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The New York herald. [volume] (New York, N.Y.) 1920-1924, March 07, 1921, Image 3

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create ltd wealth without this Item.
And since 3,500,000.000 gold marks
of Its net imports were raw materials
the fate of both reparations and the
very life of Of man industry is domi
nated by factors over which Germany
has hardly any control, namely, the
world market
World Moat Help Care.
In other words, Germany could
only be a quite healthy economic
country If the world were buying its
Bhare of Germany's goods ami provid
ing its share of the materials that
went into them. And all the indus
trial wizardry of Germany's industry
and finance could not doctor Germany
into sound health unless the world
helped apply the cure.
Nothing can be more apparent than
that the world is not buying German
goods to this extent or providing Ger
many with its capacity of raw ma
terials. Then what Is meant by Ger
many's phenomenal recovery? How
far has it progressed? What of the
high dividends? Is Germany's state
indebtedness a fiction to influence
allied statesmen? Where does the
money originate which pays for the
life of luxury in German cities?
Germany's Iron and steel indus
tries are producing now from 32 to
42 per cent, of their capacity, and
the mills last year received from 40
to 45 per cent, of the coal they need
ed. In August German industry as
a whole and private consumers re
ceived 69 per cent., in October 69.1
per cent, and In November 66.5 per
cent, of the amount they used in
1913.
Germany had no balance of trade
in 1920 and imported far more than
it exported. From the United States
it bought to the value of $311,437,
000 and sold in return $88,863,000.
It is mere guesswork to estimate Ger
many's total imports and exports.
German statistics before the war
were kept, not on an ad valorem but
on a quantity basis. The statistical
department was not maintained in
the interest of industry and com
merce, but for administrative pur
poses. The statute requiring the
keeping of ad valorem foreign trade
statistics goes into effect next month
for the first time.
Canfulng Error Made.
At the first Brussels conference the
German representatives reported a
gain In German export trade so great
that it gave a slight balance of trade
In Germany's favor in later months
of the year. The figures were prompt
ly studied by German economists,
who found that exports had been cal
culated in the paper marks at their
enrrent value, while imports were
booked at the arithmetically lower
values of the mark of 1918 and 1919.
That is, such materials as cotton and
ores were counted as costing the com
paratively low prices of two and three
years ago, though bought last year,
while the products made from them
were figured at the high paper mark
prices of 1920.
How so confusing an error came to
be made is hard to say. At that time
hopes in forthcoming international
credits were high, and the Govern
ment, either purposely or ignorantly,
passed not only these estimates to
the allied economists, but also a state
ment of the expected national deficit
about 30,000,000,000 marks short of
the truth. The hoax practised by
Germany in that particular hour. If
any, was not to conceal prosperity |
but to exaggerate It.
Haw Materials Imported.
The real balance of trade against i
Germany is now generally accepted as i
having been about 36.000,000,000
paper marks last year, or $580,000,
000 at the present exchange. If this
estimate is legitimate, and. If it is
true that Industry is receiving only
two-thirds of its fuel, a phenomenal
recovery would be either a miracle !
or the result of economic develop- |
merits never before conjectured.
? test of Germany's Industrial j
, health to-day can be applied by an
examination of Germany's raw ma- j
terlal Imports, exports and produc- j
tion In 1913, and comparing them
with the facts of to-day. In 1913 j
Germany imported raw materials (ex
clusive of agricultural products) to
the following value, In millions of
gold marks:
OottoO .......................... SOT
HMm 417
Wool 412
Epper .135
n<! lumber 2.12
>n or* 227
. Coal 20ft
^ r*t? iff
P^triloum TO
Germany produced raw materials In j
1911 (million* of gold marks):
1 Bituminous coal
14wttr 1P2
V Cvnmil 11*1
jpitawi mo |
pwi ore IIS
* Load. *11 vr. rltfc orea........... Ml
, Coppar .12
PMrolauni .... 0.5
* Sulphur ores 2
Germany exported In raw materials
la 1918 (million* of fold marks) t
Bltumtnoua ooal H1<
Cekm 147
PMaafc 32j |
PI* Iron 65
Omton In
Wool 47
Ire a Ore Deposit* Loot.
So Germany imported the greater
part, of her raw materials and pro
duced no large quantities aside tfota
coal, iron ore, cement, silver, zinc,
lead and potash. The peace treaty
deprived her of most of her Iron ore
deposits, so that to-day 80 per cent.
of the orv consumed has to be im
ported. The potaHh industry is ' lose
to paralysis, due to coal shortage, and
the cement Industry has been nearly
rained by the Interruption of build
ing.
