Evening star., 1940-06-16
German Economic
Situation Acute
By Frederic J. Hasktr.

oCliiidll nave dSUOulO-
ed the world, the progressive weakening
of her internal economy has moved so
swiftly that an acute danger exists from
within. The United States remains at
peace with Germany and American Dip
lomatic and consular officers were on
the job in Berlin and elsewhere long
after the representatives of belligerent
nations were removed.
The diplomatic pouch is presumed to
remain inviolable and it is certain that
whether because Of this traditional in
volatility or as the result of adroit
routing Of information through neutral
channels, the fact remains that vitally
important reports have been received at
Washington on economic if not on mill
tary matters. These reports show sit
uation of rapidly increasing seriousness.
For example, reports from United
States Department of Agriculture at
taches in Germany reveal that some of
the Nazi invasions have Disappointing
results. The Danish grain crop, so
heavily depended upon by the Germans,
has proved decidedly poor. BY this time
1t is said, half of Denmark's 100000
hogs have been sent to Germany and
killed while from IS to 20 per cent Of
her cattle have been slaughtered for
German consumption.
The slaughtering of dairy cattle for
meat has resulted in a serious blow to
the world-famous dairy industry of
Denmark and has shortened the supply
OF butter, on which Germany had placed
SO much dependence. Moreover, the
dairy feed situation in Denmark has be-
come serious through the general de-
rangement of supplies and the cutting
off of outside sources
1t appears from these reports that
Germany had expected even more eff
clent work from her fifth columns in the
Low Countries than was performed. 1t
had been expected that complete con-
quest or capltulation would have been
speedier. The circumstance that, for
some time, spirited resistance was made.
resulted in the laying waste of large
areas of farm land. OF course, the
Dutch inundations also took broad acre
ages out Of production, while destroying
the crops which had been growing there.
Indeed, the situation is reported as so
serious that instead of receiving exten-
sive contributions of food supplies from
Holland and Belgium. the Germans NAV
have to send in food themselves. The
Nazis dare not permit the populations to
starve, as otherwise they might have,
because of the fear of outbreaks of dis
ease. ANY outbreak would prove as seri-
Gus g. threat to the German army of
occupation as to the natives themselves.
In long anticipation of the war, Ger
many had accumulated heavy stocks Of
many essentials but also had expected to
effect immediate replenishments from
conquered territory. The result of the
whole development has been that, falling
the replenishment anticipated, consump-
ton of the reserve stocks has been pro-
ceeding at high speed.
Definite reports now in hand and
which, of necessity, due to slow commu-
nications, are two or three weeks old,
list the following essential materials
already emphatically short: Petroleum
products, rubber, leather, textile mate
rials, soap, ferro-alloys, non-ferrous met
ais, fats, oilseeds and fodder. While
otherwise Germany would be self-suffi-
clent in breadstuffs and potatoes, the
drain required to feed her invading
armies, which had expected to live of
the country as they proceeded and also
to assist in feeding the population of oc-
cupied areas, has altered the situation.
AS to the crop situation inside Ger
many it has proved disappointing. The
winter was unusually bitter and there
was great deal of winter killing of
grains as well as some other crops which
survive milder winter seasons. A de-
pendence of Hitler for grain was Russia
but now reports come through to the
effect that the Russian crop will be
only one-third of the previous years.
matter of serious import Is that an
outbreak of foot-and-mouth disease has
occurred in Germany. In ordinary
times this would be serious enough be-
cause of the required slaughter of in
fected animals and the quarantining of
large areas. Under war conditions 1t is
not proving practicable to isolate these
areas. Only small regions, where the
disease is most virulent, have been segre-
gated.
In an important sense, Germany's in
tenSlVe mecfanlzatlon is proving a seri-
Gus boomerang on the farms Over the
years of the Hitler regime there has
been great deal of farm mechanical
ton as in the United States. The re-
suit has naturally been that large SUM-
plies of gasoline and fuel oil are re-
qulred to operate farm machinery. Az
the military forces have a prior claim
on the rapidly diminishing supplies of
these fuels, farm operation is suffering
Then, too, such supply of horses as
remained has been heavily drawn upon
by the armed forces so there has been
measure of stagnation in farm culti-
Vatlon. Farm labor is, of course as
thoroughly regimented in Germany as
the military forces themselves. but the
reports say serious difficulties have been
met in this direction. Penalties of
three to four weeks imprisonment have
been imposed for cutting hours of farm
work but imposition of these sentences
on scale sufficient to stop desertions
has the same practical effect.
Inevitable labor shortages have de-
veloped because of the withdrawal of