""HC ; UC-NRLF PMMERCE BUREAU OF FOREIGN AND DOMESTIC COMMERCE B. S. CUTLER, Chlf MISCELLANEOUS SERIES- No. 61 GERMAN TRADE AND THE WAR COMMERCIAL AND INDUSTRIAL CONDITIONS IN WAR TIME AND THE FUTURE OUTLOOK CHAUNCEY DEPEW SNOW ..-. "AND--' . J, J, KRAL PRICE, 2S CENTS Sold b? the Su9e>lutenold storage increased the sales of ice machines and various appliances used in preparing and preserving food. The machine-tool industry adapted itself easily to military demands, and the output has consisted principally of war products ; in a few cases tool manufacturers have taken up the manufacture of projectiles. The manufacturers of instruments of precision have been more affected by the cutting off of the export trade than other branches of the industry. In the hardware trade the conditions have not been uniform. In many articles the Jovernment has found difficulty in equalizing its purchases between the manufacturers on the one hand and the dealers and traders on the other. Some articles of cutlery and all surgical instruments have been placed under em- GERMAN INDUSTRIES IN WAR TIME. 37 bargo. Manufacturers of household and kitchen utensils report a considerable loss in sales; there are fewer households in Germany now, r,s many households have been consolidated, and the number of marriages has decreased. There is a very heavy demand for agricultural implements, as the lack of laborers has rendered improved methods of cultivation neces- sary. In many cases the farmers are buying motor plows and other machinery, not because they really need them but simply to invest their surplus earnings. The army, too, requires large quantities of spades, shovels, and similar articles. There is also a heavy demand for pens, screws, rivets, and other small articles. The railways are spending millions for cars. The prices of all manufactures of iron are rising, owing to increase in the cost of raw material and scarcity of labor. In the lock industry the prices have gone up about 200 per cent. The manufacturers of scythes complain that they have to pay about 100 per cent more for Swedish steel, while the prices of other raw materials have increased 300 to 400 per cent. Type foundries have suffered great losses, as more than 3,000 periodicals have stopped publication. The sales of phonographs and records have decreased heavily. THE ELECTRICAL INDUSTRY. The electrical industry is concentrated in the hands of a few gigantic firms or combines which are related or have working agree- ments, so that the exploitation of foreign business is greatly facili- tated. The Allgemeine Elektrizitats-Gesellschaft, of Berlin, capi- talized at 155 million marks, has branches all over the world and also working agreements with large electrical undertakings abroad, and the other large concerns, Siemens-Halske and Siemens- Schuckert, have similar connections. In 1913 the exports of electrotechnical products from Germany were valued at $69,082,000. The chief prod- ucts exported were appliances for illumination, transmission of power, electrolysis, etc., valued at $17,623,000, and incandescent lamps chiefly metallic filament lamps valued at $11,451,000. In 1912 Germany produced 97,161,000 incandescent lamps, imported 2,294,000, and exported 58,339,000. The exports declined somewhat in 1913. The electric concerns have also worked for military needs, and the Allgemeine Electrizitats-Cresellschaft was able to increase its net profits during the first year of the war to 26,570,000 marks, as against 18,163.000 in 1913-14. The net profits for 1915-16 were 26,487,000 marks, and for 1916-17, 29,574,000 marks. The capital of the company was increased to 184 millions in 1916-17. The shares of the company were quoted at 232 at the end of 1917. The electrotechnical factory Max Schorch at Rheydt, which had been paying 8 per cent during the years 1910 to 1913, increased its dividend to 12 per cent in 1914. The factories of the company were fully employed during the war, night shifts being necessary at times. In 1915 the turnover was five times as large as in the preceding years, and the company distributed a dividend of 20 per cent with a bonus of one new share for every two old shares, thus really paying a divi- dend of 70 per cent. It was stated in the annual report, however, that the new machines installed were used almost exclusively for war work and hence were booked as expenditure. The gross profits had increased from 386,000 marks in 1914 to 3,581,000 marks in 1915. 38 GERMAH TRADE AND THE WAR. In Bavaria and Saxony steps have been taken to make the produc- tion of electric power a State monopoly. This action would seem to make impossible the institution of an imperial monopoly of elec- tricity, which has been the object of lively discussion. (See p. 129.) In December, 1917, the Government of Prussia announced its inten- tion to build a large central plant in Hanover for the production of electric current. The initial production is estimated at 50,000,000 kilowatt hours. The State is ultimately to monopolize the produc- tion of electric current, though not the distribution. The existing private and municipal works may remain in operation, and the State is to seek close cooperation with them. It is expected, however, that such works will prefer to buy the current from the State, as the State promises to produce electric power much more cheaply. New private works may not be installed, nor the existing works enlarged, without special authorization by the State, and such works will not be permitted to deliver the current outside of specified districts. Manufacturers will be permitted, however, to produce current for their own consumption. Representatives of municipal electric works are protesting against the competition of the State, but it seems that the protests will be of no avail. CHEMICALS. In normal times, from one-third to one-half of the annual pro- duction of the chemical factories, estimated at about 1,800 million marks ($428,400,000), was exported to foreign countries. The dimi- nution of exports was felt throughout the industry, although the loss was largely compensated by increased domestic orders, particularly in the second and third years of the war. When the war broke out, the companies, as the " Agfa " report shows, did not know how to em- ploy their workmen; later on they could not obtain a sufficient sup- ply of labor. The interests of the German manufacturers in hostile countries have suffered greatly from the war. The coal-tar dye manufacturers, 1 for example, have been unable to safeguard their branches in the territories of the countries at war with Germany. It has not yet been possible to estimate the losses incurred in this way. The industry contributed liberally to the manufacture of ex- plosives and other products used in the war, and performed an im- portant part in providing various substitutes for products formerly imported. Albumen, artificial camphor, fertilizers, and oils have been produced by old and new processes; the food value of various plants has been tested; pharmaceutical products prepared for use at the front. The chemical industry and trade of Germany regard the success of Germany in getting nitrogen compounds and the sulphur needed for sulphuric acid as a great achievement of the war period. The chemical industry has long been favored by the Government and liberally supported by the great banks. By various practices it has smothered competition in foreign countries, chiefly by underselling local producers, or by establishing German factories in foreign terri- tory, notably in Russia and Italy. Owing to German domination of the Russian market for drugs and chemicals, no chloroform for nar- cotic purposes, it is said, could be manufactured in Russia after the 1 See also " Dyestuff syndicate," p. 56. GERMAN INDUSTRIES IN WAR TIME. 39 outbreak of the war ; in France, according to Hauser, German com- petition had made impossible domestic manufacture of carbolic acid. During the war the industry has been strengthened further by the formation of a syndicate including all the important firms. FIRMS MAKING COAL-TAR PRODUCTS. The industry adapted itself easily to the needs of the war, and the financial results of the principal companies have been extremely satisfying to the stockholders. The Badische Anilin- und Soda- fabrik make a net profit of 19,828,870 marks in 1915 and 26,442,647 marks in 1916. In addition, unusually large sums were written off for depreciation, etc., aggregating 24 million marks for the two years. In 1916 the company placed 3 million marks in a special reserve fund, and set aside 2 million marks for the support of invalid soldiers. The shareholders received a dividend of 28 per cent. F. Bayer & Co., of Leverkusen^ increased its net profits from 20,881,880 marks in 1915 to 26,760,403 marks in 1916. The latter figure includes the surplus of the preceding year, amounting to 5,360.000, but is exclusive of the amount set aside for the war-profit tax. A dividend of 28 per cent was distributed in 1916 the same as in the years 1912 and 1913 and 5,400,000 marks placed in the reserve funds, which now amount to 33,720,000 marks. In 1915 1,000,000 and in 1916 2,000,000 marks were set aside for the support of invalid soldiers. The net profits of the Hoechst company were 15,700,390 marks in 1915 and 24,227.445 marks in 1916. More than 20 million marks were written off for the two years. The dividend was increased from 20 to 25 per cent. Each of the three corporations mentioned above is capitalized at 54 million marks. According to a recent report, the companies will increase their capital to 90 million each, so that the combined capital of the works represented in the syndicate will be nearly 400 million marks. The companies are mobilizing to withstand foreign com- petition after the war. The public has great faith in the future of the industry. Even in the first year of the war, when the dividends were somewhat lower than in peace times, the snares of the chemical companies were quoted so high that the yield of most of the shares was but slightly above the yield of the war loan, while the shares of the Badische A. S. F. and a few other companies were sold at prices yielding considerably less than the Government bonds. The shares of the Badische were quoted at 384 in July, 1914, and at 490 in December, 1916. The shares of the Hoechst company were quoted at 425 in June, 1914, and at 428 in December, 1916. POTASH. The potash interests have overlooked no opportunities for profit during the war and have made preparations for the after-war period. High prices for the securities of the potash companies have pre- vailed. In February, 1918, it was reported that the Deutsche Kali- werke (German Potash Works) Company had taken over the com- panies owning the Bernburger works, the Groena works, and the Erbprinz works and was negotiating for the control and absorption 40 GERMAN TRADE AND THE WAR. of other companies. The consolidations were undertaken in part to effect merchandising savings and in part to forestall suggested schemes of Government monopoly. 1 COAL MINING.' Immediately after the outbreak of the war the mining of coal stopped almost completely for a time. When production was re- sumed, the output was considerably smaller than in normal times, as thousands of miners had been called to the colors. Imported work- ers, women, prisoners of war, and furloughed soldiers were sern^ to the mines, and me output increased gradually until it reached nearly 75 per cent of the normal in July, 1915. The production of brown coal was about 90 per cent of the normal at the end of the first year of war, normal in the second year, and was later increased still further. The production in the first year of the war was hardly sufficient for the domestic needs, but Germany had to export coal to the neutral countries in payment for imports. Two central bureaus, one in the east and another in the west, were established to regulate the exports to neutral countries, which had been reduced 50 per cent. SHORTAGE OF LABOR AND EQUIPMENT. The production of coal is still below the output of peace times, and the mines are unable to satisfy the demand, which is very insistent, and larger than in peace time. The coal fields of Germany are exten- sive, but it is impossible to bring sufficient quantities of coal above ground. The coal deposits of the Ruhr district alone are so rich that with an annual production equaling that of 1913 the coal lying within a depth of 4,900 feet would not be mined in 700 years. At the present, however, the production is insufficient, and the available supplies have to be economized. The reduction in the output is due to three factors an insufficient number of miners and their helpers, a less- ening of the productive capacity of the labor force, and a lack of necessary equipment. The number of mine workers was increased in the summer of 1917 by the furloughing of 19,000 soldiers who are miners or mine man- agers by trade or profession. This resulted in increased production, but the output was still insufficient. In July, 1916, the average out- put per man per shift was 1.01 metric tons of coal; in April, 1917, the Langenbrahm mine, working under favorable conditions, showed an average of only 0.9 ton, and its total daily production had declined in the meantime from 1,260 to 784 tons. During the summer months of 1917 shipments were somewhat larger than previously, June being a record month for the war period. A large proportion of those shipments, however, consisted of coke which had been held in stock and could not be taken into account in estimating production, which was still far below that of peace times. In individual mines the re- duction of output amounted to as much as 50 per cent. The ship- ments during the autumn months were smaller, owing chiefly to a lack of cars. The transportation problem is unusually important for both the mines and the coal market. A hard winter, locking the river ship- 1 See also "Government monopolies," p. 128. 2 See also production statistics, p. 66, and proposed monopoly, p. 132. GERMAN INDUSTRIES IN WAR TIME. 41 ping in it's harbors, always renders the situation more acute. The winter of 1917-18 was very severe and suffering for lack of fuel was widespread. Some of the mines have their own harbors, but most of the coal, coke, and briquets is carried by railway and later shipped in part by river boats. The summer is always a dull season for trans- portation. The summer of 1917 was utilized for an early accumula- tion of supplies, the example of large dealers being followed by the public. Thus, the railways carried as much as could be shipped and yet the demand could not be satisfied. In this connection it must not be forgotten that very large quantities needed for war purposes have the preference over all other shipments. The manufacture of coke is of particular importance in connec- tion with the valuable by-products. The industries are extending their use of coke wherever it is possible, and the demand for this kind of fuel has increased considerably in consequence. Both the mines and the coke ovens are suffering from a lack of proper equip- ment, resulting frequently in a temporary stoppage of work. It is difficult and at times even impossible to replace worn-out parts with new ones, and repairs take too much time. Owing to the high prices of plant equipment and the high wages, which continue to register a steady increase, the cost of production has risen very considerably. For the Langenbrahm mine the cost of production per metric ton of coal was 8.69 marks ($2.07 at normal exchange) in July, 1916, and 16.16 marks ($3.85) in April, 1917. This led to an increase of prices, which were increased still further after August 1, when the new tax on coal went into force. Higher water freights increased the cost of transportation. At a meeting of the Rhine-Westphalia Coal Syndicate, on June 27, 1917, the rule limiting the output to 80 per cent of normal was repealed because production had not reached that figure in any of the mines. The chairman declared that the syndicate had to con- tend with unusual difficulties in order to satisfy the many demands made upon it, and that the mines must do everything possible to in- crease production. The mines had succeeded in increasing the out- put somewhat in May and June, although all the furloughed miners had not yet arrived. But even though the shipments for May and June were larger, the difference between production and the require- ments was still very great, the demand being much larger than an output which might be obtained by straining all forces to the utmost. REGULATIONS GOVERNING OUTPUT AND DISTRIBUTION. Preliminary steps were taken in June, 1917, for regulating the coal supply for the industries by imperial legislation. The imperial commissioner for the distribution of coal issued an edict requiring all individuals, firms, corporations, municipalities, and States, using more than 10 metric tons of coal per month for industrial purposes, to make detailed monthly reports of their stocks, receipts, consump- tion, quantities ordered, and quantities needed. Five equalization bureaus were established at Essen, Mannheim, Halle, Dresden, and Kattowitz, for the several industrial districts, the commissioner himself being in charge of the distribution of imported coal. It was stated in the edict that the reports would not affect the existing methods of obtaining coal but were required merely to enable the 42 GERMAN TRADE AND THE WAR. commissioner to order such changes as might appear necessary. Failure to make a report was made punishable by imprisonment not exceeding one year, or a fine not exceeding 10,000 marks, or both. The German press doubts the efficacy of the order, for even if demand and output are correctly estimated, there is transportation still to be reckoned with, and that depends on an adequate supply of railway cars and favorable conditions on the waterways. If one difficulty is solved, another frequently crops up and delays delivery. The present situation may be summarized as follows: There is no lack of underground supplies of coal^ production has decreased and will probably diminish still further rather than increase; distribu- tion suffers from difficulties of transportation; consumption has to be regulated. In some cities (Berlin) coal cards have been intro- duced, and coal is rationed. The navy is inactive; many industrial plants have shut down, and many others have shortened their work- ing hours, but the output of coal is still insufficient to satisfy the demand. Substitutes for coal have been used to the limit. Many industrial establishments have endeavored to secure their coal supply by purchasing mines, and when a mine has been placed on the market there has been lively competition for it on the part of industrial interests. OTHER MINING. Like the mining of coal, metal mining in Germany was seriously influenced by the lack of laborers and the difficulties of transporta- tion. Owing to war conditions, wasteful methods were resorted to in the mining of minettes, certain other iron ores, and the zinc ores of Upper Silesia, the size of the output being of primary consideration. In some iron mines and in one pyrites field the average yield was in- creased, but tho total production was supplemented by imports from Sweden. The ores of the rarer metals were exploited with greater intensity, high prices and technical improvements making possible the utilization of many low-grade ores. In many cases the limit of prof- itable exploitation was lowered considerably. The smelters of ferro- chrome now work up ores containing as little as 24 per cent of the oxide (Cr 2 O 3 ), whereas in former times only ores with 48 or 50 per cent of the oxide could be worked profitably. In the working of pimelite, a nickel ore, the limit of profitable exploitation was reduced from 2.5 to 1.5 per cent. The Geological Institute is reported to have succeeded in extracting nickel and cobalt from mine springs containing these metals. Bauxite containing but 40 per cent of the oxide (A1 2 O 3 ) is now utilized for the extraction of aluminum. Experiments have been made 7 ith the extraction of aluminum from clay, and hopes are enter- tained that German industries will be independent of foreign bauxite in the future. In the exploitations of wolframite the limit has been reduced from 1 to 0.06 per cent, chiefly, however, under the stimulus of high prices. For copper schist the limit has been lowered from 2.5 to 1 or even 0.7 per cent. The high prices of silver have made pos- sible the exploitation of certain abandoned silver mines. AEROPLANES. The manufacture of aeroplanes is an industry of very recent date which this war has made of great importance, the flying machines GERMAN INDUSTRIES IN WAR TIME. 43 being the "eyes of the army." The annual report of the National Flugspende for 1914-15, an official publication, enumerates 19 aero- plane factories in Germany, 10 of which have been established since 1910. In 1908 one flying machine was built in Germany; in 1909, four; in 1910, seventy-three, and in 1911, the Government ceased pub- lishing figures of production, for strategic reasons, as 99 per cent of the machines produced were intended for the use of the army and the navy. The industry has now become a war industry, and it is inter- esting to note that the official publication cited above does not furnish any data on production, although it is well linown that the aeroplane factories have increased in number and have been expanded and forced to capacity during the war. The real facts concerning this industry, as concerning the other strictly war industries, are not available ; like the munitions industry, the manufacture of aeroplanes is being discussed as a probable Government monopoly following the war. AUTOMOBILES. In 1907 Germany had 69 establishments manufacturing motor vehicles of all kinds. The factories employed 13,423 workmen and produced 3,887 automobiles, 1,264 chassis, 101 motor boats, and 1,980 motors. In 1912 there were 124 establishments employing 35,877 workmen; the aggregate production was valued at $52,741,000, as against $14,494,000 in 1907. The production in 1912 included 16,078 complete automobiles, of which 14,296, or 89 per cent, were passen- ger automobiles. During the war the manufacture of passenger ve- hicles has been sharply restricted, but the production of trucks has increased to meet the heavy demands of the army. Large profits have been made, new factories established, and works manufacturing unsalable products reconstructed for the production of automobiles. According to a recent report, an organization of automobile build- ers and officials of the war office is to be formed to renovate the vast number of cars used and partially disabled in the war, and to sell them at prices arbitrarily fixed. The prices will be low, but not so low as to interfere with the production of new vehicles. The cost of producing new cars is to be lowered by standardizing certain parts which will enter into the construction of all German-made au- tomobiles, thus in effect standardizing the entire output of all Ger- man factories. Tariff restrictions are to be kept low, in order to avoid high reciprocal duties against the German products in coun- tries where the Germans hope by their own low prices to get a foot- hold. The low cost also is relied on to protect the industry at home. MOTORS. The motor industry is also a strong war industry and has been marked by technical progress in the lines that contribute chiefly to war purposes. The six largest motor companies in Germany are the Adlerwerke at Frankfort on the Main; Benz & Co., Mannheim; Daimler Motoren-Gesellschaft, Stuttgart; the Durrkopwerke, Biele- feld ; the Fahrzeugf abrik, Eisenach ; and the Motorenfabrik, Oberur- sel, near Frankfort. The combined capital of these six factories totals 52,750,000 marks ($12,554,000). The combined net profits of these six enterprises rose from 14,063,571 marks in 1913 to 31,417,192 44 GERMAN TftADE AND THE WAR. marks in 1915, while the average dividend increased from 12.6 to 25.3 per cent in that period. The Motorenfabrik at Oberursel, which manufactures rotary motors for aeroplanes and automobile motors, paid a dividend of 35 per cent in 1915. Several of the companies have enlarged their plants since the beginning of the war. At the end of 1916 the shares of the Daimler company were quoted at 630, an increase of 300 per cent since the end of 1913. SUGAR. During the last five years of peace German exports of sugar averaged above $48,000,000 annually. In 1913 the exports were valued at $63,004,000. During the war production has been restricted and exports reduced to a minimum. On September 14, 1916, a decree of the Federal Council was published regulating the disposal of sugar manufactured during the season of 1916-17. An Imperial Sugar Equalization Company was created to collect contributions from the factories and indemnify those with high production costs, and both production and trade were placed under Government con- trol. On August 1, 1917, the exceptional railway rates for sugar in- tended for export were abolished, and the discriminating inland rates suspended for the period of the war. In justification of these meas- ures it was pointed out at the time that the area planted with sugar beets had been reduced, while the consumption of sugar for both food and industrial purposes was increasing, so that no considerable quan- tities would be left for export for some years. In case sugar were to be exported, no special rates would be needed, as the prices would surely be high, owing to a world wide scarcity of sugar and the resulting demand for the German product. The production of sugar has been estimated at 2,600,000 metric tons for the season of 1914-15; 1,500,000 tons for 1915-16; 1,600,000 for 1916-17. The production in 1917-18 is expected to reach 1,725,000 tons. The Union of German Sugar Manufacturers has petitioned the Imperial Chancellor to take steps toward a renewal or continuation of the Brussels Sugar Convention. The German sugar producers are of the opinion that the convention which abolished export premiums and regulated import duties on sugar should be continued, provided Great Britain becomes a party to it under the conditions of the original treaty of 1902. Prior to the war large quantities of German sugar were marketed in England. Since the war England has been purchasing colonial and other cane sugars, and cane sugar produc- tion in the colonies has increased largely, owing to insufficient pro- duction of beet sugar. If beet sugar is not to be driven permanently from the British market, cane and beet sugar must be accorded equal treatment in the British tariff. The adherence of Russia to the sugar convention is held desirable, provided Russia abolishes the indirect premium on sugar exports and joins on the same conditions as the other countries. Should Russia join and England refuse, then the continuation of the convention would be of no interest to Germany. As certain neutral countries are also parties to the convention, it will not be possible to provide for a continuation of the sugar convention in the treaties of peace, GERMAN INDUSTRIES IN WAR TIME. 45 but the belligerents may agree to join the convention under the old conditions. In commenting on this petition, the Berliner Tageblatt calls at- tention to the increased consumption of sugar in Germany and the probability that, owing to a scarcity of fats, the consumption may remain abnormally high for a number of years. Instead of export- ing sugar to England and buying it back in jams and marmalade, this paper says, the Germans ought to develop their own jam and marmalade industry. The earnings of the sugar factories and refineries have been highly satisfactory. The Zuckerfabrik Stuttgart paid a dividend of 25 per cent in 1915 as against 20 in the preceding year; the Eheinische Aktien-Verein fur Zuckerfabrikation in Cologne increased its divi- dend from 7 to 16 per cent; the Zuckerfabrik Frankenthal from 20 J to 30 per cent; the refinery of Tangermunde from 15 to 25, against 20 per cent in 1913. BUILDING TRADES. It is expected that in many cities and industrial centers there will be a scarcity of dwellings, particularly of small dwellings, after the war. During the transition period after the war labor and mate- rials will command high prices, and it will not be possible to borrow on mortgages at fair rates. For these reasons it can not be expected that the necessary dwellings will be built by private capital. The Imperial Ministry of the Interior has requested the governments of the federated States to consider and propose measures by means of which the construction of new dwellings may be hastened. A scarcity of small dwellings was noticeable in some industrial districts of Germany even before the war. The conditions prevail- ing in the Rhine Province and Westphalia were described as "criti- cal," and in Hanover and Schleswig-Holstein the conditions were little better. Germany needs about 200,000 new dwellings a year for its natural increase of population, and the need of new structures to replace old buildings is also large. Conditions in the building trades had been unsatisfactory during the last years of peace, and the war arrested all private building activities almost completely. The congestion of population was increased in some industrial cen- ters while in others temporary relief was brought by the war, as many women whose husbands had gone to the front gave up their dwellings for the time of the war and went to live with their parents or other relatives. But the scarcity of small dwellings was intensi- fied by the high cost of living, compelling many families, including some of the well-to-do classes whose fathers had fallen in battle, to quit their residences and seek smaller quarters. Thousands of Ger- man subjects returned from abroad and flocked to the large cities, and the cities also had to take care of refugees from the frontier dis- tricts. It is feared that the conditions will be much worse after the war, and that many cities may become the scene of riots, such as Berlin witnessed after the war of 1870-71. According to a police report of that time, there were 10,600 families without shelter in Berlin on October 1, 1871. They built themselves temporary bar- racks in the fields facing the Frankfort gate, and when the police ordered the barracks torn down and a poor cabinetmaker had been 46 GERMAN TRADE AND THE WAR. forcibly ejected from his hut a battle ensued in which 102 policemen and 158 civilians were wounded. During the war many new factories have been built, but the cessa- tion of building activities in other lines has had an unfavorable effect upon the industries supplying building materials, such as bricks, cement, window glass, sanitary wares, and builders' hardware. All ihese will have to meet an increased demand after the war. CEMENT. In times of peace Germany exported above a million tons of cement annually to all parts of the world, South America taking more than 30 per cent of the total. In 1913 the exports totaled 1,129,563 tons, valued at $8,966,000. In 1912 the exports were 1,056,- 622 tons, or 15.7 per cent of the production of that year, amounting to 39,626,548 barrels of 170 kilos (375 pounds). Cement is on the free list of the German tariff, but the imports are small 228,896 tons in 1912 and only 168,449 tons in 1913. The increasing cost of labor has been met by the manufacturers by the installation of im- proved grinding machinery and modern rotary iron ovens. The in- dustry suffers from overexpansion. The old factories had enlarged their plants, and many new works had been founded ; in three years the Rhine- Westphalian Cement Syndicate of Bochum had increased the total production quota of its members from 9,000,000 to nearly 21,000,000 bags, although there was no market for the surplus. In 1915 the member firms were permitted to work up to only 12.6 per cent of their quota ; in 1916 the proportion was raised to 16.23, but the year was still regarded as unfavorable. As the works could not be occupied to their full capacity, the cost of production went up. Coal and other materials became dearer and wages were higher, while the difficulty in obtaining the necessary labor was very great. At the beginning of 1917 all the outstanding local cement works were induced to join the Rhine- Westphalian Cement Syndicate. The cement works of northern and central Germany and Silesia formed the North German Cement Syndicate, with headquarters at Berlin, and the two syndicates were united with the South German Cement Sales Office in the German Cement Union of Berlin. The Government came to the assistance of the cement producers by an order issued June 29, 1916, forbidding the establishment of new cement works. The war administration purchases large quantities of cement at the high rate of 58 marks ($13.80) per metric ton (price ruling during the third quarter of 1917). The maximum prices for deliveries to private parties range from 60J to 65 marks, but the cessation of building activities has made these prices il- lusory. High hopes are entertained, however, for the future of the industry, and shares of sound cement concerns, though they paid no dividends in 1916, are quoted at a premium of 50 per cent. BRICKS. Nearly five-sixths of all German brickyards were closed for lack of fuel, want of labor, and car shortage. The demand for military and industrial buildings almost exhausted the small stocks, so that by GERMAN INDUSTRIES IN WAR TIME. 47 the end of 1917, the production of bricks was inadequate even for the demands of war time. In the Berlin district, according to the Deutsche Tageszeitung, only about 200 million bricks have been produced, as compared with 1,500 million in normal times. It was expected that stocks of bricks and tiles would be commandeered by the Government. GLASS. Prior to the war the German glass industry was an export indus- try. In the year 1913 glassware valued at $34,748,000 was sold in foreign markets. Since the outbreak of the war, however, the glass industry has been working under difficulties, and the very existence of some branches of the industry has been threatened. In the first months of the Avar, owing to the stoppage of exports, a majority of the giassworkers were thrown out of work. When the industry gradually recovered, thanks to the increasing demand of the military authorities and the preserved-food industries, a new menace appeared as a large number of the workers were drafted into the army. Work in the glass factories is very largely group work, and if but one mem- ber of a group is taken away it may be difficult to find a good substi- tute. When the supplies of soda were commandeered the factories had to seek substitute materials. The embargo on straw and the lack of freight cars have interfered with shipments, and now the glass in- dustry, always a large consumer of coal, has had its supply of fuel reduced to less than one-half. In order to save coal the factories are expected to consolidate, and as there are hardly any places with more than one factory, consolidation will mean a change of residence for the workers. The manufacture of plate glass has suffered greater losses by the war than the other branches of the industry. In the manufacture of window glass the turnover during the second year of the war was estimated at 65 per cent of the normal. The industry obtained army contracts and was also able to resume exportation; its selling prices had increased as much as 40 per cent during the first two years of the war. Conditions were most favorable for the manufacturers of hollow glass, as the consumption of bottles is large,, and the demand for prescription bottles and druggists' wares is increasing. The glassworks at Dusseldorf-Gerresheim, a bottle-manufacturing con- cern, distributed a dividend of 10 per cent in 1915, as against 8 per cent in 1914. The annual report of the company states that the pro- duction of bottles in 1915 was about two-thirds of the quantity pro- duced in 1913. This favorable result, the report says, was due to the employment of the Owens machines, which require but a small number of operatives. The machines were kept in constant opera- tion, while production by the less economical hand method was re- duced by about two-thirds. The Gerresheim company owns all the shares of the plate-glass factory at Reisholz, through which it is a member of the plate-glass syndicate. The glass industry was well represented at the Leipzig Fair in August of 1917, and hopes were expressed that the German factories would be able to compete with the foreign manufacturers of fine glassware after the war. 48 GERMAN TRADE AND THE WAR. PAPER. Owing to the exigencies of war, the German pulp and paper indus- try has become largely a war industry. At the last annual meeting of the Union of German Paper Manufacturers (June 13, 1917) the claim was made that the paper industry was of equal importance, for war purposes, with the machinery industry and the chemical industries. Pulp is used in the manufacture of munitions, paper is spun and woven into cloth, and the demands of the war administra- tion for both products are steadily increasing. As a result, the supplies available for ordinary uses are smaller, and the prices are high. More wood is being cut in the forests of Germany, wood is imported from Poland, and cellulose from Sweden, and hop vines and other substitute materials are used for the manufacture of paper. During the year 1915, the stock companies in the industry reported a deficit in the revenue from operation of 1.770,418 marks; in 1916, however, 45 companies registered a net profit of 17,279,526 marks, so that the average dividend of 7.4 per cent was about equal to the average for 1911. Newspaper publishers, on the other hand, are protesting against the intolerable rise in the cost of production. The Tagliche Rund- schau quotes the following increases: Wages, 25 per cent; paper, 100 to 300 ; light and. power, 150 to 200 ; metals for machine typeset- ting, type foundry, stereotyping, and electrotyping, over 300 ; print- er's rollers, over 200; inks, 100 to 250; printer's varnish substitutes, 500; lubricating oils, 400 to 600; cleaning waste, 100 to 150; adhe- sives, 300 to 500; soap, 800; thread, wire, etc., 200 to 300; packing materials, 260 to 500 per cent. And the prices are rising; even the inferior substitutes are becoming dearer. The paper manufacturers assert, however, that the publishers of daily papers, whether large or small, have made good profits. The distribution of the available supplies of paper is regulated by an Imperial Commission in the Ministry of the Interior. The prin- cipal task of the commission is to secure sufficient supplies for the military and civil authorities, and preach economy to private con- sumers. LEATHER. The leather industry was among the industries which profited most from the enormous military orders. The most important factories were well stocked with raw material at the beginning of the war. One leather company at Strassburg is said to have had over $3,000.000 worth of skins on hand when war was declared. Exportation of hides and skins was forbidden, and, in spite of difficulties, consider- able quantities of skins were imported. The leather factories worked at high pressure and at very favorable prices, making army equip- ment, harness, saddles, helmets, knapsacks, and the like. Manufac- turers of fancy leather goods, however, suffered by the loss of a large portion of their export trade. In some cases plants were turned over wholly or in part to saddlery and other military supplies. As a re- sult the production of other leather goods was insufficient to satisfy the demand. Although a central official purchasing department was early created for the purpose of controlling the supply and price of GERMAN INDUSTRIES IN WAR TIME. 49 hides and skins, speculation was not entirely eliminated, and prices rose sharply. Under the supervision of the military authorities, two organiza- tions were formed for the distribution of hides. The various branches of the leather industry have been organized into five groups, the wholesale dealers forming a sixth group. The former place their material at the disposal of the German Raw Hide Co., which turns it over to the War Leather Co. (Kriegsleder A. G.). By this arrange- ment a considerable saving in freightage is effected. The finished hides are delivered through the groups of the respective States. Small quantities of light upper leathers were exported during the first year of the war. TOYS. The toy industry was one of the important export industries of Germany, supplying the needs of a large part of the world market in times of peace. At least 100,000 persons were employed in the manufacture of toys, the Nuremberg and Sonneberg districts each employing about 30,000 operatives. The annual production was estimated at about $33,000,000. The exports in 1913 were valued at $24,594,000. The United States was Germany's best customer, taking nearly one-third of the total exports; the United Kingdom was second, taking one-fourth of the total. Less than 5 per cent went to Germany's present allies, and a little over 7 per cent to the Scandi- navian countries, the Netherlands, and Switzerland. The industry suffered heavily by the war. The over-sea markets were closed, the exports to neutral countries declined, and the best that the report of the Sonneberg Chamber of Commerce could say about domestic trade w r as that it was " almost normal." In Sonneberg a company was formed to assist the destitute toy makers and small dealers by em- ploying them in war trades. The toy manufacturers have formed a syndicate under the title of " Verband der deutschen Spielwaren- Tndustrie," with headquarters at Berlin. Various means to improve the situation of the toy industry have been discussed, and the sug- gestion has been made that a special " day of gifts " be established, a children's day to be celebrated in the same fashion as Santa Claus day in midsummer, however. The toy industry was well repre- sented at the last Leipzig Fair, but clothing for the dolls was lack- ing. The industry will unquestionably have much more severe competition after the war than ever before. FURNITURE. By the end of 1917 a serious shortage of furniture was reported in Germany, as a result of conversion of factories to war uses, short- age of materials, and inadequate labor supply. Secondhand clothing having fallen under Government supervision, secondhand furniture became a popular line for profiteering among the small dealers. TEXTILES. 