MAINLY COMMERCIAL
Nothing surprised me more, as the war developed, than the discovery of the great variety and amount of goods exported from Germany to the United States.
Goods sent from the United States to Germany are mainly prime materials: approximately one hundred and sixty million dollars a year of cotton; seventy-five million dollars of copper; fifteen millions of wheat; twenty millions of animal fats; ten millions of mineral oil and a large amount of vegetable oil. Of course, the amount of wheat is especially variable. Some manufactured goods from America also find their way to Germany to the extent of perhaps seventy millions a year, comprising machinery such as typewriters and a miscellaneous line of machinery and manufactures. The principal exports from Germany to America consist of dye stuffs and chemical dyes, toys, underwear, surgical instruments, cutlery, stockings, knit goods, etc., and a raw material called potash, also known as kali. The last is a mineral found nowhere in the world except in Germany and a few places in Austria. Potash is essential to the manufacture of many fertilizers, fertilizer being composed as a rule of potash, phosphates and nitrates. The nitrates in past years have been exported to all countries from Chile. Phosphate rock is mined in South Carolina and Florida and several other places in the world. Curiously enough, both nitrates and potash are essential ingredients also of explosives used in war. Since the war, the German supply from Chile was cut off; but the Germans, following a system used in Norway for many years before the war, established great electrical plants for the extraction of nitrates from the atmosphere. Since the war, American agriculture has suffered for want of potash and German agriculture has suffered for want of phosphates, possibly of nitrates also; because I doubt whether sufficient nitrogen is extracted from the air in Germany to provide for more than the needs of the explosive industry.
The dyestuff industry had been developed to such a point in Germany that Germany supplied the whole world. In the first months of the war some enterprising Americans, headed by Herman Metz, chartered a boat, called The Matanzas, and sent it to Rotterdam where it was loaded with a cargo of German dyestuffs. The boat sailed under the American flag and was not interfered with by the English. Later on the German Department of the Interior, at whose head was Delbrück, refused to allow dyestuffs to leave Germany except in exchange for cotton, and, finally, the export of dyestuffs from Germany ceased and other countries were compelled to take up the question of manufacture. This state of affairs may lead to the establishment of the industry permanently in the United States, although that industry will require protection for some years, as, undoubtedly, Germany in her desperate effort to regain a monopoly of this trade will be ready to spend enormous sums in order to undersell the American manufacturers and drive them out of business.
The commercial submarines, Deutschland and Bremen, were to a great extent built with money furnished by the dyestuff manufacturers, who hoped that by sending dyestuffs in this way to America they could prevent the development of the industry there. I had many negotiations with the Foreign Office with reference to this question of dyestuffs.
The export of toys from Germany to the United States forms a large item in the bill which we pay annually to Germany. Many of these toys are manufactured by the people in their own homes in the picturesque district known as the Black Forest. Of course, the war cut off, after a time, the export of toys from Germany; and the American child, having in the meantime learned to be satisfied with some other article, his little brother will demand this very article next Christmas, and thus, after the war, Germany will find that much of this trade has been permanently lost.
Just as the textile trade of the United States was dependent upon the German dyestuffs for colours, so the sugar beet growers of America were dependent upon Germany for their seed. I succeeded, with the able assistance of the consul at Magdeburg and Mr. Winslow of my staff, in getting shipments of beet seed out of Germany. I have heard since that these industries too, are being developed in America, and seed obtained from other countries, such as Russia.
Another commodity upon which a great industry in the United States and Mexico depends is cyanide. The discovery of the cyanide process of treating gold and silver ores permitted the exploitation of many mines which could not be worked under the older methods. At the beginning of the war there was a small manufactory of cyanide owned by Germans at Perth Amboy and Niagara Falls, but most of the cyanide used was imported from Germany. The American German Company and the companies manufacturing in Germany and in England all operated under the same patents, the English and German companies having working agreements as to the distribution of business throughout the world.
The German Vice-Chancellor and head of the Department of the Interior, Delbrück, put an export prohibition on cyanide early in the war; and most pigheadedly and obstinately claimed that cyanide was manufactured nowhere but in Germany, and that, therefore, if he allowed cyanide to leave Germany for the United States or Mexico the English would capture it and would use it to work South African mines, thus adding to the stock of gold and power in war of the British Empire. It was a long time before the German manufacturers and I could convince this gentleman that cyanide sufficient to supply all the British mines was manufactured near Glasgow, Scotland. He then reluctantly gave a permit for the export of a thousand tons of cyanide; and its arrival in the United States permitted many mines there and in Mexico to continue operations, and saved many persons from being thrown out of employment. When Delbrück finally gave a permit for the export of four thousand tons more of cyanide, the psychological moment had passed and we could not obtain through our State Department a pass from the British.
I am convinced that Delbrück made a great tactical mistake on behalf of the German Government when he imposed this prohibition against export of goods to America. Many manufacturers of textiles, the users of dyestuffs, medicines, seeds and chemicals in all forms, were clamouring for certain goods and chemicals from Germany. But it was the prohibition against export by the Germans which prevented their receiving these goods. If it had been the British blockade alone a cry might have arisen in the United States against this blockade which might have materially changed the international situation.