In consequence of the above, the imports of manufactured goods into
Germany are, as a rule, in decline. The aggregate imports of textiles
(inclusive of yarn) stand so low as to be compensated by nearly
equal values of exports. And there is no doubt that not only the
German markets for textiles will be soon lost for other manufacturing
countries, but that German competition will be felt stronger and
stronger both in the neutral markets and those of Western Europe.
One can easily win applause from uninformed auditories by exclaiming
with more or less pathos that German produce can _never_ equal the
English! The fact is, that it competes in cheapness, and sometimes
also--where it is needed--in an equally good workmanship; and this
circumstance is due to many causes.
The “cheap labour” cause, so often alluded to in discussions about
“German competition,” which take place in this country and in France,
must be dismissed by this time, since it has been well proved by
so many recent investigations that low wages and long hours do not
necessarily mean cheap produce. Cheap labour and protection simply
mean the possibility for a number of employers to continue working
with obsolete and bad machinery; but in highly developed staple
industries, such as the cotton and the iron industries, the cheapest
produce is obtained with high wages, short hours and the best
machinery. When the number of operatives which is required for each
1000 spindles can vary from seventeen (in many Russian factories)
to three (in England), and when one weaver can look either after
twenty Northrop machine-looms, as we see it in the United States, or
after two machine-looms only, as it is the case in backward mills,
then it is evident that no reduction of wages can compensate for
that immense difference. Consequently, in the best German cotton
mills and ironworks the wages of the worker (we know it directly for
the ironworks from the above-mentioned inquiry of the British Iron
Trade Association) are not lower than they are in Great Britain. All
that can be said is, that the worker in Germany gets more for his
wages than he gets in this country--the paradise of the middleman--a
paradise which it will remain so long as it lives chiefly on imported
food produce.
Public-domain text, read in full here on John Shaqi.
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