The decline in the output of steamships does not call for comment. That decline has been universal. It is interesting, however, to find that in 1925 Germany was building 170,000 tons of steamships and no less than 370,000 tons of motor ships. Obviously she is specialising in the most modern form of shipping, just as she is concentrating upon the most modern methods of industrial and agricultural production, and it is ominous that her output of motor ships for foreign purchasers has increased from 1653 tons in 1921 to 242,624 tons in 1925—a hundred and fifty fold. Interesting developments have taken place in German shipbuilding. The great shipyards have formed an intimate connexion with the great iron and steel producers with a view to eliminating waste, delay in obtaining material, middlemen's profits, etc. With cheaper iron, coal, and transport, lower wages and longer hours, the competition of German shipbuilders may before long cause pressure on British builders, particularly if the community of interests and amalgamations with the great iron and steel producers give a further important advantage to the Germans. Their industries, as a whole, enjoy great advantages over British industries, not only through the circumstances mentioned already, but because their former indebtedness was wiped out by the inflation of the currency. Before the war British and German works had to carry a burden of fixed interest indebtedness in the shape of mortgage bonds, debentures, preference shares, etc., which was probably more or less identical in the two countries. The official Statistical Abstract of Germany gives the following important figures: MORTGAGES AND DEBENTURES OF 3347 LIMITED COMPANIES The burden of mortgages and debentures of 3347 limited companies has been reduced to less than onetwentieth of the original amount. The remaining debt is only a trifle, and the fixed debts at present existing do not even represent the value of the huge additions and improvements made since the end of the war. In other words, it may be asserted that the German industries have been given the whole of their plant as a free gift. What they have gained by inflation the investors have lost. In other words, a sum of about 25,000,000,000 marks, or 1,250,000,000l., has been transferred from the pockets of the general investors to the industrialists. That endowment has, of course, benefited immeasurably German industries. They are practically free from interest burdens, from burdens which the English industries have to bear. Moreover, German industries are helped by the fact that the State supports and encourages them with every means in its power, and that local authorities follow suit; while British industries are weighed down with unbearable national and local taxes, part of which are imposed by Socialists with the deliberate purpose, it often seems, of ruining trade and industry in the hope of driving the nation through poverty and despair to revolution. The fiscal policy of Germany is not shaped by partypolitical considerations, as in this country, but for the sole object of promoting industry and commerce. Moreover, the Reich, the individual States, and the municipalities do everything possible to encourage and stimulate production and cheapen transport. The State has advanced large sums to important industrial firms at a nominal rate of interest, as a rule from 2 to 2 per cent. Among the industries thus assisted are shipbuilding, the construction of aeroplanes, coal-mines, iron works, chemical works, engineering works, wine producers, and agriculturists; while, in addition, the State has arranged for export credits. Altogether, public funds approximating 100,000,000l. have been provided, not for paying doles which may be mis-spent, but for stimulating production which gives employment to large numbers of workers. The ways in which Germany has provided cheap transport by rail and by water, a cheap telephone service, etc., are well known; and, last, but not least, she has taken over many important factories and works, and become a partner in large electricity undertakings, power works, mines, and factories. Immediately after the war the Germans protested that they were ruined, that they were unable to pay reparations, and they deliberately set about to destroy their currency, creating thereby the impression that they were completely impoverished. There was a general scarcity of food and fuel, partly because stocks had been exhausted during the blockade, partly because there was widespread political disorder, and partly because strikes and labour unrest interfered with production and distribution. Although there is still a great deal of poverty, chiefly among investors who have lost everything through the depreciation of the mark, the masses in general are prosperous and well-fed. Their prosperity is shown in the greatly increased consumption of luxuries, the unprecedented popularity of places of amusement, and the rapid increase in savings banks deposits. The increased consumption of luxuries is apparent from the following figures: 1913 10,745 tons. 164,240 tons. 51,593 tons. Oranges, Lemons, etc. 298,579 tons. 99 8,235 40,436 99 99 45,024 79,782 99 Imports of Wine. 132,006 tons. m. 62,222,000 132,571 99 66,050,000 99 Imports of Tobacco. 1913 81,400 tons. m. 134,270,000 1925 120,009 260,440,000 Germany consumes as much imported wine as in 1913, although the population has diminished in numbers, and 50 per cent. more tobacco than before the war, paying for it twice as much on account of the increased prices. In spices and coffee, the consumption is still far below that of 1913, but there has been a striking improvement since 1920. On the other hand, there has been a much greater consumption of cocoa, oranges, and lemons, while there is even a mania of chocolate eating. Cocoa consumption in 1925 was 60 per cent. greater than in 1913, and cocoa has taken the place of coffee in many households. As stated at the beginning of this article, Germany is bending all her efforts upon regaining by industry and commerce what she lost in war. These endeavours are illustrated by the powerful stimulus which has been given to technical study and inventiveness. Between 1913 and 1925, the number of university students fell from 60,061 to 58,867. Fewer young men are studying law, medicine, theology, and philology. On the other hand, the number of students at the technical high schools has doubled, increasing from 11,767 in 1913 to 22,634 in 1925. The number of patents passed by the Patent Office has been as follows: The contrast between pre-war years and post-war years is remarkable. Leaders of industry, politicians, Government officials, the clergy, the schools, and the workers are unanimous in their determination to recreate Germany's power and prosperity by hard work and thrift. Nothing can be more remarkable than the fact that the workers, who nominally are Socialists to an overwhelming extent, have cheerfully accepted longer hours and lower pay, and are bent upon peace in industry. Their determination to preserve industrial order and discipline is shown by the fewness of strikes. The position in Germany can best be visualised by comparison with England. Such comparison yields the following interesting and most disquieting results. The days lost by strikes During the five years 1919-23, 54,500,000 days were lost by strikes in Germany. During the same period 180,000,000 days were lost by strikes in Great Britain. The years 1919 and 1920 were years of unrest in Germany. During the three years 1921-23 only 5,000,000 days were lost by strikes in Germany, whereas in Great Britain 116,500,000 days were lost by strikes. We cannot wonder, therefore, that German industry is flourishing and British industry declining, as there are more than twenty strike days in Great Britain for every single strike day lost in Germany. Although Germany concentrates all her energy upon achieving industrial and commercial success, she is not spiritually disarmed and she has not forgotten her armed traditions. Military strength depends upon the numbers, spirit, physical efficiency, and wealth of the people, and their industrial outfit. Between 1920 and 1925 Germany's population increased from 61,797,000 to 63,342,000, while the population of France remained stagnant. The increase of industrial prosperity will lead to an accentuated increase of population, and in a few years' time Germany will have regained her pre-war numbers. The old conquering spirit is not allowed to die. Church and school teach the coming generation that the war was forced upon Germany by envious neighbours, that she was tricked into surrender, that she was undefeated in the fighting, and that she must reconquer the lost lands which are principally inhabited by Germans who are anxious to return to the Reich. As after 1806, physical preparation for war is being promoted with the utmost energy. Before 1914, gymnastics were practised only by a few, and football was almost unknown. At present, nearly all the children, youths, and girls are given the severest bodily training. The gymnastic societies have made a record development. Among these societies the following may be enumerated: |