Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-20
Unfavorable Factors Seven
Years Ago More Numerous
and of Deeper Import.
STRIKES AND WAR HELD
EUROPE IN THEIR GRIP
Occupation Of Ruhr Put Central
Powers Resources in Hands
of France.
BY DIR. MAX WINKLER.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, September 19.-Bad
though the German situation is, few
will deny that it is infinitely better than
it was at the beginning Of 1924. More
over, at that time, the adverse situation
in Germany was materially aggravated
by unfavorable conditions prevailing
practically throughout the entire world.
| Developments during the two preced-
ing years had been Of disquieting ma
| ture. A brief review Of these develop
| mentS is pertinent.
There were strikes in. Germany, in
/ Denmark and even in South Africa.
Civil war was raging in Ireland: Benito
Mussolint seized power in Italy and
formed the first Fascist government,
viewed at that time with alarm by most
Of Europe. Albania, which was to be
elevated to an independent kingdom,
was in the throes Of revolution.
German Appeal Refused.
The Preparations Commission fatty
forum. Greece and Turkey were at
war, which ended disaStrously for both
belligerents, as wars generally do, but
| especially for Greece, which was torn
asunder by revolution and civil war.
Germany was declared in default
with respect to deliveries in kind and
France was determined to collect what
was due her. The result was the in
vasion of the Ruhr, one of the worlds
most highly industrial regions, and the
key to Germanyis economic structure
The occupation was followed by strikes
and the proclamation Of martial law
throughout Germany.
The Memel region was seized by
Lithuania, one of the younger republics
made independent by the various
treaties and agreements which pre-
sumably had brought to an end the
conhagration of 1914.
Turkey, having emerged victorious
from the struggle with the Greeks, re-
fused, as is befitting a victor, to sign
the Lausanne treaty. The Ukraine and
Bulgaria were trying to suppress peasant
uprisingS. Belgium was In the grip of
a general strike
The French refused Germany's offer
to pay the allies, on account of repara-
tons, 10000, 100000 marks gold, or
about $7,5oo,0o0,o0o, by 1881 through
means of foreign loans and credits.
| The Reichsbank was compelled to close,
owing to shortage of funds Food riots
| were reported in practically every part
Of Germany.
FasciSm was beginning to assert It
| self. Benito Mussolini displayed his
prowesS by selling Corfu and defying
the League Of Nations. Spain sought
salvation in dictatorship.
Opportunity for Profit.
| A disaster of unparalleled dimensions
befell the empire Of Japan. A revolu-
| ton and general strike broke out in
Portugal. A new revolution broke out
in Greece. The British Parliament was
dissolved. BY November 8 the mark,
which, at par Of exchange, was worth
| AZ to the United States dollar, declined
to a level where one dollar could
purchase four trillion, two hundred bill
| lion marks.
Quotations Of German stocks were
| thought to reflect accurately the ex-
isting status Of the Reich as well as the
future outlook, which very few were in
clined to view optimistically. However,
those few, who reasoned that a col
| lapse of Germany was too serious a
matter to warrant indifference on the
part of the rest of the world, saw in
| the situation a rare opportunity for
profit. Such opportunities offer them
selves occasionally, and people with
relatively restricted means, but with
| limitless courage and a certain degree
4
situation, reap handsome profits. The
writer knows of two organizations in
| the United States, one in the East and
| one on the Pacific Coast, which entered
| the German investment market on a
rather extensive scale and, within the
relatively short period of two years,
realized q very substantial gain.
| It is also worth recalling that In
Great Britain trust was incorporated
1 of
| in Central Europe and that within one
year It had been able to report earn
| ings equivalent to the entire original
capital.
| uation, as far as Europe in general and
! Germany In particular are concerned,
was given by the League of Nations.
The Finance Committee Of the League
adopted, among other measures, two Of
| far-reaching irnport-approval of loan
! to rehabilitate the Austrian Republic
| and an order to inquire into Germany'S
fiscal crisis, with a view to suggesting
remedies.
Recent Progress.
Despite all the difficulties with which
the world is confronted today, one Is
been registered within the past seven
years and that not all such progress
could possibly have been neutralized by
the adverse happenings Of the past two
years.
Nevertheless, the market for German
stocks is materially below the levels es-
tablished early in 1924. Assuming a
price of 100 in 1924, the shares of the
three leading commercial banks, which
are most actively dealt in, stood on
September Is at 93.67 This group in
clides the DeutSche Bank, quoted at
$14.63, as compared with $19.04 early
in 1924; the Darmstaedter, selling at
$l7.02, against $14.52 seven years ago
and the Dresdner, quoted at 1888, as
compared with $11.42 in 1924.
The index Of nine representative and
most actively dealt in industrials de-
clined from 100 in 1924 to 23.07 on
September 16, irrespective of the SUBJ
stantial additions and improvements
which have been made in the meantime
out Of earnings as well as out Of pro-
ceedS from the sale of loans and credits
obtained at home and abroad.
This group includes the shares of
Siemens g. Halske, one of the lead
ing electrical manufacturing enter
prises In the world. Current quota
ton of $24.57 per share compares with
$78.23 early in 1924 German General
Electric, affiliated with the General