1 As the German textile manufacturing had been largely for export markets, the stocks of raw, in-process, and finished goods for foreign 1 See also textile fibers, pp. 69-71 and 80-82, and p. 139. 43339 18 4 50 GERMAN TRADE AND THE WAR. trade became available for domestic use and helped to relieve the serious crisis in the textile trades caused by the stoppage of imports of raw materials from abroad. The Government nevertheless found it necessary to adopt various measures for conserving the stocks of both the raw materials and the manufactured products of the textile industries in order to insure a sufficient supply for naval and military needs, and by these measures the textile industries were by degrees brought under complete Government control. The shortage of raw materials did not reach proportions calculated to cause anxiety till about the middle of 1915. As regards the cotton industry in particular, a writer in the Frankfurter Zeitung of Jan- uary 11, 1917, stated that " when the war broke out there was no real shortage of raw materials, * * * large quantities of cotton con- tinued to enter the country, and army orders were so extensive that for a long period the mills worked overtime." With the tightening of the blockade the situation changed, and by an order dated August 12, 1915, the Federal Council limited the num- ber of workdays per week in textile factories to a maximum of five, while the daily working time was not to exceed the average daily hours worked in June, 1915, but in no case 10 hours. The factories affected by this order were those making articles of cotton, wool, shoddy, flax, hemp, and jute. A special inquiry made early in 1916 showed that the majority of textile factories were working much shorter time than the permissible maximum, and that the factories not adapted for army work (embroidery, machine knitting, velvet) were almost at a standstill. A series of orders and decrees followed, and the distribution of all stocks of textile materials was brought under State control. Under the national civilian service law steps have been taken for the compulsory closing down of all except the largest factories in the textile trades and for the compulsory consoli- dation of the latter. Flax is now grown on a larger scale in Germany, but the other customary textile materials are scarce, and the mills that are work- ing are using largely substitute materials, about a hundred of which have been tested. MILLS DEPEND ON SUBSTITUTE MATERIALS. The conditions prevailing in the textile industries on the lower Rhine during the third quarter of 1917 were described by a corre- spondent of the Frankfurter Zeitung (Sept. 12, 1917) as satisfac- tory. The spinning and weaving mills as well as the related indus- tries, the writer said, were able to keep a large proportion of their machines going. The increased production of substitute materials has opened new fields of activity to the textile industries; the new articles have been received favorably by the public and have found a ready sale. During the report period trading in cotton yarns was comparatively brisk, although hardly any yarn of pure cotton was to be had; large sales of mixed or imitation cotton yarns were made, however. Prices were increased again on July 25. Trade in paper yarns was good, the demand for the finer sorts being particularly strong. Additional firms are constantly taking up the manufacture of paper yarns, but the demand continues greater than the supply. For the coarser yarns maximum prices have been established ; the de- GERMAN INDUSTRIES IN WAR TIME. 51 mand was great in the spring, but slackened during the summer. Spin- ners of worsted yarns found it possible again to operate some of their machines by resorting to substitute materials. The manufacture of fine paper yarns has led to many changes and will employ the mills for many months. The situation of mills spinning mungp and shoddy was satisfac- tory throughout. The demand for substitute yarns of cotton waste, artificial cotton, and shoddy was so great that a majority of the spin- dles could be kept going. Imported rags were the chief raw material for a small quantity of yarns sold for private account. Trade in flax and tow yarns was dull. Orders could not be accepted until after the central bureau for linen yarns had taken over all production. Nettle cloth was made on army orders only, and a majority of the weaving mills took up the manufacture of cloth from paper and other substitute materials, with good results. Mills weaving cloth for band- ages had better sales after they had ..begun manufacturing paper cloth. Weavers of white and colored stuffs are still working chiefly for the army. All kinds of substitutes are used as raw material, but paper is the most important. Weaving mills which formerly manu- factured cotton suitings are now making paper cloth for sacks, tents, and workingmen's clothes. Weavers of buckskin, worsted, and cheviot fabrics have been busy. Orders for semiwoolen blankets and substi- tute cloths have enabled the mills to keep a large proportion of their looms in operation. These mills, too, are now manufacturing paper cloth on a large scale, which is a guaranty of future employment. The shortage of commodities, the lack of imports from other coun- tries, and the rise in wages have brought about an enormous increase in the prices of yarns and fabrics. According to Der Konfektionar of September 22, 1917, the cost of many articles has also increased as a result of speculation. People have become used to high prices, and buying proceeds, the point of view being that they can hardly become lower, and it is considered preferable to buy on the spot rather than wait with a false hope that they will be reduced. Pure worsted yarn, which formerly sold for 3 to 3.50 marks, is now quoted at 40 to 50 marks ; semiwoolen fabrics, formerly sold for 1.60 to 2.50 marks, are now selling for 24 to 27 marks; the price of a dozen cotton stockings has risen from 3 to 48 marks ; a handkerchief that formerly could be had for 8 pfennigs is now priced at 1.25 marks, and so on. JUTE MANUFACTURE SUSPENDED. The jute industry has been completely paralyzed by the war. The stocks on hand at the beginning of the war were exhausted in a few months, and as it was impossible to obtain new supplies from abroad, the mills were compelled to shut down or take up the manufacture of mixed or paper yarns and fabrics. The situation of the industry may be illustrated by the report of the Suddeutsche Juteindustrie, Mannheim- Waldhof, for the financial year ending June 30, 1915. In the preceding year, the last year of peace, the firm had manufac- tured 15,714,000 pounds of yarn and 14,206,000 yards of cloth. Fig- ures of production for 1915 have not been published. In the first months of the fiscal year 1915 the company had succeeded in obtain- ing small quantities of jute at high prices; when the visible stocks 52 GEEMAN TRADE AND THE WAR. or jute had been commandeered, the company received a small allot- ment, and with these and some substitute materials the mills were kept in operation until November, 1914. Production decreased steadily after that, owing to lack of raw materials and loss of oper- atives who had been called to the colors. All the mills of the com- pany suspended operation about the middle of May, 1915. The workmen found employment partly in other industries, partly in agriculture. "A resumption of operations before the conclusion of peace appears to be impossible," concludes the report. The company, capitalized at $1,130,000, had paid a dividend of 9 per cent for the fiscal year 1913, 4 per cent in 1914, and 6 per cent in 1915. USE OF PAPER AS SUBSTITUTE FOR TEXTILE FIBERS. Jute and hemp have been replaced largely by paper products, and paper yarn later began replacing other textiles also, both in old es- tablished factories and in new mills connected with them. Strip- cutting machines, which are made almost exclusively in Darmstadt and Dusseldorf and are in great demand, cut up the paper roll, which is specially impregnated to prevent tearing. The strips or " slivers " are spun on specially constructed paper-spinning machines, but also in many cases on existing textile machinery, jute machines being bet- ter adapted for that purpose than flax or cotton machines. At first a mixed material exclusively was manufactured, but is now more and more replaced by pure paper, because the remaining stocks of vege- table fibers are also required for other military purposes. In the mixed processes the paper ribbon is spun together with cotton waste into " textilose, " according to the method of Claviez-Adorf , or with flax and jute waste into " textilit, " a method invented by the Aus- trian Steinbrecher. There is also mixed woven material where the warp is of paper thread and the weft of fiber thread or vice versa. The paper yarn and fabric industry has undergone an unexpected development. Many spinning and weaving mills which, with their former output, could only keep a small portion of their works going, have taken up the manufacture of paper yarn and fabrics. Accord- ing to the Boersen-Zeitung, 66 million pounds of paper yarn were manufactured in 1916, and the paper-spinning mills employed nearly 16,000 operatives. The manufactures of paper yarn include cordage, belting, tent and sail canvas, sacks, tapestry, carpets, workmen's clothing, aprons, sporting attire, and surgical bandages. CLOTHING. The manufacture of clothing and the trade in clothing is under Government control. The war had been in progress a little more than a year when a shortage of clothing began to make itself felt among the civilian population. By a military order issued Febru- ary 1, 1916, a great part of the clothing industry was placed under State control and stocks were requisitioned at prices fixed, in case of dispute, by an Imperial Arbitration Office. Beside clothing suit- able for the army, navy, civil service, or prisoners of war, the requisi- tions involved blankets, bedding, household linen, handkerchiefs, etc. The issue of uniforms to many railway employees was at the same time stopped. An appeal was made to the patriotism of German GEKMAN INDUSTKIES IN WAR TIME. 53 women to maintain a simplicity of dress "more in keeping with the seriousness of the times." A maximum length was prescribed for material to be employed in making each article of dress for women and children. By an order of the Federal Council, dated June 10, 1916, clothing was added to the large list of articles subject to rationing, and a system of clothing cards (purchase permits) was introduced. No standard of consumption was prescribed, but the local authorities were enjoined to grant permits for as much clothing only as might be considered a minimum for each class of population. As a rule, people were not to be permitted to go beyond 20 per cent of their normal requirements. Wealthy people were to be directed to pur- chase articles of luxury which had not been placed under embargo rather than goods that were in general demand. A census of the country's clothing supplies, taken in the autumn of 1916, showed that still greater economy would have to be enforced, and a long list of additional articles was brought under the card sys- tem. By an order of December 23, 1916, private trading in second- hand clothing, linen, and footwear was forbidden and the old-clothes business transferred to the local authorities. Secondhand clothing could only be sold by these authorities under permit. In February, 1917, there was fresh evidence of the progressive exhaustion of the stocks of clothing materials and clothing in Germany. Purchase permits for underwear and stockings were obtainable only with great difficulty, not more than two pairs of stockings being allowed to any one person in three months. The wealthy were appealed to officially through the press to deliver up every article of clothing and footwear which they could spare. GOVERNMENT REQUISITION OF CLOTHING. By an order dated March 22, 1917, a general requisition of clothing and clothing materials for civilian use was instituted. On April 2 a series of drastic regulations prescribed the absolute maximum of wearing apparel for men, women, and children, and the local author- ities were prohibited from issuing purchase permits to any one al- ready in possession of the authorized maximum. New regulations were issued prescribing in minute detail the amount of material that might be used in any garment or article of household linen; and proprietors of hotels were warned that they could not be allowed to purchase additional supplies of bed and table linen. In May, 1917, the public was officially enjoined to use paper fabrics for shrouds, while the use of shoes and stockings for burials was forbidden. At the same time the Government started relief measures on a large scale by the issue of standard clothing to the poor. By an order of July 23, 1917, one-third of the stocks of secondhand clothing collected by the municipal authorities was requisitioned for the men discharged from the army or navy. According to the British Labour Gazette, September, 1917, it would seem that much of the clothing now worn throughout Germany, in- cluding military uniforms, is made from materials diluted in varying degrees with substitutes such as paper yarns and cellulose, the warmth and wearing properties of which are doubtful as compared with materials spun, woven, or knitted wholly from wool and cotton. 54 GERMAN TRADE AND THE WAR. The central bureau charged with the task of supplying the needs of the people in textile materials, clothing, and footwear, is the Im- perial Clothing Office (Reichsbekleidungsstelle), a self-supporting institution with a capital of 16 million marks. The available goods are stored in 36 large warehouses, divided into lots, and distributed to the consumers. The communes are required to take an inventory of the available clothing and footwear on the first day of each month and report to the Imperial Clothing Office within five days. Clothing is so scarce that scarecrows have disappeared from the fields, and even the linen on which old maps were mounted is now used for linings. V. GERMAN CARTELS IN WAR TIME. CHANGES MADE NECESSARY BY WAR. A number of new industrial combinations or cartels have been formed in Germany during the war. In form of organization they follow the old established models; in objects and purposes the new cartels are somewhat different. These war combinations represent a new phase in the evolution of the cartel. The first German syndicates were formed for the purpose of regu- lating production and stabilizing prices in the home market. The syndicate of tin-plate producers of 1862, the cartel of rail manufac- turers of 1863, the salt-works combination of 1868, and the first pot- ash syndicate of 1870 were of that character. The German indus- tries of those times were not exporting industries, and the cartels were formed for mutual protection against unrestrained competi- tion, most of them being, as Riesser says, "the children of neces- sity." The war of 1870-71 was followed by unusual industrial ex- pansion and overproduction resulting in the crisis of 1873. Numer- ous factories had to be closed, and fierce competition ensued among the survivors, prices in many cases being reduced below the cost of production. Thousands of workmen were thrown out of employ- ment, and wages decreased nearly 50 per cent. Even the low prices, however, failed to increase consumption. In 1876-77 the coal syndicate for the first time reduced its produc- tion 10 per cent. Other industries gradually replaced competition by more profitable price agreements. A protective tariff was intro- duced in 1879 to check foreign competition. In the period between 1880 and 1885 numerous syndicates were established, some with defi- nite export policies. The German factories equipped for production surpassing the domestic needs were obliged to seek foreign markets to dispose of the surplus. They might be forced to sell abroad at lower prices than at home, but compensation for the resulting loss of profits was found in the economy of production, as the mills were enabled to run without interruption and were employed to their full capacity. The stronger cartels, having the home market as- sured to themselves, regulated export prices according to the exi- gencies of each individual case, reducing prices to meet foreign com- petition and even paying bounties to exporting member firms. This second phase in the evolution of the cartel may be said to have ended with the outbreak of the war. The war, of course, brought about new conditions. Exportation to enemy countries heretofore the best customers of Germany was stopped, while coal and iron, the chief articles of export to neutral countries, were needed largely at home. It became necessary to husband all resources, and this necessity led to the formation of new syndicates. Fears were entertained that free operation of the various mills and factories would require excessive quantities of 55 56 GERMAN TEADE AND THE WAR. coal and lead to waste and premature exhaustion of the meager stocks of important raw materials. Thus, a definite plan of consoli- dation of glass factories in order to save coal w r as announced in August, 1917. In some cases the new syndicates have been formed voluntarily, in other cases under compulsion. Many protests have been raised against compulsory combinations as destructive of in- dustrial autonomy; in some cases counter organizations have been formed, as, for example, in the leather industry, where 29 manu- facturers united to fight the proposed compulsory syndication. It does not appear, however, that the Ministry of the Interior or the military commanders paid any attention to the protests. BAR-IRON SYNDICATE. The Bar-Iron Syndicate is one of the most important of the new combinations. During the last decade several fruitless attempts have been made to organize the manufacturers of bar iron, and it is due only to the " gravity of the time" (Stahl und Eisen, July 19, 1917) that the syndicate has at last been formed. The syndicate forms a part of the old Steel Syndicate. A central selling agency was considered impracticable, as it would have required elaborate arrangements and a large staff of trained officials. Instead, a pro- vision was written into the agreement making sales of syndicate products subject to the syndicate's approval. In accepting orders or making new contracts the member firms are obliged to inform the customer that the contract is not to be considered binding until approved by the syndicate. This provision, abrogating the inde- pendence of the members, delayed the formation of the syndicate. The preliminary agreement had been signed on July 13, 1917, but a number of large firms refused to join. By the middle of August, however, all the important producers, with the sole exception of the Sachsische Gussstahlwerke, had signed the syndicate agreement, and the agreement went into effect on September 1. The syndicate announced its policy to regulate production, sales, and the prices of bar and hoop iron and take special care of war orders. The agreement makes it a particular duty of the members to do everything in their power to supply the imperial and the state authorities with the needed quantities of bar iron a duty which it has been difficult enough to fulfill heretofore. DYESTUFF SYNDICATE. The combination of German dyestuff interests, effected in 1915, and in operation since January 1, 1916, is of special importance to Amer- icans, because it means a formidable competitor for our new dye in- dustry in every foreign field, as well as in our own domestic market. To a less extent it also portends future competition to the other chemical industries in foreign countries which have prospered during the war, as the syndicated German concerns are also producers of pharmaceutical and other chemicals. For 30 years the coal-tar dye industry of Germany has been dominated by five large establish- ments, veritable industrial giants, supplying about nine-tenths of the amounts required for domestic and a large part of the foreign consumption. The five are: Die Badische Anilin- und Sodafabrik, GERMAN CARTELS IN WAR TIME. 57 Aktiengesellschaft, Mannheim-Ludwigshaf en ; Farbenfabriken vorm. Friedrich Bayer & Co., Aktiengesellschaft, Elberf eld Leverkusen ; Farbwerke vorm. Meister, Lucius & Bruening, Aktiengesellschaft, Hoechst; Leopold Cassella & Co., G. m. b. H., Frankfort; Aktien- gesellschaft fur Anilinfabrikation (briefly, "Agfa"), Berlin. The power of these five establishments within the industry is over- whelming. Smaller works dating from the early years of the in- dustry have survived, it is true, but no new coal-tar dye factories can be established in Germany ; the " big five " crush all competition. In 1904 the Badische and the Bayer companies united for common protection against combinations of their suppliers as well as their customers ; a short time later the "Agfa " was invited to join. The three companies formed a syndicate, commonly known as the "Ani- line Concern," for mutual protection, Chough retaining their own in- dependent organizations. The agreement was to remain in force for 50 years. Important questions common to or concerning all three were to be passed upon by a board of delegates. At the end of the year the profits were to be ascertained on a uniform basis of account- ing and the earnings distributed according to an agreed scale. While the syndicate was not a legal person, its members were jointly interested in various concerns and established a common branch factory in England. In the same year (1904) another combination, though much less close, was formed, when a "com- munity of interests " was established between the Hoechst corpora- tion and the firm of Leopold Cassella & Co., which was subsequently reorganized as a limited-liability company. The Moscow and Riga branches of the two companies were also parties to the agreement, and in 1907 the smaller company of Kalle & Co., of Biebrich, was received into the syndicate without a change in its management. The objects of the syndicate were stated to be: Protection against competitors, joint purchase of raw materials, interchange of prod- ucts, mutual support in matters relating to patents and licenses, and the establishment of branch factories abroad. The community of interests was maintained also by interlocking directorates. The two syndicates have accomplished their objects. By their formation the number of competing units in the industry was re- duced to two, for in comparison with them the other producers are of little importance. By making joint purchases the syndicates suc- ceeded in forcing down the prices of raw materials, thus reducing the cost of production. A great saving of time and money was made through an interchange of experiences acquired both in the techni- cal field and in trade, in the manufacturing methods, and in the search for and treatment of customers. In two years the Hoechst syndicate is reported to have reduced its expenditure for traveling salesmen and advertising by one-half. Of chief importance, how- ever, was the restriction of competition abroad, for the syndicates were exporting about five-sixths of their production, the value of the exports of coal-tar dyes alone being well in excess of $50,000,000 in 1913. The two groups have now been combined into one syndicate, which includes also two smaller concerns, the Chemische Fabrik Griesheim- Elektron and the Chemische Fabrik vorm. Weiler-ter Meer, of Uerdingen, the latter being a consolidation of three firms. The syndicate agreement is to be binding for 50 years, beginning Janu- 58 GERMAN TRADE AND THE WAR. ary 1, 1916. The separate organization of production of each con- cern is to be retained; risks in business with foreign countries are to be jointly and proportionately carried by all members of the syndicate ; profits are to be distributed according to an agreed scale. Arrangements have been made for a mutual exchange of informa- tion as to factory methods and other matters tending to reduce the cost of manufacture and otherwise strengthen the industry as a whole. The rapid growth of the American dye industry during the war has been given serious attention by the German concerns that for- merly controlled our market, and has doubtless been one of the fac- tors which have hastened the union of the former rivals. The heavy losses due to interruption of business in hostile countries, the large outstanding accounts and property interests in those countries, and the efforts of other countries to establish the dye industry on a large scale, have been the other important factors. SILK SYNDICATE. The formation of a syndicate in the silk industry was announced in August, 1917. Owing to the partial stoppage of imports there is a dearth of raw silk in the country, and the Government has under- taken to regulate its consumption. A commission has been appointed to investigate the industry and decide for what specific purposes raw silk may henceforth be employed. It is expected that most of the silk factories will be forced to close. The manufacturers have been invited to join the syndicate voluntarily, those who may be forced to close their establishments being promised an indemnity payable after the war. Very little willingness to join was in evidence at first and it was reported that the Government might be obliged to resort to compulsion. That process, according to a correspondent of the Frankfurter Zeitung, is quite simple. A representative of the Min- istry of the Interior calls a confidential meeting of a few manufac- turers and informs them of the Government's wishes; a plan is dis- cussed and agreed on, and other manufacturers are then invited to join. The latter face an accomplished fact and usually do join to avoid the Government's displeasure and its consequences. TEXTILE SYNDICATES. During the war a number of new syndicates have been formed in the textile industries. The manufacturers of ribbons, braids, and trimmings in general, in the Barm en-Elberf eld industrial district, have formed a close syndicate in order to safeguard the interests of the industry threatened by the general economic conditions and by the whims of fashion. The Saxon mills, heretofore dangerous com- petitors of the Barmen firms, have joined the new syndicate on conditions which have not been made public. Another important syndicate has been formed in the knitting industry. The wholesale dealers in knit goods also have combined for the protection of their interests after the war. The cartel of plate glass factories, known as the Verein deutscher Spiegelglasfabriken, formerly dominated by Belgian and French capitalists, has been placed under Government supervision, and its GERMAN CARTELS IF WAR TIME. 59 control has passed into German hands. The syndicate has made peace with its principal competitor, the Gerresheimer Glashiitten- werke. War economy naturally favors the creation of syndicates both local and national. The distribution of commandeered raw mate- rials, the assignment of production quotas, and the carrying out of various economic measures are often placed by the military au- tlforities in the hands of existing associations of manufacturers, which are thus enabled to extend their control over nonmember firms also. In order to carry out its tasks economically, speedily, and with the best results obtainable, the central authority in this case the directors of the association must know the working conditions, the equipment, and the productive capacity of the several mills. Nonmember firms are thus compelled to furnish information which they would never give in times of peace and are indirectly forced to enter the combine. The organizations will probably be continued after the war. TOOL AND IMPLEMENT SYNDICATE. On the initiative of the Arms and Ammunition Bureau at Berlin, the manufacturers of implements and tools have formed seven com- binations with headquarters at Remscheid and Solingen. Manufac- turers of files, cutlery, saws, and machine knives, parts of agricultural machines, sheet steel, small and large implements and tools, etc., are represented in the seven groups which, in turn, are united in a syndi- cate known as Werkzeug- und Stahlkontor Remscheid, constituted as a limited-liability company. The objects of the syndicate are said to be to ascertain the quantities of raw materials needed by the in- dividual members, make a proportionate distribution of the raw materials available, investigate the productive capacity of the several mills, and, in connection with large orders, insist on improvements in the quality of the product. PROLONGATION OF OTHER SYNDICATES. The war created many opportunities for large profits in the do- mestic market, which in turn led to the renewal or prolongation of many syndicates which, in times of peace, might have been suffered to lapse or would have been renewed only with difficulties. These opportunities have resulted also in the formation of new syndicates which can not properly be said to be " children of necessity." The Zinc Syndicate, for example, has been extended until March 31, 1918; the North German Car Works Union until January 1, 1918. The Brown Coal Syndicate of Central Germany, which had been dis- solved in April, 1913, and could not be renewed in peace times, was renewed in 1915, came to an understanding with the two syndicates controlling the production of brown coal in Upper Lusatia and in the Rhine Province, and immediately raised the prices of industrial coal. COAL, SYNDICATE. The Rhine-Westphalian Coal Syndicate was renewed under duress in October, 1916. The Government had threatened to establish a 60 GERMAN TRADE AND THE WAR. compulsory syndicate if the agreement were not renewed before January 1, 1917. The new agreement was concluded for five years, to date from April 1, 1917. All the producing coal mines of the Rhine-Westphalian district are represented in the syndicate, includ- ing the Westphalian mines owned by the State of Prussia, the State being a party to the agreement. The coal trade has been placed on a uniform basis through the organization of new coal trade associa- tions in districts where the trading heretofore has been free. There are now 15 such associations in the Empire. STEEL SYNDICATE. The Steel Syndicate agreement was extended for the period of 18 months to December 31, 1918. New allotment figures, in force on July 1, 1917, have been published. They indicate a total produc- tion of 5,968,843 tons, as against 6,600,000 tons in peace time, the reduction being due to the elimination of two large establishments, one of which (Wendel & Cie.), abandoned by its French owners, is now in process of liquidation, while the other (Rhodingen), located in Luxemburg, has been shut down. Twenty-three companies and groups are now represented in the syndicate. COMPULSORY SYNDICATION. BOOT AND SHOE SYNDICATE. The first industry combined and centralized in a compulsory syn- dicate was the manufacture of boots and shoes. The syndicate was formed under a decree of the Federal Council issued on March 17, 1917. The central authority is a supervisory committee (Ueberwa- chungsausschuss) of the boot and shoe industry, the members of which are appointed by the Imperial Chancellor. A representative of the Chancellor attends its meetings in an advisory capacity and may suspend its decisions for review by the Chancellor, who must be kept informed of all important events. The supervisory committee is kept in touch with the views of the trade and the public by an advisory committee of seven members, selected from the trade and the consumers by the Chancellor. It is a legal person. The supervisory committee determines in individual cases whether a firm comes within the rules requiring membership in the syndicate, and what shares are to be taken by each firm ; exercises supervision over the companies, appoints and dismisses their managing directors ; determines the kind and quantity of footwear to be produced by each member; prescribes the principles governing the purchase prices of the companies ; the conditions and prices of sale, and of the distribu- tion of profits; examines and approves their balance sheets; dis- tributes raw materials as well as army and navy contracts. Any dis- posal made by individual firms of materials supplied by the com- mittee, or goods made therefrom, is legally invalid, if the permission of the committee has not been obtained. The committee may requisi- tion for a syndicate company the plant, materials, and finished goods of any manufacturer of footwear. The committee administers an equalization fund ( Ausgleichskasse) , raised by contributions from the companies, from which indemnities are to be paid to those com- GERMAN CARTELS IN WAR TIME. 61 panies whose dividends, when compared with the turnover of the members for the year ending June 30, 1914, are in consequence of its measures less favorable than the average for all the companies. The expenses of the supervisory committee are met by a levy upon the companies. FEDERAL CONTROL OF ALL FOOTWEAR MANUFACTURE. The individual firms were compulsorily combined to form com- panies under the title of "Footwear manufacture and sale com- panies," with a capital of 100,000 marks each. Areas were deter- mined by the Chancellor, for each of which a company was formed to include all the firms in the area. Eighteen such companies have been formed, and their combined areas of operations appear to cover the whole Empire. The companies are to enforce the orders of the supervisory committee upon the individual firms, and to conduct the greater part of the wholesale trade in" footwear. The individual firms must manufacture footwear as required by the supervisory committee, which determines finally their share in manufacture. They must obey the requirements of their company in the manufacture of footwear for sale, being answerable to it for good workmanship, etc., and, subject to an appeal for arbitration, they must sell their output to it at prices fixed by the board of directors in the manner prescribed by the supervisory committee. Two-tenths of 1 per cent of the monthly output of each firm (at least one pair) is released from this obligation. It is a criminal offense for the mem- bers of the company to manufacture footwear except by permission of the supervisory committee, or to destroy or otherwise use contrary to its instructions materials obtained from or through it. The output is sold by and for account of the company, in the manner and at prices prescribed by the supervisory committee. Disputes between a company and its shareholder firms or its customers as to delivery of goods are arbitrable before a special standing board appointed for the district by the State government. A company may enforce in the ordinary courts claims for damages against its members arising out of their default. The dividends of the companies, including profits from military contracts and indemnities (if any) from the equalization fund, will, it is stated, be distributed among their members in proportion to their production for the year ended June 30, 1914, irrespective of whether or not they are actually at work. For this reason dues must be paid to the company for plant, land, and buildings used otherwise than in the service of the company. For the protection of firms shut down, footwear sold through the companies must not bear any name or trade-mark. Compulsory syndication of the boot and shoe industry was soon followed by the compulsory syndication of the trade in footwear, by a decree of the Federal Council issued on July 26, 191 1. The organ- ization was similar to that created for the manufacturing industry. Dealers were ccmpulsorily formed into companies for the distribution of new footwear, particularly the output of the syndicate and im- ported footwear; retailers dealt only with those distributing com- panies of which they were members. 62 GERMAN TRADE AND THE WAR. According to a report in the Frankfurter Zeitung for January 28, 1918, the Government was contemplating a further centralization of the trade by closing about three-fourths of the shoe stores in the country. Under the syndicate arrangement the footwear manu- factured, amounting to about one-third of normal peace-time pro- duction, is distributed among 35,000 dealers in proportion to their peace-time turnover. The result is that some dealers receive only a few pairs a month, some receive only slippers, some only small sizes, others only large sizes, and a customer has to make the rounds of a large number of stores before he can be fitted. The Government now proposes to close all stores whose annual orders amounted to less than 15,000 marks before the war. That would mean the closing of 25,000 to 27,000 small stores which would probably never reopen. Hence the dealers are protesting vigorously against the Govern- ment's plan, although it is proposed to indemnify the sufferers to the extent of 10 per cent of their annual turnover. The small dealers are generally artisans to whom the moderate profits of the shoe trade represent a welcome addition in income. OPPOSITION TO LEATHER SYNDICATION. A determined fight against compulsory syndication was made by the leather industry. Representatives of the sole-leather industry were in favor of syndication at first, but joined the ranks of the op- ponents when they saw the disastrous effects of compulsory syndi- cation on the smaller establishments of the boot and shoe industry and the soap industry. At a meeting of a committee of the Central Union of the German Leather Industry, held at Berlin during the first week of September, 1917, a protest was made against both com- pulsory syndication and concentration of the industry. The question of concentration, which would make necessary the closing of smaller establishments, is of particular importance for the tanneries. It was pointed out at the meeting that the smaller and the medium- sized establishments had a large part of their capital invested in the tanning pits, which must be kept going ; stoppage of operations would mean an irreparable loss. The difficulties cauLed by the special cir- cumstances of the industry were finally recognized by the Govern- ment, and the proposed forced centralization was postponed for three months. SOAP SYNDICATE. The compulsory syndicate of the soap industry was established by a decree of the Federal Council issued on June 9, 1917, and an order of the Chancellor issued on the same date. The average price of ordinary laundry soap in Germany before the war was 7 to 8 cents per pound. In June, 1916, the prices ranged from 47 to 83 cents. The retail price of domestic toilet soap had been 2.4 to 11. 