Evening star., 1941-04-27

laid the groundwork for German
business erpanSion.-A. P. Photo.
ness machines. I was told the presence
of these American products did not mean
cut-throat competition with such i'm
ports as dyes, cutlery, textiles, ETC.,
which are German specialties.
Statistics demonstrated that German
exports in South America, while they
have increased during latter years were
now only on the level reached by Ger
many prior to the Great War Typical
of German-American trade rivalry in
South America, they said, was Brazil,
where American goods were sold in
greater volume than German, with the
prospect that this ratio would continue
indefinitely.
But the most persuasive argument Of
fered for increased German participation
in South American trade was the pros
pect OF the same broad development of
an expanding economy from increased
purchasing power which was envisaged
by the bilateral trading agreements in
Europe. The sale of wool, cotton, meat,
copper, hides and other South American
raw materials to Germany by using the
proceeds of German imports will mean
a South American balance with which
to buy North American goods in greater
volume, I was assured, and thus will all
be benefited-Germany, South America
and the United States.
Cooperation Basis.
The basis of future trade relationships
between Germany and the United States
must be founded on cooperation, was
told. The Germans were frank in their
statements that they saw no relevance
between trade and political philosophy.
Business was business, based on recipro-
cal needs and it was, from their view
point, no more logical for people of diff
ferent political faiths to refuse to recog-
nize each other commercially than for
people of different religions to shun one
another's society.
1t is true, they admitted, that Ger
many has no gold to offer for its pur-
chases from America, but gold has ceased
to be essential. international trade, they
insist, in the last analysis always has
had its foundation in reciprocity, and
the history of dealings between Ger
many and the United States is con-
vincing proof that these two economies
should supplement each other
From 1890 until 1905 American markets
took an enormous volume of German
goods until this trade was abruptly cur
tailed by prohibitive American tariff
policy But even after that there was
considerable trade with balance favor
able to America. German capital in
vested abroad was in large measure
placed at the disposal of American busi-
nessmen for development of American
enterprise before the World War, they
| said, and Germany has great need for
American agricultural produce such as
cotton, lard, tobacco, vegetable oils and
commercial metals.
For these raw materials, exports of
dyes, cutlery, electro o-technical machinery
and other scientific equipment for which
Germany by long tradition has acquired
a special aptitude, would be the exchange.
Wage Scale Differences.
I confronted the Germans with the
great spread between the living standard
of the American workman and that pre-
vailing in Germany and the difference
in wage scales. In Germany, ordinary
| labor receives the equivalent of $40 a
week and the most skilled craftsman
gets only s25 weekly They themselves
stressed the conclusive significance of
labor in industry; by their own figures
manufactured output was 81 per cent
labor and per cent raw materials How
then, asked could American manufac-
tUrers survive inundation of world mar
kets by German industry?
The answer was that one should not
judge by present condition, but should
rather look to the normal times which
prevailed before the World War.
At that time, they said, German wages
were only 80 per cent lower than those
paid in the United States and, with
deductions for German social services,
there was very little difference between
the rates of compensation for German
and American labor. The present gov
ernment in Germany has, as its primary
purpose, improving the lot of the COM
mon man. they said, and there was no
question but that, after this war, the
standard of living for labor would be
greatly raised.
This was one of the chief concerns of
government in peacetime, was told by
officials of the Ministry of Labor, and
the standard of living for the man who
worked with his hands in Germany in
better future would be greatly i'm
proved. Already measures were in prog
ress to increase wages and these would
continue to advance to higher and
higher levels.
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