AGEICULTTTEAL ALCOHOL IX GEEiIA27T. 15 



THE DISTILLERY AS A FACTOE OX THE MARKET. 



It is generally admitted, even by ardent advocates of the agricul- 

 tural distillerv as an economic factor, that alcohol from the numer- 

 ous agricultural distilleries costs relatively much more than the same 

 article manufactured in the larger distilleries. This conclusion is 

 the direct result not only of general observation, but also of careful 

 computations made at the Institution for Fermentation Industries 

 (Institut fiir GahrungsgeTsrerbe). This is true in a measure of even 

 the larger agricnltural distilleries. 



Even the casual visitor to the general agricultural distilleries, who 

 knows nothing of technological computations, must be impressed 

 with the correctness of this statement. Most of the estates have not 

 more than a double operation (Betrieb). whereas a working day of 

 12 hours would admit of a fourfold operation. The efficiency of the 

 plant, therefore, is but one-half what it might be. On an equipment 

 of S40.545 (170.000 marks), or even of 819.4)80 to $21.1:65 (80.000 to 

 90,000 marks), this certainly is an importxint industrial factor. 

 From the purely industrial point of view, therefore, taking into 

 account the interest on the principal involved, the depreciation of the 

 machinery but half utihzed. and the cost of labor not fully utilized, 

 the reason becomes apparent for the statement so often made, even 

 by the strongest advocates of the agricultural distillery, that the 

 distillery does not pay. It should be added, however, that whenever 

 alcohol brings a better price, as was the case during the campaign of 

 190T-8, even this aspect of the situation is regarded as more hopefuL 



However, the owners of estates would not maintain these distil- 

 leries if they did not pay in some way ; new distilleries would not be 

 built if they were regarded as losing investments, and the Govern- 

 ment would not be justified in stimulating these institutions if they 

 were not regarded as an economic factor of importance. 



TMiile. therefore, the question of the direct industrial value of 

 these agricultural distilleries is a debatable one. the question of their 

 indirect economic value does not seem to be questioned. 



The extended cultivation of the potato — extended so largely for 

 the very reason that the quantity produced over and above that 

 needed for culinary and other usual purposes can be converted into 

 alcohol — has made possible the profitable cultivation of large tracts 

 of light, sandy soil in eastern (Germany. One of the other principal 

 uses to which this soil is put is that of forestation (pine), but 

 although timber is very valuable in a way, it does not add to the food 

 resources of the country. 



Not only has the extended cultivation of the potato made larger 

 tracts of land productive, but the land already under cultivation has 

 been materially improved by the use of potatoes in the proper rota- 

 tion of crops. Thus, for example, the yield of grain is increased 



