Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-08-17
German Competition Not Ee ared-By Frederic j. Haskn
Copyright, 1929

such way as to undersell the United States
and other competitors, but it is apparent
that the farce cannot continue Indefinitely.
The. government experts who made the
investigation of German production costs as
sert that the situation is based on so false
economic structure that it must collapse
soon and that the longer the subsidized in
dustries operate, the sharper will be the re-
action. One special report described the
hectic prosperity which these fictitiously low
production costs stimulated as "catastro-
phic BOOM
Value of Marks Important
The value of the German mark has been
falling rapidly in international exchange, but
it has not fallen SO rapidly within Germany.
This means that Germany has enjoyed for
eign trade for anothcI Fictitious reason. For
eign buyers of German goods could, with a
small amount of their own money, pay sub
stantial sums in marks. The marks are
worth more in Germany than anywhere else.
Therefore it has bee desirable for foreign
ers to buy German goods and desirable for
German industries to continue, this trade.
But it is impossible to maintain one-way
trade. Germany must buy as well as sell
and in buying the t. bles are turned While
the declining mark favors sales of German
goods, it makes it more and more expensive
for Germany to buy.
The process still is going on but it shows
signs of the inevitable explosion which will
bring sorry end to the whole cycle. This
collapse will drive Germany out of the
worlds markets, in the opinion of the gov
eminent experts. She will be unable to re-
enter until she passes through a trying
period of deflation and readjustment which
will bankrupt thousands. She has no finan-
cial strength to withstand the shock. 1t is
obvious that no one in Germany is saving
money, for saving appears to be the most err
rant folly. If man has 10 marks which
by tomorrow will have the purchasing power
of only 8, because of the progressive depre-
citation, he has no inducement to save. In
stead, he is eager to turn his 10 marks into
some tangible article while he can.
1t is reported tn some Germans have
bought as many as 20 overcoats suits of
clothes, and other similar commodities for
the purpose Of getting rid of their marks
before they depreciate. The life savings in
marks of pre-war workmen would not sup
port him for month, perhaps not a week,
under existing conditions of deprecated cur
rency and high commodity prices.
While Germany is working hard to re-
store her prestige in the foreign markets,
the American government experts are con-
WINGED that American manufacturers need
not fear competition based flimsy and
insecure a foundation. The economic coll
lapse must come and when it does the Ger
man cost OF production will leap up to its
actual economic level, unobscured by govern
ment subsidies. This will give the steady
American industries the advantage, and they
will in all PROBABILITY be in a position to I'M
dersell Germany on every hand. For not
only must Germany return to normal kvels
but probably must go above them for a
period because the arrears must in some way
be made up. Economic law is inexorable 1t
cannot be evaded. The burden o. full cost IF
production can be lifted from a commodity
by such artificial means as Germany has en-
ployed and carried for a temporary period,
but sooner or later it's full weight must sag
down again. The weight, in an economic,
national sense, must be SO great as to equal
ize and make up the arrears, before nor
NAL level of cost can be reached again.