9 cents per cake ; in two years of the war the prices had increased 200 to 400 per cent. German soap manufacturers have succeeded in producing small quantities of raw materials during the war, but there is an in- creasing dearth of such materials for the manufacture of soap. These materials include especially tallow, fats, vegetable oils, and rosin. GEEMAN CAETELS IN WAE TIME. 63 Statistics of German imports show that 26,824 metric tons of beef and sheep tallow were imported in 1913, with a total value of $4,- 341,000, and that imports for the first half of 1914 amounted to 10,960 tons, valued at $1,774,000. These imports came principally from Australia, Argentina, and the United States, Great Britain, France, China, and Austria-Hungary, with small quantities from other nations. Imports of bone fat and other scraps amounted to 4,332 tons, valued at $535,000, in 1913, and 1,912 tons, valued at $237,000, in the first half of 1914. These supplies came principally from the Netherlands, Belgium, the United States, Great Britain, and France, in the order named. Early in 1916 a law was passed prohibiting the further making of soap by any except regularly licensed factories. The reason for the prohibition was said to be that in the modern process of soap making important quantities of glycerin are made as a by-product, whereas in domestic soap boiling the glycerin is wasted. And glycerin,. is an important raw material for the manufacture of explosives. By the orders of June 9, effective July 1, 1917, the manufac- turers of fatty washing materials (which alone may be described as " soap ") were united in a syndicate of the same general character as the compulsory syndicate of the boot and shoe manufacturers. By fatty washing materials is meant washing materials containing oleic, fatty, or resinous acids, their salts, or other organic acids which, either as acids or salts, have a cleansing or purifying effect. All such raw materials are now controlled by the War Committee for Vegetable and Animal Oils and Fats, and after August, 1917, only the larger soap factories were supplied, smaller concerns being left to find what compensation they could in the sale of soap supplied to them on special terms by the larger concerns. The new syndicate is known as the Soap Manufacture & Sale Co. The headquarters of the company are at Berlin; the capital is 40,000,000 marks. All soap manufacturers established before August 1, 1914, are compul- sory members unless exempted by the supervisory committee. Other manufacturers may be allowed to join on application from the State governments. The constitution of the syndicate is bureaucratic. It is reported that the brewing industry has been formed into a sjoidicate under compulsion, and that 50 per cent of the breweries have been closed. A decree of the Federal Council, issued August 4, 1917, authorized the State governments compulsorily to combine owners of graphite mines and graphite preparing works into companies, for the purpose of common administration of the mines and the works. Herring fisheries, sausage and canned-goods manufacturers, and margarine and edible-fat producers have formed combinations, and numerous other national combines, as well as a great many local amalgamations, have been reported. The important fact is that this movement of consolidation, either voluntary or compulsory, has swept through all branches of industry and many lines of trade. VI. THE VITAL QUESTION OF MATERIALS. SOURCES OF SUPPLY. The problem of obtaining sufficient supplies of raw materials for the industries after the war is receiving the earnest attention of Ger- man statesmen, manufacturers, and merchants. At the beginning of 1918 there were important conferences in Berlin as to the materials that might be obtained from a Bolshevik peace with Russia. 1 Metals and foodstuffs were prominently discussed, along with transporta- tion, financing difficulties, and the known shortages in Russia. Ger- many is rich in coal, iron, zinc, potash salts ; other materials, such as lead, wood, hides, china clay, graphite, though comparatively abun- dant, are not produced in quantities sufficient for the domestic needs ; and many important materials, such as cotton, silk, jute, india rubber, are obtained wholly from abroad. The great textile industries in par- ticular are dependent on foreign sources of supply. The domestic production of wool, flax, and hemp is limited by the more urgent de- mand for the production of grain. The demand for raw materials will naturally be great in all industrial countries after the war, and fears have been expressed in Germany that the mills of the central Empires will face great difficulties in replenishing their stocks; the fear has been apparent that the United States may withhold its cot- ton, and the other enemy countries may refuse to assist their competi- tors. Germany has imported more than a billion dollars' worth of raw materials annually, receiving only 7 per cent of the total from its present allies. It is a problem well worth reflection. The imports of raw materials into Germany in 1913 aggregated 1,189 million dollars in value, representing 46.4 per cent, or nearly 1 It is known that the Imperial German Government proceeded to confiscate any pri- vate property which it happened to want in conquered Poland, Roumania, northern Italy, Russia, northern France, and Belgium. The following item from the " War Cyclopedia," issued by the Committee on Public Information io January, 1918, throws some light on the workings of the Rathenau plan in conquered territory. It should be borne in mind that this plan refers not only to Belgium and conquered territory generally, but was intended to accomplish the mobilization of needed materials in Germany as well : " Belgium, economic destruction. The Hague Regulations, Article XLVI, say ' Private property can not be confiscated.' This regulation has been violated by the Germans in Belgium in conformity with the Rathenau plan, devised at the very outset of the war. Dr. Walter Rathenau, president of a great German electric company, proposed, in August, 1914, a comprehensive program for the mobilization and organization of the economic resources of the German Empire. Special stress was laid upon the necessity of obtaining raw materials, partly by purchase in neutral countries and partly by the seizure of all stores in the conquered lands. A new bureau, with 36 subdivisions, was created to carry out this plan, under the direction of the Ministry of War. As soon as Belgium was occupied this bureau began its work. By 66 separate decrees in less than two years the Germans have seized thousands of machines, countless machine tools, lathes, oils and fats, chemical and mineral products, wool, linen, jute, cotton, thread of all kinds, rubber, automobiles, locomotives, motors, hoises and other animals, hides, and many other products, completely stripping Belgium. The ultimate purpose of these seizures is disclosed in a speech of Herr Beumer in the Prussian Diet last February : ' Anybody who knows the present state of things in Belgian industry will agree with me that it must take at least some years assuming that Belgium is independent at all before Belgium can even think of competing with us in the world market. And anybody who has traveled, as I have done, through the occupied districts of France will agree with me that so much damage has been done to industrial property that no one need b-i a prophet in order to say that it will take more than 10 years before we need think of France as a competitor or of the reestablishment of French industry.' " 64 VITAL QUESTION OF MATERIALS. 65 one-half of the total imports of merchandise. The term " raw mate- rials" includes all articles recognized as such by the international statistical classification. More than one-half of the total value in 1913 was represented by seven classes of articles : Cotton, hides and skins, wool, copper, wood, iron ore, and coal. Other principal raw materials imported in 1913 were, in the order of their importance, fur skins, Chilean saltpeter, silk, india rubber, tobacco, linseed, copra, mineral oils, palm nuts, jute, brown coal, tin, flax, and phosphate of lime. Seventeen countries furnished materials valued at 20 million dollars or more: United States, 170 million dollars; Russia, 125; British India, 96; Austria-Hungary, 76; Argentina, 75; United Kingdom, 65; Australia, 56; Chile, 46; Italy, 44; France, 44; British Africa, 42 ; Dutch East Indies, 41 ; Sweden, 28 ; Egypt, 27 ; Spain, 26 ; China, 24 ; and Brazil, 23 million dollars. The imports by continents were : Europe, 489 million dollars ; America, 354 ; Asia, 182 ; Africa, 101 ; and Oceania, 63. The principal sources of the various raw materials imported will be indicated in the discussion of the several classes of imports. The quantities are shown throughout in metric tons of 2,204.6 pounds. The values are frontier values, representing the value of the article as it reaches the customs frontier ; they include freight and insurance, but not the duty. German statistics show countries of origin that is, countries where the goods have been produced, though in some cases the countries of shipment seem to have been recorded. FOODSTUFFS. 1 In addition to industrial materials, Germany in times of peace im- ported large quantities of foodstuffs. Domestic production of bread grain sufficed for about 10 or 10J months, and the deficit had to be made good by imports. Rye alone was exported, in quantities repre- senting nearly 4J per cent of the production. For the leading cereals the annual averages for the five years 1909-1113 were, according to official German statistics, as follows: Wheat, production, 153,154.000 bushels ; net imports, 76,767,000 bushels ; rye, production, 445,043^000 bushels; net exports, 16,367,000 bushels; barley, production, 153,- 529,000 bushels; net imports, 141,474,000 bushels; oats, production, 591,996,000 bushels; net imports, 9,714,000 bushels; corn, net imports, 32,159.000 bushels. These production figures are really estimates and are not the result of actual enumeration. Wheat was imported chiefly from the United States, Russia, Argen- tina, Canada, and Roumania; rye from Russia; barley from Russia, the United States, and Austria-Hungary; oats from Russia, Argen- tina, and the United States ; corn from Argentina, the United States, Russia, and Roumania. The net imports of rice were 293,252 tons in 1913, the bulk coming from British India. Other foodstuffs imported in 1913 included 249,216 tons of beans, peas, lentils, and vetches, supplied chiefly by Russia, British India, and Austria-Hungary ; 382,050 tons of potatoes from the Netherlands, Russia, Belgium, Italy, and Austria-Hungary ; 314,696 tons of garden truck from the Netherlands, Italy, Austria-Hungary, Egypt, and France; 1,002,580 tons of fruits and nuts (apples from France, Italy, 1 See also substitute materials, p. 75. 43339 18 5 66 GERMAN TRADE AND THE WAR. Austria-Hungary, the Netherlands, Belgium, and the United States ; oranges from Spain and Italy; plums from the United States; al- monds from Italy, Morocco, and Spain; grapes from Italy, France, and Spain; bananas from Spain and Colombia; raisins ^rom Turkey). Imports of colonial produce included 168,250 tons of coffee, valued at $52,259,000; 52,878 tons of cocoa, 4,290 tons of tea, and 11,019 tons of spices. Coffee came principally from Brazil (115,949 tons) and Guatemala (21,536 tons) ; cocoa from British and Portuguese West Africa, Ecuador, and Brazil ; tea from China and the East Indies. The imports of meats in 1913 were 68,425 tons and the exports 4,686 tons. Beef and veal were imported chiefly from Denmark and the Netherlands; pork from the Netherlands, Russia, and Denmark. In that year Germany also imported 107,387 tons of lard, valued at $28,300,000, and 26,428 tons of oleomargarine. Nearly all the lard (101,182 tons) came from the United States, and likewise most of the oleomargarine (19,633 tons). The imports of poultry were also large, including 8,587,000 geese, 10,663 tons of chickens, 2,114 tons of ducks, and 373 tons of other fowls. The imports of eggs were 166,751 tons, valued at $44,788,000. Russia and Austria-Hungary furnished 84 per cent of the total. The imports of fish in 1913 were 386,496 tons, valued at $32,341,000. Herring was imported from the United Kingdom, the Netherlands, and Norway ; salmon, from the United States ; other fish, from Swe- den, Denmark, and the Netherlands; caviare, from Russia. Dairy products were imported chiefly from Russia, Denmark, and the Netherlands. They included 54,239 tons of butter, valued at $28,- 252,000 ; 26,265 tons of cheese, valued at $9,054,000; and 44,375 tons of cream, valued at $8,174.000. The principal articles of fodder imported were bran and oil cakes and meal. The imports of bran in 1913 totaled 1,414,256 tons, valued at $31,020,000, the bulk coming from Russia, Argentina, and the United States. Rice bran and waste to the amount of 206,475 tons was imported, one-half of the total being supplied by British India. The imports of oil cake were 828,548 tons, valued at $28,217,000. Rus- sia furnished 320,173 tons; the United States, 215,236 tons; France, 56,979 tons. 1 COAL. 2 Coal is produced in six large coal fields, the most important of which are the basin of the Ruhr, the Saar district, and Upper Silesia. In 1913 the quantity produced was 190,109,440 metric tons; imports, 10,540,069 tons; exports, 34,598,408 tons. In 1914 production de- clined to 161,535,224 tons, and in 1915 to 146,712,350 tons. The pro- duction of brown coal or lignite averages above 80,000,000 tons a year; it was 87,233,084 tons in 1913, declined to 83,946,906 tons in 1914, but increased to 88,369,554 tons in 1915. The excess of imports over exports of lignite has averaged between 7,000,000 and 8,000,000 tons a year. IRON AND IRON ORE. During the five years 1908-1913 the production of iron ores in- creased from 24.278,151 tons to 34,983,753 tons; imports increased 1 See also " Oilseeds," p. 73. 2 See also coal mining, p. 40, and proposed Government monopoly, p. 132. VITAL QUESTION OF MATERIALS. 67 from 7,732,949 tons to 14,024,318 tons, while the exports decreased from 3,067,737 tons to 2,613,158 tons. Of the quantity imported in 1913, Sweden supplied 4,563,635 tons; France, 3,810,887 tons; Spain, 3,632,058 tons; Russia, 489,382 tons; Algeria, 481,157 tons. In addi- tion, 680,371 tons of manganese ores were imported chiefly from Russia and British India. The production of pig iron increased steadily until 1913, when 17,513,819 tons were produced. In 1914 production declined to 14,389,547 tons and in 1915 to 11,789,931 tons Imports in 1913 were 124,316 tons and exports 782,911 tons. The production of 1915, by districts, was as follows: Rhineland- Westphalia, 5,165,618 tons; Lor- raine, 1,817,965; Luxemburg, 1,599,981; Saar district, 801,597; Sile- sia, 777,625; central Germany, 371,686; southern Germany and Thuringia, 234,669; northern Germany, 231,140. MAGANESE AND WOLFRAM. German manganese ores, found chiefly in Thuringia and the Harz Mountains, are generally poor in manganese contents. The production for 1910 included 2,634,451 tons of ores holding less than 12 per cent of manganese; 266,825 tons of ores containing 12 to 30 per cent, and only 166 tons of ores with manganese contents exceed- ing 30 per cent. During the last five years preceding the war the average net imports per year were 492,125 tons. In 1913 the im- ports of manganese ores totaled 680,371 tons. Russia furnished 446,942 tons; British India, 177,638; Spain, 27,467; and Brazil. 21,873 tons. The annual production of wolfram or tungsten ores in Germany is about 5,000 tons. The imports in 1913 were 4,803 tons. British India and Australia furnished more than one-third of the total, the remainder coming from the Straits Settlements, Portugal, Argentina, and the United Kingdom. COPPER 1 AND NICKEL. The consumption of copper in Germany during the five years 1908-1912 averaged 207,942 tons per year, Germany being, after the United States, the largest consumer of copper in the world. Do- mestic production of copper had increased from 30,001 tons to 45,465 tons during that period, the average annual production being 35,806 tons, or a little over one-sixth of the total consumption. In 1913, Germany imported 225,392 tons of crude copper, valued at $79,- 795,000, besides 5,182 tons of scrap, coins, etc., and 14,588 tons of brass, bronze, and other alloys of copper. The bulk of the imports of crude copper 197,353 tons, or nearly 88 per cent of the total came from the United States. Australia furnished 13,343 tons and Belgium 5,523 tons; the United Kingdom, Japan, Serbia, Spain, and Sweden supplied between 1,000 and 2,000 tons each. During the war extraordinary measures have been taken to secure sufficient supplies of copper for war purposes. Under an ordinance of the Federal Council private stocks of copper and its alloys, exceeding a small minimum, have been commandeered; copper coins have been re- placed by iron disks and zinc tokens; and "the church bells have 1 See also substitute materials, p. 78. 68 GERMAN TRADE AND THE WAR. gone to join the battle and now speak a different language " (Ham- burger Nachrichten, July 29, 1917). Even the celebrated "Kaiser bell " of the Cologne cathedral has been reported melted for its 20 tons of copper. Germany produced 4,800 tons of nickel in 1912. The imports dur- ing that year, including scrap and nickel coins, were 2,027 tons and the exports 1,679 tons, indicating an annual consumption of 5,148 tons. About two-thirds of the nickel imported comes from the United States, and the remainder chiefly from Belgium and the United Kingdom. In 1913 the imports were 3,315 tons, valued at $2,683,000. The principal countries from which nickel was obtained were: The United States, 2,157 tons; Belgium, 529; United Kingdom, 414; and Austria-Hungary, 60 tons. TIN AND ZINC. The annual consumption of tin plate in Germany is estimated at 150,000 tons. About 44,000 tons of tin plate have been imported annually from the United Kingdom. It has been pointed out by German economists that the German mills manufacturing 106.000 tons of the annual consumption might as well manufacture the re- maining 44,000 tons, but the difficulty lies in obtaining the neces- sary tin. In 1912 Germany produced 10,600 tons of tin, imported 15,550 tons, and exported 6,368 tons (including scrap), indicating an annual consumption of 19,782 tons. In 1913 the imports were 14,261 tons, valued at $13,840,000. The principal countries of origin or shipment were: The Dutch East Indies, 6,384 tons; the United Kingdom, 1,697 tons; Australia, 1,661 tons; British India, 942 tons; Straits Settlements, 941 tons. The exports were 6,437 tons, and domestic production has been estimated at 13,000 tons, indicating a consumption of about 20,800 tons. In addition, 18,727 tons of tin ores were imported, the bulk coming from Bolivia, which supplied 15,831 tons. Australia furnished 1,001 tons, Chile 868 tons, Japan 392 tons. Zinc is produced in Germany in quantities large enough to leave a considerable surplus for exportation after the domestic needs have been satisfied. The annual averages for the five years 1908-1912 have been as follows: Production, 234,120 tons; imports, 46,070 tons; exports, 87,025 tons; indicated consumption, 193,165 tons. Produc- tion increased during that period from 216,490 tons to 269,161 tons. The principal countries from which Germany has been importing zinc, are Belgium, Austria-Hungary, Norway, and the Netherlands. In 1913 the imports totaled 55,964 tons, valued at $6,208,000, and the exports 105,244 tons, valued at $12,695,000. LEAD. Germany imports about one-fourth of the lead consumed by its industries. Domestic production of lead increased from 164,079 tons in 1908 to 176,633 tons in 1912. The annual averages for that five- year period have been as follows : Production, 165,986 tons ; imports, 85, In eluding VITAL QUESTION OF MATERIALS. 69 nished 42,793 tons, or more than one-half of the total. Imports from the United States were 16,273 tons, as against 35,843 tons in 1911. Smaller quantities were imported from Belgium, the United King- dom, and Australia. ALUMINUM. The aluminum industry is comparatively new, but the use of aluminum has increased considerably in Germany during the last two decades. In 1900 the imports of this metal were only 943 tons; in 1905 they had risen to 3,252 tons and in 1910 to 9,982 tons. The imports were highest in 1912, when 18,112 tons were imported. In 1913 Germany imported 15,323 tons of aluminum, besides 38,452 tons of bauxite and cryolite. The principal countries supplying alumi- num in 1913 were: Switzerland, 6,064 tons; France, 4,165 tons; United Kingdom, 1,899 tons; Austria-Hungary, 1,257 tons; the United States, 837 tons ; Norway, 711 tons. Switzerland still is the principal source of supply, furnishing 9,261 tons in 1915 and 10,538 tons in 1916. From Norway only 3 tons were obtained in 1915. Data on production of aluminum in Germany are not available. The high price of the metal has made possible the exploitation of low-grade bauxite, and successful experiments are reported to have been made in the extraction of aluminum directly from clay. As the future of the copper industry in Germany is regarded as highly uncertain, many large copper works are turning their attention to aluminum. The metal is largely used for war purposes. In Janu- ary, 1918, the imperial mint coined 1,842.800 1-pfennig pieces of aluminum. PO1TERY CLAYS GRAPHITE. 1 China clay or kaolin is found in Saxony and Silesia, and consid- erable quantities are exported, but the imports are much larger. In 1913 the exports were 42,058 tons and the import? 301,306 tons. Aus- tria-Hungary supplied 171,236 tons and the United Kingdom 118,203 tons. Graphite is mined in Bavaria, the annual production being above 12,000 tons, and 4,000 or 5,000 tons are exported annually. Larger quantities are imported, however. In 1913 the imports were 37.168 tons, Austria-Hungary alone supplying 19,653 tons. The remainder came from Ceylon, Italy, Japan, and the United States. RAW COTTON. 2 Cotton is the principal article obtained from over-sea countries, representing nearly 6 per cent of the total value of all merchandise imported. During the last three years of peace the annual consump- tion of cotton (including linters) in Germany was 474.915 tons, or about 2,094,000 bales of 500 pounds. The United States furnished more than three-fourths of the total. In 1913 the imports of raw cotton totaled 477.945 tons, valued at $144,496,000. The United States supplied 369,397 tons, or 77 per cent of the total; British India, 1 See also substitute materials, p. 79. 2 See also substitute materials, p. 80. 70 GERMAN TRADE AND THE WAR. 57,520 tons ; Egypt, 40,555 tons. Quantities of some importance were received from China, the Dutch East Indies, Turkey, and Brazil. German East Africa, where the cultivation of cotton has been en- couraged, supplied 1,279 tons, as against 296 tons in 1909. The im- ports of linters in 1913 amounted to 43,183 tons, valued at $5,036,000. The United States furnished the bulk of these imports also The necessity of purchasing large quantities of cotton in the United States has been a cause of irritation to the German mill owners, but no satisfactory substitute for American cotton has been found as yet. WOOL. Wool is also imported in large quantities, domestic production be- ing comparatively small. In 1860 Germany had about 28,000,000 sheep; at the census of December 1, 1915, only 5,073,478 sheep were found in the Empire. During the last five years of peace, 1909- 1913, the imports of wool averaged 445,000,000 pounds a year. In 1913 the imports were 199,271 tons, of which 110,403 tons were merino, and 88,868 tons crossbred wool. Eighty-eight per cent of the wool imported was greasy wool. Of the raw merino wool 61,446 tons came from Australia, 25,196 tons from British South Africa, 12,342 tons from Argentina, and 5,814 tons from Uruguay. Cross- bred wool was supplied chiefly by the following countries : Argen- tina, 37,399 tons; Australia, 14,931 tons; Chile, 4,146 tons; Uruguay. 3,552 tons; New Zealand, 3,062 tons; Morocco, 1,877 tons; Russia, 1,235 tons. Washed merino wool came from Australia, British South Africa, and Belgium; washed crossbred wool from Belgium, France, and the United Kingdom. The total value of the raw wool imported was $98,216,000. In addition, 17,674 tons of carded and combed wool were imported, valued at $14,605,000, coming chiefly from the United Kingdom, France, and Belgium. SILK. During the last five years of peace, the imports of silk (raw, arti- ficial, floss, and twist) into Germany averaged 10,166 tons, valued at $51,791,000. The imports of undyed raw silk, the product of the mulberry moth, totaled 3,895 tons in 1913, valued at $35,816,000. Italy furnished 2,706 tons, other important sources being France, Japan, and Switzerland. Floss silk came principally from France, Italy, and Switzerland; artificial silk, from Belgium. At various times attempts have been made to introduce silkworm culture into Germany but none has been successful. The war has revived the discussion whether it may not be possible to make the silk industry independent of outside supplies. It has been shown that the silk- worm and the mulberry tree both thrive in Germany, and it is now proposed to feed the caterpillars on the leaves of the comfrey (tiymphytum officmale), which grows readily in Germany. It is said four or five crops of cocoons could be obtained during one year instead of one, as with mulberry leaves. A company, the Deutsche Seidenbau Gesellschaft, has been organized, experiments are con- tinually being made, and good results reported; the worms seem to thrive on the leaves and the silk is said to be of an excellent quality. VITAL QUESTION OF MATERIALS. 71 The technical difficulties, however, are not so easily overcome. To produce the cocoons necessary for the quantity of silk consumed would require the labor of 400,000 people, and the spinning of the cocoons would call for 20,000 to 25,000 more. The spinning requires much experience and skill, and it seems quite impossible that within a reasonable length of time a sufficient number of people could be trained for this work, and it is feared the product would cost more than imported silk. FLAX, HEMP, AND JUTE. 1 Flax was formerly cultivated in Germany on a total area of about 25,000 to 27,000 acres, most of these plantations being located in Silesia. In 1916 the area planted was 54,400 acres, and as the demand for flax has been increasing, the war administration re- quested that flax be cultivated on an area of at least 123,500 acres in 1917. The area actually planted in 1917 was about 111,200 acres. In order to encourage flax growing, the War Association for Flax Culture has fixed fiber prices for growers which are consider- ably higher than in peace times, ranging from $2.15 to $3 per 100 pounds. In 1913 Germany imported 71,633 tons of flax, chiefly from Russia (65,746 tons) and Austria-Hungary (3,785 tons), and 22,388 tons of flax tow from Russia and Italy. The imports were valued at $17,681,000. Hemp is also cultivated in Germany on a small scale, and during the war experiments have been made in growing hemp on moorlands. The Hemp Growers' Association hopes to plant 30,000 to 50,000 acres in 1918, and expects within 10 years to grow enough to meet all re- quirements. In 1913 the imports of hemp totaled 48,651 tons, the bulk coming from Russia, Italy, and Austria-Hungary. In addition, 15,998 tons of hemp tow were imported. The value of these imports was $10,595,000. During the five years 1871-1875 the average annual consumption of jute in Germany was only 6,238 tons. In 1911 Germany had 38 jute-spinning mills with an annual production of 148,520 tons of yarn. In 1913 the consumption of jute reached 154,241 tons, or 5 pounds per head of population. The imports of jute and jute tow for that year were 162,063 tons, valued at $22,371,000. British India alone furnished 158,456 tons, or nearly 98 per cent of the total. The following quantities of other vegetable fibers were imported in 1913 : 2,396 tons of ramie from China ; 3,993 tons of manila hemp and tow from the Philippines ; 3,609 tons of sisal hemp, chiefly from German East Africa, with smaller quantities from the Dutch East Indies, the United States, and British East Africa; 12,199 tons of agave fiber, nearly all from Mexico; 2,115 tons of coconut fiber from British India and Ceylon; 3,341 tons of kapok, chiefly from the Dutch East Indies ; 6,613 tons of Indian and New Zealand hemp and other fibers, chieflly from India and New Zealand, with smaller quantities from the Dutch East Indies and British East Africa. INDIA RUBBER. 2 The imports of india rubber into Germany during the years 1911- 1913 averaged 20,340 tons. Owing to lower prices prevailing in 1913, 1 See also substitute materials, pp. 81-82. 2 See also substitute materials, pp. 75 and 82. 72 GERMAN TRADE AND THE WAR. the aggregate import value declined from $40,329,000 in 1911 to $29,973,000 in 1913, although the quantity imported in the latter year was somewhat larger, amounting to 20,497 tons, as against 19,959 tons in 1911. The British Empire and Brazil furnished considerably more than one-half of the total imported in 1913, the former supply- ing 7,081 tons and the latter 5,556 tons. British India supplied 4,268 tons; Ceylon, 1,125; the Straits Settlements, 689; the United King- dom, 497; British Africa, 502 tons. From the German colonies in Africa, 2,831 tons of rubber were obtained. The Belgian Kongo and the Dutch East Indies furnished more than a thousand tons each. In 1913, in addition to india rubber, Germany imported also 2,189 tons of gutta-percha, chiefly from the British and the Dutch East Indies; 1,094 tons of balata gum, nearly all from Venezuela, and 4,581 tons of scraps and waste. Numerous substitutes for india rub- ber have been tried; none of them, as far as is known, has proved a success. The hopes of the German economist Schulz-Mehrin that Germany might succeed, by the production of synthetic rubber, not only in making herself independent of foreign sources of rubber, but even in making other countries dependent on the German pro- duction of the substitute, as has been the case with the coal-tar dyes, appear to be somewhat premature. HIDES AND SKINS. The imports of hides and skins in 1913 totaled 251,467 tons, valued at $120,026,000. Cattle hides were imported chiefly from Argentina, British India, Brazil, Austria-Hungary, France, Russia, and China ; calfskins from France, Austria-Hungary, Russia, Denmark, and Sweden ; horsehides from the United Kingdom, France, and Austria- Hungary; lambskins from Austria-Hungary, Spain, Greece, and France; sheepskins from Austria-Hungary, Russia, Denmark, Algeria, France, United Kingdom, Morocco, and Spain; goatskins from British India, Russia, France, Algeria, United Kingdom, Mo- rocco, Austria-Hungary, and the Dutch East Indies. The exports of hides during the year were 67,803 tons, the net- imports being 183,664 tons. The imports of raw skins for furriers' work, including skins of hares and rabbits, totaled 6,021 tons, valued at $31,014,000; of fur skins wholly or partly dressed, 2,144 tons, valued at $15,698,000. The United States, Russia, France, and the United Kingdom fur- nished the bulk of the fur skins. The exports of dressed fur skins were larger than the imports, amounting to 3,223 tons. LEAF TOBACCO. 1 German tobacco factories consume about 100,000 tons of raw tobacco per year. In 1913 domestic production furnished 20,667 tons; 83,075 tons of tobacco were imported and 344 tons exported, indicating a consumption of 103,398 tons for the year. Production has been declining of late, but is now to be stimulated by higher duties. By the law of July 1, 1916, the import duty on foreign leaf tobacco has been increased from $9.17 to $14.03 per 100 pounds, plus an ad valorem duty increased from 40 to 65 per cent. The tobacco 1 See also substitute materials, p. 76. VITAL QUESTION OF MATERIALS. 73 trade is now controlled by a Government corporation. The imports of leaf tobacco in 1913, totaling 81,400 tons, valued at $31,956,000, were distributed as follows: Dutch East Indies, 38,322 tons; Brazil, 9,255; Turkey, 8,178; the Dominican Republic, 7,364; United States, 7,311 tons. Smaller quantities were imported from Colombia, Greece, Russia, and Cuba. OILSEEDS. 1 Germany imports considerably over a million tons of oilseeds and fruits annually, rapeseed alone being produced in larger quantities at home. In 1913 the imports of oleaginous fruits and seeds totaled 1,747,388 tons, valued at $127,925,000. Linseed, copra, and palm nuts are the principal imports of this class. In 1913 Germany imported 560.428 tons of linseed, chiefly from Argentina, British India, and Russia, Argentina alone furnishing 429,664 tons. The imports of copra totaled 196,598 tons, the bulk coming from the Dutch and British East Indies; the Philippines supplied 12,905 tons. The imports of palm nuts were 235,921 tons, of \\hich British West Africa supplied 206,145 tons and German Africa 17,167 tons. Cotton seed was imported chiefly from Egypt, with 10.062 tons from the United States, the imports totaling 219,797 tons. Rapeseed was imported from British India. Roumania, and Russia; peanuts, from French and British West Africa and British India; sesame, from China and British India. PETROLEUM. In 1913 Germany produced 120,983 tons of crude petroleum and imported 1,024,220 tons, exclusive of lubricating oils. The imports of kerosene were 745,466 tons, valued at $16,632,000. The United States supplied 574,466 tons; Austria-Hungary, 119,680 tons; Rou- mania, 33,336, and Russia, 17,493 tons. These four countries fur- nished the bulk of the lubricating oils imported. Heavy benzine came chiefly from the Dutch East Indies ; gas oil from Austria-Hun- gary; raw benzine from Roumania, Russia, the United States, and the Dutch East Indies. Germany is now receiving petroleum from Roumania and Austria, but the supplies are insufficient, as the Roumanian oil is utilized chiefly for gasoline for the use of aeroplanes and submarines and other war purposes. Petroleum for private use is obtainable only on cards, and the quantities available are wholly inadequate. Cards may be granted only to those who have neither gas nor electric light fittings. Farmers find it particularly hard to obtain any petroleum at all. FERTILIZERS. Germany is rich in potash salts and may almost be said to possess a monopoly of the potash trade. She has had to import large quanti- ties of nitrates and phosphates, however. The imports of Chilean saltpeter increased from 344,209 tons in 1890 to 774,318 tons in 1913, the imports in the latter year being valued at $40,912,000. In that year 66,065 tons of Norway saltpeter synthetic nitrate of lime were J See also fodder statistics, p. 66. 74 GERMAN TEADE AND THE WAE. imported from Norway and Sweden. The chemical factories are ex- pected to provide sufficient quantities of synthetic sulphate of am- monia and other nitrogen fertilizers, so that imported saltpeter may not be needed after the war. The imports of phosphate rock natural phosphate of lime in 1913 were .929,560 tons, valued at $11,062,000. The United States supplied 421,212 tons; Algeria, 191,448; Tunis, 108,007; Christmas Island, 70,467; Belgium, 53,439 tons. The exports of potash salts (fertilizer salts) in 1913 totaled 1,676.- 187 tons, valued at $15,152,000. The United States took 812,537 tons, or nearly one-half of the total. The Netherlands, the United King- dom, Austria-Hungary, and Sweden each took between one and two hundred thousand tons. The production of kainite and other raw salts in Germany increased from 1,351,100 tons in 1892 to 9,606,900 tons in 1911. WOOD AND WOOD PRODUCTS. The imports of common woods timber and lumber for building and industrial purposes totaled 5,881,976 tons in 1913 and were valued at $74,105,000. Oak, beech, and other hardwoods were im- ported from Russia, Austria-Hungary, the United States, Japan, France, Switzerland, and Australia; softwoods principally from Russia, Austria-Hungary, Sweden, Finland, the United States, and French West Africa. The cellulose and paper factories imported 1,284,873 tons of wood, valued at $9,480,000. Russia supplied five-sixths of the total and Austria-Hungary the remainder. SUBSTITUTE MATERIALS. Necessity being the mother of invention, numerous substitutes have taken the place of articles formerly imported. The substitutes are of two kinds, some representing new inventions, while others are simply adaptations of old materials to new uses. The chemical in- dustries are reported to have done wonders in preparing substitutes for foodstuffs and industrial raw materials. Some of these substi- tutes will probably continue in use even after the war, but a large majority will doubtless be discarded as soon as the customary prod- ucts become available. The manufacture of foodstuffs has become a " substitute " industry almost exclusively. Chickory, roasted acorns, and other substitutes have taken the place of coffee, and a new morning drink has been facetiously described by the Berlin Tageblatt as a " substitute for the coffee substitute." Substitute cof- fee can be made as hot as real coffee ; it has the same color ; only the taste is different. The Berlin Kreuz-Zeitung of August 28, 1917, an- nounced an epoch-making discovery in the realm of alimentation which " must surely bring to naught all starvation plans " of the enemy. Commenting on the news of this wonderful achievement of the chemical science, the Leipziger Volkszeitung of August 30, 1917, remarked skeptically : " We remember many such wonderful discov- eries made by the men of science. Especially do we remember the transformation of straw into flour and meal for human consumption. What a shame that with such wonderful discoveries no one is able to satisfy hunger." No satisfactory substitute has it seems been invented for either wheat or potatoes. VITAL QUESTION OF MATERIALS. 75 According to an official report of the Food Administration to the Ministry of War, the chemical industries have created more than 10,000 substitutes, including 7,000 substitute articles of food and 3,000 substitute materials for military purposes. Most of these substitutes and imitations were invented or discovered during the year 1917, for at the beginning of that year the number of substitutes produced was given as only 2,000, including 1,200 articles of food. In the metal industries, iron and zinc have largely replaced the other metals. Zinc is much less valuable than copper as regards dur- ability, elasticity, and conductivity, and is more difficult to work. By extensive experiments the Germans are said to have succeeded in re- fining it so that it can be used as a substitute for brass for certain purposes, such as shell fuses. It has been employed in the manufac- ture of electric cables. Various zinc and lead alloys have also been utilized. One of the Breslau tin-foil factories is reported to have succeeded in providing a substitute for tin-foil by producing zinc foil. The new product is not to be distinguished from tin foil and is supposed to render the same services. Cardboard boxes have largely replaced tin cans. According to the Neue Ziircher Zeitung, systematic investigations into the properties of pit coal have been carried on by the Kaiser Wil- lielm Institut fiir Kohlenforschung and have yielded important in- dustrial results. The treatment of coal with liquid sulphurous acid at ordinary temperatures has produced one-half per cent, by weight, of viscous, golden-yellow mineral oils. A process has also been elab- orated by which through heating naphthalene under pressure, in the presence of aluminum chloride, an oil is produced that can be used for illuminating purposes in the same manner as petroleum. Benzol and mixtures of benzol with alcohol are employed as sub- stitutes for gasoline as automobile fuel. Cellulose, paper yarns, and nettle fibers are largely used as substi- tutes for textile materials which have been obtained from foreign countries heretofore. The uses to which paper textiles are put are constantly increasing, and qualities that are durable and will even stand washing are being produced. The Public Bureau for the Testing of Wares (Oeffentliches Waren-Priifungs-Amt, Berlin, Leip- zigerstrasse) is constantly making experiments with various substi- tute materials to ascertain their physical and chemical properties. In February, 1916, the director issued an appeal to the public asking all interested parties to communicate to the bureau their experiences and results of observation and experiments. In the German rubber industry the situation is said to have been eased by the progress made in rubber regeneration and by the substi- tution of mechanical spring wheels for pneumatic tires. The idea of exploiting Germaji caoutchouc plants has been given up. The substitutes for some of the more important articles and mate- rials are considered below. FOOD AND DRINK. 1 The various substitutes for wheat and rye are divided by Prof. Jolles into two classes those that possess some food value and those that have none or nearly none. Barley, corn, oats, and potatoes are 1 See statistics of domestic production and imports, p. 65. 