The chemical industry is Indepen
dent of the outside world; so are the
porcelain industry and many minor
branrhes. But all of them are de
pend ? ut on power, which in Germany
la almost exclusively derived from
coal. The chemical industry is
wholly supported by coal. If the
world bad sold Germany the raw ma
terials In the peace time quantity and i
I tier many had the disposition over the j
! coal to work up this material, then
j her recovery would have been pos
| slble. But this recovery could not
I be accomplished la secrecy, nor would
I It ueed be the subject of confidential
[ reports or of gossip over Paris and j
London diplomatic dinners, to be j
1 passed on as an Alarming rumor. I
When Germany has discovered new
, resources and can sabandou the sup- I
1 plies from which she hitherto has !
lived it is time to speak of her recov
| ery as something mysterious. ?.
j How soon Germany could regain
j her place as a strong contender for
world t rade 1s another question, but
here again one of simple factors. The
German factories, plant managers
workers and salesmen are there, the
! wheels and spindles are turning or
are ready to turn. More raw ma
1 terials, fuel and capital are needed,
and over thyse the. outside world has
I the control, either by natural circum
stances or through the peace treaty.
Some foreign trade Is being done,
much more than a year ago, and due
to extraordinary labor and domestic
I market conditions and to Germany's
i financial collapse production Is cheap
I er In Germany than elsewhere. How
i long it can remain cheaper and still
be efficient the future will show.
The article of this series to
be published to-morrow will deal
j with the organization of indus
! try In Germany.
NORTH GERMAN LLOYD
VOTES 8 P. C. DIVIDEND
Increases Capital Stock to
250,000,000 Marks.
Bu the Associated Press.
Bremen, March 6 (delayed).?Share
holders of the North German Lloyd
j Steamship Company approved the bal
! ance she?ts of the last seven years,
| voted an annual dividend for 1919 and
1920 of 8 per cent., and) approved an
j increase in the company's capital lo
j 250,000,000 marks. This was the first
! meeting of the shareholders since 1914.
Discussing the company's prospects
for the coming year the newly elected
director-general, Karl St'.mmlng, said
j much depended on the sl*e of the in
demnity the national Government had
appropriated for lost tonnage. Pre
liminary negotiations carried on be
tween the shipping Interests and' the
Government, he said, resulted In a com
promise which represented a wholly In
adequate reimbursement, but which the
company had finally agreed to In view
of the nation's financial situation.
The prevailing drop in ocean freight
rates, Herr Stlmmlng continued, did not
hold out prospects for lucrative business
in the near future, although the com
pany hoped to reln??tate a number of
independent steamships in the trans
atlantic service. The executive board,
which went Into session after the share
holders' meeting, unanimously elected
Philip Heincken, former general man
ager of the line, to the presidency of
the company. H. Kulonkampft was
named vice-president.
THINKS LLOYD GEORGE
TALKED TO kARDING
Streseman Says Speech Was
Meant for President.
By the Associated Prets.
Uokm.v, March 5 (delayed).?The
speech in which Premier Lloyd George
laid down the allied ultimatum to the
German delegates at the London confer
ence on reparations was in reality ad
dresed over their heads to the new Presi
dent of the United States, Deputy Strese
man of the People's party declared be
fore the Reichstag to-day.
This declaration came out In the de
bate which led to the decision of the
German Government not to increase Its
reparation offer made In the counter
proposal submitted to the Allies by Dr.
Hlmons, the German Foreign Secretary,
j unci refused by the Allies.
, Deputy Streseman characterized the
I Lloyd George speech as "the first Impor
tant post-war document to reach the
i hands of the nerw American President."
ADDRESS PLEASES CHILEANS.
One Editor Asks if V. S. Cas Hold
to a "Policy of Isolation."
: Santiago, Chile, March 6.?President
| Harding's inaugural address Is the srub
i Ject of comment In the newspapers here.
La to* says it was an address of
Impressive dignity that carried profound
confidence to the peoples of South
A mereta respecting the future policy of
the United States. It commends the
references to social and ladustrlal peace,
saying that such a peace Is really the
basis of national strength.
El Uercurio, after remarking that
President Wllon's Administration was the
most stirring since that of Lincoln, says
President Harding everywhere will find
the life interests of the United States :
Interwoven with those of the rest of ;
the world, sometimes In conflict, at 1
other times in perfect accord. It asks I
whether In such conditions the United
States "will persist In a policy ot Iso
lation."
IIO>11. POLKS WKLCOMR BAKER. I
Cleveland. March 6.?Newton D.
Baker, former .Secretary of War, was
met at the station by a number of inti
mate friends upoa his arrival home to
day. Ha annouced that he would re
sume the practice of law.
