Evening star., 1948-10-24

gust, 1947. Machine tools, precision
tools, precision engineering and op-
tical industries as well as glass and
ceramics rose by 16 per cent
whereas production Of nonferrous
metals rose by 10 per cent and
chemicals by 8 per cent.
The success of the currency re.
form was considerably helped by the
Exceptionally good harvest. Bizonis
expects total potato crop Of ap-
proximately 100000 tons against
Il, 800 900 tons in 1947 and an aver.
age yield OF 16,3oo,o0o tons from
1895 to 1889. The figure Of 12,S0O, ,0oC
tons for 1e47 was the British.
American estimate, whereas the
German estimate was only 5000, ,o0t
tons. The grain harvest is expected
to yield 100000 tons this year as
against $500, 900 tons in 1e47 and ar
annual average of 100000 tons TO,
the years 1885, 1889.
Potato Crop Helps
The end of potato rationing hat
an exceedingly good psychological
effect. For the first time in many
years there is no shortage in one o1
the basic foodstuffs. Peasants were
ready to sell their early potatoes
below the official maximum prices
In order to dispose of them. The
good potato crop and some fodde,
imports will also enable pig breeders
to resume on larger scale. The
total milk yield is expected to in:
crease equally on account of fodder
imports. Agriculture as a whole has
been officially granted price in
creases for all its important prod
ucts. These are likely to create an
incentive to sell, but the great i'm
provement in the food situation has
In itself proved fortunate.
The increasing availability Of food
has caught and tied up large pro.
portion of the general purchasing
power. This was noticeable during
the first few months after the re.
form, when people thought of little
else but to have a good meal. This
tendency can be expected to con-
tinue. All restaurants serving good
and plentiful dishes at reasonable
prices continue to be overcrowded
However, certain brakes" are
likely to slow down further progress
in the near future. They are the
persistent shortage of coal and
electric energy, and of iron and
steel. Every improvement in the
coal supply makes itself felt imme-
diately, as can be seen from the
example Of the pig iron and steel
industry. Since the blockade OF
Berlin. hard coal supplies to- the
Soviet zone have been stopped. The
saving of coal is an argument of
the bizonal steel industry In op-
posing the export Of scrap from
Western Germany. The industry
insists that steel production from
scrap consumes less fuel than pro-
duction from ore. It is also feared
that shortage Of coal may lead to
|stagnation of even retrogression in
the production of steel ingots during
the winter.
Trade Rules Modified
Crucial factor in the economic
recovery of Bizonia is the Joint Ex.
port and Import Agency, which
holds the monopoly in directing and
regulating Germany's foreign trade
The announced modification of its
regulation /, which provides fol
compulsory export contracts, the
channeling of exports through the
agency and the obligation to OBJ
tain export licenses, can be ex-
pected to make potential German
exporters look much more cheerful
These notifications in JEIA pro-
cedure will, 1t is expected, permit
individual export contracts to. be
concluded and allow private init
ative to achieve better results than
have been obtained through off,
cially operated machinery. Bizonis
is expected to have balanced Its
payments by 1888, the end OF
the Marshall aid period, and Ger
man economists, insisting that con-
siderable exports are necessary
never tire of emphasizing that only
private initiative can achieve this
goal. Almost all countries partic-
ipating in the Marshall Plan have
already reached, If not surpassed
the production level of 1896, whereas
Bizonia still has a considerable lee
way to make up.
Jobs Plentiful
The number Of unemployed In
the bizonal area on October was
just over three-quarters of a mil
lion. Employment exchanges in the
American zone had 82,4O0 open
jobs" on their registers. A CORE.
spending figure for the British zone
Is not available, but an estimate OF
100000 open jobs" in the British
zone would approximately indicate
the position.
Circulation Of new currency
reached its highest point Septembe,
Is, with 5,053 900 900 marks and had
settled, on September 80 when the
trizonal German States Bank pre-.
sented its first balance sheet, al
just under 5000, 900 900 marks. Cir.
culation is expected to rise to an.
|proximately 6,0O0,0 ,000, 900 marks
which corresponds to approximately
1873 marks per head Of population
In the three zones. Maximum circu.
lation for the new German currency