76 GERMAN TRADE AND THE WAR. placed in the former class, while the latter includes straw, hay, wood meal, beets, and Iceland moss. Oats have failed utterly as bread grain and are no longer ground. By an order of the Federal Council, issued October 28, 1914, the percentage of the berry to be ground into flour was fixed at 72 for rye and 75 for wheat. An order of January 5, 1915, increased these percentages to 82 and 80, respectively, author- izing the States to prescribe higher percentages. Under the order of March 31, 1915, " war bread " was to contain at least 10 per cent of potato flakes, starch, or meal, and 90 per cent of rye flour, or at least 30 per cent of crushed or grated potatoes and 70 per cent of rye flour. Such bread was to be marked with the letter " K " (Kriegsbrod) . If the percentage of potato meal exceeded 20, or the admixture of crushed potatoes was more than 40 per cent in weight, the bread was to be marked " KK." Potatoes might be re- placed by ground soya beans or pulse, by barley or oat flour, finely ground bran, corn meal, manioc, tapioca, or sago. The war bread has been held responsible for the numerous cases of dysentery in Ger- many. Rye has been ground to yield as high as 94 per cent of flour, and the bran contents, not being easily digestible, are considered the principal cause of the disease. A substitute for meat used in the preparation of war sausages is made from the blood of cattle. It consists of coagulated blood albu- men bleached by peroxide of hydrogen. Vegetable meat, consisting of wheat gluten colored red, has also been placed on the market. Numerous egg substitutes are offered to the housewife. They con- sist, as a rule, of baking powder dyed yellow, with an addition of starch flour. They look yellow and make the dough rise, but have little food value. Those that are really useful consist of bleached and dried blood albumen or of casein preparations mixed with starch flour. The substitutes for coffee are also numerous. They include chicory, dandelion roots, shredded beets, buckwheat, various legumes, and residues of fruits; even the seeds of various weeds are roasted and sold as coffee substitutes. The use of roasted rye has been pro- hibited. Cocoa husks and ground roasted chestnuts are the chief substitues for cocoa. Strawberry leaves and various vines furnish substitutes for tea. Tartaric acid, diluted with water and colored with a yellow coal- tar dye, is used as a substitute for lemon juice. It is usually per- fumed with a few drops of lemon oil. The manufacture of artificial rum has been rendered difficult by the scarcity of alcohol. Hence a substitute for the rum substitute is prepared. It is a colored essence of rum, a few drops of which are sufficient to give flavor to tea substitutes. TOBACCO. 1 Leaves of various trees and herbs, such as the birch, beech, cherry, and walnut, the blackberry, woodruff (Asperula odorata), the hop plant, and sweet clover (Melilotus officinalis), furnish substitutes for tobacco. Cigarettes are manufactured of tobacco mixed with large quantities of hops. Germany produces between 10,000 and 20,000 1 See statistics of consumption, p. 72. VITAL QUESTION OF MATERIALS. 77 tons of hops a year (in 1914 the crop amounted to 23,237 metric tons), and as one-half of the breweries are now idle, hops have become one of the principal substitutes for tobacco. About 3,500 to 4,000 tons of hops are to be set aside for the manufacture of cigarettes Alone. As late as December, 1917, the use of hops in the manufacture of tobacco products for the army was not permitted, but it was generally ex- pected that such use would soon be authorized. The demand for other substitutes is great, and very high prices are willingly paid for them, particularly for walnut and cherry leaves, as they can be used without any addition of tobacco. A recent report says that only the licensed manufacturers of tobacco will be permitted to use cherry leaves as a substitute for tobacco, and the mixing of cherry leaves with other materials will be forbidden. It is feared that otherwise large quantities would be lost to the industry and that the prices would soar. SUGAR. Introducing a sugar substitute into Germany might appear as futile a procedure as the proverbial carrying of coals to Newcastle, but the unexpected has happened. The sugar production of Ger- many, reckoned in terms of raw sugar, amounted to 2,706,327 metric tons during the year ending August 31, 1913, and 2,715,870 tons during the season of 1913-14. The production of refined sugar during 1912-13 and 1913-14 was 1,910,343 and 1,904,114 tons, respec- tively. The exports during the calendar year 1913 were 1,126,217 tons, including 589,317 tons of refined and 527,135 tons of raw sugar besides 9,765 tons of other sugar products, the total being equivalent to about 1,184,787 tons of raw. Now there is no exportation what- ever, and yet the population has been reduced to using substitutes, the chief of which are honey and saccharin. At the beginning of the war Germany was " swimming in sugar," to use an expression of the Frankfurter Zeitung (May 22, 1915). Production had been greater than ever; large quantities left from the previous campaigns were still available; exportation had stopped. The Government, however, sought to limit consumption by a series of measures which enabled the speculators to make enor- mous profits. One of the 10 " war commandments," proclaimed on bills posted in all railway stations, advised the people : " Use plenty of sugar with your meals ; sugar is an excellent food." The various measures of the Government soon made it impossible for the people to follow that advice, and sugar became scarce in the market, al- though it was known that stocks were plentiful. By an order issued October 31, 1914, an embargo was laid upon the stocks of sugar ; only 25 per cent of the new production was released for consumption during the period ending January 15, 1915, an additional 15 per cent for the following three months, and smaller quantities thereafter. The tax of 14 marks per quintal on sugar intended for human consumption was retained, but the farmers were permitted, by an order of February 12, 1915, to obtain sugar tax free for cattle feeding, and the distilleries were granted a reduction of the tax. Maximum prices having been prescribed for the sugar factories (originally 9.50 marks per 50 kilos of raw), but not for the trade, wild speculation set in. The Government permitted an increase in prices from month to month so that, for example, 78 GERMAN TRADE AND THE WAR. the legal price for August, 1915, was 1.20 marks higher than the price for May, and the result was that sugar was kept off the market until the higher prices could be obtained. The area planted to sugar beets during the season 1913-14 was 1,316,700 acres. For the season 1914-15 the area planted was reported to have been reduced in order to obtain more land for the cultivation of bread grain, and further reductions followed later. The stocks of sugar in Germany doubt- less are still considerable, but the Government seeks to conserve them for fear of a continuing shortage of fats. The basic price of raw sugar was increased from time to time until it reached 23 marks for 50 kilos of 88-degree sugar in December, 1917, that price to be increased 15 pfennigs (3.57 cents) per month. The price of refined sugar was fixed at 36 marks, and the monthly ration at 800 grams, or about If pounds. Attention is now being drawn to the value of honey as a substi- tute for sugar, and the authorities are promoting beekeeping as an industry for producing more food with but little labor and no additional land. However, the present maximum price of 3 marks per kilo (32.4 cents per pound, at normal exchange) is somewhat discouraging. Several beekeepers in Bavaria have been fined for selling honey as high as 20 marks per kilo ($2.16 per pound). Arti- ficial honey in solid form is also produced. Saccharin is the latest substitute for sugar in Germany. It is sold in small bags under the title of " Kriegszucker," war sugar, under Government supervision. Saccharin is many times sweeter than sugar but has no food value, and in fact before the war was consid- ered by some German as by some American chemists to be injurious to the human system. It was discovered in 1879 by Prof., Fahlberg, who derived it from toluol, a product of coal tar. Pure saccharin is 500 times sweeter than sugar; the commercial product, containing about 10 per cent of soda, is 270 to 450 times as sweet as the same quantity of sugar. The product sold at retail is a compound con- taining but a small percentage of saccharin. In 1902 Germany had five establishments producing 290,000 pounds of saccharin annually. By the law of July 7, 1902, the manufacture of saccharin was placed under Government supervision, and importation was prohibited. Four of the five establishments were closed at the end of March, 1903, and only one, the Fahlberg factory at Salbke-Westerhusen on the Elbe, was permitted to manufacture saccharin for medicinal pur- poses. The prohibition against the sale of saccharin for nonmedi- cal uses has been repealed under the stress of the war. In an essay by Schulz-Mehrin " artificial sugar " is mentioned as a substitute for sugar. It is not clear whether saccharin or some other substance is meant. The hope is expressed, however, that Ger- many may be able to save the million acres now planted to sugar beets for the cultivation of cereals "if" the experiments with arti- ficial sugar shall prove successful. COPPER. Germany produces only a little over one-sixth of the copper needed by its industries. 1 When importation was stopped by the war it be- came necessary to construct electric conductors of other materials. 1 See statement of quantities on p. 67. VITAL QUESTION OF MATERIALS. 79 Iron and zinc are employed for that purpose with success, according to a report presented to the Society of German Machinery Engineers at Berlin. Aluminum also has been used for the purpose. The electrical conductivity of iron is only 10 to 18 per cent of that of copper; and an alternating current sent through an iron conductor flows chiefly through the layers immediately under the surface, thus increasing the total electric resistance. Iron conductors must, there- fore, be relatively strong, requiring strong supports. It is reported, however, that iron conductors have been produced which diner but little from copper conductors in appearance. Zinc has to be refined by a special spraying process, giving it the proper flexibility before it can be used for the manufacture of wire. The zinc wire must be protected against heat exceeding 130 C., and against air currents; hence it can not be used as a free conductor. In other respects the behavior of fixed zinc wires and zinc cables is said to be satisfactory. Zinc conductors also can be safely wound on dynamos or transformers. On a suburban line of the Berlin elec- tric railway zinc has been used to effect rail bond connections. In- stead of employing special copper bonds, the surfaces of contact between the fishplates and the rails are sprinkled with liquid zinc, which is said to give a better electric connection than has been obtained by the old method. The manufacturers of sheet-iron wares and aluminum wares have been kept busy to satisfy the demand for various utensils which formerly were made of copper or brass. Several cases of poisoning have been reported, due to cooking in pots of galvanized iron. GRAPHITE. Germany produced 12,532 metric tons of graphite in 1912, the consumption for the year amounting to 45,600 tons. More than 70 per cent of the quantity consumed had to be imported. Production has been increased during the war and large quantities have been imported from Austria, while consumption has been reduced, largely through smelting without the use of crucibles. In normal times the consumption of graphite is distributed as follows: Manufacture of lead pencils, 4 per cent; manufacture of crucibles and other uses in the foundries, 35 per cent; manufacture of stove polish and paints, 30 per cent. The remainder is employed for a large variety of pur- poses, even some dry lubricants, for example, containing an admix- ture of graphite. In Bavaria graphite is mined on leased proper- ties, largely in a primitive way. Improved methods have been intro- duced only recently. Experiments have shown, it is said, that Bava- rian graphite can be used in the manufacture of the finest crucibles for which the lump graphite from Ceylon and Siberia has been employed heretofore. During the war numerous substitutes for graphite, containing 39 to 77 per cent of carbon, have been placed on the market. The man- ager of a large Berlin foundry reports that the substitutes have been used with success for mold facing. It has been found possible also, with the aid of hydrofluoric acid, to recover graphite from old, used crucibles. All used crucibles must now be returned to the manufac- turers, who extract the graphite. In the form of kish, graphite is also recovered inside and outside the furnace, in the production of 80 GERMAN TRADE AND THE WAR, ferrosilicon in electric furnaces, and in the manufacture of soda. There is no serious danger of a scarcity of graphite, it is reported, owing to the limited consumption and the invention of substitutes. Some of these substitutes, however, contain as much as 1.1 per cent of sulphur and must be used with care, as liquid iron speedily absorbs sulphur from the molding sand. LYCOPODIUM. The spores of the club moss (Lycopodium clavatum) form a fine dust which is used in foundries for sprinkling the molds, so as to prevent the adhesion of sand. Prior to the war Germany imported lycopodium from Russia. A good substitute for lycopodium is re- ported to have been found in lignite dust, which settles down from the waste gases of the drying apparatus employed in the manufac- ture of brown coal briquets. The dust has always been considered a nuisance. By a sifting process the dust is reduced to uniform "size and made serviceable in the foundries. The dust particles contain a high proportion of paraffin and are said to behave just like lyco- podium. CORK. According to a report of the Deutsche Tageszeitung artificial cork is to be manufactured by a company, organized in October, 1917, at Raschau in Saxony under the title " Korkersatzgesellschaft Alsa, G. m. b. H." The well-known cork factory of Wilhelm Merkel, at Raschau, has taken a number of shares in the new undertaking. The company is to exploit a new process of utilizing the bark of domestic trees in the preparation of a substitute for cork. The factory is located in the wooded mountain range separating Saxony from Bohemia, where the raw material is plentiful. Details of the inven- tion are naturally lacking, but the preliminary experiments are said to have been satisfactory. If the invention proves successful, it may become the foundation of an important industry. During the last years of peace Germany imported annually over 20,000 tons of cork, valued at about two and a half million dollars, more than two-thirds of the total coming from Portugal, and the remainder from Algeria and Spain. TEXTILE FIBERS. 1 Great energy has been displayed in hunting for substitutes and in encouraging home production of any suitable fibers. Wood fiber is now extensively used in place of cotton to make cellulose for ex- plosives. It is also made into paper, which is spun and woven into fabrics. The production of paper yarn is steadily increasing. In accord with the desire of various industries concerned, the paper yarns are now being numbered metrically instead of measured by the old English " count." This may be important for the future, when metrical numbering in Germany will also be introduced for cotton yarns. Table covers, napkins, aprons, hat bands, and even articles of underwear manufactured of mixed yarns, with paper as the chief constituent, were exhibited at the great Leipzig Fair in 1 See statistics of consumption and sources of supply, pp. 69-71. VITAL QUESTION OF MATERIALS. 81 August, 1917, and the imitations were reported to be so surprisingly successful that it was somewhat difficult for a layman to distinguish them from similar articles of the customary materials. Sacks, tents, and workmen's clothes are also manufactured from paper cloth, while nettle cloth is manufactured for the army. Nettle fiber is considered the best substitute for cotton that Ger- many has found. It is now being produced on a large scale exclu- sively for military use. Over 5,000,000 marks has been invested in nettle-fiber concerns. The nettle that is valuable for its fiber is the Urtica dioica, a plant growing wild in the meadows and woods of central Europe. It grows about 30 inches high. It is cut down when in bloom, dried in the sun like hay, stripped of leaves, and made up into bundles, and finally retted the same as nax, except for some minor details. It was found that the sugar in the plant would cause fermentation under the ordinary retting process, and for that reason the water must be changed to take away the sugar in solution before the retting process is complete., The leaves and tops of the plant are said to be good food for chickens. Yarns and cloths made from nettle fiber are said to compare favorably with flax products. Dr. Richter, of Vienna, who was the first to suggest the utilization of the nettle fiber, is quoted by a newspaper of Stuttgart as stating in the course of a lecture on the progress of his research that all the conditions for profitable production have been found, and that Ger- many and Austria by means of a systematic cultivation of the nettle can make themselves entirely independent of the cotton producers. The journal in its report of Dr. Richter's lecture says further: " Three conditions are necessary for a successful cultivation of the nettle sufficient moisture, shade, and enough nitrates in the soil. These conditions exist in the river valleys and deciduous forests of Austria and Hungary. Nor is there any necessity for the use of fertilizer, an important matter when the profitableness of the under- taking is considered. During 1915 and in the spring of 1916 ex- periments were made in the cultivation of the nettle in numerous districts along the Danube in Austria and Hungary, and all with splendid results. As a result of these experiments the question was taken up whether there was in Austria and Hungary a sufficient area of suitable soil which does not come into question for the culti- vation of other crops. Prof. Marchet has by thorough investigation established the fact that in the Niederwald in Austria there are 10,000,000 acres splendidly adapted to the cultivation of the nettle, and which up to the present have not been utilized for any purpose." According to Dr. Richter's estimates, this is twice the area needed to produce sufficient nettle fiber to replace the cotton imports of both Germany and Austria-Hungary. Samples of cloth which were shown are considered by him as proof that fabrics can be produced from nettle fiber without any admixture of cotton and that they can be used for any purpose for which pure cotton fabrics have hereto- fore been used. Director Brickwedel, of the school for willow culture at Graudenz, is reported to have succeeded in obtaining valuable textile material from the bast of the willow tree, which has heretofore been looked upon as waste. According to the Zeitschrift fur die gesamte Textil- industrie, the bast is dried in the air, pressed into bales, and tied. 43339 18 6 82 GERMAN TRADE AND THE WAR. The bales will keep for years without deteriorating. To obtain the fiber the bast is soaked in lye for five to eight h'jurs and then dried; the bark and the woody parts are removed by a mechanical process. The fibers are then broken and hackled, just like flax or hemp. The structure of the willow bast is similar to that of the linden bast; the fibers obtained are shorter, however. The fibers are nearly as fine as those of hemp, although not so strong. The raw material is cheap, the chemical treatment is not costly, and the fiber might be used as an independent product rather th~n as a mere substitute. In view of these advantages, it is rather surprising, says a correspondent of the Frankfurter Zeitung, that the manufacturers do not pay more attention to this material. Fibers of the willow rose, said to be a good substitute for jute, were exhibited at the meeting of the Union of German Jute Manu- facturers, at Brunswick, in July, 1915. The discovery was due to an accident. A man, it was stated, had used this plant as a roof covering for a wagon shed some years ago. Recently in removing this old roof he found that a certain rough, hairlike fiber could be peeled off of the stems or reeds. After a number of experiments with a quantity of these fibers it was further discovered that, on account of their age and the effects of the weather, they were too brittle, so several plants of that year's growth were tried, with the result that another useful textile fiber was discovered. Further investigations were made with various species of the Epilobium family, and it was found that all of them contained a fiber similar to hemp. The best ^results were obtained from the rough-haired willow rose (Epilobium hirsutum), followed by the narrow-leaved great willow herb (Chamcenerion angustifolium). All of these grow wild and in great abundance in Germany. The two species just mentioned have stems about 5 feet in length, require no particular soil, and produce a fine fiber. It is believed that by attentive cultivation a fiber as valuable as jute may be obtained. The quantity f these plants available in Germany might supply the jute manufacturers with fibers for a year. Government officials promised to organize school children for gathering the crop during vacation, and the manufacturers agreed to encourage the cultivation of these plants. It does not appear, however, that these fibers have been manufactured on an extensive scale. Twine and cordage have been manufactured from the fibers of turf plants. The fibers are derived from the sheaths of cyperaceous plants, principally the various species of the genus Eriophorum (cotton grass). The raw materials have been commandeered, and by an order issued July 7, 1917, 30 factories manufacturing peat briquets, peat coke, litter, and other peat products have been desig- nated as collection centers. Most of these works are in Oldenburg. INDIA RUBBER. 1 Germany imports about 20,000 metric tons of india rubber an- nually. War has made importation impossible and the rubber indus- tries have been compelled to reduce their production. Large quanti- tie of old and scrap rubber have been utilized for the production of regenerated rubber and various substitutes have taken the place of pure rubber. Bicycle and automobile tires have been made of steel ' See also sources of supply, p. 71. VITAL QUESTION OF MATERIALS. 83 wire, leather, wood, prepared canvas, and combinations of these sub- stances, as well as of rubber mixed with large quantities of wood pulp. The first substitute to appear was a bicycle tire made of steel wire, about three-sixteenths of an inch thick, which was made up into a very close coil, the ends being welded together so as to give it the proper shape. The tire was retailed for 18 marks ($4.28). It failed of popularity, as the price was high, and the tire would rattle considerably and cut into the pavements. The most practical tire, from the point of view of both price and service, seems to be the sec- tional wooden tire. The wooden tires, the leather-covered, and the canvas-covered tires have to be reinforced by steel springs. For a number of years German chemists have been trying to find a workable substitute for india rubber, but have had no more success than the scientists of other countries, although several inventions of synthetic rubber have been advertised. Thus, the Frankfurter Zeitung of December 13, 1915, announced the successful manufacture of the first automobile tires of synthetic rubber by the Mitteldeutsche Gummiwarenfabrik Louis Peter A. G. at Frankfort on the Main, but the hopes aroused by the invention have not been fulfilled and the exploitation of synthetic rubber has been abandoned. LEATHER. Some fancy articles formerly made of leather are now manufac- tured from paper. Leather soles have become scarce and various substitutes have been placed on the market. In September, 1917, the Ersatzsohlen-Gesellschaft (Substitute Shoe Sole Co.) placed 1,000,000 pairs of substitute shoe soles at the disposal of the poorer classes, the soles to be sold for about one-third of the regular retail price. These soles are of three kinds impregnated felt, wooden soles, and leather soles composed of small pieces of leather placed together. The impregnated felt soles have proven unsatisfactory, however. The wooden soles distributed by the Government to the shoe fac- tories are sold at prices ranging from 1.80 to 2 marks (43 to 48 cents) , but the wooden soles and sandals manufactured for the trade are sold at prices much higher. It has been reported that among the desperate substitutes for sole leather roofing paper has been exploited. The standard shoes recently placed on the market by the Govern- ment have wooden soles with metal protectors and uppers manu- factured of a combination of paper with fibers recovered from old sails, tent awnings, or military cloaks. The textile material is sup- ported by a slender strip of leather. The shoes are said to be heavy and uncomfortable. They retail at 17 to 22 marks. The soles are guaranteed for one month and may be renewed at a cost of 60 pfennigs to 1 mark. The " flexible " wooden sole and " noiseless " wooden sole, various varieties of lattice and tongue-and-groove con- struction, are advertised in the papers. Machine belting is now largely manufactured of paper yarn reen- forced by a core of metal or textile fiber or some other durable ma- terial. Human hair has also been employed in the manufacture of transmission belts. VII. GERMAN LABOR CONDITIONS IN WAR TIME. READJUSTMENT IN ALL INDUSTRIES. At the beginning of the war the labor situation was extremely critical, thousands of workmen having been thrown out of work. By September of 1914, 27.7 per cent of the 2,500,000 organized work- ers had been called to the colors, and 21.2 per cent of the others were unemployed. Th> situation improved rapidly, however. The in- dustries adjusted themselves speedily to the new conditions, and the unemployed soon found work in the war industries or in estab- lishments which had undertaken the manufacture of such products as had to be imported from foreign countries prior to the war. By the end of October, 1914, the percentage of workmen drafted into the army had increased to 31.3, while the number of the unem- ployed declined from 370,000 to 175,000; that is, from 21.2 to 10.7 per cent. The workmen, too, had to adapt themselves to new conditions. In many cases they had to work at new trades, and the places of skilled male workers were taken by unskilled workers and women, who had to familiarize themselves with the new work in the shortest possible time. The extent of the changes may be judged from the following data for the harness and saddlery industry: In times of peace that industry employed 1,500 to 2,000 male workers; by Jan- uary 21, 1915, according to the data published in the Soziale Praxis, the number of workers employed in the manufacture of car- tridge belts, helmets, saddles, harness, etc., had grown to 25,000. Many of these had formerly worked in other branches of the indus- try, and many others had been recruited from the ranks of book- binders, typesetters, woodworkers, and the metal trades. From a con- dition of unemployment the labor situation changed to a condition of labor shortage, which was in part met by the addition to the labor ranks of former nonproducers (women, children, and old men), utilization of soldiers behind the lines and prisoners of war, and en- couragement of foreign laborers. According to official statistics (Keichs-Arbeitsblatt, Jan. 27, 1917), the percentage of the unemployed had declined to 7.2 by the end of 1914. During the first three months of 1915 the proportion was reduced still further to 3.3, and by the end of that year to 2.6. At the end of December, 1916, only 1.6 per cent of the organized workers were unemployed, the percentage being the lowest for the last four years (since September, 1912). STRIKES fUSPENDED BY AGREEMENT. The relations between the workmen and their employers were de- termined by the principle of the " civic truce " proclaimed after the outbreak of the war, even the social democrats agreeing to suspend 84 GERMAN LABOR CONDITIONS IN WAR TIME. 85 the class struggle for the duration of the war. Apart from the truce, however, strikes of any kind could only with difficulty be carried out, owing to governmental control under the " state of siege " and com- pulsory labor regulations. During the last five years before the war, the average number of strikes in Germany had been 2,595 per year, involving approximately 327,000 workmen. In 1914 only 1,233 strikes took place, with about 95,000 participants; only 24 of the strikes occurred during the five months of the war. In 1915 the strikes to- taled 137, involving 178 establishments and 47,000 workmen. Greater unrest was noticeable in 1916; the number of strikes increased to 239 and the number of strikers to 420,000. In explanation of this increase the Soziale Praxis suggested that large groups of workers possibly had deemed it necessary to take advantage of the unusual prosperity of the employers in order to obtain higher wages so as to lessen somewhat the burden of the high cost of living. In addition to the strikes, the so-called " dry " movement workmen demanding higher wages without going on a strike -was also strong in 1916. A number of great strikes took place in the year 1917, though most of them were of short duration. They were caused largely by dis- agreements between the workers and the employers, and bore the character of protests against the food policy of the Government and of demonstrations in favor of peace. A number of serious strikes took place in Berlin about the middle of April, involving metal, wood, and transportation workers. A reduction of the bread portion was the principal cause of the strikes, the movement being further compli- cated by an act of the military authorities which the workmen de- nounced as ruthless. On the 14th of April, one of the leaders of the strike was suddenly drafted into the army. The strikers asserted that the man was in poor health and unfit for military service and that the Government was merely seeking to punish him. The central body of the workmen's federation, however, refused to countenance the strike, and it was settled in a few days by negotiations between the representatives of the workmen and the authorities. That the strike was considered a serious menace to the war industries is evi- dent from the fact that both Hindenburg and Gen. Groener, of the war department, deemed it necessary to address a very severe repri- mand to the striking workmen. An extensive strike movement, begun in the last days of January, 1918, was brought to an early end by the military authorities. In Hamburg and Altona about 20.000 workmen employed in the prin- cipal shipyards (Vulcan; Blohm & Voss; Reiherstieg; Stiilcken & Sohn; Jansen & Schmilinsky) went on strike January 28, demanding an increase in the potato ration and in wages, better treatment of workers on the part of the foremen, a shorter work day, and sup- pression of illicit trade in foodstuffs. The workmen declared also that they were not willing to suffer any longer for the sake of an- nexations or doubtful indemnities, but demanded a peace based on conciliation. The commanding general placed the shipyards under military rule, and the strike -collapsed. In Berlin, where 150,000 workmen struck, the committee of strikers, calling itself the work- men's council, after the Russian model, was dissolved by the military commander, and the formation of any new committees prohibited. Similar measures were taken in other cities, and the strikers returned 86 GERMAN THA.DE AND THE WAR. to work. The strikers were accused by the pan-German press of being in the pay of the enemy, although the justice of their economic demands was admitted. SHORTAGE OF FACTORY LABOR. It would be a mistake to conclude from the small number of strikes during the war that the situation of German employers is satisfactory. War itself brought about a number of complications. Thousands of workmen had been thrown out of work at first, but wild competition soon arose among employers trying to obtain a sufficient number of workers. This form of competition was par- ticularly fierce in those branches of industry which had received large war orders. Increased wages were frequently offered by in- dividual manufacturers to attract workmen to their factories, and workmen began to migrate from place to place in search of better earnings. The measures by which organizations of employers at- tempted to put an end to such competition failed of their purpose in most cases, for it was difficult to enforce them against those mem- bers who found it more profitable to leave the organization than submit to its rules ; on the other hand, such measures tended to place the organized employers at a disadvantage in competition with employers outside the organization. In the metal-working and many other industries the employers finally succeeded in obtaining the intervention of the military au- thorities for the purpose of regulating the conditions of the hiring of workmen. Thus, for example, on January 11, 1915, the Master of Ordnance (Feldzeugmeister) at Berlin issued an order provid- ing that firms established at Berlin or in the vicinity working on war orders should not hire workmen who had worked on similar orders before, unless the applicants produced a certificate showing that they had left their former place with the employer's consent. The trade-unions protested vigorously against all orders of that kind as unwarranted limitations on the workingman's freedom of movement. They complained also that the military commanders issued their communications to the employers only, leaving the workmen in ignorance of the details of important orders affecting their welfare. LAW AGAINST VOLUNTARY IDLENESS. While the unions were fighting for the workman's right to work where he pleased, tendencies of an opposite character prevailed in some parts of the country. Thus : in the Rhine-Westphalian indus- trial district the employers found it impossible to obtain a sufficient number of operatives, as the workers would rather be idle than come to seek a job in another town. Such voluntary idleness was ended by the national civilian service law of December 5, 1916. The law provides that " every male Ger- man between the completed ages of IT and 60 years who has not been called up for service with the armed forces is liable for national civilian service during the war." According to section 2 of this law, persons will be deemed to be already engaged in national civilian service who are actually "employed in the service of the Govern- GERMAN LABOR CONDITIONS IN WAR TIME. 87 ment or of a public authority, in war industry, in agriculture or forestry, in the care of the sick, in war organizations of any kind, as well as in concerns which are directly or indirectly of importance for the prosecution of the war or the supplying of the population with necessaries, in so far as the number of these persons is not in excess of actual requirements." The law makes labor compulsory and at the same time limits the workman's freedom of migration, for it forbids any person to take into his employment a national civilian service man who is, or dur- ing the previous fortnight has been, engaged in work coming within the definition of section 2 of the law unless the man shall produce a certificate from his last employer showing that he has left work with the employer's consent. Should the employer refuse to sign the required certificate the man may appeal to a district committee con- sisting of a nominee of the War Bureau (Kriegsamt) as chairman and three representatives each of the^ employers and the workers. If the committee, after investigating the case, considers that good grounds exist for leaving the employment, they will make out a certificate, which, for the purposes of the law, will take the place of the employer's certificate. It is to be noted that among the grounds which the committee will recognize as sufficient to justify the leaving of one employment for another in the national civilian service, the law specially mentions " a reasonable improvement of the conditions of labor." The military employment exchange (Militarischer Arbeitsnach- weis) was an official means of placing in the open labor market, for necessary industrial labor employment, soldiers fit only for limited military service, whenever the army could spare them. ESTABLISHMENT OF ARBITRATION BOARDS. Through the changes made in the Government bill by the Reichstag the labor organizations gained important advantages. In many industries the workmen had for years struggled in vain for the insti- tution of conciliation committees in large establishments that is, for the official recognition of such committees by the employers and now the law of December 5 expressly provides that committees of work- men and employers are to be set up in all establishments working " in the service of the fatherland " and employing regularly not less than 50 workers, for the purpose of maintaining good relations among the members of the staff and between them and the management. The law further provides for the institution of arbitration boards which are to pass on all controversies concerning wages or other con- ditlons of employment. And while the decisions of these boards are not absolutely binding upon either party, they do not, in their conse- quences, differ much from compulsory arbitration decrees. In case the employer, for example, refuses to abide by the award, the law gives the workman the right to demand from the committee a cer- tificate permitting him to seek employment elsewhere. On the other hand, if the employees refuse to abide by the committee's decision, they forfeit their right to obtain such a certificate on the basis of the conditions which have been the subject of the controversy. The law provides, finally, that the workmen employed in establishments working in the service of the Fatherland are not to be hindered in the 88 GERMAN TRADE AND THE WAR. exercise of the right to assemble or to organize. The administration of the law is in the hands of a newly formed branch of the Prussian Ministry of War, known as the War Bureau (Kriegsamt). ACTIVITIES OF LABOR UNIONS. Various difficulties have been encountered in the enforcement of the law. The selection of labor delegates to the committees pro- vided by the law led to friction between the labor organizations, especially between the social-democratic or " free " unions (Gewerk- schaften), the Hirsch-Duncker unions (Gewerkvereine), and the " Christian " unions, on the one hand, and the so-called " yellow " unions, patronized by employers, on the other. The former would not recognize the delegates chosen by the " yellow " unions, assert- ing that they were in reality the representatives not of the workmen but of the employers. Much friction has also been caused by the provision requiring the workman to produce a certificate when applying for a new job. The law provides a penalt}^ of fine and imprisonment for an employer hiring a workman who has worked in a national-service establishment and left without a certificate, and as it is not always easy to deter- mine whether a given establishment is or is not within the scope of the law, it became a rule with many employers not to hire any work- men who did not produce the certificates. As a result, many work- men would be left unemployed for long periods. This development led to the adoption of a new rule, whereby an employer refusing to issue the certificate to a workman is obliged to keep the workman employed under conditions not less favorable than those prevailing at the time of his application for discharge. A workman liable to national service may also demand from the chairman of the committee passing on the question of the employer's right to refuse the certificate of discharge to the workman a declara- tion in writing as to whether or not the establishment he intends to leave is to be considered, under the law, as working for the national service. If the answer is in the negative, the workman may imme- diately be hired by a new employer. On the other hand, a workman appealing to the district committee on his employer's refusal to issue a certificate is bound to remain at work until a decision has been ren- dered, excepting, of course, cases where serious injury, danger to health, or similar conditions are the grounds for complaint. The law has also caused many doubts in regard to the limits of jurisdiction between the conciliation and arbitration committees provided by the law and similar bodies already existing on the basis of wage agreements. The law has not found unconditional sympathy among the em- ployers. In one of their organs, Der Arbeitgeber, of March 15, 1917, Dr. Tewe criticizes rather sharply the provision of section 9 of the law specifying " a reasonable improvement of the conditions of labor " as a sufficient ground for a change of employers. According to the construction given this provision in most cases, any prospective increase of wages that is not merely nominal is considered a sufficient justification for a workman to leave his old employment. Thus, according to the author, this provision nullifies the effect of the rest of the law, the chief object of which was to secure a steady supply of operatives. GERMAN LABOR CONDITIONS IN WAR TIME. 89 DECLINE IN MEMBERSHIP OF LABOR ORGANIZATIONS. The labor organizations, naturally, have suffered large losses in membership during the war. At the end of June, 1914, the social- democratic or " free " unions had 2,521,303 members, of whom 2,300.298 were men. In the first nine months of the war 958,247 of the latter, or 41.7 per cent, were called to the colors, and many others withdrew from the unions for various reasons, so that, notwithstand- ing the addition of many thousands of new members, the number of members declined to 1,323,978 at the end of April and 1,180,489 at the end of July, 1915. The building trades suffered the greatest losses, owing to the cessation of building activities, but they were not the only losers. The union of the metal workers, for example, which had 543,076 members in June, 1914, was reduced to about 234,000 at the end of 1915. While the unions lost in members, they gained in influence during the war. The Government sought and received the assistance of the labor organizations in the solution of numerous problems connected with the distribution of food and the supplying of the army. The unions thus obtained official recognition for the first time. The so- called " new orientation " in the internal politics of Germany has also contributed to strengthen the demand for the removal of all obstacles hindering the free development of labor organizations, for the alleged freedom of association granted by the factory act of June 21, 1869, had been found to be but an empty form. It is true that section 152 of that law does abolish all prohibitions and penal- ties which stood in the way of the formation of unions or conclusion of agreements for the purpose of obtaining higher wages or better working conditions, but the trade unions were deprived of all legal protection by paragraph 2 of that section, which provides that " any member of any such union, or party to any sruch agreement, may withdraw from the same without liability to answer in a civil or criminal action." Nor had the unions been able to take advantage of the right granted them by section 21 of the Civil Code to acquire the status of legal persons through registration, as that section ex- cludes organizations with political or social-political aims, and the German authorities always placed the trade unions in that category. A number of labor partnerships (Arbeitsgemeinschaften) between the workers and the employers have been established during the war. Most of these organizations were formed to take care of invalid soldiers. Twenty-three such bodies were in existence at the end of 1916. WOMAN LABOR. The enormous increase in the number of women employed in the industries is one of the most serious of the many changes wrought by the war in the social and economic life of the belligerent coun- tries. It is highly probable that after the war the status of women in both the family life and the industries will be essentially differ- ent from what it had been prior to 1914. Large numbers of women, it is true, were employed in the industries during the last decades, but woman labor had been limited, as a rule, to trades requiring neither physical strength nor special skill. The bulk of the work necessary had been done by men, the women predominating in but few industries. 