GERMANY LIKELY TO
ACCEPT NEW PLAN
Continued frow First Pag*.
and not to hold one would bo a stain on
their honor.
The allied leaders then went into an
i other conference, at which was evolved
the latest #chem>. The attitude of
to-night'? conference was conveyed to
the Hotel Savoy, where it Is reported Dr.
Simons and hta colleagues are still
working far Into the night.
Tha German* virtually admitted this
evening that there Is a feature In their
proposals which would. If accepted,
eliminate the 12 per cent, tax of the
Paris scheme. On the other hand, great
emphaele Is laid by the Germans on the
fact that they hadn't and wouldn't ac
cept the Farts totals, preferring the
qTter&tlon of the threatened sanctions to
this.
"If Dr. Simons were to accept these
figures to-morrow," said a German
spokesman, "he'd lose hie Job before he
returned to his hoteL"
The Germans have so far refused to
exclude the reparations they have al
ready paid from the total indemnity.
They seem, however, to have seized
upon a suggestion by Lloyd George as
a way out of their dilemma.
Premier Lloyd George's scheme did
not meet at first with great favor in
French circles, one objection being that
it would benefit German exchange with
America and bring the United States
and Germany together commercially
against the Allies.
Lloyd George's plan was based on
German exports to the allied countries.
It provided that the allied countries
would have to pay only half the value
of the goods to the German exporter,
the other half being retained by the
Allies for reparations, while Germany
by taxation would reimburse her export
ers. This plan was suggested by Lloyd
George as a basis for a possible com
promise and as a method of solving
the vexatious problem of how the Allies
could collect the German Indemnity
without Injury to themselves. It was
even suggested that some of the neu
trals might be willing to apply this
plan for the benefit of the Allies, al
though no one has mentioned the United
States in this connection.
Though each ally would do the col
lecting of the percentage held back on
the value of German goods entering its
ga|cs, the collections would subsequently
be pooled for division among the Allies
accord:ng to the scale arranged at the
Brussels conference.
While this conference was going on
the Germans remained at their hotel,
their looks betokening the extreme grav
ity of the situation. The meeting of the
supreme council lasted until late, with
Indications that the British were exert
ing great pressure on the French to
avoid a flat rejection at to-morrow's
meeting. At its conclusion Premier
Briand and M. Louclieur, hastening to
their hotel, called a meeting of the
French delegation, which later was at
tended by the Belgians.
These two nations having relatively
the most at stake in reparations, it was
assumed that the British had put up
the situation squarely to them, indicat
ing that they must take the responsi
bility If any tweak occurred to-morrow.
There was every Indication In to-day's
devolpments that the situation had
reached a decisive stage, making to
morrow's session perhaps the most
critical in the fortunes of Europe since
1 the war.
While not accepting the Paris figures
exactly, the Germans were creditably
reported to-night to have offered a new
way of measuring the Indemnity by
Germany's economic progress, which at
first glance seemed to strike the British
i more favorably thar. the French.
AMERICAN WORKERS START
RE VOL UTION IN PETROGRAD
_____ *
i Tchicherin Says They Began the Anti-Bolshevist Rising
Now Continued by Kronstadt Sailors Who by
Wireless Appeal to All Russia Against Soviet.
By CiiPT. FHANCI8 M'CULLAGH.
Spti >al Cable to Tji? N?w Yusk Ii?uu>.
Copyright, 19tl, by Th? Nsw Yoik Hiiai.d.
Riga, March 6.?The statement that
the Russian Insurrection against Bol
shevist rule Is leaderless is incorrect
Gen. Knzlovsky, the commander at
Kronstadt, la the leader of the revolt
there. He Is assisted by many officers,
all of who.? have been denounced by
Trotzky an traitors and reactionaries
The battleship Petropavlovsk is pre
paring to bombard Petrograd.
The Insurgents at Kronstadt are utiliz
ing the Bolshevist wireless system de
scribed In my October despatches to
disseminate anti-Bolshevist appeals
throughout Russia. As a result of this
propaganda food trains have been plun
dered on the Omsk railway, and this
and the present plundering of Moscow
food stores by the populace threaten
Moscow with starvation.
Tchtcherin, the Foreign Minister, be
lieves he can soon control the situation,
and asserts the sailors' revolt at Kron
stadt Is not affecting the country. He
has returned to Moscow from Petrograd
and says that the workmen who re
turned from America started the first
trouble.
