New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-08-16
Fraudulent Poverty

In his observations in 'sThe World"
on German conditions Mr.. Herbert
b. Swope exhibits a certain embar-
Irassment. Like others-Mr. Oswald
G. Willard, for instance---he seems
worried by clash between his iia-
pressions as q traveller and his theo-
retical prepossessions. Holding for
political purposes that Germany Is
too poor to pay the reparations as
sessed against her, his eyes tell him,
nevertheless, that Germany is fever
ishly creating new wealth. Her crops
fare abundant, her industries are in
| full blast, her people are employed.
There is everywhere evidence Of
what in any other country would be
taken for real prosperity.
How is the paradox to be solved?
Mr.. Swope's solution is that appear
ances are deceptive. He says that
the Germans are busy, but not pros
porous. They are not prosperous, he
holds, because they cannot save. A
farmer may get "a bushel of paper
marks for the product of an acre.
But if the mark continues to fall in
value the bushel shrinks in purchas-
| ing power. The more the farmer
saves the more the losses. 1t is
wiser to spend than to save. So
prosperity only leads to more
poverty. IA
The trouble with the explanation
is that it measures German. wealth
and poverty by the shrinking cur
rency yard stick. German marks
are nearly worthless, But If cur
rency were suddenly discarded as
medium of exchange and barter were
substituted poverty would vanish.
The country is piling up wealth in
the products Of labor, and were these
alone exchangeable there would be
no longer any inducement to spend
and not to save.
|
Germany's poverty is political and
artificial: Russia is really poor.
Rubles are worthless. But produc-
ton and transportation have also
broken down. The Russians have
been living on their capital. On the
other hand, Germany huns with ac-
tivity. She is storing up new capt.
tai, which will remain and do it's work
regardless of any fall in paper
marks.
Mr.. Swope tells of the extraordi-
nary recovery Of the port of Ham
burg. In May, 1913, LAB vessels,
totaling 1,243,000 net registered tons,
arrived at that port. In May, 1922,
the arrivals were 1,242 vessels, total
ing 100000 tons. In May, 1918,
1859 vessels, registering 1926, 900
tons, departed. In May; G1922, 1868
vessels. totaling 1,254,ooo tons, de-
parted. Hamburg has her immense
commerce back again 4 Recent
French figures make the outgoing
tonnage for May, 1922, larger than
that for May, 1913.
In the last week of April seven
large ocean steamers were launched
In German shipyards. In May three
more were launched. Since the end
of the war the Hamburg American
Line has built twenty-seven ships and
bought sixteen. SHINES is pouring
millions Of marks into new construc-
ton.
| Yet even some people who go to
Germany still say that Germany is
sinking into poverty and cannot paw
her war debts. This poverty is
fiscal, created by the misuse of the
| printing press. 1t is a fraudulent
poverty. Economically Germany is
getting richer every day and gather
ing resources at home and abroad
against the day when her chicanerv
with the mark may deceive the Allied
nations into needless reduction Of
her debts.