90 GERMAN TRADE AND THE WAR. When the men return from the war, says Adolf Braun (in Der Kampf, Vienna, April, 1917), they will face a situation altogether new ; they will find not only that the number of women employed in the industries has increased enormously, but also that woman labor has invaded a great many new fields. Women are now working in many trades which have been considered an exclusive domain of the men. The exigencies of war have made it necessary to admit woman labor even to those lines where, in time of peace, it might have taken- decades before women would have taken the place of men, since in peace times such social experiments are not neces- sary. In war time, however, these experiments have proved a success. Not only in the industries, commerce, and agriculture, but also in governmental and public, service generally, and even in such an ultra- conservative branch as the administration of justice, women are now doing work formerly performed exclusively by men. It may be ex- pected that, when peace comes, the women will not give up altogether the new fields of activity which they have conquered during the war. LARGE INCREASE IN NUMBER OF WOMEN EMPLOYEES. The following data will illustrate the expansion of woman labor in Germany during the war. In August and September, 1916, the number of women employed in the metal-working and machinery industries was 266,530., as against 116,298 in 1907. Between March 1, 1914, and August 1, 1916, the number of women insured in the sick-benefit funds increased by 990,884. On April 1, 1916, the Krupp factories employed 13,023 women; that is approximately 12 times as many as were employed there at the end of 1914, when only 1,166 women were working for the firm. For the first time in the history of the sick-benefit funds the number of women insured ex- ceeded the number of the men on March 1, 1917; in 5,713 funds 3,973,457 women were insured and 3,962,625 men. As early as the middle of 1916 more women than men were employed in the metal industries of Berlin ; on February 24, 1917, the 233 sick-benefit funds of Berlin and its suburbs had 1,190,599 members, of whom 721,130, or more than 60 per cent, were women. In 20 metallurgical estab- lishments the number of the women employed increased by 2,980 during 1916; in 38 establishments of the metal- working industries the increase was 13,166 during the same period; in 76 plants of the machinery industry the increase was 10,030; and in 93 electrical establishments 3,202 more women workers were employed on Decem- ber 1, 1916, than in the last- month of 1915. The increases are most remarkable and most striking in the metal and machinery industries, in the public service and the professions, in transportation, and in the manufacture of foodstuffs. On the other hand, the number of women workers has decreased largely in domestic service and other callings heretofore considered as eminently feminine. WOMEN IN TRANSPORTATION AND METALLURGICAL INDUSTRIES. In the railway transportation service women workers are to be found everywhere. They work in the shops and in the warehouses; they act as conductors both on passenger and freight trains; they are employed as switchmen; they examine tickets; they perform GERMAN LABOR CONDITIONS IN WAR TIME. 91 clerical work in the railway offices, operate the telegraph and the telephone, dispatch the trains, seal the freight cars, work as porters, etc. The railway administration is fully satisfied with their work, and the respective ministers of both Prussia and Bavaria have de- clared that the railways will continue to employ women after the war. It is well known that the Prussian railway administration has always been strenuously opposed to the employment of women. On the street railways women are employed in all the departments of the service throughout Germany. Large numbers of women are working in the postal service. In the plant of the great electrical concern the Allgemeine Elektrizitats-Gesellschaft the number of women employed at the end of 1916 was four times larger than before the war. In the forests of Prussia and Bavaria women are now working as woodchoppers and sawyers. The investigations of Mrs. Schuman-Fischer have shown that dur- ing the last six months before the war the number of women em- ployed in all the metallurgical industries of Germany, including the mining industry, which has ever been considered as preeminently a men's industry, stood in the proportion of 1:12 when compared with the number of the men. During the period April-September, 1916, the proportion was 1:3; that is, the number of woman workers had increased about fourfold, relatively, if not absolutely. Women are now employed even in those departments of the industry where greater physical strength and greater endurance are required and where the employment of women formerly was deemed an impossi- bility. Their work has been carefully planned, and in many cases women working in groups now do work formerly performed by one or more men. WAGES OF MEN AND WOMEN COMPARED. It is to be noted, however, that the wages of woman workers, though higher than in peace times, have in most instances not kept pace with the increasing cost of living. In the munitions factories some skilled women workers have made earnings which would have been undreamed of in peace times. Their wages, however, continue lower than the wages of men. Even municipal street railways pay women conductors 20 to 30 marks ($4.76 to $7.14 at normal exchange) less per month than they pay men. Women filling the places of book- keepers and clerks called to the colors do not, in many cases, receive as much as one-half the salary paid the men, though doing the same work. In factories and shops working for the national defense the time wages of women are 40 per cent below the wages of men. In establishments where the piece rate prevails the conditions are even worse, a woman earning only 5 to 7 marks where a man will earn 8 to 12 marks. In the transportation services a woman receives 2.50 to 4 marks, where a man is paid 3.50 to 5 marks. Government bureaus are no exception ; they, too, pay the women at a lower rate. The chief cause that compels women in such large numbers to seek employment in all kinds of industrial establishments and public serv- ices is to be found in the fact that, as the men have gone to the front, the woman is in many cases obliged to support the family by her own earnings. " It is not the high wage," says the Holzarbeiter Frauen- blatt, " that draws hundreds of thousands of women heretofore eco- 92 GERMAN TRADE AND THE WAR. nomically dependent into industrial establishments, but only sheer necessity which compels them to earn a living and neglect the obli- gations of motherhood." It should be remembered also that the women, while receiving a much lower wage than the men, have to meet certain expenditures for the care of the children left at home and generally have to perform household duties after their return from work. The bodily vigor of the working women necessarily suffers from the unusual strain. The enforcement of many laws designed to protect the life and health of the laborer has been suspended for the duration of the war, and the women workers are consequently exposed to various dangers. The injurious effects of night and overtime work have been pointed out by physicians. Members of the Imperial Parliament and of the State diets have repeatedly called attention to the dangers inherent in the strenuous and enervating work now being done by women and the long working hours. It has been proposed to appoint women as factory inspectors in order to remedy the situation somewhat. The provisions of the national civilian service law do not apply to women. Since, however, thousands of women have been driven into the factories by want, a special division for woman labor Frauen- arbeitszentrale has been organized in the Kriegsamt. The new bureau is trying to improve the working conditions so that the health and the family life of the working women may suffer as little as possible. The bureau is preparing various measures to protect the health of the woman workers ; assure them suitable rest rooms, living and sleeping quarters; provide kindergartens for their children; supply the workers with food, etc., so that the women workers may be relieved of these cares. POSSIBLE FUTURE EFFECTS ON FAMILY LIFE. It is admitted that the influence of woman labor on the family life of the women, and family life in general, will deserve careful consideration after the war. Some uneasiness had been caused in Germany even before the war by the decline of the birth rate, which was particularly noticeable among the wealthy classes of the popula- tion. It is pointed out that, as woman becomes more and more inde- pendent economically, family life will appear to her more and more burdensome, and the birth rate will decline still further. Consider- able thought has been devoted to the problem in Germany, and some peculiar remedies have been suggested. Thus, a certain Mr. Zeiler, a lawyer, recommends that the Government pay each newly married couple a premium of 150 marks for each thousand of their income, and an appropriate subsidy for the maintenance of each child, for the dowry of each daughter, etc. Mr. Adolf Braun, author of the article previously quoted, does not reject the proposal in principle, but opposes it on the ground that it would bring too heavy a charge to the imperial budget. inhere is no doubt that the "problem" of woman labor will be acute, even after the war. Great numbers of men will have been killed in the war; the excess of women over men will be greater. GERMAN LABOR CONDITIONS IN WAR TIME. 93 The hard times after the war will make men returning from the war hesitate about marrying. Thus, women will be compelled to work more intensively; the widows of soldiers, in particular, will have to work to earn a living for themselves and the children; and the men returning will face serious competition on the part of the women. A number of grave problems arising from the expansion of woman labor will have to be solved by the Government and the labor organizations. IMPORTATION OF FOREIGN LABORERS. Lack of room for economic expansion has often been cited by Ger- man economists in justification or excuse of the present war. Ger- many is fighting " for a place in the sun," as they say. The phrase has a touch of poetry and sounds well. The argument on behalf of Germany is presented thus by Arthur Dix (" Deutschland auf den Hochstrassen des Weltwirtschaftsverkehrs," 1901, p. 14) : " Because the German people nowadays increase at the rate of 800.000 inhabitants a year they need both room and nourishment for the surplus. If we had limited ourselves to the territory formerly in our possession, we should have lost the larger part of our increase to foreign countries and the rest would have been without work. The increase in population would soon have come to an end, and our effec- tiveness in labor and in war, the dissemination of German speech, German thought and productivity over the world would not have been able to continue. The increase of population would have passed into the curse of overpopulation a superfluity of those without work and in misery. That, however, must never be. The rapid growth of the German people must continue to give it room, light, and air. As a world power in the world market, we must assert our place and make it secure in order that the younger hands may find room and opportunity for employment." Otto R. Tannenberg is more explicit. In his book, " Gross- Deutschland, die Arbeit des 20ten Jahrhunderts " (1911, pp. 74-75), he says : " Room ; they must make room. The western and southern Slavs or we. Since we are the stronger, the choice will not be diffi- cult. We must quit our modest waiting at the door. Only by growth can a people save itself. ' England has its Greater Britain and Amer- ica its ' America for the Americans.' " GROWTH OF POPULATION LESS THAN INDUSTRIAL EXPANSION. These, and other similar arguments, create an impression that Germany is an overpopulated country unable to employ a large part of its population. As a matter of fact, however, Germany is not overpopulated and there is no danger apparent that it will become overpopulated ; moreover, it is a pertinent fact that, during the last decade of peace, the Germans have been unable to till their farms or man their shops and mills without the aid of foreign laborers, about 1,009,000 of whom have been hired annually. 1 During the last 50 years the birth rate in Germany was highest in 1876, when it had risen to 42.6 per 1,000 of population. Since The Germans, on the other hand, claim that the depression of tLe birth rate has been the result of comparative lack of economic opportunity, and on this they base their claims of the need of territorial expansion. 94 GERMAN TRADE AND THE WAR. that year the rate has been decreasing gradually but steadily, ; until it reached the minimum of 28.3 per 1,000 in 1913 the last year before the war. Thus, in 37 years, or slightly more than a generation, the birth rate declined 33.6 per cent, or more than one- third. The decline was compensated for, in part, by a reduction of the death rate, during the same period, from 28.1 to 15.8 per 1.000 of population, a decline of 43.8 per cent, the excess of births over deaths the natural increase of the population being reduced from 14.5 to 12.5 per 1,000, or 13.8 per cent. The absolute increase was highest in 1906, when it amounted to 910,275. In 1913 the annual increase was 833,800, or less than it had been in 1901 and 1902, or even in 1898. In view of these facts the fears of overpopulation appear to be somewhat premature. During the war the birth rate has declined still further, while the death rate has increased. Polygamy is now openly advocated in the form of so-called secondary marriages to increase the birth rate. Special increased allotments of food to newly married couples, pregnant women, nursing mothers, and small infants are reported in the press during the war period. OCCUPATIONS OF IMPORTED LABORERS. The great industrial expansion of Germany had withdrawn large numbers of men from the farms into the mills and made necessary the importation of laborers from other countries for both farm and factory work. Eight hundred thousand foreign laborers were counted in Germany on June 12, 1907, the date of the last indus- trial census. They were distributed as follows : Agriculture, 274,233 ; horticulture, forestry, and the fisheries, 5,707; mining and metal- lurgy, 76,906 ; manufacturing industries, 239,249 ; the building trades, 124,645; trade and transportation, 45,205; domestic and personal service, 33,918; total, 799,863. In Prussia alone 600,000 were found, two-fifths of whom were agricultural, and three-fifths were indus- trial workers. Russia and Austria-Hungary furnished 541,598 la- borers, including about 210,000 Poles; Italy, 125,520; and the Nether- lands, 52,039. The number of foreign laborers employed during the last years before the war is not known, but has been estimated at about 1,000,000. These workers are engaged because they are needed. Some Ger- man economists have pointed out rather regretfully that these for- eigners carry away millions of marks of German money; but the Government does not allow them an opportunity to spend the money in Germany, for they are mostly workers hired for the season and compelled to leave the country within a prescribed time. It is true that in times of general depression they might become dangerous competitors of the native workmen. For that reason the States and the municipalities usually stipulate in contracts for public works that the contractor shall not employ foreigners except when native workers are not to be had. For the building of railways and canals and similar works, however, the Prussian Government has, since 1907, as a matter of principle, been recommending foreign laborers, principally Italians, because at times no German workers would apply for such jobs, and, on the other hand, it is not considered de- sirable to withdraw German workers from other enterprises. GERMAN LABOR CONDITIONS IN WAR TIME. 95 DISCRIMINATION AGAINST POLISH WORKERS. The Polish workers are considered as undesirable, not for eco- nomic but for political reasons. The Government of Prussia had for years been carrying on a systematic campaign for the Germani- zation of the Polish Provinces, and fears were entertained that the Polish immigrants might stiffen the resistance of the Poles in Prussia to that policy. This view of the matter is illustrated by the follow- ing quotation from the Handworterbuch der Staatswissenschaften (Vol. Ill, p. 775, Jena, 1909) : " For Germany the great immigration of workmen is of impor- tance also from an anthropological or nationalist point of view. In some parts of the country the Germanic race represents such a small minority that it is no longer able to make good its cultural mission throughout the community. The nationalist side of the matter is of special importance in the case of foreign Poles, hostile to the Ger- mans, who are welcomed by their countrymen of like views in the Empire as a desirable reinforcement in this struggle for power. Beginning with 1885, the Polish immigrant workers were, on the advice of Prince Bismarck, subjected to strict supervision; workers hired for the harvest season were compelled to leave Germany in November. Under the administration of Caprivi this principle was not observed very strictly, but the strict regulations were revived under Hohenlohe, and many changes have been introduced recently. Foreign Poles are forbidden to remain in Prussia between December 20 and February 1, but many of them, knowing how to conceal their citizenship, manage to remain in the country. In order to make the control more strict, the Prussian Government introduced, in 1907, obligatory identification cards for workmen coming from Russia or Austria-Hungary." IMPORTATION CONTINUES DURING WAR. The importation of foreign laborers has continued even during the war. Germany is now receiving large numbers of industrial workers from neutral countries, particularly from Scandinavia and the Netherlands. The iron and steel industries have increased their personnel by requisitioning large numbers of Russian prisoners of war and by importing labor from the occupied portions of Russian Poland. The Berlin Chamber of Commerce reported in 1916 that its assistance in obtaining foreign labor was particularly solicited by the local meat trade. PRISONERS OF WAR. The number of foreign laborers now employed in Germany is not known. It is doubtless below the average of the last years of peace, but the loss has been made good by the employment of prisoners of war. It was stated in May, 1916, that there were at that time ap- proximately 650,000 prisoners of war employed on the farms and in the industrial establishments in Germany, and the number was reported to be about 1,200,000 in 1917. The foreign laborers in Germany are under strict supervision. The Bremen Buerger-Zeitung of August 16, 1917, quotes a decree 96 GERMAN TRADE AND THE WAR. issued by the commanding general of the Ninth Army Corps in reference to the employment of foreign workmen. Under this de- cree a foreigner can riot change masters unless he produces a police certificate showing that he has left his last place of employment in a lawful way. When a new employer hires him, the certificate of dis- charge must be delivered to local police authorities within 24 hours. The certificate is not to be returned to the workman under any cir- cumstances. Violations of these provisions are punished by im- prisonment for a term not exceeding one year. Similar regulations are in force throughout Germany. In a session of the main committee of the Parliament on January 17, 1918, two Polish representatives, Dr. Trampczynski and Dr. Seyda, protested against the unjust treatment of Polish seasonal workers. These workers, they said, were working under compulsory and therefore illegal wage agreements; they were under strict police supervision, were not allowed any liberty of movement, and were not permitted to join the trade-unions of (German) Polish workmen. The food shortage and inconvenience of life in Germany in war time have made difficult the recruiting and upkeep of good staffs of foreign workers. THE FUTURE A TOPIC OF SPECULATION. The future labor situation, with all the problems of the after-the- war period, demobilization, reconstruction, woman and child labor, wages, hours of labor, the relations of labor and capital and the Gov- ernment, emigration and immigration, is a topic on which specula- tion is rife and discussion among the intellectuals is plentiful in Germany. The limits of the present publication do not admit of de- tailed discussion of these matters here. VIII. GERMAN LAND AND WATER TRANSPORTATION. The various transportation services, railways, motor-truck lines, and inland waterways of Germany are to-day playing almost as important a part in war operations as munitions factories. Ger- many's ability to stand the terrific strain of war is largely dependent upon the ability of its railroads to meet the continually growing demands. The inland waterways have proved a valuable comple- ment of the railroads. They will be improved and extended after the war and possibly placed under a joint management with the railroads. The merchant marine is of present assistance only on the Baltic. THE RAILROADS. 1 According to official statistics, of the 39,381 2 miles of railways in 1913 in Germany, 36,385 miles were State railroads and 2,996 miles privately owned. The Prussian-Hessian State railway system in- cludes about two-thirds of all the State railways. The war has sub- jected the railroads to a terrific strain, and much of the rolling stock, roadbeds, rails, sleepers, and ballast w T ill have to be practically renewed. This will furnish iron foundries, manufacturers of rail- way material, and stone quarries with contracts for several years and provide thousands of skilled mechanics and laborers with employ- ment. In connection with such a thorough overhauling of the rail- ways the practicability of substituting electricity for steam as a motive power is already being seriously considered. As is well known, there are already several very important electrifications in Germany for handling both freight and passenger traffic, worked out with technical completeness. The mobilization of the army in August, 1914, stopped all private traffic. Thousands of summer excursionists were stranded; goods had to be unloaded at way stations and could not be forwarded to their destinations until later. In 19 days, however, more nearly normal conditions of traffic were restored everywhere except on the right bank of the Rhine and the Provinces of East and West Prussia. According to a declaration of the Minister of Eailwavs before the Prussian Diet on March 1, 1915, the schedule then in force retained about 70 per cent of the trains formerly in operation. Trains could not be dispatched more frequently, the Minister said, for lack of both locomotives and men. The railway administration had lost about 80,000 employees, some of whom were called to the colors^ while others were employed in the occupied territory. The administra- tion had only 12 hospital trains at the beginning of the war; now there are 110 on the Prussian-Hessian State Railways, and about 20 1 For proposed electrification, see p. 133. 2 With 39,381 miles of line the German railways had 78,382 miles of all tracks, or about 2 miles of track to 1 mile of line, whereas the railways of the United States in the same year had only li miles of all tracks to 1 mile of line, indicating the greater yard and terminal facilities of the German lines. 43339 18 7 97 98 GERMAN TEADE AND THE WAR. or 25 on the other lines. Only fourth-class cars were used for the hospital trains, and about 4,000 cars had to be rebuilt for that pur-] pose. Track building was difficult, as workmen were lacking, and only small numbers of the prisoners of war could be employed on the work. Eolling stock was being renewed, but the capacity of the locomotive works was limited. INCREASES IN EQUIPMENT. According to the Berliner Politische Nachrichten, the total outlay on rolling stock for the business year 1917-18 is far in excess of the sum expended in any previous year. This increased outlay will make possible a considerable enlargement of the supply of rolling stock, notwithstanding the higher prices that now have to be paid. In 1916 deliveries were reported of 1,600 locomotives and about 32,900 cars, of which 31,240 were freight and baggage cars. The orders placed for 1917 contemplated an addition of 1,854 loco- motives almost exclusively heavy freight engines and about 38,000 cars. Including the additions of 1917, the total reported increase for the three years 1915-1917 amounts to 4,954 engines and 101,340 cars. Germany in 1917 had 713,000 freight cars on its railroads, against 667,000 at the outbreak of the war, 1 and 4,253 more loco- motives than it had at that time. A representative of the Ministry of Railways stated in December, 1917, that the railway authorities during the war had provided 4,900 new locomotives and 120,000 cars. During 1918 a further 1,700 loco- motives and 29,000 freight cars were to be provided. The price of locomotives had gone up 54 per cent, and of freight cars 80 per cent. Considerable railroad material had been captured in Belgium, but comparatively little in Serbia and Roumania, and hardly anything in Russia, where the railroads are of a wider gauge than the German lines. On the eastern front there was considerable rebuilding of rail- roads to the German gauge, in order to enable the use of German rolling stock on all important lines. For strategic reasons there was extension work, double-tracking, and other improvement on the west- ern front as well as on the eastern. The construction of a four-track line into Belgium was reported. This work in Belgium, Poland, Courland, Lithuania, northern Italy, and Roumania accounts for the increased equipment and explains the labor and car and locomotive shortage in Germany proper. The wear and tear on rolling material in war time is increasing, as imiy be judged from the fact that, whereas in August, 1915, out of '21,294 locomotives, 18.8 per cent were under repair ; the proportion in December, 1916, was 29.5 per cent of 20,876 locomotives, an increase of fully 50 per cent. CHANGES IN OPERATION AS RESULT OF WAR. Some light has been thrown on the working of German railways during the war by the official statistics of German railways. The business year of the railways is reckoned from April 1 to March 31, so that the figures for 1914-15 include eight full war months. As it 1 In 1913 the German railways had 17 freight cars per mile of line against 9 per mile for the railroads of the United States, with three-fourths of a locomotive per mile of line compared with one-fourth of a locomotive for the railroads of the United States. On the other hand, the capacity of the German freight cars is far lower and the locomotives are lighter and less powerful (see also p. 133). GERMAN LAND AND WATER TRANSPORTATION. 99 jhas not been possible to calculate the ton-kilometers for the whole |of Germany, comparisons have been made on the basis of the engine mileage and the axle mileage of the passenger and freight cars. The {engine mileage totaled 793.6 million kilometers in 1912-13 and 815 imillion in 1913-14; during the first year of war it declined to 673, (and in 1915-16 increased slightly to 681.1 million kilometers. Com- pared with the last year of peace, the engine mileage was 18 per cent less in the first and 16.4 per cent less in the second year of the war. The decline -was greatest in the express and fast trains, the figures for the three war years being relatively as 100, 64, and 58.8. The dis- tances covered by ordinary passenger trains fell off 21 per cent in 1914-15, but rose 13 per cent in 1915-16, so that in 1915-16 the freight trains ran only 8 per cent less mileage than in 1913-14, the mileage for the three years being 284, 225.1, and 261.9 million kilometers. These facts would seem to indicate that the war years have brought with them a noticeable diminution of traffic. This is not altogether the case, as the figures for the car-axle mileage give very different results. The axle mileage of passenger cars declined from 9,208 million kilometers in 1913-14 to 7,942 and 8,034 million kilometers in the two following years, but the axle mileage of freight cars, after declining 10.4 per cent in 1914-15, increased so much in 1915-16 as to exceed the last peace year by 3.4 per cent, the figures being 23,033, 20,616, and 23,791 million kilometers. The aggregate car mileage shows a decline of 11 per cent for 1914-15, but only 1.3 per cent for 1915-16, and traffic in the latter year was actually 3.7 per cent higher than in 1912-13. The explanation of the fact that the car mileage (which represents the real economic contribution of the railways) did not decrease along with the decrease in the engine mileage lies in the circumstance that the trains were longer and more cars were drawn by a single engine. In the years 1912-1914 express trains comprised on an aver- age 30 carriage axles, and fast trains 24 or 25, whereas in 1915-16 the figures were 37 and 29, respectively. Ordinary passenger trains averaged 22 carriage axles in 1912-1914, but 30 in 1915-16, while for the freight trains the averages were 73 and 77, respectively. This lengthening of the trains with corresponding increase in the carry- ing capacity has been paid for by a diminution of speed; for this, however, no statistical data are available. It is probable that during the year 1916-17 railway traffic was in- creased still further because of the large additions to track mileage. Passenger trains were running directly from Berlin to the occupied territories. For the western districts a new time-table went into effect on March 1, 1916. A fast train was scheduled to leave St. Quentin at 10.05 p. m., reaching Cologne at 6.35 a. m., and Berlin at 4.10 p. m. A direct connection with Constantinople had been effected earlier, the train leaving Berlin at 8.16 a. m., and reaching Constantinople at 2 p. m. on the second following day. The return trip was to be made in 58 hours. WAR DEMANDS PARAMOUNT. The railroads are needed largely for war purposes, and the Govern- ment has systematically discouraged civilian passenger traffic, though 100 GERMAN TRADE AND THE WAR. with but little success. 1 The passenger service has been cut down, however, to less than half of the peace mileage. " Besides the ter- rific strain caused by the continual movement of troops and the necessity for provisioning them and supplying them with ammuni- tion," says a correspondent to the Chicago Daily News, " the fur- loughed soldiers and officers require hundreds of trains daily, run entirely for their benefit from the various fronts. The German Army aims to keep 10 per cent of its men on two-week furloughs. And as some of them must travel all the way from Macedonia or: Roumania to the Rhine, this is no slight task. It means at least 150,000 long-distance passengers daily, for each man must be figured twice, coming and going. It really is a far larger figure, because for thousands upon thousands of these men it means two-day trips each way. At the same time, freight traffic has increased along unexpected ]ines. For instance, in peace times much of the grain traffic from the eastern provinces was sent by boat through the Baltic and North Seas and then up the Rhine. Now this is impossible. Before the war the railroads carried an average of 4,200,000 tons of potatoes yearly; in 1916 they carried 6,500,000 tons, and this year the amount will be much larger estimated as high as 10,000,000 tons. In Au- gust and September alone 108,000 more freight cars were needed for the potato traffic than a year ago." A similar demand for increased rail shipment of coal resulted from the cutting off of means of marine transportation. In December, 1917, the Under Secretary of State of the Ministry of Railways stated in the Prussian Diet that a further restriction of passenger traffic had been made necessary by the demands upon the railways for moving goods. Little more than half of the trains shown in 1914 time-tables were running. The express train traffic had to be restricted and fares raised in order to clear the way for freight traffic. FINANCES OF RAILROADS. Owing to the large expenditures of the railway administration, higher freight rates are expected after the Avar. A beginning was made by the law of April 8, 1917, which imposed a tax on all goods forwarded by rail or water, with the sole exception of coal, coke, and briquets. The tax amounts to 7 per cent of the total charges. Many products which were formerly carried at special reduced rates are now required to pay the regular rates, and the stamp tax on way bills has been increased. Representatives of the industries are already protesting against further traffic charges. The financial report of the Prussian-Hessian State Railways for 1915-16 showed an operating income of 2,324 million marks, freight revenue amounting to 1,754, and passenger and baggage revenue to 570 million marks. Revenue from leases and other sources increased the total income to 2,368,329,000 marks. The expenses totaled 1,826,- 871,000 marks, the principal items being : Salaries, 368 million : wages, 275 million; maintenance of rolling stock, 232; new lines, 3il; and new locomotives, cars, etc., 292 million. The surplus was 741,458,000 marks, amounting to 5.57 per cent of the capital invested, stated at 13,303,996,000 marks. The surplus was 53 per cent higher than in 1 See Appendix E, " Christmas in Berlin," p. 192. GERMAN LAND AND WATER TRANSPORTATION j 1{)1 J1914-15, and the deficit for the year, due to financial thar.ges^ ty&s* (reduced to 120 million marks, as against 350 million in the preceding year. INLAND WATERWAYS. The inland waterways of Germany are classified as open rivers. canalized rivers (rivers made navigable), canals, and navigable lakes. The total length of the navigable waterways of Germany is 8,570 miles. In 1913, the last year of record, 56,674,000 metric tons of goods of all kinds were carried on the waterways in inland commerce and 42,951.000 tons in foreign commerce, the total traffic amounting to nearly 100,000,000 tons. The experience of the war has shown the dependence of national life on a system of efficient transportation and demonstrated the great value of the inland waterways, and the improvement of rivers and development of canals will be one of the most important questions of commercial politics that Germany will have to face after the war. It is admitted by a writer in the Frankfurter Zeitung that great difficulty will be encountered in the matter of obtaining crews. The high price of materials will hamper the building of new craft, and many boats have been lost during the war from one cause or another. Apparently there will be a heavy demand for inland shipping space after the war. The demand for space on seagoing vessels will be very heavy, as Germany will have to restock the warehouses with raw ma- terials that have not been arriving during the past three years. Ger- many is confident that the whole world will be buying German pot- ash at the first opportunity, despite high freights, and that soon after the importation of raw materials has commenced the exporta- tion of finished products will begin. It may be fairly anticipated that the railway freights all over Ger- many will be greatly increased, partly because of the natural increase in all prices and partly on account of increased governmental taxes on freights and railroads. This is another reason why German waterways should be developed, for the rise in the cost of water trans- portation will not keep pace with the probable increase in railway freight rates. The writer advocates a tax on all ocean bills of lading as a means of raising money to improve and extend German water- ways. CENTRAL EUROPEAN WATERWAY SYSTEM. The central European waterway system consists at present of three principal parts, which are cut off from each other, leaving aside some smaller districts which are self-contained, such as the East Prussian and Swiss waterways and others. The three chief districts are as follows: The southern system, including all the Danube region, which, strange to say, is so far not connected with any of the neigh- boring rivers by a canal that is even approximately adequate; the northwestern system, consisting of the Rhine, Ems, and Weser dis- tricts, which has only been welded into a connected whole during the war by the completion of the Rhine-Hanover canal ; and the northern system, including the Elbe district and all Germany on the left bank of the Elbe and also Bohemia. These three regions are, as far as shipping possibilities are con- cerned, shut in from each other, so to speak, in " watertight compart- 102 : > ; : QERMAN TRADE AND THE WAR. v Apart imm, the quite unimportant connections, navigable by rafts only, which exist in the shape of the Hamme-Oste Canal between the Elbe and the Weser, and the Schwarzenberger Schwemm- kanal between the Moldau (Vltava) and the Danube, there remains asV the only connecting waterway of moderate navigability the long ob- solete and now scarcely used Bavarian Ludwigskanal, built in the years 1836-1845, which provides a passage from the Danube to the Main via Kelheim, Nuremberg, and Bamberg, but does not respond to the most modest requirements of the twentieth century, as the canal and locks permit the passage of only small boats of not more than 127 tons. The chief port of the Ludwigskanal, Nuremberg, had in 1910 a total traffic of only 27,000 tons, so that the ranches employed over 860,000 operatives, mostly men of military ige. A like task awaits the cement, brick, tile, and stone industries, nd the woodworking industries' each employed above 770,000 per- ons in 1907. The building trades employed more than one and a talf million men. CHEMICAL, PAPER, AND LEATHER INDUSTRIES. 