An analysis showed its expenditure would indicate roughly that of a total budget in excess ot 80 billion marks somewhere between 50 billion and 60 billion marks are spent through relieving German manufacturers, railroads and public utilities, etc., of costs that would normally apply. The German Government even goes to the extent of importing a large amount of food supplies and re-selling them at a loss to the consumers.
The fact is that we have come to the opinion, rightly or wrongly, that there is a difference in the value of these coinages, and a situation under which Germany is in position of toeing able, in certain businesses at any rate, to undersell alt will.
Now, through the courtesy of a gentleman on the other side of the House, some inside information was given to me very largely corroboratory of the public information which I had been able to get. What the onlooker and the investigator, endorsed by one of the gentlemen on the other side of the House, says is this,-and I may say he was there for a long time looking into conditions, and was good enough to think the matter of sufficient importance to bring it to my notice-
German exporters have a policy under which they are represented in foreign countries by special agents.
This is one of the ways in which the mark is kept up.
These agents are informed of the lowest possible cost price at which they are to send in orders. They are then instructed to sell at the highest possible price, but under prices of competitors, sending in their orders to the German factories at the cost price, plus ten per cent, which is all the German manufacturer shows as profit. The manufacturer then divides with the agent all the excess profit over ten per cent, and the agent is generally instructed to deposit this surplus profit in a foreign bank, in many cases under a fictitious name or account to the German manufacturers' credit. This results in keeping down German manufacturers' taxation and also has an adverse effect on the exchange situation. It is evident that the Germans are not very anxious to see the present exchange situation right itself as the people are at present willing to exist on available materials in order to help their employment situation and to do everything possible in this way to hurt the interests of Allied countries.