The Washington times., 1923-07-31
Of ALLIES
DEPRESSES
wmm@RKE- -
MARKET
Holding Back Reply to German
Note Causes Uncertainty
Among Investors.
By MERRYLE STANLEY
RUKEYSER,

RUKEYSER,
Copyright, 1923, by Star Co, Inc. and
distributed by Cosmopolitan News
Servlce.)
NEW YORK, July SIN this
age Of instantaneous communication
through radio and telegraph. the
dispatch Of the allied reply to the
last German note on reperations
seems. extraordinarily protracted.
Early in June, Germany sent a
communication. which, though I'M
satisfactory to the allies. went fur
Their than any of it's predecessors in
acknowledging the war, bill obliga-
ton and In offering guarantees Of
payment. Briefly, the German
note. while leaving the determine
ton OF the amount of reparations
open for discussion. offered the pay
ment of 1900 ,000, 900 in gold marks
yearly beginning in 1927. A month
later, Prime Minister Baldwin noti-
fled the British parliament that
he was preparing a reply to the
German communication and accord
ingly sent tentative copies to
France, Belgium and the other
allies a fortnight ago. Mr.. Bald
win, 1t is understood, has Just re-
ceived the comment Of the French
and Belgians on his tentative reply.
Reply Still Secret.
Although both. Prime Minister
Baldwin and Premier Poincare
have recently outlined their
views in public addresses. the
draft Of the note and the ex-
changes between the former war as
sociates have remained a secret.
Financial observers have interpreted
the delay as unfavorable and. with
Count Harry Keissler,, German
economist, before the Institute of
Politics at Williamstown. Mass,
predicting a new European war,
sentiment was adversely affected.
While Europe procrastinates over
its major political and economic
problem-reparation spirit of
enterprise abroad inevitably re-
mains partially thwarted. Conf
dence cannot be built upon a
system ofFuncertainty.
European recovery, though dis
tinctly desirable from the broad hui
manitarian standpoint. will not how
ever, prove a boom to every type
Of American industry. 1t will not
merely strengthen Americas GUS
petitors of American industrialists.
If the world becomes pacified. do
mestic industries which grew up,
mushroom-lik because of artificial
conditions attending the war and
reconstruction. are doomed to shrink
and decline.
Home Market Important.
Since 1918 this type of adjust
ment has already been largely but
not yet completely accomplished.
The most successful American en-
terprises of the future will be
those which rest upon the special
genius Of our people-upon effici-
ency and economy in manufacture.
For some time to come, the prin-
cipal market for American fac
tories will be home consumption,
but, with effective wages high, it
is likely to continue large. The
rate of production after the de-
fered wants have been satisfied will
have to be geared more closely to
current consumption.
Europe at peace will be a better
competitor, for it costs are less
likely to be based on a progressive
deterioration of the standard of
living, such as has been taking
place in Central Europe.
Stimulated to activity by the mar
cotic initiation, German industry
has in recent months made its
appeal to foreign customers more
on account of price than because
of dependability. Importers assert
that the movement eliminating in
the quotation of the mark at
million to the dollar has proved
harmful to Teuton industrial NOR
ale. German goods shipped overseas
have been frequently off grade.
Perceiving the tumbling Of the
nations financial structure. Ger
man enterprises are tending to live
in the present and are neglecting
to build up good will for future
trade.