1 The chemical industry is in an exceptional position. It employed >nlv 172,000 persons in 1907, but has acquired unusual importance [uring the war. The industry expects an easy transition from war o peace conditions and is sure of a good market, even in peace times, it has brought forth a number of substitute articles of common use which will remain in the market, and foreign countries will still be Lependent on the German chemical industry, so this German writer laims, notwithstanding the various attempts to establish independ- nt chemical industries elsewhere. The paper and the leather industries have worked but little for ivilian needs during the war, owing to lack of raw materials; after he war the domestic demand for their products will be correspond- ngly great. The canned-goods industry has been well employed luring the war, but the other foodstuff industries, as well as the obacco industry, have only been able to work for the needs of the noment. They will be kept busy when sufficient supplies of raw naterials have been obtained, but these materials, whether domestic >r foreign (cocoa, tobacco, etc.), will hardly be as plentiful as in he times of peace. TEXTILE AND CLOTHING INDUSTRIES. 2 The textile and the clothing industries will find themselves in situation beset with many difficulties. These industries employed learly two and a half million workers, a majority of whom were tvomen. Their stocks of raw materials are gone, and many of their nills have been lying idle. In times of peace Germany imported normous quantities of cotton, wool, silk, and yarns, and exported nanuf actured textile products of more than a billion marks in value. Dwing to lack of ship space and high foreign exchange it will be mpossible early in the reconstruction period to import enough raw naterials to satisfy the demand at home and bring exportation to he average of the antebellum period. The textile industry will have o make an uphill fight to win back its old place in the markets of he world. Foreign competition has grown up during the war, and he reconquest of the markets will take a long time. The industry, according to Herr Dix, will also pay a penalty for ;he mistaken policy of placing its goods on the market under false lags. As a result of that policy German textiles are almost unknown 1 See also pp. 38-39, 48, and 62. See also pp. 49-53 and 58. 140 GERMAN TRADE AND THE WAE. as such in markets where they have been sold under foreign labels. Even in Germany, the author complains, silk fabrics hud to bear a Lyon mark, and ^suitings an English label, in order to be popular. The textile industry will do well in the future to make the most of the advantages offered by the superior quality of German dyes and market its fabrics as German wares. Germany can not achieve any permanent success in the economic war, the writer says, by getting into the markets by stealth through competing countries and under their flags; on the contrary, the thing to do is openly to exploit the fame achieved by German technical skill during this very war. However, the textile industry will be affected more by the course of exchange and the general economic situation than by demobiliza- tion, as a large proportion of its operatives are women. OPTIMISTIC VIEWS OF GERMAN PUBLICISTS. German agriculture, mining, and the manufacturing industries will doubtless face many difficulties during the period of reconstruc- tion. It should be noted, however, that the author whose views have been given above uses these difficulties as an argument for war in- demnities, pointing out the differences between a " good " and a "bad'' peace. President Havenstein, of the Imperial Bank, on the other hand, is of the opinion that "when peace has opened a free road for German work both at home and overseas, and when the German merchant shall again be able to wrestle in free competition with other nations in the world market, nothing can permanently paralyze German work, which is inimitable." Even England, he says, has been greatly weakened, so that the Germans have no need to fear her competition. These are typical views of publicists and business leaders current in Germany; similar discussions fill not only the newspapers and periodicals but innumerable books and pamphlets as well. Many German business men are facing the future with the view that in the past not a mark's worth of German goods was purchased abroad for love of Germany, but value was the only consideration. They assume that the trade of the future will be based on the same grounds and that German commerce in foreign markets can proceed as before. 1 1 The following is an abstract of an article given considerable publicity in the German fress in the latter part of 1917, having been sent out by Wolff's German News Bureau. t is a view of the raw material situation and the subject of trade after the war which is obviously intended to afford consolation for the German business men. "The belief of the Entente in the final military victory seems now to be greatly shaken. They desire to exclude Germany from economic cooperation and to put it in a difficult situation by stopping the supply of raw materials after the war. This can only be effected as long as the Entente and the countries overseas stand together, and it seems doubtful that they for long will be willing to exclude themselves from so good a market as the German. Italy can not long do without Germany, its best market for vegetables, fruits, flowers, silks, etc. The natural market for Russian grain, hemp, bran, wood, eggs, and many raw materials is Germany. Many of these countries need goods which they can only get from Germany, such as coal, coke, potash, sulphate of ammonia, chemicals, dyes, engines, optical and electric apparatus. By compensation agreements it would be easy for Germany to prevail upon such countries to make ex- changes secretly or openly. If individual States take up business connection with Germany, openly or secretly, there will be many ways to get raw materials. " As soon as the chain of agreements with regard to an economic war is broken, England will be the greatest sufferer An exchange of goods, not carried on according to natural, economic laws, will make the costs of production greater, export more difficult, and inland consumption more expensive, all to the detriment of English laborers. Before the war Germany was England's best customer in raw materials. The use of aluminum instead of copper will go on after the war and will considerably decrease the necessity of importing copper from overseas. The textile industry, which before the war imported a considerable amount of raw materials, has during the war made itself independent of foreign countries by supporting the domestic production of binder twine, by growing and utilizing nettles and by the use of paper twine." See aiso p. 15. PREPARATIONS FOR TRADE AFTER THE WAR. 141 lit is difficult to reconcile such views with the current home-market [ideals and activities that accompany them with regard to the trade in the German market. German trade for German manufacturers is more than ever a slogan. Deutsche Arbeit is an organization with headquarters in Berlin which is conducting the home-market propa- ganda with extravagant promises for the future. Under "home market " are not infrequently included Austria-Hungary, Turkey, the Balkan countries. ECONOMIC RELATIONS BETWEEN GERMANY AND AUSTRIA- HUNGARY. ! The discussion of various plans for closer economic relations be- tween Germany and Austria-Hungary has given rise to an extensive literature. The idea of an economic union in " Mitteleuropa " 1 is not (new. It originated in the forties of the last century in Austria and jwas championed by the Austrian dynasty which aspired to leader- ship in Germany. The war of 1866 put an end to these aspirations land also to the plans of an economic union. Eighteen hundred and (seventy saw a united Germany, but Austria was not included. In JL879 the idea was revived by representatives of the German indus- tries, and several futile efforts to bring about closer relations have been made since. In 1903 the Mitteleuropaischer Wirtschaftsverein pas organized for the purpose of promoting the principles of mutual Concessions between Germany and Austria-Hungary. In 1912 the blan of a customs union was discussed by representatives of indus- trial organizations of both countries, and in the following year the jcreation of an Austro-German economic society was suggested by {Berlin, but only the German branch was actually organized. PROPOSED CUSTOMS UNION. The present discussion embraces numerous plans, the predominat- ng idea being that of a customs union of Germany and Austria- -lungary as against other countries, with home rule for each of the wo Empires. The idea is favored by Austrian politicians and other epresentatives of the nonindustrial classes with w r hom political con- iderations are uppermost, but has been received rather coldly by epresentatives of the industries with whom economic considerations ire of first importance. Inasmuch as the Austrian and Hungarian ndustries are both absolutely and relatively weaker, some guaranties would have to be found to protect them against the overwhelming competition of Germany. 2 The attitude of the Austrian manufacturers toward the proposed union may be judged by the following declaration of their principal (organ, Die Industrie, of March 9, 1915: "To believe that Austria- jHungary has any reason to seek closer relations with the ultimate 1 See also Appendix B, p. 177, and Appendix C, p. 184. i 2 Any proposal for a customs union naturally meets with a certain amount of opposition irom certain interested parties in various quarters. Thus the opposition to a customs fonion between Germany and Austria-Hungary is not confined to the manufacturers of (Austria. The German agrarian interests have frequently voiced their opposition to any scheme of customs union which would leave the German market open to the agrarian competition of Hungary. It is interesting to note that the Hamburg Chamber of Com- merce on Jan. 31, 1918, submitted a memorandum to the Reichstag opposing either a jcustoms union or a customs preference between Germany and Austria, and emphasizing jthe importance of protecting the interests of Germany, as distinct from those of Austria, an trade with Poland. 142 GERMAN TRADE AND THE WAR. object of a customs union would be equivalent to a complete disre- gard of the actual conditions. For a large majority of our industries a customs union would mean heavy losses ; it would be tantamount to a surrender of the economic independence of our fatherland, a giving up forever of all hope of the further development of our striving in- dustries, which is inseparably connected with the existence, the wel- fare, and the financial and political strength of the Monarchy. If this second pillar of the State be gradually weakened, the State will totter to its fall along with the industry." The idea finds more favor with the theoreticians and the intel- lectuals. Dr. Karl Lamprecht, the distinguished German historian, speaking in Dresden in the autumn of 1914, lamented that German unity had been a mere fiction; that 1870 had been merely a big step forward ; that the German Empire embraced only a part of the Ger- man nation there should be one great German country of central Europe. Prof. Philippovich. the Vienna economist, was one of the most outspoken partisans of a closer union with Germany. He would like to see central Europe as an economic unit with a common cus- toms barrier against other countries and moderate duties in the in- terstate commerce on such products as may still be in need of protec- tion. The duties on many raw materials might be gradually reduced to encourage the manufacturing industries. In his opinion, however, Austria can not make new concessions without compensation on the part of Germany. The new conditions brought about by the union would require important changes in administration and legislation in the interest of the economic development of Austria, as, for ex- ample, in the laws relating to corporations, stock exchanges, and the like. Among the advantages which the union would bring to the two countries the author mentions the inducements to Austrian agricul- ture to introduce better methods, the increased opportunities for the investment of German capital in Austria-Hungary, and the strength- ening of the influence of the central powers in the Near East. Prof. Karl Diehl, of Freiburg, on the other hand rejects the idea of a customs union between Germany and Austria-Hungary abso- lutely, if such a union should mean a repeal of all import duties oil tra'de between the two countries. According to his views closer eco- nomic relations with Austria-Hungary should be secured through a revised treaty of commerce. The differences in the social legislation of the two countries are considered a serious obstacle to the creation of an economic Greater Germany. F. von Liszt, professor of international law at Berlin, lays special stress on the political aspects of the union. A union of the two central powers, formed for mutual protection, would serve as a basis for the federation of all central European States. Protection against attacks from without should not be the sole aim of the union ; an assimilation of the industrial life should be sought, although the two States might retain their fiscal duties and even the protec- tive duties for certain products of agriculture or the industries. A uniform system of weights and measures, transportation, etc., would also be of great value. FREE TRADE WITH GERMANY OPPOSED IN AUSTRIA-HUNGARY. The idea of a customs union has but few sponsors in Hungary. Some of the Hungarian manufacturers have gone so far as to demand PREPARATIONS FOR TRADE AFTER THE WAR. 143 a temporary protective tariff against Austria, asserting that there is no possibility of development for Hungarian industries while trade is free between the two parts of the Monarchy. The plan of a cus- toms union with Germany was discussed by the Hungarian Manu- facturers' Association in February of 1916, the union being favored by the flour millers, meat packers, and a few representatives of the machinery industry, and opposed by the representatives of the iron, sugar, and woolen industries, while the manufacturers of cotton goods declared that they were not afraid of the union but did not expect much from the plan. All agreed that the union might en- large the market and reduce the costs of production, but that Hun- garian industries were still in need of tariff protection. On behalf of the Austrian manufacturers an important declaration was made in April, 1916, at a meeting of the Chamber of Commerce of Brunn, by the president of the chamber, Baron von Haupt, an authority on industrial and commercial, questions. President Haupt declared that, in view of the insuperable difficulties arising from the differences of economic conditions in the two countries, the idea of a customs union between Germany and Austria-Hungary, born in the early excitement of the war, would have to be abandoned. All competent judges of the economic conditions in Germany, Austria, and Hungary, he said, had rejected the idea of a customs union as wrong in principle. Even mutual preference through a reduction of duties was not, according to his opinion, the principal thing to be considered in a scheme of closer economic relations; it was but one of several parts of the plan. Greater importance was to be ascribed to all legislative measures that would facilitate both material and spiritual intercourse between the countries interested, or that would tend to equalize the conditions of production, so far as the latter were not determined by nature itself. Different methods of taxation produced differences in the cost of production which would have to be equalized by customs duties. The entire body of industrial legislation in Austria should, first of all, be brought into agreement with the industrial legislation of Germany. The laws relating to labor, corporations, direct and indirect taxation, must be revised according to the same principles in both Empires, just as the law of negotiable instruments had been unified. Thus, for Austria, the question of closer economic relations with Germany was less a question of tariff rates than of a uniform legislative and transportation policy. From a rapprochement in those two domains, Austria might rightly expect an invigoration of its economic life. In the numerous discussions of these plans it is generally recog- nized that no definite measures can be worked out until after the war, since no one can foretell what the results of the war will be. 1 It must be remembered also that the Germans represent less than a fourth (23.4 per cent) of the total population of the Monarchy and little more than one-third (35.1 per cent) of the population of Austria alone. The majority, composed of Slavs and Latins, has not shown any desire for a political or economic union with Germany. The Bohemian and South Slavic representatives in the Austrian 1 Proposals for a customs union involve the study of the whole question of most-favored- nation relations. Under any agreement of preferential customs treatment the existing most-favored-nation relations would be affected and might have to be entirely revised. 144 GERMAN TRADE AND THE WAR. Parliament have declared expressly that the Slavs expected to form independent States after the war. 1 PROMOTION OF TRADE WITH THE NEAR EAST. The countries of the Near East, including the five Balkan coun- = tries, Roumania, Asiatic Turkey, and Persia, took only a little more than 3 per cent of the German exports in 1913 and furnished less than 2 per cent of the imports. The trade is comparatively small, but has been increasing of late, the value of the combined imports and exports having risen from $76,850,000 in 1909 to $124,855,000 in 1913, an increase of 62 per cent. It is believed that the trade can be increased after the war. Conspicuous among the various or- ganizations which have taken the Near East as their province of trade propaganda is the Deutscher Levante Verband, established March 23, 1916. The object of the society is to promote and safe- guard German trade, industry, and finance in the Near East by work- ing in constant touch with the official authorities, though inde- pendently. The society assists its members to obtain import and export permits as promptly as possible, and capital and credits as easily as possible, and advises them as to the purchase of land. It has established a special export and import bureau, which accepts offers of agricultural and industrial products. The market reports issued by the society make known various import and export trade opportunities. The society also maintains an information bureau which has already had opportunities of cooperating in the acquisition of concessions and in the intended erection of new factories. Exhibi- tions of samples of German agricultural and industrial products have been organized at Belgrade, Sofia, and Constantinople. The offi- cial organ of the society, the Deutsche Levante Zeitung, is also the publicity organ of the Hamburg- America Line, the German Le- vante Line, and the German Balkan Society. The latter organiza- tion has issued a special commercial guide to the Balkans. The Institute for Economic Intercouse with Bulgaria, organized. at Berlin, under the patronage of the King of Bulgaria, has for its object to stimulate and develop trade and commerce between the cen-j tral powers and Bulgaria. The statutes of the German-Turkish Society (Deutsche Turkische Vereinigung) provide for the sending of German teachers to Turkey, the establishment of libraries and other educational institutions, the circulation of literature, and assistance to Turkish subjects who wish to complete their education in Germany. During the four years of its existence the society has contributed largely to the support of German schools in Turkey and circulated thousands of popular pam- phlets in the Turkish language. The society has also established an information bureau for economic and commercial matters relating to the two countries. In 1915 a Turkish-German Society was formed under the presidency of Enver Pasha at Constantinople. During the war many Turks have visited Germany. The German-Persian Eco- nomic Association has its headquarters at Hamburg. The main ob-- ject of the society is the promotion of economic relations and trade between Germany and Persia. 1 See also Appendix C. p. 186. PREPARATIONS FOR TRADE AFTER THE WAR. 145 The German plans for peaceful economic penetration in Turkey I have not found much favor with the Turk. As early as the summer of 1915 all German signs and inscriptions in Constantinople, even in 1 1 the European settlement of Per a, were replaced by Turkish texts, and in 1916 Turkish was made the official language of all public and i ; semipublic institutions, including banks, papers, and transportation companies. Even the German professors at the Ottoman University ! of Stamboul were required to wear the Turkish fez and learn Turkish within a year. TRADE WITH THE LATIN COUNTRIES. A number of German- Spanish associations were formed during I the war, the first one at Stuttgart. In January, 1918, all these n societies were consolidated in a Verband Deutschland-Spanien, the head office being located in Hamburg^ for 1918. The association now has more than 3,000 members. It proposes to foster "cultural, I economic, and scientific " intercourse with Spain. The monthly | " Mitteilungen aus Spanien," established in August, 1917, and [published by the Ibero-American Institute of Hamburg, has been I selected as the official organ of the association. Trade wi{h the Latin American nations is promoted both by the | German colonies in Brazil, Chile, and elsewhere, and by various | organizations in Germany. Hamburg has an Ibero-American Insti- tute; Aix-la-Chapelle, a German-South American Institute; there is la German Economic Association for Central and South America, I with 1,400 members, and a German- Argentine Central Association. | The publications issued by these societies are printed in German, j Spanish, and Portuguese. At the meeting of one of these societies the claim was made that the United States has failed to obtain per- Imanent advantages from the opportunities created by the world I war in Central and South America, and that Germany would soon j regain or even improve her position in Latin America. THE COMMERCIAL INVASION OF SWITZERLAND. In order to overcome obvious disadvantages, a commercial inva- j sion of Switzerland has been planned by German capitalists and | is already in progress. Swiss manufacturing and exporting en- II terprises are to be purchased wholly or in part by Germans and continued in operation under their Swiss names. The movement is naturally conducted with a certain attempt at secrecy, but has not escaped the attention of the Swiss people themselves. In 1917, in Berne, the Deutscher Werkbund of Berlin opened an exhibition of samples of German goods, which was the occasion for considerable hostile criticism of German methods and motives in the Swiss press. Meetings and conferences have been held by interested Swiss parties to devise methods for the protection of legitimate Swiss interests which it is feared would suffer if German trade should be permitted to masquerade extensively under the guise of Swiss manufacturers. The official Swiss Journal of Commerce has announced the estab- lishment of an enterprise called " Metallum," with a capital of $965,000, whose object is to monopolize the metallurgical trade by the establishment of branches. The president of this company is 43339 18 10 146 GERMAN TRADE AND THE WAB. Dr. Walther Rathenau, of Berlin, also president of the Allgemeine Elektrizitats-Gesellschaft of Berlin. The company has established its offices at Bern and will doubtless enter into international com- petition as a Swiss company. Swiss trade-marks for German goods is another method of Ger- man commercial camouflage now finding favor in Germany. The German firm of Andreas Schilli & Co., of Oberursel, manufacturers of scythes, has registered in Switzerland a trade-mark representing the classic scene of the oath of Rutli, and the article bears the in- scription. "Rutli scythe." The German firm of Hanssen &' Studt, of Hamburg, with a branch at Olton, Switzerland, has registered a trade-mark representing the figure of Wilhelm Tell. RECENT GERMAN EFFORTS TO EXPLOIT SWITZERLAND. Under the name of "Ateliers Mecaniques de Waldgarten," a com- pany was organized April 2, 1917, for the manufacture and sale of metal goods at Schwamendingen, near Zurich, about 50 miles from the German border. The board of directors consists almost entirely of Prussian subjects. The Swiss Export Review has learned of the organization of a Protective Trust of German Creditors, whose object is to safeguard German credits in Switzerland. In the opinion of the Review, such measures might be reasonable in Turkey or Persia, where the safe- guards of the law may be inadequate ; in Switzerland, however, the courts are open to foreign litigants, and in every canton there are German-speaking lawyers amply qualified to protect German clients. The Review sees in this organization a new form of propaganda and a further effort at pacific penetration of Germany into Switzerland. The trust proposes to become the general trustee of German patent rights and of German property in Switzerland. German exporters have granted liberal credits, thus inducing non-Germans to under- take enterprises beyond their means, especially in the case of depart- ment stores and other local establishments. When difficulties in payments to German creditors arise the Protective Trust of German Creditors demands payment relentlessly, and in case of default takes over the enterprises. In this way, it is said, numerous enterprises of domestic foundation, before the war, passed into the hands of the Germans in Switzerland, Belgium, the Netherlands, Spain, and in South American countries, as well as in Russia and Italy. The German commercial invasion of the country has caused great irritation in Switzerland, and the commercial interests are attempt- ing to arouse a patriotic movement which may lead to protective leg- islation. 1 The most favored method of protection appears to be the proposed establishment of a special trade-mark for genuine Swiss goods goods made in Switzerland by Swiss labor. IMPORTATION OF RAW MATERIALS. The importance of the raw-material question has already been pointed out. 2 How to obtain the necessary stocks immediately after the war is recognized as a matter of prime importance for the Ger- i The Algemeen Handelsblad, Amsterdam, Dec. 27, 1917, ran an article on this subject quoting a leading article in the export supplement of the Neue Ziircher Zeitung warning against this German operation " under a Swiss fagade." 3 See " The vital question of materials," p. 64. PREPARATIONS FOR TRADE AFTER THE WAR, 147 (man industries. The Government has recognized its gravity by ap- pointing a special Imperial Commissioner in the new Department of Economic Affairs (Reichswirtschaftsamt) to take charge of economic problems during the transition period after the war. Numerous debates in the Imperial and State Parliaments, chambers of com- merce, and industrial organizations have shown that the inherent Idifficulties of the problem will be greatly increased by its close con- nection with other vital questions, such as those of foreign exchange, fehip space, financing, and distribution. It is accepted that the ienemy trade lists have caused considerable injury to Germany inter- jests abroad and that some sort of economic war will doubtless con- tinue in peace times. It is taken for granted that the business sagacity of the German (merchants will enable them to succeed in obtaining sufficient quan- jtities of raw materials for the industries, but that will not solve the [problem. " Our first consideration," says Dr. Lothar Dessauer [(Europaische Staats- und Wirtschaf ts-Zeitung, Sept. 17, 1917) , " must jbe to obtain raw materials and semimanufactured products at prices [that will enable us to compete in the world market and to sell the (manufactured products at acceptable prices at home." Hence one lof the most important tasks of the transition period will be to deter- imine the best method for the regulation of imports and exports. Three different systems have been suggested : Importation by indus- trial syndicates; importation by the Government, the imports to be distributed to the various industries; free importation by private {parties. Either of the first two methods would eliminate the trader the importer, the wholesaler, the jobber. These middlemen of inter- national trade, seeing their business existence threatened, are now carrying on a vigorous propaganda in favor of a return to the status (quo ante bellum, demanding the right freely to import as before the war. The views of the wholesalers are expounded by Commercial {Councillor Lustig, general manager of the Aktien-Gesellschaft JDcutscher Eisenhandel, in an essay issued as the first number of a (long series by the Zentralverband des Deutschen Grosshandels (Cen- tral Union of the German Wholesale Trade). Opponents of plans contemplating elimination of the middlemen argue that Germany j would lose more by giving up transshipment trade and abandoning the idea of making Germany the world's great raw-material entrepot that it could conceivably gain by direct purchasing by industrial organizations. The writer describes the development of the foreign trade of Ger- |many, which, he says, held second place at the time the war broke I out. He quotes an utterance of the former director of the Imperial [ Grain Bureau, Dr. Michaelis, who later became Chancellor, to the effect that an imperial grain monopoly must be established after the | war. It is possible that the Government will seek to establish (monopolies of other staple goods. For the other goods the plan I appears to be to regulate the importation of raw materials by means I of industrial organizations under close Government supervision. GOVERNMENT CONTROL MAT BE EXERCISED. This author voices the opinion that a sudden dissolution of the [ economic organizations formed during the war might be very harm- 148 GERMAN TRADE AND THE WAR. ful to the economic life of the country, but that their methods of operation should, nevertheless, be modified in such a way as to permit cooperation on the part of the wholesale trade. If goods are to be imported by the Government, or by the industries, necessity will soon arise to pay large sums of money to foreign countries. The whole- sale trade, however, can make use of its own connections to obtain credit so that payments will be better regulated and more widely distributed. At the same time an effort should naturally be made to export, as far as possible, goods of a high value, such as potash and dyes, whereby credits may be obtained abroad. The problem would be greatly simplified also by setting aside a large amount of gold for the use of the importers if that can be done without injury to the German economic system. Purchases abroad would be made through syndicates, consisting of representatives of both industry and the wholesale trade. Trade might well be left wholly free, except for the provision that imported goods should be delivered to the syndicates exclusively. Shipping should also be represented in these organizations. The Government should exercise a certain control over prices, par- ticularly if it should appear that the centralization of imports by itself did not suffice to prevent a large increase in prices. For this purpose price-control bureaus might be established. Taking due account of the prices prevailing in the world markets, these bureaus would fix maximum prices for purchases for German account. In addition, a central organization should be formed to supervise the imports, so that importation may be limited to goods urgently needed, that no industry and no State may be favored at the expense of others and that all dealings in foreign exchange by the syndicates may be passed upon by a central authority. If such measures should be taken, it is urged that the distribution of the imported goods may safely be left to the trade. Some German manufacturers are professing to find a ray of com- fort in the idea that overproduction abroad will solve Germany's raw-material question. They counsel against hurried buying abroad, and further urge that good business and patriotism demand that German manufacturers in many lines should simply wait for a big slump in the international markets which will make the desired ma- terials available in ample quantities at. low prices. IMPORT BANKS. As a compromise measure, Dr. Edgar Landauer, writing on the subject of raw materials (in his booklet, "Unserve Kohstoffversorgung nach dem Kriege," Leipzig, 1917), recommends the organization of a chain of import banks. Dr. Landauer favors freedom of importa- tion by individual traders, provided the interests of the general pub- lic can be safeguarded from the competition that might arise under conditions of such freedom and mobility of imports. The import banks are recommended to provide the safeguard. INADEQUACY OF EXISTING FOREIGN BANKS. The existing foreign trade banks of Germany are pronounced insufficient and unsatisfactory all being branch institutions of the great domestic banks, are dominated by their influence, and have PREPARATIONS FOR TRADE AFTER THE WAR. 149 I other duties to perform. The special import banks would purchase raw materials in foreign markets and distribute them at home. They would thus in a measure compete with the trade, but the competition would not be serious, as the trade buys only^to satisfy the temporary demand, whereas the banks would buy for stock, being guided by political rather than commercial considerations. The chief object of the banks would be, in addition to supplying the domestic market during the transition period, to accumulate a stock of raw materials which would protect the public against speculation on the exchanges in time of peace and keep the mills running in time of war. They would advance money on the security of goods afloat or in ware- house, but would not furnish credit to individual firms. They would simply provide the foundation for a sound and steady development of trade, independent of speculation, which has always followed the conclusion of peace. Dr. Landauer would have a central bank with branches specializing for the various imports an imperial wool bank, a cotton bank, jute bank, etc. located in those cities which have heretofore been the principal markets for the various materials. The activities of the banks would not exclude trading by individuals or their personal connections. The banks would be working with their own capital, and the importing trade would obtain credit with greater ease than would be the case if each individual firm were obliged to make large demands upon the great banks. The import bank, according to the author, could not be considered a purchasing monopoly, and the country would be saved the disagreeable experiences which have resulted from the workings of the Central Purchasing Bureau during the war. On the contrary, it might be expected that Germany would obtain larger quantities of goods on satisfactory conditions. The stock of raw materials in the bank's warehouses would prevent sudden fluctuations of prices, limit speculation, and mitigate the effects of a commercial crisis. EXPORT BANKS. Dr. Landauer is also one of the many German writers who urge that export banks should be organized, though on different principles and for different purposes. The enemy countries have made a partial conquest of some of the foreign markets heretofore held by the Ger- mans and German exports to those markets will consequently be smaller. Certain factors are cited, however, as tending to increase German exportation: The great technical progress of the German industries and their new inventions, the closer connection with the Balkan countries, the universal need of replacing the values de- stroyed by the war, and replenishing depleted stocks. The foreign markets must be cultivated; all means should be used to renew the connections broken by the war. Other countries are doing it, while the Germans are only talking about it. The export banks should help to open the markets and assist the export trade. They should grant credit to exporting firms, but do no trading on their on account. American readers familiar with the organization of German over- sea banking may wonder at the recommendation of establishing an export bank as if it were a new thing, 1 and it appears that the pro- 1 See " German Foreign Trade Organization,'' Miscellaneous Series No. 57, pp. 34-39. 