The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1948-12-16
Comment On
World Events

Continued recovery in Western
Germany is endangered by econ
omic maladjustments which threat
en- to cause a new black market
and widespread political unrest,
the American Association for a
Democratic Germany warns in the
December issue of it's bulletin,
Facts About Occupied Germany.
While declaring that West Ger
man production has approximately
doubled in the past year, largely
as a result of the currency reform
which made possible a restoration
of normal economic life, the asso-
citation finds that bottlenecks in
production of basic commodities
such as coal and steel are already
developing, and may be expected
to limit further advances for some
time to come.
According to the report, entitled
Sunrise in the West?, "The Ger
man economy, although far below
the prewar level attained or sur
passed a year ago in the rest of
Western Europe-has shown the
greatest relative improvement of
any country's in the last II
months. In the months following
the currency reform, the total in
dustrial production of Bizonia in
creased by almost a half. Although
the level of economic life in West
ern Germany is still far below that
of the prewar period, the recovery
achieved in recent months is al
ready eXerting a tremendous at
tractive power on the people Of the
Soviet zone.
"But it is not only in terms of
Germany itself that West German
economic recovery is of import
ance If German exports continue
at the present rate, the countries
of Western Europe will receive
from this source during the next
year approximately half billion
dollars more goods than in 1947."
The study goes on to point out
that the present rate of steel pro-
duction, one-twelfth that of the
United States and less than half of
that of England, will not support
a high rate of activity in the fab
ricating industries if even a begin
ming is made on essential recon-
struction. 1t adds that the removal
of controls on most commodities
othe1sthan basic foodstuffs and raw
has resulted on the one
hand in decreasing the amount of
manufactured goods which a farm
er can get in exchange for his pro-
ducts if. he sells them through
legal channels, and on the other
in price increases while wages re-
main stationary. Hence farmers are
diverting meat and fats into the
black market, and these have be- /
come difficult. to obtain on ration
while there have been
strikes and demonstra-
ions among industrial workers.
The study concludes with the
assertion that: "If the economy Of
Western Germany is to continue
is recovery, even at a less spec
acular pace than that of the first
'ew months since currency reform,
;ome readjustments will be neces-
lary. Diversion of raw materials to
he production of luXuries may re-
;ult in new dearth of necessities.
"a decrease in the purchasing
,ower of wages, coupled with a
ceiling on the part of the farmers
hat the sale of their products
through legal channels will not |
,ring them the manufactured goods |
hey need, can easily lead to a
black market and des-
roy the hard-won confidence which |
lone supports the Deutsche Mark.
{ this happens, or if political CON
alterations are permitted to i'm
,ede the rehabilitation of the Ruhr
much that has already
,een won may again be lost. 1t is
not only for the sake of
iermany but for that Of all Eu-
ope, that this be avoided"