HAVING THEIR SKINS

Dominion, Volume 11, Issue 100, 21 January 1918, Page 5

HAVING THEIR SKINS

GERMAN INDUSTRIAL MAGNATES PREPARING FOR THE CRASH A NEW OLIGARCHY 11. ' (Published by Authority of the War Office, per favour of the Royal Colonial Institute.) Speaking broadlyj the plan of the industrial leaders at present seems to be the establishment of an industrial oli- _. garohy composed of themselveo and \ various officials, so t" may recoup themselves to for the 1086 of their export trade by •.'landering the German consumer v'.th the ■Help of the Government. It has often been foretold that after peace, when the terrible burdens due to the inflation of the currency and the loss of foreign trade came to be adjusted between the different olasses of the com- ' munity, there would be internecine war jn Germany; and something ",f the sort is now actually in view. Il has been . prefaoed by much talk value of the home market, and how it has replaced the foreign market during the war; and though responsible writers like Professor Bernard Harms understand that the efforts which created <. the ten milliards of marks per annum of foreign trade (now lost) has really been replaced by war industry (we should add, too, 'by the activities of the .. Army), whose product vanishes into air, there are many who apparently take liberally such absurd statements as that of Prince Bulow, that "during the war the home market has been called on to replace the foreign mar- . kot," and proclaim that in future Germany should be economically n closed borough, "gesohlossene Handelstaat." . This is not what the capitalists mean, of course; but the talk is symptomatic of the attention they are paying to the home market as a "second best plan. They seem to have found an easy ally in the Government; in the Chancellor with his "monopolies," and ia the new 'Foreign Minister Von KuhLnann, who is credited , by those who know him •with such a firm belief in the economic power of Germany that he would make considerable political concessions to safeguard economic opportunities. The Government, beyond giving Hindenburg a free hand, has not to pre-occupy itself much with, the true military party, , the agriculturist Junkers. They have made great profits already; ' (they will make much greater ones after •peacje, when the meximum prices of food are removed and foodstuffs rise to the full height of prices demanded iby the depreciated mark. So the Government holds itself free to consider the industrialists. Money it must ihave somehow when peace comes, and (they are its best chance.

Institution of Monopolies. ; Much the most important thing now going on in Germany f from tho industrial point of view, is the institution of monopolies. We will leave the cpn- \ sideration of this for a subsequent arjticle, and indicate the other lines on (.which, the capitalists are working, with :or without Government aid; all, of ', course, ultimately converging upon mo- .; nopolies, and all revealing a total disj regard of the interests of the German Ipeople. As a consequence of the optiftnistic talk about shipping indulged in ;in the summer of 1916, primarily by ; Herr Ballin, the shipping magnates .succeeded in unloading masses of shipping shares upon the public; and some jof the big industrial companies have taken advantage of the patriotic support of the various war loans to pay 'off at par in war loan stock, subscribed' at a discount, debentures which they ..Would presently haye had to redeem at a premium, thus making a double prof&t.mt of tho debenture-holders. The .Shipping Subsidies Bill has been rejarranged to sujt the shipowners and (big industrialists, many of whom, during the war, have acquired an interest {in shipping. ' When the Bill was first introduced jihe "Vorwaerts" said: "Tha grants (.will, of course, have, to be redeemed ;lwith interest. . . . It is an admirjable opportunity for the Empire to emiploy for the general good the influence which it acquires'by the granting of .'credits, and to exclude monopolist ten'dencies." As a fact, the Bill now is jla hugegift to tho shipping and allied industrial interests; for tho grants aro not repayable; and the Minority Socialists, when the Trade and Industry Com'Jiiittee of tho Reichstag approved tho jßill refused their adherenco -tm the jground that it meant a gift of £50,000,jjOOO to tho shipping ring. It will probably be far more than, that. The Bill, Ishowever, imports a large measure ' of. .Government control of shipping; and j'tho public expeots that the GovernJinent will control all cargo space, and , imported raw materials beittween all businesses pro rata, so as to i get all, big and little, restarted simultaneously. This is not the idea of the pbig men who are co-operating with the 'Government. Herr Haller, vice-presi-jideni of Siemene-Schuokert, which, with fits allies and subsidiaries, forms one of lithe greatest of all German combinations, has explained at length (Plutus, .(March 28), that 'rationing* would not tlnean equitable distribution, and would [cause delay, driving off customers; that jikhe vital matter is to get. stuff wSrked :up quickly for export; and that there (must therefore bo free cargo space, unregulated, for private purchasers. It JSβ cleverly put, as though on patriotic 'grounds; but the private purchasers iwould of course bo the big industries, iwith their overwhelming power in '-money and export facilities, and their Resisting interests in shipping; it is one Wore scheme for enabling the big busi'Bess to 'crowd out tho little ones. (Doubtless the Government will capitulate to their allies; thoy cannot well ,ido else, looking at the course the iSnonopoly question is taking."

Small Business Disappearing. Another matter to notice ie tho census which has recently been ordered of all industrial undertakings, with extensive power to examine business correspondence and books. This looks like 'another move towards the "industrial 'oligarchy." Even more important is, 'cheap labour. Small businesses in Gerimany, says the "Frankfurter 'Zeiitung,,, are everywhere disappearing, and we shall see presently that the monopoly syndicates will oloso many more. The difficulty of importing raw materials, due to loss of shipping and the fall of the mark, means at best much unemployment; and the new oligarchy will be able to count on cheap labour to any extent. Wβ may see the realisation of the dream of Hcrr Rathenau, of tho every German not fit for intellectual work shall tengage in "productive labour"; let us add, at low wages, and for the profit "of a body of men who include his Government, and who helped to make the War which.has ruined him. .