The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1940-10-25
An Expert
|Appraises
The War
~ = " 7 MASON
ualtel rrez. Aaf Expert

Uaitea frvz. war Expert
tncFsaslna aefnan seanemie
weakness unasr ne strain 81 Nsf
= indicated ~ terms II ths nsw
Nan trade ssresmsnt with Nukc-
slsvia and ~ nsrslns snnouncs-
meat thsi simlisr commercial trsas
ties wi - negotiated with cthsr
southeastern European countries
Despite neriins denial ~ aufess
there = reason u believe German
diplomats are uzlnk threats "a IN
taln What they want because the
trade conditions are ~ disstvan-
taeeouu q The nslkan producers
TIE Germans are compelling
fuEoelavia . fofeko present ray.
meats. IN large measure Ter ~
ported goeds. and are demanding
credit 70 he met AFTER the end u
lhe war.
Too. Yagoslavia hss agreed 10
a revaluatlon Of the rate ~ none.
tary exchange with Germany that
gives Nan currency Al advantage
Of % per cent Ne nation weuld
accept such conditions Of intsrna-
tionsl trade unless irresistible pres
sure were brought 10 bear On lie
government
Germany cannot afford u pay
cash for al imports at present DO
eouss 10 do 30 would he 10 threaten
the Mani financial stability. Tho
war Ia costing Germany about
twies a. much a. u IL eostins
Great Britain, and any large tn
crease IN expenses would threaten
initiation.
Al tho same time Germany 10
unable To enlarge her barter sys.
tenn, about whose success German
economists have been 10 unduly
enthusiastic. a. substitute fof the
use af gold. British homhiuss Il
German industrial centsrs have
damaged extensively the output II
manufactured goods, while scar
city ~ raw materials and the
transfer Of workingmsn 10 the
army have added 10 0srmanys
hsndicaps.
Thus. the Germans are short
Of domestic manufactures 10
exchange for ell the urgently
needed imports from fuKe-
sla.ia and ather Bailsan mar
kets. The onl, alternative IL
"a compel tia Ballsaas, where
possible. 10 accept oermaas's
future promises "a pay, al
least In part
Before the treaty with Yugo-
slaua was made. Ell the end n
last week. Germany already had
been taking 30 per cent OF Yuso-
slAv exports. The nav agreement
gives Germany only 10 per cant
more material. indicating the pri-
mary cause Of the negotiations
was not 10 augment German sup
plies. which under normal condl-
lions could hsvs occurred anyway
The confession Of economic and
financial difficulties within Ger
many. which the YuKoslav treaty
Indicates. cannot increase German
prestige In the Balkans and else
where Rather. u must cause con
illusions Of fundamental weakness
within tho Reich. dsspits Hltlsr's
display Of military power. Conf
denes In . final German victory
thus should decline.
The economics .eeiian ~ the
German high command. previ-
OTIS "a sutbresk 81 the present
conflict. warned Hitler Of the
enormous Importance ~ free
dom Of international trade IN
wartime, hsses on 0ermany's
sad experience In TIE World
VAR. The accuracy 81 that
conviction of the German
army. made BY MsJor-asasrsl
Thomas, head Of The economics
seetion, nov h beEinninE 10
appear
Great Britains power Of sndur-
snes IL associated with her ability
10 maintain foreign trade on
natural economic bssls. thanks not
only to the British fleets CON.
mand Of the seas but also 10 Brit.
aims national wealth IN gold and
foreign exchange Germany hov-
ever. even within the continent u
Europs. now must take notice OF
cracks In her foreign trade posls
ton, which VII hamper inoFsas-
ingly Hltlsrs ability 10 night .
prolonged var.