The Daily News. MONDAY, MAY 2, 1921. GERMAN TRADE.

Taranaki Daily News, 2 May 1921, Page 4

The Daily News. MONDAY, MAY 2, 1921. GERMAN TRADE.

The story unfolded by the Daily Chronicle’s Berlin correspondent (Mr Renwick) relative to the way in which German capitalists are organising to control industries by means of great trusts is a striking commentary on the tactics of the Government in pleading the poverty of the country as a reason why it cannot pay the reparations indemnity demanded by the Allies. While the disclosures made by Mr. Renwick, after a tour through the whole of the industrial areas -of Western Germany, do not come as a surprise, as the movement he describes has been already known to have been initiated, yet the confirmation of the fact, and the further details given, will enable a fairly accurate judgment to be formed, not only of the financial condition of Germany as a whole, but also of the determined effort that is being made to cheapen production in order to capture the world’s markets. In one way this organised activity will give greater security for the payment of Germany’s obligations to the Allies, and may justly be taken into consideration by them in finally settling the terms of payment. It is desirable that Germany should become financially strong, and that her people should be employed on industrial concerns that make for peace and prosperity. The important question for consideration, however, is whether those countries which the Teutons have devastated and caused to be bled almost white by the war, should not have the first consideration. There can be but one answer to that query, and it would seem this can be done, while still leaving a reasonable amount of capital available for German industrial expansion. There certainly can be no lack of money in Germany. The capital represented by the Stinnes trust, which employs 250,000 men, while controlling forty-two other industries, mjist be enormous; an elec-

trieity company can increase its capital by 700 million marks and yet control at least another 750 million, and.it may reasonably bo' assumed that as there are a dozen large trusts operating in coal, iron and other minerals, the amount of available funds must be far greater than the German Government will admit to be the case. Apparently these trusts are concentrating on electricity as a means of cheap production, and in this way offer an object lesson which the industrial magnates in other countries may well take to heart. It would according to one authority, that electrifying the railways is to be one of the first oper--ations, to be followed by applying the same power to all the great industries. Manifestly such a large Scheme will involve the expenditure of vast sums of money, and as there is reason to believe that those who are planning these great enterprises exercise a potent influence over the Government, the main reason why the authorities are fighting so desperately hard to avoid money payments to the Allies can readily be conjectured, hence their insistence on the condition attached to their latest offer that the present basis of German production must be undiminished. Such a proposal would be decidedly advantageous to Germany, though extremely adverse to the Allies. A post-war trade campaign by Germany has always been a matter of certainty; it is now being organised on lines that will deal a severe blow to her former enemies. While there is no desire or inclination on the part of the Allies to adversely affect German industrial recuperation, it is scarcely to be expected this should be accomplished at the expense of those who have suffered so acutely from the most unjust and cruel war that was ever waged. By all means let the vanquished have a fair chance of recovery, but the victors must see to it that they receive their just dues, if only because they are entitled to a first claim on Germany’s resources