PARALYSIS OF TRADE

Gisborne Herald, Volume LXVI, Issue 20103, 24 November 1939, Page 7

PARALYSIS OF TRADE

EXPORTS FROM GERMANY ANTICIPATED EFFECT NEUTRALS MAY BENEFIT (British Official Wireless.) Reed. 9 a.m. RUGBY, Nov. 22. Discussing the probable effect of the contemplated Allied action against German overseas shipments, commentators note that after the application of similar measures in the last war German goods imported into the United States fell during the last six months of 1915 to between 4 and 8 per cent of the 1913 level and, by a year, had virtually disappeared.

Germany lias not published her export figures since the outbreak of the present war, but the Nazis have admitted that this trade has been seriously curtailed. It will now inevitably shrink further.

The value of Germany’s overseas shipments in 1938 totalled 1,208,000,000 Reichmarks and, with the stoppage of this trade, it may be expected that she will endeavour to sell her surplus exports to neutral neighbours, but these will be unable to supply her with foreign exchange in the same measure as her overseas markets. The currency of these overseas countries is also required to make trade with Germany’s neutral neighbours more attractive than direct barter, which increases their economic dependence on Germany.

It is recognised here that the proposed measures may involve certain inconvenience to countries adjoining Germany through which transit trade passes, but their basic industries will not be adversely affected and may benefit. The depletion of German resources will certainly result and, by effectively shortening the war, it is artgued that a long-term advantage will accrue to neutrals.