THE GERMAN HAND

Dominion, Volume 11, Issue 221, 6 June 1918, Page 6

THE GERMAN HAND

IN OTHER PEOPLIi'S POCKETS

DEALINGS IN SPAIN AND IN LATIN AMERICA

(By B, P. P. Howe.)

(Published by authority of the War Oflice, and circulated by the Colonial Institute.)

Intelligence is active in moro senses than one in time of war, and occurrences are revealed which, when peace ia with us, escape the knowledge of all except those most intiniatoly concerned. Amongst-the facts of which, clear proof has ken collected are Germany's sinister war-time transactions in the economic life of neutral countries. The economic exploitation of foreign countries has always been the aim of the German abroad. He may livo his life in a foreign country, become an adopted citizen of it, but in heart, and certainly in all matters connected with the purse, lie remains very thoroughly a German. Since the wnr began, Germany's agents, scattered all over the world, have prepared for the bloodless strife which they hope may bo restored to them at the coming peace. In Spain and in the South American republics their activities have been particularly noticeable. It is obvious that, owing to the British control of the eeas, Germany was no longer able to exchange commodities with these countries, to any appreciable extent, after the outbreak of war. Sux-li trade, if it had been possible, would of course have been legitimate. Goods drawn from those countries by Germany would have been replaced by"other goods whicn-tbey morn urgently required, and the process would have tended to the enrichment of those countries. This has been the result of the dealings of Spain and Latin America- with the Entente nations. But Germany, being cut off from trade with them by the ordinary channels, has proceeded with characteristic ingenuity tn secure her own advantage at Iho direct expense of their consumersT Her agents collected in them a largo stock of commodities which would be required by all the- world when peace was signed. The moment hostilities were at an cud these hoards would be at her exclusive disposal. They were to ibe the German munitions, so to speak, for a new economic world-strife,

But the autumn leaves have fallen again and again without bringing the consummation which the Kaiser so untiringly prophecies, and now German merchants in neutral countries have discorpred another method of turning their acquisitions to advantage.- They buy before a new crop conies forward, storo the goods in vast quantities (thus creating a scarcity and forcing up values), and sell, as much as they choose to sell, at the artificially enhanced price before the next year's crop is on the market. A considerable portion of that following' crop "is again purchased beforehand, and the simple process is repeated. That the transaction may be fully understood, certain points should he noted. The German agent is in a very favourable position as a ' speculator. Not only has, he strong and organised financial support behind him, 'but, where the commodity, as is normally the case, is one that will keep, he possesses the singular advantage of being able to hold indefinitely or sell whenever he chooses. Whatever stores are left when peace is declared can readily be placed on the German market; in fact, they may be regarded as already placed. . He can therefore easily rig the neutral market by releasing only as much as suits his immediate purpose and no more. The effect of the transaction upon the neutral consumer is even more obvious. His Governnient, in order to increase home supplies and keep down prices, may prohibit export. Yet the apparent supplies diminish and prices rise. This is the inevitable result of the German ' dealings which have just been described and of which there is detailed proof. Thus the neutral consumer suffers both in ]>ocket and in the actual nifons of subsistence. He gets less than he requires and pays considerably more for what-he gets. One more point should be emphasised. At the end of the war not only Germany but the. neutral country concerned will be in urgent need of the very commodities which ni'o being so persevoringly hoarded. The need of the neutral will not be satisfied; the goods are already the properly of Germany. / A Few Instances. A few instances of commodities known to have been stored in lnrgo quantities may be cited to illustrate a procedure which has undoubtedly been carried out in Spain on a very large scalo. Thoueands of tons of olive oiVhave been consistently stored during the last two years at Malaga, at Barcelona) and at Seville,' on German account. In ecah case the oil was bought before the crop came forward, and sales made long afterwards were at very greatly enhanced prices. Large numbers of tanks, though much needed for other; purposes, were also secured for storage on German account. Again, in the Barcelona district big quantities of resin have been bought by German firms, held back, and partly resold in tho same way. In Valentin between 40fl0 and 5000 sacks of rice conslituled the hoard of a German agent at a comparatively recent date. With regard to this purchase there is proof that rice bought at 40 pesetas per 100 kilos was sold subsequently at prices ranging between 52 and 59 pesetas per 100 kilos, and that a Inter crop bought at 10 to 42 rose immediately to K, and was confidently expected by the, agent to rise to 60. At various centres there were stored by German firms no fewer than a million kilos of wool, much of which was in due course resold to Spanish spinners ■at a huge profit. Moreover, there is ample evidence that tho tot&l amount removed from the market was enormously greater. With resrnrd to South America there'is proof of similar transactions. In tho Argentine linseed and wool are amongst tho articles known to have been partially cornered, while in Chile German firms have hoarded oats in larsre quantities. In all this there is little that will surprise anyone who had cognisance of Gorman trade methods before the war. Where there is Gorman influence a secret hand is gbvnj? o f , york in Gorman interests, economic or political. That was thf state of affnirs in the nnst. (is if i<; ii; f>o prpsont. nud if will '!ir> a condition of tho future unfess the pnonlps of all countries see the danger and loot to their own.