The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1934-12-22

EVEN the Institute for Economic
Il Research, the beauty parlor for
German economic conditions, can
no longer dispute the fact that mat
ters are going from bad to worse.
According to the figures given in
the last weekly bulletin of the In
stitute, though industrial produc-
ton has increased by about one
fifth in the third quarter of 1884
as compared with the same quarter
of 1888, it has remained stationary
as compared with the preceding
quarter of the current year, with
tendency to decrease. The index
figure of industrial production was
87.9 in the second quarter of 1884,
and 878 in the third quarter.
The output in production goods
shows slight increase. ct is a
well-known fact that they must be
classed in the main under the head
ing of armaments.) The output in
goods destined for direct consump
ton has dropped.
The Institute for Economic Re-
search further states that the in
vestments, especially in the substi-
tutes industry, have increased. The
output of investment goods in the
heavy iron industry and machine
industry has fallen off. The non
ferrous metal industry has also suf-
fered decrease. The output in
textiles declined 8 per cent from
July to September, 1884. The
motor-car industry and the paper
industry show falling off, and
production and employment in the
cotton mills continued to decline
in October, 1884, as reported by the
federation of German cotton spin
nerS.
Trade Difficulties
1.-THE difficulties in foreign trade
have increased" states the fascist
Institute for Economic Research in
the third issue of its quarterly bull
letin for 1884. Exports, the total
value of which amounted to over a
billion marks, are Is million marks
higher in the third than in the Sec
ond quarter (of course, with con-
siderable proportion of armament
EXPORTS, but are 20 per cent short
of the figures for the third quarter
of 1888. Imports have dropped 8
per cent during the last quarter.
The total value of exports in July
September, 1884, was 1,005.4 million
marks and the total value of i'm
ports 1,05T.5 million marks, SO that
there was an excess of imports over
exports of So million marks. That
the excess is no greater is due
chiefly to the curtailment of the
imports of raw materials. Owing
to this curtailment of imports
of raw materials and to the "as-
sisted" exports of machinery and
chemicals, the October returns show
an export surplus of Is million
marks. The first ten months of
1884 show a total excess of imports
over exports of ISL million marks
as compared to an export surplus
of 573 millions for the same period
in 1888. This is very serious stu
ton for country such as Ger
many, whose economic welfare is
so largely dependent on it's ex-
port trade. The scarcity of raw
materials due to the curtailment of
imports is a further factor tending
to worsen Germans economic and
financial position.
Germany's finances are in a bad
way. The total budget of the Reich
shows a deficit of 10 million marks
for the first half-year of 1884. Thi!
is not much, but expenditure usu-
ally increases in the second half
year, and it is also during the lat
ter period that the transfers to the
states are made. Besides, the com
paratively favorable figure giver
above is the result of rapid in
crease in the taxation burden of the
masses and the Reich budget is en-.
numbered by the tremendous liza.
bilities devolving on the following
years. Furthermore, the eXpendi
ture for the Labor Service already
amounts to lit millions, i.e,, SO mil.
lions over half of the yearly esti,
mate, which is $50 millions. For thu
work provision" swindle, for which
expenditure was foreseen to the ex.
tent of 1852 millions for the whole
year, SOB millions have alread,
been spent in the first six month
of the year! The financial position
Of the municipalities is desperate
The Reichsbank holdings of golC
and foreign exchange, which dur
ing recent months had increased b.
Al