The situation in Petrograd ominously
recalls the riots Which preceded the over
throw of the Czar, the Red cavalry
using whips to disperse the crowds as
the Cossacks did then. Armored motor
cars and machine guns guard the Astoria
Hot&l, where the Bolshevist leaders are
living, and also the bridges. The news
papers are silent about events except to
print official warnings against French,
English and Polish spies who are making
trouble. The walls are covered with ap
peals In affectionate language addressed
"Dear Comrades."
Trotzky, who was starting to Ekater
lnberg, was delayed at Moscow by the
railway chaos, which also prevented
Rothstein from going to Teherau to ar
range an ambitious Persian adventure.
The Bolshvikl have deserted Reva.1.
The Red legation slept last night in 'pri
vate houses. The members of the lega
tion tried to get on a Swedish ship, but
the captain refused them passage. Ap
DANIELS GETS A BIG
WELCOME IN RALEIGH
Says He Ends Service Under
Greatest Living Man.
Raleigh, N. C., March 6.?Josephus
A. Daniels, until Friday Secretary of
the Navy, received a rousing welcome
from his fellow townsmen to-day on his
return to resume his duties as editor and
publisher of the Raleigh News and Ob
server.
The former Secretary was greeted by
a band and escorted to the city audito
rium, where about five thousand persons,
the building's capacity audience, listened
to welcoming addresses.
"I have not come home from a larger
Job, but I am back to take up again the
greatest work In the world?fighting for
the man who has unequal opportunity,"
said Mr. Daniels.
"I lay down an office in which I was
privileged to serve during the most criti
cal years of our history. And I served
under a great man, the most illustrious
man living in all the world to-day.
"I have oome home to fight, to be your
comrade, to stand with you for Justice
and equality of opportunity, to work
with you and to have your love, which I
eovet above all things."
proaches were made to a German cap
tain bound for Stettin. Germany, who
refused to take the.m aboard.
The Bolsheviki's principal danger is
not the loss of Petrograd, but the uni
versal panic which the Kronstadt revo
lutionaries are unloosing by their con
tinuous anti-Bolshevist wireless mes
sages sent throughout Russia, thus
turning the Reds' own weapon* against
themselves, causing the looting of food
trains and stores, which is upsetting
the delicately adjusted food and ration
system. Very little more of this dis
order and Lenlne will lose control of
his machine, which will rush down hill
with accelerated speed, ending In a
most frightful disaster. There will be
a general scramble for food. With
many millions of starved people fighting
like wild beasts In the cities the Isolated
starved army will melt like snow.
Lenin e, the coolest man in Russia,
may keep control. Russians arriving
from Petrograd and Moscow tell some
Interesting details, to the effect that
Lenlne says he has proofs tha the pres
ent revolt Is a widespread plot known
before band in England and Franco, by
the MensiievlkL Social revolutionaries,
of wham great numbers have been ar
rested, say that the Allies having failed
with Kolchak, whose triumph would
have brought a<bout Uie enthronement
of caardoin and millions of deaths, are
now playing their last card?the en
thronement of chaos and a million
deaths.
Lenlne Is quoted as saying the allied
plot was Intended to force him to mass
acre the deluded workers at Petrograd,
precipitating a second Blody Sunday,
but he ordered the troops not to shoot
at first and then to fire in the air.
Their doing so saved the situation.
Otherwise they would have lost the day.
The rebel gunboat Zabiaka, anchored
near the Winter Palace, killed and
wounded forty Reds.
The Immediate danger Is considered
over and the Reds are pouring into
Moscow and Petrograd. Eyewitnesses
in Jetrograd admit the Reds fired Into
the air and used whips to disperse the
crowds, the riots being extraordinarily
well handled.
"Make a Note
on It"
"Cooked salad dressing can be
kept in the refrigerator for at
least two weeks."?New York
Sun.
Of course the writer meant pro
vided the refrigerator be kept
thoroughly cold. This means a
regular supply of ice, which not
only saves food by keeping it
fresh longer, but saves ice by
using less in the long run.
Knickerbocker -made from b times filtered
water?and delivered in clean wagons?
it .told by accurate weight. A telephone
call Today Harts regular service Tomor
row. Bryant 3700; B'lclyn, Nevim ?7^0.
ICE
Compaq?
franklin Simon & Go.
cA Store of Individual Shops *
FIFTH AVENUE, 37th and 38th STS. ?1$
Silk Crepe Fabrics Follow
the J^eading Fashion in
Gowns of,Black
THE gown for mourn
ing wear takes its
fashion from the fore
ground of the mode?its
silhouette the simple lines
to which Paris remains
loyal, its fabric the soft,
clinging Moroccan crepe or
crepe de chine required to
express them ....
