My Four Years in Germany

by James W. Gerard

The Germans also refused permission for the export of potash from Germany. They hoped thereby to induce the United States to break the British blockade, and offered cargoes of potash in exchange for cargoes of cotton or cargoes of foodstuffs. The Germans claimed that potash was used in the manufacture of munitions and that, therefore, in no event would they permit the export unless the potash was consigned to the American Government, with guarantees against its use except in the manufacture of fertilizer, this to be checked up by Germans appointed as inspectors. All these negotiations, however, fell through and no potash has been exported from Germany to the United States since the commencement of the war. Enough potash, however, is obtained in the United States for munition purposes from the burning of seaweed on the Pacific Coast, from the brines in a lake in Southern California and from a rock called alunite in Utah. Potash is also obtainable from feldspar, but I do not know whether any plant has been established for its production from this rock. I recently heard of the arrival of some potash from a newly discovered field in Brazil, and there have been rumours of its discovery in Spain. I do not know how good this Spanish and Brazilian potash is, and I suppose the German potash syndicate will immediately endeavour to control these fields in order to hold the potash trade of the world in its grip.

It was a long time after the commencement of the war before England declared cotton a contraband. I think this was because of the fear of irritating the United States; but, in the meantime, Germany secured a great quantity of cotton, which, of course, was used or stored for the manufacture of powder. Since the cotton imports have been cut off the Germans claim that they are manufacturing a powder equally good by using wood pulp. Of course, I have not been able to verify this, absolutely.

Germany had endeavoured before the war in every way to keep American goods out of the German markets, and even the Prussian state railways are used, as I have shown in the article where I speak of the attempt to establish an oil monopoly in Germany, in order to discriminate against American mineral oils. This same method has been applied to other articles such as wood, which otherwise might be imported from America and in some cases regulations as to the inspection of meat, etc., have proved more effective in keeping American goods out of the market than a prohibitive tariff.

The meat regulation is that each individual package of meat must be opened and inspected; and, of course, when a sausage has been individually made to sit up and bark no one desires it as an article of food thereafter. American apples were also discriminated against in the custom regulations of Germany. Nor could I induce the German Government to change their tariff on canned salmon, an article which would prove a welcome addition to the German diet.

The German workingman, undoubtedly the most exploited and fooled workingman in the world, is compelled not only to work for low wages and for long hours, but to purchase his food at rates fixed by the German tariff made for the benefit of the Prussian Junkers and landowners.

Of course, the Prussian Junkers excuse the imposition of the tariff on food and the regulations made to prevent the entry of foodstuffs on the ground that German agriculture must be encouraged, first, in order to enable the population to subsist in time of war and blockade; and, secondly, in order to encourage the peasant class which furnishes the most solid soldiers to the Imperial armies.

The nations and business men of the world will have to face after the war a new condition which we may call socialized buying and socialized selling.

Not long after the commencement of the war the Germans placed a prohibitive tariff upon the import of certain articles of luxury such as perfumes; their object, of course, being to keep the German people from sending money out of the country and wasting their money in useless expenditures. At the same time a great institution was formed called the Central Einkauf Gesellschaft. This body, formed under government auspices of men appointed from civil life, is somewhat similar to one of our national defence boards. Every import of raw material into Germany falls into the hands of this central buying company, and if a German desires to buy any raw material for use in his factory he must buy it through this central board.

I have talked with members of this board and they all unite in the belief that this system will be continued after the war.

For instance, if a man in Germany wishes to buy an automobile or a pearl necklace or a case of perfumery, he will be told, "You can buy this if you can buy it in Germany. But if you have to send to America for the automobile, if you have to send to Paris for the pearls or the perfumery, you cannot buy them." In this way the gold supply of Germany will be husbanded and the people will either be prevented from making comparatively useless expenditures or compelled to spend money to benefit home industry.