150 GERMAN TRADE AND THE WAR. posal appeals chiefly to those who believe that the existing over-sea banks are too intimately tied up with the great banks in Germany. It is recommended as a means of furnishing disinterested service to any German exporters who apply and strictly commercial service uninfluenced by policies' depending on complicated speculative and industrial alliances. The organization of an export bank to assist in the restoration of trade relations with Central and South America and to promote export trade generally was advocated at a meeting of trade organizations and Latin-American export houses at Hamburg early in July, 1917. The bank should establish branches abroad, particularly at the important trade centers of Central America, the West Indies, the Far East, and Australasia. PROPOSED CENTRAL FOREIGN -TRADE BANK. A central foreign-trade bank was planned in Germany a generation ago, but the project was abandoned owing to the great diversity of conditions in the foreign markets. In 1884 the president of the Im- perial Bank opened negotiations with the Deutsche Bank and the Disconto-Gesellschaft intending to establish a banking institution, closely connected with the Imperial Bank, to regulate the financial transactions between Germany and over-sea countries. The Im- perial Chancellor interested himself in the plan, the Hamburg Cham- ber of Commerce was consulted, and the negotiations went on for two years, but it was found impracticable to establish an imperial over-sea bank, a large institution which would provide banking facilities for all the colonies and over- sea trading districts as the conditions abroad were too varied to be served properly by one in- stitution. Similar plans are now being considered. Mr. George Simon, of Hamburg, president of the Verein deutscher Exporteure (Association of German Exporters), discusses the ques- tion in the Wirtschaf tszeitung der Zentralmachte. The writer points out that export banks are being organized in all industrial countries, and that Germany should not lag behind any longer. The activities of the new German export bank should consist, at first, principally in extending acceptance credits to exporting firms so as to enable them, after the prohibition of payments to enemy aliens has been rescinded, to meet their obligations, inasmuch as the demands upon the money lenders will doubtless be many and large after the con- clusion of peace; the bank may also advance money on outstanding debts owing by reputable firms, and on consignments. It is admitted that it may be difficult to obtain the necessary funds by private sub- scription, and Government participation is urged by some of the sponsors for the foreign-trade banks. ' It is also feared that it may be difficult to muster a capable personnel for the banks. Some of the arguments for the German need of export banks are clearly based on the ground that the existing over-sea banks have had their day and outlived their usefulness ; it is plain also that the effects of the liquidation of banks in enemy countries and breaking of connections on account of the war are causing apprehension. They have lost business and prestige, and it is claimed that a real need exists for new, export-promoting banks unhampered by tradition and independent in policies. It has been stated in some quarters that the banks have too often shown a tendency to take a profit wherever pos- PREPARATIONS FOR TRADE AFTER THE WAR. 151 sible and to become oblivious of original German-trade fostering aims. Herr Simon's remarks about lagging behind the other indus- trial nations in this regard are interesting, though not convincing. In view of the known extent of German over-sea banking it is doubt- ful if much will result from the recommendations in question. FOREIGN-TRADE INSTITUTES. The need of a central institute for the promotion of the German foreign trade has been recognized by the public for years. Germany possesses more than 40 separate associations for the promotion of for- eign commerce, working independently and often at cross-purposes. The Handelsvertragsverein (Association for Commercial Treaties) now proposes the creation of a central foreign-trade institute by means of a combination of the various societies (" Handelspolitische Flugschriften," No. 14, by Dr. W. Bor~gius, Berlin, 1917). Accord- ing to this plan the various special associations for foreign-trade services should unite to form a foreign-trade bureau, provide an office building with a library and reception rooms, and organize joint advisory and executive bodies from among their committees and chairmen. The associations would remain independent each in its own sphere, but large firms might be given the opportunity of collective member- ship. The societies would form five divisions, according to the. sub- ject matter considered, viz, divisions for the tariff, traffic, judicial procedure, information service, and general commercial policy. By a close cooperation of these divisions a proper division of labor would be achieved and also a concentration of effort; the present wasteful dissipation of energy and means would be ended and better results obtained. Foreign branches of the associations now existing would be utilized as branches of the institute. German merchants going abroad after the conclusion of peace will be more than ever in need of an organized protection for their eco- nomic interests and will gladly join such organizations abroad. The so-called foreign chambers of commerce are considered less suitable for these purposes by the author. The German commercial experts abroad may be instructed to act, extra-officially and without pay, as economic advisers or managing directors. The German commercial world would thus be enabled to make use of their services directly, without the delay, often prejudicial, now caused by the transmission of their reports through the Ministry of Foreign Affairs and the Ministry of the Interior. With the Handelsvertragsverein behind it, this proposal will probably result in closer organization of foreign- trade promotion, if not in the actual organization of an institute. The Institute for Sea Traffic and World Economy (Das Institut fiir Seeverkehr und Weltwirtschaft) of the University of Kiel laid the cornerstone of its new building February 9, 1918. The institute, established in 1914, is a development of the seminary for political and social sciences founded by Prof. Bernhard Harms in 1911. The new building is to cost over 3,000,000 marks and its erection has been made possible by the efforts of a special society for the promo- tion of the institute. The purposes of the institution were explained by the president of the society, Heinrich Diederichsen, a merchant of Kiel. "We are laying the cornerstone of a building in which the 152 GERMAN TEADE AND THE WAR. scientific study of sea traffic and world economy is to find a home," the speaker said. " We men of affairs see clearly that we shall have to face difficult tasks after this war. German economic life must be built up anew. The present task is to establish a connection be- tween the practical life in all its branches and the economic science. In its investigations and its teachings the institute must be inde- pendent of the public, of the State, of the society and its directors. I make this declaration in the name of all the leading members of the society." Prof. Harms said the institute was a pioneer in a new field and only the future could pass judgment on the value of the work done. XII. GERMANY A FORMIDABLE ECONOMIC REALITY. GERMAN DREAM OF ECONOMIC IMPERIALISM. In an address before the (Italian) Industrial and Commercial AJliance, at Milan, on January 7, 1917, Eucardio Momigliano, after discussing the remarkable industrial development, concentration of banks, interlocking of the banks and the industries, large scale pro- duction to the point of overproduction, dumping, cartels, and indus- trial colonization, concluded as follows: "And now the question arises spontaneously why, with an organi- zation thus formidably prepared, with trade flourishing abroad, with competition overcome and even destroyed, why has Germany gone to war? a The madly imperialistic dream of one person or of a dynasty is not sufficient to justify and to explain the breaking out of the belli- cose delirium of Germany; the network of interests, of aspirations, led the German people and the German economic system inevitably into war. " Germany, master of the European market first, then of the world market, was the realization of the dream of economic imperialism; but to complete it, it was necessary to destroy all obstacles ; political conquest had to complete the economic conquest follow it wherever it had gone before, precede it wherever it had not yet penetrated. And the Empire, in order to effect its ' Weltpolitik,' had to make war. " This has been a hard, harsh lesson ; the dream was destroyed on the battle fields of the Marne. at the first defeat of the armed forces of the Kaiser, and the superb castle is being battered down under the blows that are being delivered at it by the entire world defending i+s liberty and its civilization. " Germany will be defeated, but afterwards what new aspirations will prepare new perils for the coming generations? " It is necessary to look the facts calmly and squarely in the face : With Germany and the Prussian military empire defeated, the Ger- man people will not be destroyed. Germany's population of seventy million souls represents for all time in Europe a formidable economic reality. We can not get away from this, and therefore the economic problems of the period after the war are more urgent and more imposing than ever. " The German people, feeling the bitter lesson of their defeat, will renounce., let us hope, for a long time, their mad ideas of reconquest or of revenge, but it will be necessary in every way for us to make haste in defense against their methods of economic invasion. The Germans have until now been playing a dishonest game, while their competitors were playing the game according to the rules; thus the play has been in their favor for a long time. If they desire to take their place again at the table of economic competition, they will have to do so under the conditions of playing fairly, else they will have to stay out of the game." 153 154 GERMAN TRADE AND THE WAR. IMPORTANT FACTOR IN WORLD COMMERCE. In these half-dozen paragraphs the eminent Italian lawyer has started out with a definition of the German aim of political con- quest to complete the previous economic conquest, and has wound up with a succinct statement of the important truth that even after defeat in the war Germany, with its seventy million population, will continue to exist as a formidable economic reality in Europe for all time, and must be faced as such by other nations. This truth is one which we Americans must not ignore. It means that when the war is over there is still going to be advantageously located in the center of western Europe a great and populous nation, through which will continue to pass many of the most important routes of trade. It means that Germany is still going to have its wonderful natural system of river transportation made more valu- able by years of dredging and the building of canals, and still further supplemented by railroads and good highways. It means that Germany is still going to have her great natural wealth of coal, iron, potash, lead, zinc, and other less important minerals. It means, further, that Germany is going to continue to have a population of hard workers, showing remarkable aptitude and capacity for agriculture, industry, trade, shipping, engineering, and finance. This will continue to be the same country that in little more than a generation, with its comparatively poor soil, one-tenth unpro- ductive, one-fourth forested, and only about one-half under cultiva- tion, has been able to continue to produce foodstuffs sufficient for the maintenance of a surprisingly large proportion of its own popula- tion and sufficient with great hardships to withstand for a period of % years in time of war the cutting off of foreign sources of supply, while rising to the position of the greatest sugar-producing nation in the world, the foremost manufacturing nation of continental Europe, and at the same time extending her trade, banking, shipping, and industrial colonization to all corners of the earth. A country that can thus capitalize its territorial resources and its resources of men and mind for economic conquest in time of peace and for economic defense in time of war is a country that always has to be reckoned with. So long, in time of peace, as Germany did only these things there was cause for admiration; but at the point where Germany, completely intoxicated by its striking successes, began to disregard completely the rights of all other countries and developed an insane passion for subjecting all the rest of the world to German exploitation, that country became truly formidable. DANGER OF GERMAN POLITICS ASSOCIATED WITH COMMERCE. There is no longer any doubt of the imperialistic tendency of Ger- man commerce and industry, so intimately tied up with German poli- tics. We now know that Germany is coming out of this war with vast losses proportionally greater losses, perhaps, than those of any of her adversaries. She has lost in trade prestige good will in all parts of the world. She has saddled herself with losses of capital and men and depreciation of industrial competitive power, and a weight of taxation which will increase her costs of production and make the retention of her position in competitive trade more difficult. Her GERMANY A FORMIDABLE ECONOMIC REALITY. 155 stocks of raw materials and finished products are depleted, her re- construction needs are great, her merchant marine can not be restored for a long time. There is no reason to believe, however, that the insensate aspirations for dominating the labor and industry of the world are entirely of the past. In fact, there is very good reason to believe the contrary. 1 As Signore Momigliano has pointed out, there is need of preparing for defense in 6rder that German business may not continue its old methods of quiet penetration in one country after another. People everywhere are now awake to the German methods, but the mistake must not be made of underestimating the recuperative power of the Germans and of overestimating the effects of the "burden of bil- lions " resting on Germany as a result of the war. There is danger that even in defeat this economic reality of seventy million Germans in the middle of Europe is going to continue to dream the dreams of middle Europe, followed by the dreams of middle Africa, and also the dreams of a German world. President Wilson has stated the American policy of " the removal, so far as possible, of all economic barriers and the establishment of an equality of trade conditions among all the nations consenting to the peace and associating themselves for its maintenance." He has further advocated the formation of an association of nations to make the world safe, but in doing so he has stated that it may be necessary to leave Germany without the benefits of " the free economic inter- course which must inevitably spring out of the other partnerships of a real peace." Apart from questions of governmental policy, there is a clear duty resting on American business men individually to keep their eyes open to German competition in whatever form it may come. The American Government, in concert with the Govern- ments of the other great nations, will see to it that Germany, as a Government, shall henceforth operate in the open. American busi- ness men, like business men in the other great countries, must like- wise see to it that all operations of German trade enterprises shall take place in the open and bear a clear indication of having been " made in Germany." 1 See " Germany's Annexationist Aims," by S. Grumbach, as translated, abbreviated, and introduced by J. Ellis Barker, published by E..P. Button & Co., New York, 1917. In this book are reproduced in full, for the first time in English, petitions addressed to the Im- perial Chancellor of Germany by six great economic associations (the League of Agricul- turists, the German Peasant League, the Westphalian Peasant Society, the Central Asso- ciation of German Industrialists, the League of Industrialists, and the German Middle Class Association), and by 1,341 intellectual leaders of Germany, in which the war aims are set forth. In addition to the demands for cash indemnities these petitions set forth almost incredible demands for annexations east and .west, and an extensive colonial empire outside Europe. APPENDIXES. Appendix A. GERMAN IMPORT TRADE. TABLE I. TOTAL IMPORT TRADE OF GERMANY, BY COUNTRIES OF ORIGIN, 1909 TO 1913. [Statistics of German export trade may be found in " German Foreign-Trade Organizations," Miscellaneous Series, No. 57, pp. 117-147.] Countries. 1909 1910 1911 1912 1913 United States... $300, 490, 000 324, 613, 000 172,133,000 179,607,000 115,456,000 75,435,000 104,172,000 68,918,000 60, 312, 000 68,509,000 55,477,000 55,761,000 44,006,000 33,758,000 38,710,000 34,157,000 29,443,000 32,202,000 20,797,000 15,515,000 22,783,000 8,770,000 15,361,000 13, 635, 000 14,651,000 1,997,000 6,956,000 5,657,000 8,097,000 4,585,000 5, 107, 000 ' 5,935,000 4,840,000 4,322,000 3,084,000 5,119,000 6,451,000 3,585,000 2, 944, 000 3,003,000 2, 634, 000 2, 433, 000 1,853,000 3,059,000 2,932,000 2, 467, 000 2, 644, 000 885,000 889,000 3,662,000 1,697,000 504, 000 1,847,000 1. 536, 000 1,999,000 635,000 1, 162, 000 788, 000 895, 000 865,000 880,000 914,000 15, 876, 000 $282, 652, 000 330,013,000 182,444,000 180,686,-000 121,099,000 96,162,000 85,022,000 77,489,000 61,515,000 65,340,000 63,750,000 66,385,000 44, 628, 000 38,986,000 41,386,000 36, 793, 000 33,363,000 37,629,000 25,786,000 22,531,000 22,282,000 11,820,000 16,394,000 16,054,000 14,133,000 2,531,000 8,760,000 6,226,000 6,798,000 8,421,000 7,047,000 4,516,000 4,889,000 5,060,000 5,176,000 5,641,000 10,864,000 3,771,000 3, 396, 000 3,645,000 2,543,000 3,092,000 2,571,000 3,456,000 2,730,000 2,039,000 5,586,000 920,000 868,000 4, 267, 000 2,003,000 1,224,000 2,168,000 2,815,000 1,502,000 657,000 1,636,000 967,000 761, 000 1,250,000 896,000 824,000 20, 464, 000 $319,726,000 388,951,000 192,497,000 175,903,000 124,811,000 104,790,000 88,040,000 80,942,000 70,862,000 67,779,000 59,082,000 76,161,000 43,881,000 43,554,000 42,753,000 37,688,000 39,050,000 42,899,000 25,424,000 24,596,000 23, 689, 000 12,876,000 25,643,000 16,682,000 13,304,000 5,702,000 8,942,000 8,243,000 8,427,000 8,803,000 8,704,000 6,474,000 6,153,000 5,634,000 6,064,000 7,384,000 6,531,000 3,974,000 3,410,000 4,678,000 2,871,000 3,473,000 2,914,000 4,908,000 1,984,000 2,311,000 4,016,000 1,181,000 1,199,000 5,893,000 1,987,000 1,691,000 2,970,000 2,565,000 2,520,000 2,257,000 1,447,000 760,000 807,000 1,042,000 1,181,000 1,075,000 18, 189, 000 $377,464,000 363,628,000 200,543,000 197,531,000 13'1,432,000 126,911,000 105,880,000 92,021,000 82,195,000 72,498,000 65,858,000 74,537,000 51,149,000 50,929,000 48,963,000 49,897,000 45,176,000 48, 120, 000 28,221,000 27, 498, 000 26,577,000 15,215,000 32,886,000 18,480,000 15,995,000 13, 835, 000 10,266,000 8, 775, 000 11,972,000 9,450,000 9,121,000 7,527,000 7,506,000 5,963,000 5,879,000 8,459,000 5,652,000 4,736,000 3,765,000 4,568,000 3,763,000 3,122,000 3,485,000 3,212,000 1,666,000 2,737,000 4,275,000 2,245,000 2,179,000 4,695,000 2,018,000 2,112,000 4,538,000 2,033,000 4,274,000 3,720,000 1, 737, 000 1,338,000 1, 479, 000 1,371,000 1,213,000 888,000 19, 458, 000 $407,246,000 339,055,000 208,454,000 196,935,000 138,808,000 128,936,000 117, 710, 000 81,975,000 79,260,000 75,599,000 70,468,000 59,008,000 54,175,000 53,350,000 50,767,000 47,561,000 47,293,000 45,657,000 32,010,000 31,052,000 28,176,000 19,510,000 18,971,000 17,604,000 16,570,000 15, 293, 000 11,098,000 10,763,000 10, 294, 000 9,979,000 9,692,000 8,298,000 8, 238, 000 6,184,000 6,010,000 5,958,000 5,792,000 4,913,000 4,604,000 4,304,000 4,059,000 3,796,000 3,466,000 3,373,000 3,347,000 3,151,000 3,110,000 2,605,000 2,511,000 2,508,000 2,417,000 2,397,000 2,315.000 2,097,000 2,088,000 ,829,000 ,804,000 ,802,000 ,739,000 ,711,000 1,668,000 1,304,000 20,687,000 Russia... United Kingdom . . Austria-Hungary France. British India Argentina Belgium Netherlands.. Italy. . Australia... Brazil Dutch East Indies Sweden... Switzerland Chile Spain . Denmark. . British West Africa China Egypt . . Norway Roumania Turkey British South Africa Canada Japan Finland Uruguay Ceylon Bolivia.... Guatemala Algeria Greece. . . Portugal Mexico Straits Settlements Venezuela French West Africa Portuguese West Africa. Ecuador Colombia German East Africa Peru .. Siam Cuba... Kameroon . Philippine Islands Tunis Serbia.. . Dominican Republic New Zealand... Morocco . . . Madagascar Bulgaria. . Persia British East Africa German Southwest Africa . Togo Paraguay. Costa Rica Salvador All other countries Total 2 029 399 000 2,126,322,000 2. 309, 947, 000 2,544,636,000 2,563,354,000 157 158 GERMAN TRADE AND THE WAR. TABLE II. PRINCIPAL ARTICLES IN GERMAN IMPORT TRADE, IN ORDER OF THEIR IMPORTANCE, 1909 TO 1913. Articles. 1909 1910 1911 1912 1913 Cotton, raw $126,669,000 $133,495,000 $143, 780, 000 $137, 990, 000 5144, 496, 000 Wheat 108, 637. 000 89, 791, 000 94, 932. 000 94, 211, 000 99,319 000 Wool raw 84 917 000 '92,763 000 88 464 000 96 613 000 98 216 000 Barley 72, 118, 000 73, 782, 000 109, 981, 000 105, 723, 000 92,911 000 Copper crude 45, 183, 000 51,449.000 54,989 000 74,496 000 79,794 000 Cattle and buffalo hides 40 031 000 49 173 008 49 311 000 59 696 000 76 564 000 Iron ores 30, 142, 000 38, 390, 000 48,500 000 47, 854, 000 54,048 000 Coffee raw 44 683 000 42 002,000 59 873 000 60,119 000 52 259 000 Coal... 39, 568, 000 37, 545, 000 42, 678, 000 45, 455, 000 48,685 000 Eggs; yolks of eggs . 38,086 000 39, 768, 000 41,840 000 45,964 000 46,189 000 Fur skins 51,761,000 50,057,000 38, 492, 000 46,361,000 44,701,000 Nitrate of soda (Chile saltpeter) . . . Silk raw not dyed 28,508,000 37, 546, 000 31,771,000 35,110 000 32,183,000 32,452 000 42,563,000 34,965 000 40,912,000 37 603 000 Bran; rice refuse 33,280,000 27,353,000 39, 286, 000 49,748,000 35,566 000 India rubber, gutta-percha, and balata gum 36,599 000 64,345 000 46,324 000 43,971 000 34 929 000 Wood of conifers, sawn 25, 306, 000 29, 318, 000 32,225 000 35,987 000 32, 199' GOO Tobacco leaf 31,437 000 24,770 000 27,734 000 32,277 000 31,956 000 Linseed 25, 150. 000 23,983,000 22,460 000 24,946,000 30,867 000 Copra ..... 11,069 000 19,636 000 17,652 000 22,853 000 29,019 000 Lard 26,516 000 16,525 000 20 874 000 26,458 000 28, 300 000 Butter .. . 23,352.000 21,888,000 30,749 000 30, 070, 000 28, 252* 000 Oil cakes 23,403 000 22,076 000 24,835 000 27,717 000 28,217 000 Horses 20, 992, 000 26, 041, 000 25,329 000 23,831,000 27,683 000 Cotton yarn and twist . 21,310 000 24,292 000 23,535 000 24,749 000 27,657 000 Woolen yarn 28,478 000 28,532 000 27,082 000 25,618 000 25, 706 000 Palm nuts. . 16, 446. 000 21,041 000 21, 460' 000 23, 640. 000 24,75l'oOO Rice 14,087 000 19,104 000 20,983 000 24,424 000 24,728 000 Corn 20,929,000 14, 669, 000 20,639 000 34,086,000 24, 257, 000 Fruits southern 15,560 000 18,963 000 22,468 000 22,425 000 24,076 000 Wood of conifers rough 19,395 000 20,084 000 22 084 000 23,016 000 23, 077 000 Calfskins 19,963 000 17,444 000 17, 952' 000 20, 029, 000 22, 52?' 000 Jute raw and tow ... . 12,284 000 10,070 000 14,834 000 17,785 000 22,371 000 Meats 11,994,000 11,696,000 11,131 000 22,774,000 22, 310, 000 Cattle 17,321 000 20,234 000 14,271 000 17,477 000 20,775 000 Machinery 15,108 000 15,305 000 16 901 000 18,341 000 19, 141 000 Fruits, common, fresh 13,401 000 8,294*000 11,816'000 14,005 000 17,38l'oOO Sheep, lamb, goat, and kid skins. . Cotton fabrics 14,354,000 12,730 000 12,292^000 13,482 000 11,555^000 12,249 000 14,759,000 13, 827, 000 17,276,000 17,158,000 Kerosene . . 14,982 000 13,095 000 11,131 000 14,981 000 16,632 000 Brown coal 18, 465, 000 16,726,000 16,824 000 16, 429, 000 16,463,000 Cocoa, raw 10,009 000 10,805 000 13,210 000 15, 134, 000 16,070 000 Wool, carded or combed 20, 395, 000 18,949,000 17, 722, 000 20,481,000 14,605,000 Oats 15, 632, 000 11,225 000 17,816 000 21,823,000 14, 382, 000 Fish fresh 10,374 000 11,372 000 12,391 000 14,083 000 14,252 000 Intestines and stomachs of cattle; bladders 12,337 000 12,831 000 13,158 000 13,227 000 14,107 000 Tin crude 8,733 000 10,418 000 13 157 000 15,435 000 13,840 000 Flax, raw, cleaned, steeped, broken Poultry live 8,511,000 10,646 000 9,606^000 12,111 000 10,' 744^ 000 10 913 000 16,032,000 13,079 000 13,630'000 13,319 000 Wine in casks 8, /61, 000 14, 164, 000 14, 227* 000 13, 548. 000 12,735 000 Herring, salted . . 7,731 000 9,451 000 9,404 000 10,501 000 12,316 000 Phosphate of lime, natural 9,473,000 8, 607, 000 9,916,000 10, 744, 000 11,062,000 Clover seed . 12,495 000 12,149 000 14,871 000 13, 110, 000 10, 941, 000 Lubricating oils mineral 7,042 000 6,904 000 8 326 000 9,827 000 10,903 000 Sesame 5,242,000 9,798 000 8, 052* 000 8, 454, 000 10, 403, 000 Woolen fabrics 8,317 000 8,896 000 9,860 000 11,025 000 10,336 000 Rye 9,175,000 10,113,000 18,09l'oOO 10, 447, 000 10,036,000 Tin ores . . . 4,919,000 6, 357, 000 8,549 000 9,852 000 10,029 000 Wood for the manufacture of pulp or cellulose 5,578,000 5, 767, 000 4,776 000 7, 680, 000 9, 480, 000 Cotton seed . . 3,512 000 4,100 000 5,949 000 8,381 000 8,874 000 Fruits, dried 5,915,000 6,334,000 7,233,000 7,373,000 8,843,000 Zinc ores .. 5, 266, 000 6, 434, 000 8,042 000 9,655,000 8, 743, 000 Lead ores 4,765 000 4,676 000 6,412 000 7,170 000 8,609 000 Benzine raw 4,082 000 4,020 000 5 293 000 9 668 000 8 535 000 Linen yarn . .... 5.509,000 6,495 000 7, 198* 000 7,343 000 8,368'000 Sheep, lamb, goat, and kid skins, dressed 6,344,000 7, 567, 000 7,692 000 7, 381, 000 7,997,000 All other articles............... 526,876 000 570,819 000 631 087 000 694 950 000 691,968 000 Total 2,029,399,000 2,126,322 000 2 309 947 000 2,544 636 000 2,563,354 000 GERMAN IMPORT TRADE. 159 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913. ABYSSINIA. Articles. 1909 1910 1911 1912 1913 . Total imports $256, 000 $416 000 $458 000 $759 000 $1 505 000 Cattle hides 40 000 69 000 105 000 396 000 1 057 000 Beeswax 166 000 224' 000 191 000 241 000 '339 ooo Vegetable ivory 100 000 70 000 43 000 54*000 ALGERIA. Total imports $4 840 000 $4 889 000 $6 153 000 $7 506 000 $8 238 000 Iron ores 957 000 1 016 000 1 464 000 2 029 000 2 405 000 Phosphate of lime 1 833 000 1 746 000 1 960 000 2 270 000 2 278 000 Cork 206.000 578 000 746 000 720 000 ' 748J 000 Vegetable hair 322 000 366 000 389 000 431 000 526 000 Goatskins 164.000 59,000 271,000 413 000 402*000 Sheep and lamb skins . ... 102 000 91 000 95 000 202 000 398 000 Cork waste and scrap 100 000 134 000 96 000 113 000 21l' 000 Tartar crude 54.000 79 000 55 000 90'000 158*000 Wine in casks 138 000 136 000 174 000 158 000 143 000 WineVea^t (lees) 49,000 42 000 127 000 96 000 92*000 Tobacco 6 000 37 000 45 000 59 000 88 000 Dates dried 40,000 50,000 68 000 80 000 87*000 ARGENTINA. Total imports $104 172 000 $85 022 000 $88 040 000 $105 880 000 $117 710 000 Linseed ... . 21 183 000 16 226 000 11 319 000 12 991 000 23 520 000 Wool raw 21 583 000 23 471 000 21 469 000 20* 853* 000 21* 456* 000 Whea't 25 769*000 12* 527* 000 20 476 000 22* 099* 000 17* 857* 000 Cattle hides 9 725 000 11 734 000 13 828 000 13* 552* 000 16* 933* 000 Corn 8 148*000 5* 437* 000 3* 467* 000 13 925 000 14 722 000 Bran 4 946 000 4 294 000 4 600 000 5 941 000 5* 293* 000 Oats 2,138 000 ' 637* 000 2* 349* 000 5* 042* 000 4*551*000 Quebracho logs ... 1 824 000 3 105 000 3 141 000 2 151 000 2 298*000 Premier jus 502 000 658 000 ' 479* 000 1*115*000 1* 820* 000 Intestines, stomachs, and bladders of animals 706 000 1 119 000 1 029 000 1 420 000 1 343 000 Tallow 734 000 ' 878* 000 1*013*000 1*145*000 1*043*000 Quebracho extract 437,000 288,000 373,000 556,000 852*000 Fur skins, raw 2. 223, 000 995 000 353 000 429 000 703 000 Barley 150 000 66 000 15 000 268 000 421 000 Rye 23,000 9 000 29,000 105*000 401*000 Calfskins 273 000 282 000 481 000 483 000 354 000 Oil cake 222 000 361 000 343 000 254 000 328 000 Blood of slaughtered animals ... 154 000 120*000 136 000 197 000 243 000 Tungsten ores 111 000 174 000 259 000 242 000 231*000 AUSTRALIA Total imports $55 477 000 $63 750 000 $59 082 000 $65 858 000 $70 468 000 Wool, raw 31 294 000 37 126 000 33 433 000 37 333 000 38 174 000 Lead ores... 3 900 000 4 005 000 5 644*000 5 963*000 7* 709* 000 Copper 1 477*000 2* 393* 000 2* 291* 000 3 750 000 4 731 000 Zinc ores 2* 076* 000 3 684 000 4*446*000 5* 304* 000 4* 730* 000 Wheat 5 643 000 5 209 000 4*445*000 2* 539* 000 3 669 000 Tin 1*175*000 ' 781 ' 000 l' 010* 000 1 511 000 ' 620* 000 Tallow 545 000 695*000 J 744'000 1*075*000 '390*000 Wool washed 3, 007* 000 3 432*000 2 155' 000 1* 563* 000 '281*000 Intestines, stomachs, and bladders of animals 567 000 816 000 787 000 812 000 229 000 Cattlehides 215*000 124*000 298 000 656 000 ' 175* 000 Tin ores 14 000 3 000 2 000 286*000 539 000 Precious stones, raw 230 000 203*000 168*000 165*000 431*000 Tungsten ores 232 000 286 000 428 000 511 000 394 000 Apples fresh 196 000 179*000 162*000 353 000 356*000 Calfskins 82*000 49 000 96*000 386*000 353*000 Lead 747 000 548 000 446 000 349 000 248 000 160 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. AUSTRIA-HUNGARY. Articles. 1909 1910 1911 1912 1913 Total imports $179, 607, 000 $180,686,000 $175,903,000 $197, 531, 000 $196,935,000 Eees 14,759,000 18,464,000 7, 616. 000 5,735,000 5, 608, 000 6,401,000 3,254,000 3, 890, 000 137,000 2,087,000 3,185,000 2, 675, 000 1, 381, 000 2,811,000 1,441,000 2,050,000 1,258,000 1, 039, 000 1, 556, 000 1, 532, 000 2, 860, 000 1, 482, 000 1, 210, 000 1,158,000 967,000 2, 049, 000 564, 000 1,398,000 576,000 829,000 1,535,000 715,000 1,394,000 824,000 532, 000 894,000 1,060,000 1, 721, 000 1,155,000 745, 000 655,000 631,000 738,000 294, 000 987, 000 1,903,000 368,000 615,000 744,000 15,249,000 16, 726, 000 8,330,000 4, 805, 000 5,511,000 6, 863, 000 2, 756, 000 4,549,000 358,000 2, 406, 000 3, 172, 000 2, 700, 000 1,187,000 2, 445, 000 1,535,000 1,839,000 1, 472, 000 765,000 1,722,000 1, 209, 000 1, 846, 000 1,427,000 1,467,000 1, 278, 000 1,147,000 2,363,000 681,000 1,690,000 568, 000 905,000 1,323,000 596,000 1,212,000 810,000 452, 000 931,000 1,076,000 518,000 1,204,000 823,000 744,000 677,000 709,000 472,000 979,000 2,350,000 512,000 639,000 800,000 17, 462, 000 16,824,000 9,382,000 4, 073, 000 3,626,000 2, 266, 000 2,317,000 4,535,000 414,000 2, 654, 000 2,931,000 2,950,000 1,362,000 2, 243, 000 1,738,000 1,935,000 1,136,000 1,798,000 1,878,000 1,339,000 2,291,000 1,970,000 1,321,000 1,343,000 1,143,000 1, 642, 000 836, 000 162,000 588,000 697, 000 1,392,000 524, 000 723,000 837,000 615,000 872,000 915,000 883, 000 1,437,000 793, 000 956,000 691,000 662,000 675,000 806,000 1,863,000 806,000 645,000 957, 000 19, 866, 000 16,428,000 9, 236, 000 5,265,000 7, 183, 000 5,320,000 4,361,000 3, 466, 000 546, 000 2,742.000 3, 020, 000 2,761,000 2, 174, 000 2, 260, 000 1, 843, 000 1,860,000 1,769,000 1, 793, 000 1,781,000 890,000 3,288,000 1,866,000 1,306,000 1,426,000 1, 169, 000 1,293,000 1,019,000 760, 000 679,000 1,027,000 1,528,000 981,000 864,000 897, 000 700, 000 966,000 923,000 1,216,000 920, 000 1,011,000 789,000 848,000 832, 000 682,000 842,000 1,069,000 560, 000 769, 000 837,000 18,200,000 16,463,000 9, 255, 000 5,486,000 5,250,000 4,477,000 4,187,000 3,639,000 3, 555, 000 3, 229, 000 3, 163, 000 3,034,000 2,848,000 2,404,000 2,140,000 1,946,000 ,920,000 ,805,000 ,798,000 ,788,000 ,774,000 ,695,000 , 550, 000 ,467,000 , 436, 000 , 373, 000 ,334,000 , 193, 000 , 099, 000 ,073,000 ,028,000 ,022,000 ,008,000 998,000 952,000 950,000 926,000 914,000 913,000 901,000 838,000 800,000 794,000 793,000 790,000 775,000 755,000 753,000 714,000 Brown coal Wood of conifers, rough Calfskins Barley Oxen Cattle hides Wood of conifers sawn Cotton yarn Linen yarn Malt Feathers for beds raw Kerosene Coal Beer in casks Paintings Wood for the manufacture of pulp or cellulose Fur skins, dressed Books . . Apples fresh Hops Oil cake Cotton waste China clay Sulphate of ammonia Horses Lubricating oils, mineral Cows . . Men's hats of felt Fur skins, raw Red clover seed Mine timber Cigarettes Flax tow Zinc Gee^e Chickens Pears and quinces fresh Beans for food, dry Flax Feathers for beds, prepared Human hair Goat and kid skins Hemp tow Poultry, killed Bran Plums, dried Wood alcohol Paraffin BELGIUM. Total imports $68 918,000 $77, 489, 000 $80, 942, 000 $92, 021, 000 $81 975 000 Wool washed . 6, 220, 000 6,411,000 7,516,000 8,413,000 7,589 000 Horses 6, 579, 000 7, 862, 000 6, 988, 000 6, 610, 000 7 413 000 Wool, carded or combed 4,476,000 5,392,000 3, 142, 000 5,403,000 4, 829, 000 Silk artificial 2, 948, 000 3,411,000 3, 453, 000 4, 596, 000 3,181,000 Zinc 3, 280, 000 3, 088, 000 3, 880, 000 4,070,000 3 178 000 Linen yarn 1 733 000 2 089,000 2 483,000 2 529 000 2 976 000 Coke 2,231,000 2,373,000 2,594,000 2,551,000 2,715,000 Thomas phosphate 1, 668, 000 2, 179, 000 2, 445, 000 2, 429, 000 2,674 000 Ore slag 769 000 1,353 000 1, 153, 000 2,628 000 2 534 000 Carbonate of lime, slaked lime 1, 116, 000 2,230,000 1,882,000 1,905,000 2,311,000 Copper 111,000 322, 000 937, 000 1, 647, 000 1, 959, 000 Sulphuric acid 776, 000 887, 000 1, 062, 000 1, 000, 000 1 354 000 Iron old and scrap 731 000 1 276 000 1 452 000 2 266 000 1 274 000 Lead 1, 250, 000 1, 833, 000 2, 276, 000 2,841,000 1, 222, 000 Coal 1,431,000 1, 365, 000 1,343,000 1, 279, 000 1, 126, 000 Zinc ores 298 000 440 000 455 000 407 000 1,103 000 Fur skins 1, 577, 000 1,333,000 621,000 1, 055, 000 1,078,000 Woolen waste 951, 000 937, 000 785, 000 1,077,000 762,000 Oil cake 370, 000 491, 000 751, 000 899, 000 756, 000 Oleicacid... 751,000 822. 000 836,000 725, 000 755,000 GERMAN IMPORT TRADE. 161 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. B ELGIU M-Continued. Articles. 1909 1910 1911 1912 1913 Cattle hides $364 000 $852 000 $1 042 000 $958 000 $727 000 Woolen yarns, carded 850, 000 872, 000 596, 000 790, 000 688,000 Phosphate of lime natural 1,142 000 1,230,000 1, 086, 000 750, 000 636, 000 Potatoes 701, 000 489, 000 1,617,000 2, 316, 000 616,000 Apples fresh 321, 000 274, 000 501,000 1, 039, 000 583, 000 Chickory roots dried 374 000 1. 019, 000 1,554,000 1,903,000 572,000 Paper stock 500,000 448, 000 546, 000 632, 000 569, 000 Flax tow ... . 303, 000 198, 000 374, 000 589, 000 568, 000 Passenger automobiles 414 000 472 000 477, 000 695, 000 525 000 BOLIVIA. Total imports $5 107 000 $7 047 000 $8 704 000 $9 121 000 $9 692 000 Tin ore 4 178 000 5 837 000 7 248 000 7 911 000 8 478 000 India rubber 621, 000 755,000 598, 000 254, 000 313,000 Copper ores 6 000 3,000 9 000 225, 000 240 000 Bismuth 117,000 267, 000 310, 000 274, 000 230,000 Cattle hides 30 000 13 000 39,000 38,000 184,000 BRAZIL. Totil $55, 761, 000 $66, 385, 000 $76, 161, 000 $74, 537, 000 $59, 008, 000 Coffee - 29, 770, 000 31, 268, 000 45, 093, 000 43, 628, 000 33, 667, 000 12 550 000 20 977 000 16 258,000 14, 672, 000 9, 256, 000 Cattle hides 5, 644, 000 7, 085, 000 5,311,000 6,399,000 6, 368, 000 Tobacco leaf 2 585 000 2 079 000 2, 700, 000 2, 809, 000 2, 886, 000 Cocoa 1,651,000 1, 563, 000 1,977,000 2, 238, 000 1,922,000 Bran 443 000 530, 000 722, 000 715, 000 689,000 Vegetable wax 417 000 549 000 565 000 729 000 662 000 Semiprecious stones 87 000 145, 000 385, 000 337,000 497, 000 Cotton 7 000 16 000 103 000 93 000 357, 000 Monazite sand 271 000 115. 000 832,000 607, 000 330, 000 Manganese ores 724 000 474 000 385 000 253, 000 266,000 Egrets 37 000 69, 000 43, 000 77,000 210, 000 Precious stones . . 62 000 93 000 79,000 198, 000 178,000 Oil cake 67 000 93 000 251 000 117 000 150,000 Tobacco rolls, plugs, and carrots, for 137 000 113 000 138 000 144 000 144,000 Goat skins 267 000 151,000 149,000 252, 000 141,000 Copper scrap 45 000 72 000 84 000 83 000 124,000 Brass and tombac 37, 000 66,000 71,000 43,000 117,000 Para nuts 118 000 107 000 87, 000 223, 000 102,000 BRITISH INDIA. Total imports $75, 435, 000 $96,162 000 $104, 790, 000 $126,911,000 $128, 936, 000 Jute jute tow. . 12, 222, 000 10, 025, 000 14, 718, 000 17, 662, 000 21, 873, 000 Rice 7,743 000 12 532 000 15 047 000 19 108 000 18 373.000 Cotton 11, 161, 000 20, 107, 000 16, 395, 000 9,318,000 13,964,000 Cattle hides 5, 356, 000 6 018 000 5,494 000 7,842 000 11,451,000 Copra 3, 237, 000 3,502,000 2, 572, 000 4, 849, 000 8,006,000 India rubber . 850, 000 1,316 000 1,781 000 3, 544, 000 7,110,000 Rape and colza seed 6 627 000 7 809 000 7 458 000 6 326 000 7 088 000 Linseed 918, 000 3,276 000 6, 429, 000 5, 815, 000 3,958,000 Sesame 1,676 000 3 587 000 2 607 000 1,637 000 2, 820, 000 Wheat 1 761 000 444 000 2 510 000 2 887 000 2 428 000 Rice bran and refuse 1,156,000 924 000 1,113 000 2, 246, 000 2,350,000 Manganese ores 1 145 000 1 327 000 1 629 000 462 000 2 114 000 Shellac 2, 331, 000 2,638 000 1, 549, 000 ,865,000 , 559, 000 Goat and kid skins dressed . 2 165 000 2 156 000 2 704 000 650 000 549, 000 Peanuts 626 000 1 488 000 2 088 000 721 000 431 000 Goat and kid skins, raw 797' 000 1, 218' 000 954 000 370, 000 ,295,000 Coir yarn 943 000 1 009 000 1 176 000 Oil 000 ,278 000 Mica 745,000 982 000 1, 075, 000 ,393,000 ,241,000 Oil cake 1 368 000 907 000 804 000 1, 189, 000 ,196,000 Coffee 957,000 777,000 822,000 864,000 ,062,000 Mowra seed; elipe nuts, shea nuts Peas dry 827,000 188 000 531,000 71 000 1,573,000 718 000 1,709,000 7, 098, 000 ,022,000 1,011,003 Tin.!...... 677.000 789.000 1.157.000 1.387.000 920.000 43339 162 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. BRITISH INDIA-Continued Articles. 1909 1910 1911 1912 1913 Poppy seed... $1.160,000 $1,006,000 $1 059 000 $649 000 $814 000 .Lmters . 706 000 981 000 917 000 676*000 721 000 India hemp, kapok, pineapple fiber. .. Sheep and lamb skins, dressed 249,000 511,000 506.000 524 000 494,000 733 000 696,000 712 000 663* 000 627 000 Tamarinds 228 000 305 000 422 000 518'000 61o'oOO Cotton waste 137,000 120,000 lie' ooo 357 000 519*000 Tungsten ores 6 000 42 000 62 000 222 000 517 000 Pepper 314 000 328 000 366 000 392 000 458 000 Jute sacking 186,000 148 000 259' 000 399 000 451*000 Gutta-percha 197 000 1 160 000 452 000 609 000 446 000 Ivory 288 000 352 000 401 000 439 000 446 000 Ebony wood, sawn 114,000 242 000 236 000 426*000 446*000 Myrobalans 400 000 470 000 399 000 321 000 411 000 Ground bone 237,000 202,000 295 000 391 ' 000 339*000 ICauri, dammar, and other resins 210 000 150 000 94 000 209 000 227 000 Tea 327 000 227 000 277 000 276 000 309 000 BRITISH SOUTH AFRICA. Total imports $14,651,000 $14, 133, 000 $13 304 000 $15 995 000 $16 570 000 Wool, raw... 8, 704, 000 8, 678, 000 8, 588, 000 10 432 000 10 810 000 Ostrich feathers 2,191,000 1 980 000 1 797 000 1 949 000 2 090*000 Wool, washed 1 193 000 1 266 000 933 000 1 010 000 1 183 000 Wattle bark 569,000 694,000 767 000 825 000 1 124 000 Cattle hides 39 000 55 000 128 000 242 000 327 000 India rubber 592 000 51 000 32 000 30 000 207 000 Whalebone 11*000 2 000 76*000 Aloe juice 16 000 15 000 19 000 20 000 74*000 Lead ores 1,000 5 000 18*000 69 000 Sheepskins, raw 34 000 22 000 20 000 76 000 67 000 Corn 816 000 904 000 492 000 830* 000 64 000 BRITISH WEST AFRICA. Total imports $20 797 000 $25 786 000 $25 424 000 $28 221 000 $32 010 000 Palm nuts . . . 15 534 000 19 792 000 19 762 000 20 934 000 21 588 000 Cocoa 2 210 000 2 306 000 2 875 000 3 929 000 4 660 000 Palm oil 1*341*000 1*815*000 1 442 000 1 520 000 2* 004* 000 Peanuts 165 000 180 000 91 000 308*000 1 761 000 Cattle hides 87 000 119*000 222*000 278 000 ' 832* 000 India rubber 959 000 1 111 000 605 000 491 000 260 000 Mahoganv and palisander wood 218,000 220 000 197 000 323 000 245 000 Sesame . .". 24 000 7 000 23 000 25 000 149 000 Corn . 83 000 26 000 6 000 39*000 122 000 BULGARIA. Total imports . $1 999 000 $1 502 000 $2 520 000 $4 274 000 $2 088 000 Eggs 1 165 000 870 000 1 127 000 1 748 000 918 000 Rose oil 172 000 200 000 283 000 * 533* 000 500 000 Bran 74 000 82 000 235*000 378 000 112 000 Tobacco 9*000 20*000 25 000 81 000 105 000 Corn... 68 000 5 000 239 000 438*000 79 000 Lamb skins 14 000 26*000 70* 000 143 000 57*000 Wheat 134 000 21 000 91 000 460*000 53 000 Vetches, dry 2 000 8 000 119*000 74 000 41 000 CANADA. Total imports $1 997 000 $2 531 000 $5 702 000 $'3 835 000 $15 293 000 Wheat 685 000 3 394 OOC 11 013 000 12 324 000 Reaping machines 484 000 352 000 ' 411* 000 ' 555* 000 '923' ooo Asbestos 416 000 482* 000 41 1 ' 000 566 000 677* 000 Lobsters, canned 32*000 109* 000 155* 000 139 000 166* 000 Barley e'coo 155* 000 Apples, fresh 20 COO 13 000 553 000 276 000 151 000 Hay tedders, presses 6l'oOO 69 000 87*000 70*000 77*000 GERMAN IMPORT TRADE. 163 I TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. CEYLON. Articles. 1909 1910 1911 1912 1913 Total imports ' $4 585 000 $8 421 000 $8 803 000 $9 450 000 |9 979 OQO Copra 1 136 000 4 051 000 4 516 000 4 246 000 4 208 000 India rubber 353. 000 1. 189, 000 1. 210, 000 1,527' roo 1 874* 000 Graphite . 1.081 000 1.019 000 1.136 000 1 151 000 1 238 000 Coconuts 262 000 253 000 504 000 555 000 ' 926* 000 'Oilcake 204 000 189 000 164 000 190'000 251 000 Tea 206 000 154 000 182 000 197 000 233 000 Cinnamon 182. 000 160.000 179, 000 202' ooo 191 'OOO Precious stones 136 000 64 000 86 000 224 000 173 000 Cocoa 171 000 223 000 208 000 178 000 160'000 Coconut fiber. 67 COO 74' ooo 87 000 lie' ooo 111 000 CHILE. Total imports $34,157 GOO $36 793 000 $37 688 000 $49 897 000 $47 561 000 Nitrate of soda 28 488,000 31.728,000 32 146 COO 42 451 000 40 699 000 Wool, raw 93^ 000 1 211 000 883 000 1 203 000 1, 976' 000 Iodine 1 223 000 1 157 000 1 009 000 1 023 000 1 151 000 Borate of calcium .. . 368 000 ' 4oe' ooo ' 546' 000 ' 467' 000 ' 6C7' 000 Cattle hides 85 000 92 000 160 000 249 000 606 000 Bran 426 000 382 000 470'000 827' 000 527 000 Tin ores 312 000 335 000 892 000 1 269 000 465 000 Sole leather 535 000 512 000 554 000 ' 632' 000 386' 000 Silver ores 30 000 61 000 81 000 238 000 223' ooo Honey 99 000 90 000 109 000 lie' ooo 106 000 Plants, berries, leaves, etc., for indus- trial purposes 138, 000 185, 000 131,000 95 000 103 000 Sheepskins, raw 50 000 15 000 65 000 65 000 96 000 Beeswax 18 000 49 000 50 000 56 000 79' ooo CHINA. Total imports $15,515,000 $22,531,000 $24, 596, OOC $27,498,000 $31,052,000 Sesame 3, 268, 000 5,778,000 1,336,000 1,958,000 1, 358, 000 797. 000 399, 000 950,000 1,049,000 715,000 710, 000 1,036,000 649,000 322,000 582,000 421,000 526,000 202, 000 386,000 217,000 5, 193, 000 2, 238, 000 2,167,000 1,452,000 938, 000 1, 552, 000 986, 000 882, 000 568,000 1,151,000 377,000 656,000 509,000 600,000 569,000 373, 000 41, 000 296, 000 276,000 6, 506, 000 3, 895, 000 1,929,000 1,325,000 1, 243, 000 475, 000 1,058,000 749,000 500, 000 991,000 446,000 1,038,000 870, COO 288,000 612,000 559,000 131,000 316,000 312, 000 7,150,000 4,342,000 4. 