry, so that the output
per man per year is under the pre-
war level
The most striking decrease in pro-
ductivity is in the field of agriculture.
After all allowance has been made
for the loss of agricultural territory
due to peace. il remains true that
the total agricultural produce. the to-
tai of ground under cultivation and
the yield per acre are all, below nor
these: Lack of man-power, deteri0ra-
tion of the ground due to neglect and
inadequate fertilization during the
war. change from essential to luxury
crops. Perhaps the controlling factor
is the self -sufficiency of the farms
and their antagonism to the cities
Whatever the cause, its effect on
reparations is of first Importance. IL
Germany cannot feed herself she
must purchase food abroad with
Hx.
available for reparations.
Much Deterioration Due to War.
Again. Germany's material plant de-
Perforated during the war. No doubt
this has been made good in all the
large industries. but the money spent
on replacement was unavailable for
reparations.
Germany lost through the war and
the peace of Versailles an eighth of
her territory and population. but this
included, according to recent official
English estimates. a quarter of her
coal and four-flfths of her iron ore.
Still worse is her loss of 2.5OO,o00
able-bodied men.
Nearly all the wealth which once
flowed to Germany from shipping and
investments abroad has been wiped
out. The income on this alone would
be upward of 2.000, 100000 gold marks
yearly. 1t Is true that Germany has
recently replaced a considerable part
of her merchant marine, but it has
come too late for her to reap big
profits.
1t is a reasonable estimate. support
ed by considerable data. that Ger
many has lost third of her pre-war
capital wealth. With everything
working at its best, she can produce
only two-thirds of the wealth she
produced in prewar days.
Germany. then, must support seven
eighths of her prewar population win
two thirds of her previous equipment
100000 workers. With this has
come an unexpected diminution in
the food supply and the need to pur-
chase food and industrial raw ma
terials abroad at high prices.
The consequence OF these conditions
is evident in the available figures on
exports, although these are incom-
plete and not always reliable. Eng
lish official authorities report that In
1920 Germany attained less than q
third of her 1913 exports OF iron and
iron alloys and only two-thirds OF
her prewar exports in machinery and
products. These lat
ter are the characteristic manufac-
lures of Germany; in other branches
the showing must be still worse. Yet
in nearly all Industries. as is we'll
known. Germany has been working at
the peak Of her capacity.
The upshot of it is that ever since
the armistic, except for two months
last winter. Germany has imported
more than she has exported. Obvi-
ously. there Is no surplus here for
the payment Of reparations.
Yet Germany has paid reparations.
She has paid in addition to deliveries
OF material (estimated by the repara-
tions commission at l,50o.0oe gold
marks and by the Germans At 20,0o0.-
000.6 .600) some 1.5ee. .800. 900 In cold
cash. where did she get the money!
She got more than half Of IL BY the
.sle Of paper marks abroad. A large