AGRICULTURAL ALCOHOL IN GERMANY. 15 
THE DISTILLERY AS A FACTOR ON THE MARKET. 
It is generally admitted, even by ardent advocates of the agricul- 
tural distillery 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 Gihrungsgewerbe). This is true in a measure of even 
the larger agricultural 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 $40,545 (170,000 marks), or even of $19,080 to $21,465 (80,000 to 
90,000 marks), this certainly is an important 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 utilized, 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 
1907-8, 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. 
While, 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 