60.00
Other Gowns for Mourning . . 30.00 to 150.00 %
Suits for Mourning 50.00 to 125.00
Paris Mourning Millinery, just received 15.00 to 35.00
Mourning Apparel and Accessories May Be Selected
Within the Privacy of an Individual Shop or
Within the Seclusion of One s Own Home ?
THE SHOP of BLACK. AND WHITE-Fifth Floor
REVOLT AGAINST
SOVIETS GAINING
Continued from First Page.
culties caused by the lacx or rood and
fuel." says one despatch.
Kven the newspaper Huntanile, Tjen
ine'a Paris organ, withholds comma at
upon the preacnt situation. Previously,
In regard to the reported revolts In Pet
rograd and Kronstadt, this Journal went
to groat lengths to deny the reports, say
ing that such newti was but the prot>
aganda of the capitalistic nations to be
fog the diplomatic atmosphere.
31 MUTINEERS WHO KILL
2 OFFICERS EXECUTED
Hungarian* Resent Flogging;
Immunity Pledge Broken.
Vienna, March E (delayed).?Mutiny
among members of the Hungarian gar
rison at Raab, resulting in the killing
of two officers and the execution of
thirty-one mutineers. Is reported In
despatches received here.
The trouble started when flogging of
several soldiers was ordered by Baron
Rtvas and Count Vay. Other soldiers
protested and .shot two officers, who had
drawn their revolvers to quell the dis
order.
The mutineers then barricaded them
selves in their barracks and artillery
was brought up and trained upon them.
The mutineers are said to have Bur
rendered upon receipt of an offer of Im
munity, but, according to the accounts,
they were shot as soon as they gave up.
The executed included two captains,
vho sympathised with the mutineers.
KRASS1NE IN LONDON
MINIMIZES REVOLT
Reports All t?uiet in Moscow
and Petrograd.
London, March 7 (Monday).?The
Herald, a labor organ, prints an Inter
view with Leonid Krasslne, who has re
turned to London with amendments to
the proposed Hukbo-British trade agree
ment. Kraaslne Is reported to have said
that, according to his latest informat'on,
"all is quiet In Moscow and Petrograd.
The only real trouble is In Kronstadt,
but this is quite unimportant."
The newspaper also prints the follow
ing telegram from its Moscow corre
spondent under date of March 3: "The
Korlovsky affair presents no serious fea
tures. I^nln<*, speaking before the Mos
cow Soviet to-day. .iald: Only one shot
has been flred in Moscow. We have
lived through far more serious crises t
than this.'"
MAY HEAD INTEENAL REVENUE
Ex-Chief Justice Robinson, West
Virginia, Bring Considered.
Washington, March 6.?Ira K Robin
son of Grafton, W. Va? former Chief
Justice at thi! West Virginia Supreme
Court, is understood to be under con
sideration for appointment to the post of
Commissioner of Internal Revenue va
cated by the resignation of William M.
Williams.
The nomination may go to the Senate
to-morrow.
I
Tiffany&Co.
i Fifth avenue &37t-nstreet 4
Etches and Clocks
Business Counsel
A message
to our own bank depositors
IN these times we wonder whether
Columbia Trust Company depositors
, are fully acquainted with the broad range
of services we are able to offer.
Depositors who think of us merely as
a Trust Company are neglecting other
advantages to which their connection
with the Columbia Trust Company en
titles them
Why?
We are business counselors. The ef
ficient performance of our duties demands
that we constantly keep in touch with
all factors affecting the financial side of
business. Markets, buying trends, credit,
transportation and foreign trade condi
tions are such factors.
This intimate contact with basic
branches of commerce and industry often
enables us to give business men practical
information of value.
We are not infallible. On the other
hand we base our business counsel on
facts either gathered by ourselves or ob
tained from sources which we believe to
be reliable.
How you can use us
1. Investment Information
We bold ourselves ready at all time* to tokait investment
facts to oar depositor*. Having no securities of oar own to tell,
the information we give it free from self-interest.
2. Brood Range Business Counsel
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transportation conditions?factors affecting the financial side of
business, oar depositors often find our advice of practical value.
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Business men among our depositors often find our Credit
Department able to supply credit information difficult to obtain
promptly elsewhere.
4. Information on Foreign Trade
Oar Foreign Department aims to advise and accommodate our
depositors on almost every side of their business dealing*
overseas.
&. Letters of Credh
Those whose business or pleasure takes them oat of the
country find marked advantages in our letters of credit. Our
foreign representatives cover the principal points through sat
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THE above advantages are at the disposal of our 'depositors
and others seeking a sound banking connection, available at
our nearest office.
Member of Federal Reserve Syttem
Cmft i tifgbt M*?f, C. f. 15*. 0

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