071, COO 1,457,000 1,281,000 976,000 942,000 806,000 800,000 687,000 599, 000 544,000 521,000 519, 000 517, 000 512, 000 510, 000 502, 000 372,000 Sova beans Cattle hides 1,304,000 1,068,000 674,000 167,000 1,124,000 870, 000 124,000 317,000 699,000 664,000 314,000 515,000 333,000 573, 000 97,000 273,000 161,000 Feathers for beds Yolk of egg^ Cotton Tea Bristles Peanuts Wood oil Fur skins Plaits of straw . . Ramie Gallnuts Albumen Silk, raw, not dyed Shea butter and other vegetable tallow. Goat and kid skins, raw Menthol COLOMBIA. Total imports $2, 433, 000 $3, 092, 000 $3,473,000 $3, 122, 000 $3, 796, 000 Coffee 703,000 1,000 372, 000 259,000 520, 000 62,000 613,000 746,000 696,000 141,000 877, 000 367, 000 547, 000 81,000 957,000 875,000 717,000 484, 000 416,000 99,000 Bananas Taguanuts 660,000 650, 000 611,000 42,000 676, 000 785,000 562, 000 144, 000 Cattle hides Tobacco Panama hats 164 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. COSTA RICA. Articles 1909 1910 1911 1912 1913 Total imports $880, 000 $896, 000 $1, 181, 000 $1,213,000 $1, 668, 000 Coffee 738 000 737 000 1 017 000 928 000 1 164 000 Bananas 65,000 239.000 Cedar wood 96 000 106, 000 78, 000 110 000 135 000 Cattle hides 14, 000 32, 000 67,000 91, 000 118, 000 CUBA. Total imports $2, 467, 000 $2, 039, 000 $2,311,000 $2, 737, 000 $3,151,000 Cattle hides 249, 000 363, 000 515, 000 695, 000 1, 071, 000 Tobacco 452, 000 539, 000 468, 000 617, 000 806 000 Cigars 968, 000 452, 000 499, 000 552,000 496,000 Cedar wood 316, 000 256,000 314, 000 317,000 180,000 Honey 171 000 162, 000 150, 000 181, 000 150 000 Beeswax 63, 000 86,000 70,000 90,000 133, 000 Cocoa 36,000 30,000 62, 000 42, 000 80 000 DENMARK. Total imports $32, 202, 000 $37, 629, 000 $42, 899, 000 $48, 120, 000 $45, 657, 000 Cattle 7 800 000 8 548 000 9 457 000 7 675 000 10 595 000 Cream, fresh 3,362,000 5,599,000 5, 206, 000 6, 658, 000 6,679 000 Horses 4 589,000 5, 400, 000 6 062,000 6, 683, 000 6 077 000 Beef and veal, fresh 1, 259, 000 2, 092, 000 2, 183, 000 5,535;000 3, 233, 000 Salt-water fish and shellfish fresh 1 433,000 1,537,000 1, 853, 000 2, 700, 000 2,824 000 Calfskins, raw 1,036,000 1,331,000 1,377,000 1, 683, 000 1, 793, 000 Pork, fresh or simply prepared 711,000 753, 000 740, 000 1,587,000 1, 307, 000 Intestines, stomachs, and bladders of animals 1, 128, 000 1, 036, 000 1, 198, 000 1, 737, 000 1, 284, 000 Butter 3 212,000 2 847,000 4, 373, 000 3, 219, 000 1 210 000 Barley... 569, 000 800,000 1, 187, 000 1,564,000 983, 000 Lard ... 499, 000 510,000 599, 000 848, 000 906, 000 Cattle hides 778, 000 597, 000 612, 000 927, 000 863, 000 Fresh- water fish, fresh 430,000 516, 000 535, 000 559, 000 652, 000 Oil cake 291 000 229. 000 375, 000 549, 000 508 000 Sheepskins, raw 109, 000 253,000 229, 000 186,000 439,000 Eggs 61,000 118, 000 216, 000 305, 000 362 000 Canary seed 72, 000 118,000 162, 000 204, 000 295, 000 Sulphate of ammonia 173, 000 195, 000 151, 000 152, 000 218,000 Cryolite 138 000 177 000 137 000 167 000 189 000 Cement 185,000 181,000 181,000 144,000 159,000 Horsehides 86 000 98,000 99,000 124 000 157 000 Lobsters 215, 000 274, 000 274, 000 304, 000 150, 000 Carbonate of lime 221 000 243, 000 248, 000 146, 000 143, 000 Glycerin 3,000 6,000 30, 000 58, 000 128, 000 DOMINICAN REPUBLIC. Total imports $1 697,000 $2, 003, 000 $1,987,000 $2, 018, 000 $2,417,000 Tobacco 672, 000 1, 000, 000 1, 150, 000 1, 186, 000 1, 087, 000 Cocoa 756, 000 734, 000 558, 000 509,000 917,000 Cattle hides . 126, 000 121, 000 113, 000 144, 000 225,000 Beeswax 18 000 19,000 6,000 12, 000 55, 000 DUTCH EAST INDIES. Total imports $44, 006, 000 $44, 628, 000 $43,881,000 $51,149,000 $54,175,000 Tobacco 20, 622, 000 14, 337, 000 15,737,000 18,813,000 18, 515, 000 4,834,000 8,176,000 6,561,000 9, 487, 000 11,761,000 Tin 4,935,000 5,963,000 7,464,000 7,217,000 6, 199, 000 Coffee . 2,272,000 1:353,000 1,524,000 1,954,000 1,978,000 Benzine heavy 310,000 361,000 727,000 1,344,000 1,618,000 Gutta-percha .. 534,000 3,154,000 1,148,000 1,452,000 1,504,000 Rice... 751,000 777,000 1,109,000 1,245,000 1,137,000 GERMAN IMPORT TRADE. 165 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. DUTCH EAST INDIES Continued. Articles. 1909 1910 1911 1912 1913 India rubber $1 366 000 $2,518,000 $1,429,000 $1,487,000 $1,111,000 Cattle hides 716,000 862,000 931,000 925, 000 1,070,000 Kauri dammar and other resins.... 760,000 815,000 342 000 606, 000 1,036,000 2 191 000 1 365 000 1, 080, 000 737, 000 899,000 Kapok; India hemp. 519,000 785, 000 670,000 698, 000 771,000 Rattan 246 000 477,000 638,000 631,000 769,000 Peru\ 7 ian bark. . . 665,000 549,000 577, 000 613,000 662,000 Sandalwood 152,000 217, 000 406,000 407, 000 660,000 Cotton... . 424,000 401,000 177, 000 84,000 568,000 Pepper . . 435, 000 433,000 547, 000 495,000 551,000 Goat and kid skins, raw Tea 131,000 314,000 167,000 211,000 131,000 283,000 236,000 235,000 444,000 326,000 Camphor oil, juniper oil, and other volatile oils 67,000 87,000 98,000 165,000 294,000 Boxwood, ebony, teak wood 105, 000 ,73,000 160,000 218,000 250,000 Nutmegs 212 000 220 000 258,000 241,000 228,000 Jute, jute tow. . . 3,000 2,000 39,000 50,000 216,000 Cocoa 109 000 142,000 280,000 216,000 207,000 Paraffin . . . 33,000 36,000 91,000 130, 000 134,000 Corn 4 dari 83 000 11,000 21,000 26,000 92,000 ECUADOR. Total imports . . $2,634,000 $2, 543, 000 $2,871,000 $3,763,000 $4,059,000 Cocoa 1,443,000 1,392,000 1,632,000 2,337,000 2,309,000 Tagua nuts 579,000 543,000 450, 000 668,000 1,165,000 Panama hats . . 139,000 253, 000 355,000 364,000 306, 000 Cattle hides 36 000 56 000 94 000 67 000 143 000 India rubber .... 332,000 255,000 259,000 238,000 66,000 EGYPT. Total imports $22, 783, 000 $22,282,000 $23 689,000 $26, 577, 000 $28,176,000 Cotton 17,463,000 16,836,000 15, 985, 000 16,551,000 17.374,000 Cottonseed 2 867 000 3 306 000 5 266 000 7 542 000 8 409 000 Acacia gum. . . 363,000 504,000 664,000 643,000 639,000 Cigarettes 800 000 510 000 598 000 621 000 600 000 Onions fresh 707 000 535 000 588 000 704 000 418 000 Linters . 129, 000 160 000 165 000 116 000 228 000 Cattle hides 98 000 51 000 13 000 30 000 117 000 Eels, frozen.. 10,000 16 000 18 000 20,000 56 000 FINLAND. Total imports $5, 657, 000 $6, 226, 000 $8,243,000 $8,775,000 $10,763,000 Wood of conifers sawn 2 991 000 2 988 000 4 372 000 4 143 000 6 423 000 Butter '762 000 'sis' ooo l' 526' 000 2' 027' ooo 1 185 000 Calfskins, raw 193,000 651,000 254,000 342,000 694,000 Wood of conifers, hewn 515 000 514 000 605 000 615 000 648 000 Cranberries huckleberries 66 000 81 000 239 000 315 000 302 000 Cellulose. . . 107,000 160 000 241 000 292 000 291 '000 Spools, wooden 18,000 60, 000 44,000 114,000 240,000 Pasteboard 226 000 188 000 157 000 188 000 218 000 Game dead . . 43' ooo 56' 000 36' 000 38*000 80 000 Cattle hides, raw 20,000 12,000 71,000 93 000 76 000 Medicinal plants.. 1 000 2 000 4 000 33 000 60 000 FRANCE. Total imports $115 456 000 $121 099 000 $124 811 000 $131 432 000 $138 808 000 Fur skins, dressed 3,110 000 2 993 000 4 002 000 2 776 000 6 180 000 Iron ores 1 954 000 3 166 000 3 789 000 4 165 000 5 895 000 Calfskins, raw 3,446 000 l' 891 '000 3 892'000 2 776 000 5 565 000 Silk, raw, not dyed 3 317 000 5 666 000 4 991 000 4 896 000 5 303 000 Wine in casks... 3.691.000 5.409^000 4.627^000 5. 617. 000 5.023.000 166 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. FRANCE Continued. Articles. 1909 1910 1911 1912 1913 Wool, carded or combed $12 081 000 $9 248 000 $10 543 000 $11 031 000 $4 889 000 Apples, fresh 564 000 164 000 1 898 000 620 000 4' 588' 000 Cattle hides 1,533 000 3,121 000 2 724*000 4 207' 000 3 871 000 Chrome, tungsten, ferrochrome, cad- mium 1 000 4 000 10 000 875 000 3 493 000 Wool, washed . 2, 670, 000 3,087 000 2, 625' 000 2 837' 000 3' 052' ooo Sheep and lamb's leather dressed 1 422 000 1 603 000 1 701 000 2 345 000 2 715 '000 Clover seed '. 3,326,000 2, 756, 000 3,170,000 I'gis'ooo 2' 630' 000 Kitchen vegetables, fresh 1 586 000 381 000 1 457 000 1 531 000 2 209 000 Oilcake . 1 933 000 818 000 1 997 000 2 081 000 2' 034' ooo Sheep and lamb skins, dressed Worsted yarn 1,' 067', 000 2 254 000 ,360,000 614 000 1, 283, 000 1 480 000 l' 696', 000 1 754 000 , 872, 000 849 000 Yarn of floss silk 1, 434, 000 , 613, 000 2, 056, 000 1 790'000 ' 747' ooo Horses 1 157,000 726 000 1 858 000 1 818 000 747 000 Films of celluloid 109 000 354 006 1 340 000 1 012 000 61 1 000 Close- woven tissues of silk (except rib- bons) 1 562 000 1 479 006 1 358 000 1 513 000 586 000 Aluminum 935 000 958 000 850 000 l'048 000 ' 586' 000 Wine, sparkling 1 973 000 2 276' 000 1 488 000 l' 507' 000 542 000 Oils of camphor, anise, juniper, rose- mary, and other volatile oils 674, 000 771,000 935, 000 972 000 417 000 Thomas phosphate 697 000 791 000 1 115 000 917 000 345 000 Oak, pine, and chestnut extracts 926 000 988 000 1 063 000 1 194 000 i iss'ooo Beef and veal, fresh. . . . 74,000 108, 000 95, 000 '354' ooo l' 090' 000 Carnations, orchids, roses, violets fresh. Gauze, crape, and veiling, of silk Turpentine resins. . 640, 000 1,342,000 803 000 630, 000 1. 743, 000 1 080 000 675, 000 1,383,000 1 617,000 791, 000 1, 065, 000 1 568 000 1, 068, 000 1, 028, 000 1 005 000 Passenger automobiles 1,051,000 1,034,000 1,077,000 1 039 000 977 000 Intestines, stomachs, and bladders of animals 822 000 778, 000 766 000 873 000 943 000 Wares of gold 798 000 961 000 863 000 845 000 906 000 Carbonate of lime. . . . 785 000 908 000 820 000 750' 000 89l'oOO Platinum and platinum metals 403, 000 787, 000 1, 094, 000 856, 000 880,000 Oleomargarin 963,000 935,000 214, 000 400 000 854 000 Walnuts, hazel nuts . 662 000 224 000 870 000 739 000 819 000 Precious stones, wrought 680 000 616 000 510 000 500 000 795' ooo Paper stock 298, 000 391 000 537, 000 669' 000 780'000 Sheep and lamb skins, raw 865,000 537, 000 643, 000 718,000 772, 000 Women's hats, ornamented 560,000 773, 000 673, 000 520 000 721 000 Goat and kid skins, raw 1 396 000 815 000 843 000 338 000 714 000 Tulle of silk 774 000 873 000 516 000 387 000 663 000 Cotton laces 291 000 360 000 383 000 480' 000 633' 000 Paintings 578 000 629 000 560 000 660 000 598 000 Books 567 000 562 000 531 000 54g' 000 538'000 FRENCH INDO-CHINA. Total imports $823 000 $1,312,000 $481, 000 $735 000 $818 000 Rice refuse 232 000 379 000 285 000 485 000 554 000 Gum lac 1 000 55 000 23 000 52' ooo us' ooo Oil of star-anise 2 000 27 000 23 000 33 000 66 000 Rice 507 000 814 000 55 000 3' ooo FRENCH WEST AFRICA Total imports $2, 944, 000 $3,396,000 $3, 410, 000 $3, 765, 000 $4, 604, 000 Peanuts 1 198 000 1 026 000 1 033 000 1 191 000 1 879 000 Wood of deciduous trees, soft 338, 000 535, 000 574,000 945, 000 Palm nuts 360 000 473, 000 623 000 704 000 863 000 India rubber 902 000 1 303 000 980 000 726 000 335 000 Cattle hides 52, 000 16,000 17, 000 47,000 146, 000 Corn 33 000 16 000 2 000 36 000 124 000 Copper ores 296 000 45 000 GERMAN IMPORT TRADE. 167 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. GERMAN EAST AFRICA. Articles. 1909 1910 1911 1912 1913 Total imports $1 853 000 $2 571 000 $2 914 000 $3 485 000 $3 466 000 India rubber 767 000 1 330 000 1 289 000 1 732 000 1 303 000 Cotton 99,000 231, 000 304,000 294,000 487' 000 Sisal hemp 245, 000 258, 000 269 000 284 000 447 000 Peanuts 28, 000 .43, 000 114,000 159, 000 265*000 Beeswax 111,000 111,000 93, 000 189 000 188 000 Coffee 125 000 126 000 204 000 135 000 148 000 Mica 94,000 85,000 87,000 200,000 127' 000 Ivory 9 000 18 000 21 000 14 000 90 000 GERMAN KAMEROON. Total imports $2 644 000 $5^586 000 $4 016 000 $4 246 000 $3 110 000 India rubber 2 043 000 4 837 000 3 242 000 3 404 000 1 753 000 Cocoa 260, 000 238, 000 311,000 241,000 '455'000 Palm nuts 195, 000 346 000 289 000 372 000 382 000 Palm oil 16, 000 45, 000 29, 000 13, 000 204' ooo Ivory 88 000 53, 000 39 000 49 000 87 000 GERMAN SOUTHWEST AFRICA. Total imports $788 000 $967 000 $760 000 $1 338 000 $1 802 000 Diamonds'and other precious stones . . . Vanadium ores 362, 000 724, 000 595,000 28 000 1, 030, 000 24 000 1,283,000 111 000 Tin ores 2 000 1 000 7 000 87' 000 GREECE. Total imports $4, 322, 000 $5,060 000 $5 634 000 $5 963 000 $6 184 000 Currants 1, 250, 000 1, 572, 000 2 010 000 1 653 000 1 457 000 Wine in casks 544 000 786 000 793 000 712 000 ' 902' ooo Sheep and lamb skins 223,000 188, 000 130 000 398' 000 603 000 Iron ores ... 473 000 302 000 453 000 503 000 595*000 Tobacco 143 000 95 000 167 000 252' ooo 447' ooo Magnesite 139 000 168* 000 246' 000 360' 000 322*000 Zinc ores 89 000 63 000 127 000 195' ooo 295 ooo Sponges 269, 000 187 000 177' 000 202' ooo igo'ooo Figs dried . . 166 000 173 000 238 000 165* 000 174* 000 Turpentine oil, pine-needle oil 117, 000 246 000 294' ooo 127' 000 iso'ooo Emery 87 000 149 000 185 000 126 000 128*000 Goat and kid skins 14 000 14 000 12' ooo 127' ooo 112' ooo Cedrat fruits, fresh 75' ooo 23' ooo 92* 000 49 000 98*000 Wine for the manufacture of cognac. . . Alabaster and marble 18,000 73,000 12' ooo 86 000 16, 000 52 000 41*000 75 000 67.' 000 59 000 GUATEMALA. Total imports $5 935 000 $4 516 000 $6 474 000 $7 527 000 $8 298 000 Coffee 5 487 000 4 029 000 5 995 000 6 992 000 7 791 000 Cattle hides 310 000 336* 000 ' 384* 000 ' 447* 000 ' 443* 000 India rubber 95* 000 104* 000 59 000 65* 000 33*000 HAITI. Total imports $213, 000 $291,000 $310, 000 $314,000 $416, 000 Cotton 60, 000 28, 000 62. 000 1,000 33, 000 122, 000 44, 000 57,000 5,000 32,000 71, 000 30, 000 123, 000 20, 000 37, 000 32, 000 41,000 150, 000 34, 000 24,000 108, 000 87,000 73,000 58, 000 37,000 Cocoa Coffee . . Honey Logwood 168 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. ITALY. Articles. 1909 1910 1911 1912 1913 Total imports ...... $68, 509, 000 $65, 340, 000 $67,779.000 $72,498,000 $75,599 000 30. 353, 000 25,512,000 23,756.000 25, 328. 000 26, 699, 000 3, 394, 000 2,789,000 3,420,000 3,387,000 3,324.000 2,207,000 2,979,000 3, 369, 000 3,618,000 2,795 000 Marble 1,498,000 1 616,000 1,993,000 2,454,000 2 318 000 Lemons, figs, cedrats, fresh Apples fresh 1,320,000 1,959,000 1,455,000 380,000 1,680.000 1,149.000 2,033,000 248.000 , 849, 000 ,800,000 Eees 1,421,000 1,260,000 1,471,000 1,706,000 696 000 Grapes fresh 1,448,000 1,038.000 1,269.000 1,143,000 , 578, 000 Potatoes 724,000 801.000 768,000 1,358,000 ,563,000 Cattle hides 312,000 409,000 456,000 639,000 ,430 000 Yarn of floss silk not dyed 658,000 1,187,000 1,181.000 1, 049, 000 170 000 967,000 1,133.000 1,089,000 974,000 , 019, 000 Flowers fresh 281,000 244,000 272,000 357,000 927 000 Asphalt . - 736,000 705,000 938,000 1,019,000 911 000 Clover seed . . 561,000 795, 000 ' 1,889.000 1, 968, 000 882! 000 Hazelnuts 877, 000 783,000 712.000 535.000 881, 000 Oranges and mandarins fresh 970,000 1, 035, 000 874,000 803.000 816 000 Calfskins, raw 853,000 608.000 436,000 558,000 784,000 Pumice stone tripoli 403,000 439,000 625,000 657,000 731,000 252,000 1,118,000 214.000 90,000 621,000 Rice refuse 379,000 346,000 859,000 1,151,000 548 000 Cauliflower . . 498,000 521,000 407,000 953,000 544,000 Cherries fresh 604,000 356,000 295,000 332,000 537,000 Hemp tow 581,000 624,000 772.000 575, 000 517 000 Floss silk combed 393,000 374,000 273,000 440, 000 509 000 Buttons o'f vegetable ivory 106,000 174,000 184,000 272.000 505,000 Zinc ores 178,000 33,000 326,000 628, 000 484 000 Oils of oranges, lemons, bergamots Oak pine and chestnut extract 259, 000 261 000 245,000 257,000 366,000 373 000 423,000 400 000 454,000 408 000 Hats of vegetable plaiting material other than straw untrimmed 66,000 60.000 164,000 370 000 405 000 Mercury . 257,000 261,000 477, 000 389.000 402 000 Tartar 119,000 204 000 225,000 200,000 402 000 Peaches fresh 354, 000 186,000 203,000 195 000 392 000 Tomatoes, artichokes, melons 168,000 210,000 179,000 318.000 347,000 Rhubarb 'cucumbers^ carrots . . . 334,000 382.000 426,000 330,000 339,000 Wine in casks 317,000 1,279,000 905,000 342,000 338 000 Olive oil 239,000 553,000 295,000 487,000 337,000 JAPAN. Total imports $6, 956, 000 $8, 760, 000 $8,942,000 $10,266,000 $11,098,000 Silk raw not dyed 770.000 1,073 000 932 000 1 550 000 2 017 000 Pongees (habutae), raw 1,169,000 1,305,000 1,299,000 1, 130, 000 1* 271,' 000 Oil of camphor* menthol.... 220,000 379,000 447,000 603,000 1, 243, 000 Camphor 1,114.000 966,000 1,241.000 1, 123 000 574 000 Copper 80 000 892 000 572 000 721 000 565*000 Train oil 266,000 452,000 319, 000 269.000 525 000 Fur skins 265,000 387,000 237, 000 312 000 408 000 Oak wood 51,000 72 000 208 000 350 000 405*000 Trimmings and button-makers' ware. . . 78,000 267,000 290 000 Cattle hides 6,000 1,000 17,000 61,000 232 000 Floss silk combed 175, 000 212,000 134 000 155 000 213*000 Tin ores 77,000 150*000 210*000 Plaits of straw . . . . 366,000 372,000 368,000 325,000 9Qg 000 Agar-agar . 77,000 87,000 144 000 182 000 159 000 Zinc ores 10.000 1,000 86,000 275,000 120*000 Vegetable wax .. .. 104.000 122 000 99, 000 100 000 118 000 Plaited wood shavings 380,000 475, 000 160,000 158 000 117*000 MADAGASCAR. Total imports SI, 536, 000 $2, 815, 000 $2, 565, 000 $2,033 000 $2,097,000 Cattle hides 467,000 724 000 761 000 601 000 874 000 Raffia and piassava fibers 113,000 142. 000 172,000 194, 000 209, 000 Mangrove bark . . . 129,000 246 000 293, 000 312 000 186 000 Vanilla 126,000 106 000 270 000 125 000 182 000 Semiprecious stones 1,000 7 000 103 000 119 000 154*000 Beeswax 134 000 139 000 135 000 146 000 125* 000 India rubber 454,000 1,318,000 607,' 000 360, 000 1 134000 GERMAN IMPORT TRADE. 169 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. MEXICO. Articles. 1909 1910 1911 1912 1913 Total imports $5,119,000 $5,641,000 $7,384,000 $8, 459, 000 $5, 958, 000 Coffee 1,153,000 724,000 1,120,000 1, 103, 000 1,518,000 Agave fibers 439, 000 498,000 616,000 852,000 1, 363, 000 Cattle hides 247, 000 342, 000 369,000 337, 000 551 000 India rubber 1,493,000 2, 437, 000 2,901,000 2,334,000 546, 000 Piassava and other fibers 409,000 450, 000 422, 000 437, 000 534, 000 Oil cake 63,000 172, 000 267,000 364,000 310,000 Tobacco 401,000 186,000 229, 000 260,000 197, 000 Logwood 131,000 130, 000 131,000 182, 000 133,000 Linaloa oil 32,000 40,000 45,000 52,000 108,000 MOROCCO. Total imports $1, 847, 000 $2,168,000 $2,970,000 $4,538,000 $2,315 000 Almonds . . . 370, 000 610, 000 669,000 693,000 868, 000 Wool raw 115,000 412, 000 410,000 249, 000 590 000 Goat and kid skins 166,000 186,000 207,000 209, 000 288, 000 Sheep and lamb skins 83,000 85,000 67, 000 66,000 160 000 Medicinal plants 80, 000 69, 000 91,000 115,000 94,000 Barley 431,000 164,000 737, 000 2,207,000 Wheat 67, 000 69, 000 163, 000 403,000 NETHERLANDS. Total imports $60,312,000 $61, 515, 000 $70, 862, 000 $82,195,000 $79 260 000 Butter 9 074 000 8 696 000 7 720 000 10 587 000 10 102 000 Cheese 3, 839, 000 4, 020, 000 4, 274, 000 4, 093, 000 5' 155' ooo 2,786 000 3,295 000 3,171 000 3 332 000 4 124 000 Horses 1,837,000 2, 319, 000 2,213,000 2, 325, 000 2 949*000 Cucumbers carrots lettuce 1, 780, 000 2, 350, 000 3,534,000 3,473 000 2 752 000 Beef and veal, fresh 1,064,000 1,088,000 978, 000 2,259,000 2,661 000 Pork fresh 1, 609, 000 516,000 27,000 1,895,000 2 392 000 Coal 1,537 000 1 509 000 2. 047, 000 2 309 000 2 369* 000 Potatoes 2, 177, 000 1,748,000 6,456,000 5, 450, 000 2' 323' ooo Eg^s 1. 422, 000 2, 009, 000 1,742,000 1,991 000 2 268 000 Cattle hides 910, 000 1,379,000 1,836,000 1,747,000 2 034' 000 Fruits fresh 1, 010, 000 847, 000 1,221,000 2, 030, 000 1 873 000 Rice, polished 1, 903, 000 1,994,000 2, 109, 000 2,084,000 1,783' 000 Salt-water fish fresh 818, 000 1,072,000 1,054,000 1, 395, 000 1 437 000 Bulbs and tubers of flowers 753, 000 613, 000 833,000 1,791 000 1 190 000 Chickens 762, 000 1, 256, 000 933,000 1, 140, 000 1 176' 000 Cauliflower 500,000 522. 000 593,000 701, 000 1 163'000 Bran 1,042,000 780,000 1, 247, 000 1,377,000 1,112' ooo Oilcake . . 628, 000 771,000 779, 000 894, 000 1 087 000 Cotton waste 714,000 762, 000 702,000 714,000 900' 000 Intestines, stomachs, and bladders of animals 540, 000 608, 000 593, 000 633, 000 739 000 Beans and pease, fresh. . . 705, 000 716,000 1, 223, 000 683, 000 68s' 000 Precious stones, wrought, not set Fresh- water fish 675,000 732,000 481, 000 769,000 605,000 769,000 790, 000 669,000 681,000 666 000 Cattle ... 3,000 3,000 2,000 935, 000 657 000 Books 541 000 600, 000 759,000 669, 000 633 000 Iron, old and scrap . . 397,000 509, 000 473,000 523, 000 61?' 000 Wood of conifers, sawn . . . 265, 000 325,000 420,000 546, 000 558, 000 Tin 226 000 445 000 716 000 1 028 000 553 000 Hay and green fodder. . 735 000 389 000 691 000 590'000 550' 000 Paper stock 353 000 402 000 407 000 424 000 519 000 Zinc 557, 000 415,000 573, 000 924, 000 509' 000 NEW ZEALAND. Total imports $504 000 $1 224 000 $1 691 000 $2 112 000 $2 397 000 Wool, raw 218 000 755 000 1 349 000 1 711 000 1 023 000 Kauri and other gums 113,000 130, 000 51,000 172, 000 2oO 000 New Zealand flax 74 000 70 000 65,000 79, 000 212 000 Tungsten ores 18 000 45 000 41 000 17 000 95 000 170 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. NICARAGUA. Articles. 1909 1910 1911 1912 1913 Total imports $384, 000 $246.000 $309 000 $297 000 $297 000 Coffee 293.000 168,000 248.000 228 000 250 000 Cedar wood 71 000 30 000 38 000 32 000 25*000 Cattle hides 10,000 36,000 6,000 16,000 g 000 NORWAY. Total imports $8,770,000 $11,820,000 $12, 876, 000 $15,215,000 $19 510 000 Train oil 1 064.000 1 627 000 1 689 000 2 058 000 3 624 000 Norway saltpeter; ferrosil icon 289,000 982,000 605,000 1. 733, 000 1 788 000 Iron ores . 5,000 14,000 91,000 649 000 1 770 000 Salt-water fish fresh 1 212 000 1,784 000 1 462 000 1 381 000 1 743*000 Herring, salted . . 620,000 825,000 908, 000 1, 033. 000 1*304' ooo Nitrite 229,000 337,000 328 000 716 000 806 000 Calcium carbide 337 000 421 000 627 000 729 000 726*000 Zinc 4,000 113,000 412,000 644 000 701*000 Blood of animals, refuse of fish, stable refuse 146 000 267 000 362 000 558 000 693 000 Cattle hides 137,000 159,000 297,000 393 000 588 000 Nitrate of ammonia 25,000 71 000 60 000 494 000 Bran 693 000 333 000 987 000 616 000 357 000 Calfskins .. . 259,000 332,000 283.000 258*000 324 000 Lobsters 249 000 317,000 271 000 300 000 30^ 000 Wood of conifers, sawn 438,000 411,000 491, 000 350,000 291*000 Aluminum 25,000 51,000 153,000 92 000 271 000 Pyrites 2 000 60 000 208 000 269*000 Sprats in oil 20,000 75,000 61,000 125 000 257 000 Felspar 171 000 211,000 204,000 210 000 222 000 Stonecutters' work, plain 243,000 255,000 242,000 266,000 218'000 Copper . . . 69,000 32,000 67,000 109 000 205 000 Whalebone 150 000 297,000 187, 000 338 000 140 000 Codfish, dried 148,000 179,000 185,000 119,000 121*000 Cellulose 89,000 124.000 97,000 125 000 102 000 Granite blocks 38 000 68 000 64 000 71 000 102 000 PANAMA. Total imports $133, 000 $117,000 $165 000 $262 000 $133 000 Shells of mollusks 25,000 43,000 52,000 44 000 40 000 Nuts and shells for carving 71,000 13 000 38 000 82 000 23 000 Panama hats 17 000 10 000 25 000 42 000 17*000 Tortoise shells 9,000 8,000 10,000 20*000 15 000 PARAGUAY. Total imports $865 000 $1 250 000 $1 042 000 $1 371 000 $1 711 000 Cattle hides 739,000 1,106 000 893 000 1 110 000 1 510 000 Tobacco 26 000 42 000 57 000 67 000 70 000 Egrets 3,000 30,000 128,000 60*000 Oil of petit grain 5,000 5 000 9 000 14 000 PERSIA. Total imports $635,000 $657, 000 $2, 257, 000 $3, 720, 000 $1, 829, 000 Woolen rugs 66 000 115 000 336 000 403 000 397 000 Opium 108,000 19,000 174,000 138,000 350,000 Gum tragacanth 94,000 155 000 238 000 264 000 259 000 Barley 28 000 31 000 452 000 2 097 000 236 000 Rice 67 000 53 000 171 000 Almonds 50,000 46,000 33 000 8,000 70,000 Dates dried 50 000 55 000 35 000 83 000 55 000 GERMAN IMPOET TRADE. 171 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. PERU. Articles. 1909 1910 1911 1912 1913 Total imports $$3,059,000 $$3, 456, 000 $$4,908,000 $$3,212,000 $$3,373,000 Guano 874,000 817,000 843,000 798,000 1,005,000 Cattle hides 190,000 223,000 329,000 371,000 601,000 India rubber 952,000 861,000 942, 000 667,000 599,000 160,000 196,000 218,000 136,000 210,000 124,000 238,000 989,000 320,000 175,000 Lead ores . ... 109,000 67,000 100,000 171,000 151,000 Wool 42,000 75,000 49,000 84,000 119,000 Panama hats 120,000 192,000 222,000 192,000 109,000 296,000 294,000 232,000 131,000 104,000 PHILIPPINE ISLANDS. Total imports $885,000 $920,000 $1,181,000 $2, 245, 000 $2,605,000 189,000 189,000 500,000 1, 430, 000 1,843,000 531,000 627,000 598,000 679,000 569,000 Oil cake 16,000 84,000 Resins 72,000 57,666 19,000 49,000 50,000 Cigars 30,000 11,000 15,000 19,000 23,000 PORTUGAL. Total imports $3,084,000 $5,176,000 $6,064,000 $5,879,000 $6, 010. 000 Cork 958,000 1,265,000 1,382,000 1,730,000 1,515,000 Wine in casks 392,000 950,000 1, 626, 000 864,000 840,000 Pineapples fresh 250, 000 505,000 600,000 629,000 687,000 81,000 113,000 200.000 287,000 310,000 Pyrites 164,000 268,000 139,000 226,000 293,000 160,000 225,000 182,000 152,000 232,000 98,000 46,000 109,000 103,000 198,000 113,000 126,000 246,000 257,000 188,000 23 000 59.000 79,000 94,000 178,000 Lamb and sheep skins 134,000 97,000 97,000 138,000 149,000 134,000 86,000 87,000 158,000 148,000 Iron ores 5,000 23,000 148,000 106,000 86,666 153,000 176,000 145,000 24 000 44,000 37,000 118,000 Copper, crude and scrap; copper coins. Oil cake 60,000 129 000 114,000 83,000 99,000 159,000 122,000 172,000 115,000 110,000 Grapes fresh 35,000 157,000 144,000 177,000 106,000 PORTUGUESE EAST AFRICA. Total imports $1,041,000 $946, 000 $795,000 $777, 000 $616,000 Copper 177,000 462,000 534,000 306.000 315, 000 123,000 Beeswax 30,000 25,000 35,000 123,000 81,000 Sesame 70,000 49,000 37,000 74,000 67,000 334 000 251 000 292 000 147 000 57,000 Chrome ore 1,000 12,000 24, 000 32,000 48,000 PORTUGUESE WEST AFRICA. Total imports . . {3 003 000 $3 645 000 $4 678 000 $4 568 000 $4 304 000 Cocoa ..... 2. 157, 000 2,796 000 3 753 000 3 746,000 3,381,000 84 000 62 000 158 000 146 000 275 000 Palm nuts 61,000 62,000 127.000 140,000 192,000 Beeswax % 000 115 000 61 000 79 000 142,000 India rubber 447 000 475 000 350 000 232 000 118 000 Cattle hides 31,000 10 000 11,000 19,000 68,000 Coffee 95 000 88 000 173 000 108 000 45 000 172 GERMAH TRADE AKD THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. ROUMANIA. Articles. 1909 1910 1911 1912 1913 Total imports $15,361,000 $16,394,000 $25 643 000 $32 886 000 $18 971 000 Wheat 5 480 000 6 378 000 8 652 000 11 332 000 3 825 000 Benzine, raw 428,000 736 000 1. 08o' 000 2' 695* 000 2 686* 000 Barley 999 000 1 129 000 4 241 000 4 282 000 2 340 000 Corn 3 017 000 1 756 000 4 053 000 6 019 000 l' 83o' 000 Eggs 789,000 585 000 696 000 1 03(> 000 l' 373' 000 Rape and colza seed 245 000 1 192 000 586 000 679 000 i' 300' ooo Benzine, heavy 6,000 29,000 121,000 766 000 ' 937' ooo Kerosene 427,000 499,000 473 000 396 000 73o'oOO Beans dry 127 000 209 000 480 000 346 000 454 000 Wood of conifers, sawn 1, 149, 000 1,378,000 1,851 000 626'000 432' 000 Rye . . 505,000 674 000 1 426 000 994 000 410 000 Lubricating oils mineral 8 000 8 000 43 000 359 000 366 000 Walnuts 254,000 489,000 247 000 IGo'oOO 283* 000 Bran . . ... 141,000 183 000 316 000 317 000 265 000 Oats 1 065 000 470 000 618 000 1 170 000 263 000 Pease, dry 122,000 117,000 222 000 ' 236* 000 238'000 Linseed 1 000 16 000 23 000 88 000 167 000 RUSSIA. Total imports $324,613,000 $330,013,000 $388,951,000 $363,628,000 $339,055,000 Barley 63,744,000 19,854,000 54,051,000 16,794,000 8,918,000 13,981,000 7,543,000 6,320,000 16,856,000 8,381,000 12,046,000 4,220,000 5,407,000 3,784,000 5,117,000 5,039,000 3,307,000 3,159,000 2,727,000 2,160,000 3,791,000 5,851,000 343,000 2,957,000 3,432,000 1,244,000 1,866,000 3,930,000 2,216,000 361,000 2,294,000 1,636,000 1,982,000 940,000 952,000 328,000 389,000 2,193,000 1,176,000 1,091,000 1,050,000 850,000 414,000 788,000 878,000 65,512,000 20,589,000 56,721,000 17,889,000 8,416,000 10,760,000 8,632,000 6,376,000 19,131,000 9,291,000 10,039,000 4,213,006 6,177,000 5,055,000 4,209,000 5,293,000 3,921,000 2,969,000 2,528,000 2,787,000 3,139,000 4,050,000 401,000 4,534,000 3,372,000 1,368,000 1,954,000 2,107,000 2,032,000 460,000 3,875,000 1,754,000 1,022,000 1,438,000 971,000 481,000 345,000 2,139,000 1,104,000 1,201,000 1,048,000 510,000 413,000 786,000 608,000 1,000 96,000 131,000 627,000 252,000 98,322,000 21,302,000 42,625,000 17,018,000 15,973,000 16,775,000 9,972,000 7,166,000 13,746,000 16,452,000 14,726,000 3,599,000 5,482,000 4,970,000 3,664,000 6,530,000 4,157,000 3,789,000 4,025,000 1,602,000 7,048,000 4,213,000 339,000 4,958,000 2,993,000 1,207,000 2,697,000 6,424,000 2,154,000 614,000 4,165,000 1,900,000 1,508,000 1,517,000 964,000 1,140,000 228,000 2,994,000 843,000 1,202,000 893,000 514,000 1,010,000 894,000 1,157,000 75, 535, 000 24,014,000 22,595,000 16,301,000 12,877,000 20,696,000 14,659,000 7,966,000 13,629,000 8,831,000 12,558,000 5,910,000 7,254,000 4,671,000 5,519,000 5,745,000 4,819,000 3,937,000 3,665,000 3,046,000 6,559,000 5,257,000 1,647,000 4,050,000 2, 746, 000 2,730,000 3,302,000 7,454,000 2,221,000 2,098,000 5,160,000 2,626,000 1,636,000 1,741,000 1,155,000 2,960,000 820,000 1,898,000 1,165,000 1,209,000 1,127,000 774,000 907,000 866,000 1,090,000 302,000 601,000 736,000 610,000 362,000 77,707,000 22,024,000 19, 466, 000 19,118,000 14,955,000 14,242,000 12,715,000 9,906,000 8, 725, 000 8, 549, 000 7,768,000 7,539,000 7,384,000 5, 969, 000 5,903,000 ,722,000 ,499,000 ,311,000 ,219,000 , 149, 000 ,033,000 3,972,000 3,773,000 3,028,000 2,936,000 2,919,000 2,693,000 2,382,000 2,317,000 2,297,000 2, 173, 000 2,092,000 1,750,000 1,657,000 1,534,000 1,490,000 1,401,000 1,353,000 1,228,000 1,214,000 1,210,000 923,000 872,000 872,000 812,000 789,000 704,000 694,000 580,000 572,000 Wood of conifers. . . . Wheat . . Eggs Butter . Bran Flax Oil cake .... Fur skins Rye Oats Wood for the manufacture of pulp or cellulose Geese live Horses Hogs Clover seed Bristles . Lubricating oils mineral Hemp Manganese ores Pease Calfskins Cattle hides Iron ores Intestines, stomachs, and bladders of animals Platinum ores Wood of deciduous trees soft Corn Caviare Benzine raw . . Linseed Oak wood Railway ties of wood Poultry, killed Flax, tow . Sugar-beet seeds Pork, fresh... Lentils Goat and kid skins Chickens Sheep and lamb skins Staves and headings of oak Buckwheat Feathers for beds Horsehair Beef and veal fresh Ore slag and waste from smelting works Rape and colza seed 86,000 218,000 507,000 395,000 130, 000 204,000 722,000 229,000 Fresh- water fish Platinum GERMAN IMPORT TRADE. 173 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. SALVADOR. Articles. 1909 1910 1911 1912 1913 Total imports $914, 000 $824,000 $1 075 000 $888 000 $1 304 000 Coffee 750 000 584 000 874 000 763 000 1 060 000 Cattle hides 45 000 84'000 74 000 85 000 164 000 Peru and tolu balsams 102 000 104 000 69 009 3*000 52 000 Indigo 10 000 35 000 34 000 13 000 12*000 SERBIA. Total imports $3 662 000 $4 267 000 $5 893 000 54 695 000 $2 508 000 Plums, dried 772,000 784 000 1 705 000 560 000 584 000 Copper 228 000 518 000 457 000 Eggs 273,000 397,000 564*000 695 000 327*000 Wheat . 349 000 442 000 696 000 1 403 000 259 000 Lamb and sheep skins. . . 190,000 52,000 69 000 154 000 233 000 Lard 305,000 440 000 168 000 197 000 224 000 Plums, pulped 217 000 299 000 124 000 47 000 79 000 Poultry, killed 26,000 11,000 33*000 57 000 50 000 SIAM. Total imports $2 932 000 $2 730 000 $1 9S4 000 $1 666 000 $3 347 000 Rice. 2 728 000 2 399 000 1 774 000 1 498 000 3 009 000 Rice refuse 61 000 122 000 17*000 ' loVoon Cattle hides 9,000 7*000 29 000 7 000 69 000 Teak wood 99 000 95 000 65 000 89 000 40 Ann Gum lac 11,000 63,000 23 000 18 000 47 000 SPAIN. Total imports $29,443,000 $33,363,000 $39,050,000 $45,176,000 $47,293,000 Iron ores 9,370,000 5,404,000 3,159,000 558,000 1,742,000 679,000 329.000 970,000 751,000 665,000 259,000 415,000 268,000 269,000 201,000 64,000 74,000 73,000 195,000 12,598,000 3,251,000 3,852,000 878.000 3,202,000 1,023,000 852,000 558,000 457,000 640,000 528,000 540,000 182,000 333,000 273,000 150,000 94,000 129,000 86,000 14,265,000 3,790,000 3,967,000 794,000 4,169,000 1,462,000 1,226,000 805,000 569,000 894,000 570,000 559,000 230,000 355,000 153,000 136,000 183,000 214,000 246,000 17,293,000 4,933,000 4,361,000 2,088,000 3,956,000 1,237,000 1,185,000 1,087,000 238,000 855,000 694,000 648,000 544,000 259,000 167,000 223,000 224,000 185,000 274,000 17,289,000 5,045,000 4,813,000 3,743,000 3,677,000 1,612,000 1,191,000 926,000 917,000 783,000 760,000 667,000 433,000 363,000 344,000 318,000 307,000 276,000 184,000 Pyrites Oranges and mandarins Lead Wine in casks Bananas Grape must Sheep and lamb skins Almonds dried Cork stoppers Grapes, fresh Canned foods Goat and kid skins Copper .... Red wine for blending ... Jewelry of silver . Tartar Kitchen vegetables, fresh . Hazel nuts. ... STRAITS SETTLEMENTS. Total imports $6,451,000 $10,864,000 $6,531,000 $5,652,000 $5,792,000 Rattan 1,004,000 1,071,000 430,000 685,000 462,000 2,157,000 19,000 129,000 89,000 896,000 2,427,000 336,000 1,144,000 353,000 4,845,000 51,000 131,000 301,000 986,000 1,248,000 228,000 899,000 537,000 1,831,000 85,000 180,000 226,000 1,103,000 1,434,000 493,000 432,000 476,000 588,000 94,000 195,000 255,000 1,291,000 1,147,000 918,000 550,000 472,000 466,000 247,000 119,000 118,000 India rubber Tin Copra Pepper . . Gutta-percha Tungsten ores Sago, tapioca Catechu 174 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. SWEDEN. Articles. 1909 1910 1911m 1912 1913 Total imports $33, 758, 000 $38,986,000 $43, 554, 000 $50, 927, 000 $53 350 000 Iron, ores 11 997 000 13 919 000 15 003 000 17 062 000 20 637 000 Wood of conifers 6, 369, 000 7,726 000 8, 317, 000 9 431 000 8 240 000 Paving stones . . 1 715 000 1 739 000 1 840 000 1 961 000 2 128 000 Cattle... 1, 185, 000 1 402,000 Calfskins 492,000 1 285 000 1 278 000 1 055 000 1 344 000 Salt-water fish, fresh 1 314 000 1 051 000 1 586 000 1 793 000 1 320 000 Cream, fresh 211,000 609,000 487.000 690. 000 1 166,000 Pigiron 783 000 969 000 1 063 000 1 103 000 1 152 000 Granite and syenite blocks 1 290 000 1 110 000 1 186 000 884 000 1 117 000 Cellulose 605 000 603 000 1 043 000 1 117 000 l'o53 000 Sash, doors, frames of wood, rough Slag and waste from smelting works. .. Bran 64l',000 26,000 285 000 849, 000 167,000 111 000 l) 068, 000 234,000 449 000 '993' ooo 506, 000 643 000 '704' 000 682,000 575 000 Norway saltpeter; acids and salts not elsewhere specified 49,000 93 000 53 000 280 000 544,000 Malleable iron in bars.. 461 000 630 000 498 000 343 000 531 000 Carbonate of lime 393 000 547 000 656 000 428 000 501 000 Chrome, manganese, silicon 136 000 469,000 Iron wire 170 000 531 000 645 000 640 000 468 000 Stonecutters' work, plain... 823,000 653 000 607 000 522,000 456,000 Cattle hides 214 000 312 000 334 000 494 000 455 000 Beef and veal, fresh 1 000 182 000 769 000 1 165 000 444 000 Cream separators 390 000 336*000 485*000 ' 408' 000 431,000 Cranberries, huckleberries . 782 000 357 000 223 000 464 000 377 000 Copper . . . 79 000 227 000 142 000 385 000 370 000 Iron tubes, rolled or drawn . 206' 000 378' 000 294' 000 232' ooo 366,000 Blooms, billets, puddled bars, ingots... Brass and tombac 203,000 142 000 241.000 160 000 282,000 187 000 408, 000 400 000 337,000 317.000 Pork, fresh or simply prepared 16 000 30 000 47 000 241 000 281 000 Packing paper 113,000 147 000 174' ooo 207 000 245,000 Feldspar 132 000 126 000 185 000 222 000 233,000 SWITZERLAND. Total imports ?38 710 000 $41 386 000 $42 753 000 $48 963 000 $5Q 767 000 Watches 4 714 000 5 325 000 5 674 000 6 089 000 5 971 000 Cotton fabrics 2' 631 '000 2 927* 000 2 942 000 3' 275' ooo 4' 175' ooo Yarn of floss silk not dyed 3 625 000 3 674 000 3* 739* 000 3 123 000 3 393 COO Silk raw 2' 624* 000 2 133' 000 1 901 '000 1,966,000 2 885 000 Cheese 2 017' 000 2 097 000 2 096 000 2 103 000 2 698' 000 Aluminum 546 000 | 126' 000 l' 005* 000 2' 481 000 2 309 000 Cattle hides 1 248'000 1 360 000 1 338 000 l' 563' 000 l' 840' GOO Machinery 1 105 000 1 251 000 1 482 000 1 849 COO 1 563 000 Chocolate ' 745' ooo ' 936* 000 l' 031 '000 l' 166* 000 1 150 COO Cotton yarn 714*000 911 000 ' 821 ' 000 921 000 l' 139* 000 Metalloids, acids, salt, not specially mentioned 154 OOC 343 000 492 000 831 000 1,138,000 Calcium carbide . . . 571 000 692 000 785 000 1 048 OOC 1 120 000 Worsted yarn 1 268 000 1 088 000 1 168 000 1 318 000 1 077 000 Alkaloids, alkaloid salts and com- pounds 251 000 346 000 675 000 843 COO 1 072 000 Coal-tar dyes 892 000 944 000 90 1' 000 981 000 944 000 Calfskins 830 000 724 000 716 000 831 000 813 000 Close-woven tissues of silk 1 111' 000 958 000 711 (TO 787 OCO 688' 000 Books 644 000 694 000 61 7' 000 599 OCO 616 000 Milk, fresh 390*000 459' ooo 553' coo 543' ooo 579 000 Cotton waste . 419 XX) 480 000 418 OCO 392 000 513 000 Woolen suitings 342 000 367 000 380 000 439 000 472 000 Shoes of leather 212 000 237*000 261 '000 342' coo 427 000 Commercial automobiles 42 000 139 000 319 000 465 000 346 000 Dynamos, electric motors, transformers Sodium 121,000 207 000 230,000 229 000 282,000 148 000 274,000 243 000 341,000 298,000 Foods, chemically prepared 1 000 203 000 777 000 175 000 288 000 TOGO. Total imports $895, 000 $761 COO $807 000 $1 479 000 $1,739,000 Palm nuts 179 000 174 000 389 000 1 052 000 1 457 000 India rubber 190, 000 338 000 242 000 222, COO 95,000 Cotton 70 COO 115 000 108 000 135 000 76,000 GERMAN IMPORT TRADE. 175 TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. TUNIS. Articles. 1909 1910 1911 1912 1913 Total imports $889 000 $868 000 $1 199 000 $2 179 000 $2 511 000 Phosphate of lime, natural 396. 000 229 000 741 000 1 371 000 1 285 000 Iron ores 297,000 547,000 315, 000 637, 000 682,000 Lead ores 69, 000 12, 000 1,000 14,000 208,000 Goat and sheep skins 33 000 24 000 40, 000 65 000 114 000 Zinc ores 55, 000 7,000 54,000 6,000 108, 000 TURKEY (INCLUDING CRETE PRIOR TO 1912). Total imports 813,635,000 $16, 054, 000 $16, 682, 000 $18, 482, 000 $17,604,000 Tobacco. 3,521,000 3,610,000 4,258,000 4, 819, 000 4,671,000 Raisins 1,574,000 2,068,000 2,391.000 2, 147, 000 2,250,000 Woolen rugs. . .. . 1,733,000 1,792,000 1,966,000 2,176,000 2,244,000 Valonia 613, 000 973,000 464, 000 332, 000 688,000 Hazel nuts 412 000 875 000 776 000 559 000 604 000 Opium . . 534, 000 665, 000 683,000 588, 000 601,000 Figs dried 317 000 441 000 430 000 484 000 514 000 Cotton... 204, 000 248, 000 134, 000 232, 000 498, 000 Fur skins raw 626 000 437 000 453 000 739 000 456 000 Wine in casks 276, 000 413,000 395, 000 367, 000 404,000 Goat and kid skins 159 000 240 000 154 000 452 000 380 000 Emerv 220, 000 152, 000 213, 000 280, 000 347, 000 Lamb and sheep skins 331 000 232 000 253, 000 337 000 324 000 Eggs 323, 000 255, 000 240,000 682, 000 285,000 Silk. raw. 110 000 249 000 201.000 249 000 228, 000 Pyrites 46 000 113 900 97 000 204 000 227 000 Poppy seed 55, 000 253 000 318, 000 203 000 225 000 UNITED KINGDOM. Total imports $172 133 000 $182 444 000 $192 497 000 $200 543 000 $208 454 000 Coal 33, 731, 000 32 164 000 37 003 000 39 576 000 42 741 000 i Cotton yarn 19 393 000 21 937 000 21 248 000 22 123 000 21 718 000 Worsted yarn . . . 12 627,000 13 528 000 13' 143' ooo 12* 108* 000 12* 103' 000 Herring salted 4 046 000 5 236 000 5 236 000 5 950 000 6 664 000 Genappes, mohair, and alpaca yarn Woolen suitings 8,335,000 4,141,000 8, 228, 000 4,631,000 7*628,000 5, 149, 000 6*. 462*. 000 5, 702, 000 6* 644' 000 5,213,000 1 Seagoing ships of iron or steel 1,314,000 739 000 2 154 000 1 048 000 5 144 000 Machinery 4 623 000 4 626 000 4 807 000 5 397 000 5 004 OOCT Wool, carded or combed. 3, 793, 000 4, 287, 000 3,853 000 3 999 000 4 869*000 Sheep, lamb, and goat skins, dressed. . Close-woven tissues of cotton, un- bleached 2,290,000 2 274 000 3,223,000 2 547 000 2,794,000 2 293 000 3,073,000 2 179 000 3,697,000 3 229 000 Tin plate 2 564 000 3 241 000 3 395 000 3 431 000 3 142 000 Salt-water fish, fresh . . 2 093 000 2 175 000 2 678* 000 3* 137* 000 3*115*000 Fur skins, raw 739, 000 546, 000 557, 000 607, 000 2,318,000 Films of celluloid 163, 000 243 000 2 713 000 2 734 000 2 305 000 Fur skins, dressed 1 409 000 1 284 000 2 151 000 2 099 000 2 229 000 (Bran. ... 2, 528, 000 1,793 000 2 630*000 4 103 000 2' 176* 000 I Wool, raw and washed 2 707 000 1 802 000 1 989 000 2 236 000 2 151 000 Houses 879, 000 1, 173, 000 1 306 000 1 134 000 1 784 000 Cotton tissues, dyed, printed, woven in colors 1, 229, 000 1, 516, 000 1 375 000 1 442 000 1 717 000 Cotton waste... 1 294 000 1 143 000 1 195 000 1 224 000 1 699 000 Tin 880 000 946 000 1 375 000 1 624 000 1 636 000 Linen yarn . . 1 225 000 1 598*000 1, 629' 000 l' 464* 000 1, 534* 000 Intestines, stomachs, and bladders of animals 1 151 000 1 183 000 1 248 000 1 159 000 1 367 000 Pig iron 1. 230' 000 1* 139' 000 l' 075' 000 1 487*000 1*347*000 Cotton tissues, dressed, bleached Cotton velvet and plush. 832,000 737 000 904, 000 843 000 '845,000 1 147 000 904,000 1 492 000 1,340,000 1 339 000 Oilcake . 1 145 000 1 513 000 1 487 000 1 763 000 1 262 000 Noils.. . 1,324,000 1 155 000 '962' 000 1 153 000 1* 225* 000 1 Blood of animals, refuse of fish, stable 1 manure 333, 000 622 000 918 000 973 000 1 183,000 (Alkaloids, alkaloid salts and com- 1 pounds. 596 000 545 000 1 152 000 1 136,000 1 134 000 Soft India Rubber paste 452, 000 1 449*000 l' 239* 000 1*444 000 1,086 000 Malt sprouts. . . 1 118 000 857 000 973 000 1 330 000 1 048 000 Grass seed 1, 058, 000 1 115' 000 1 126*000 1*224 000 1*042 000 Chin a clay... 937 000 928 000 944 000 1 231 000 1 013 000 Close-woven tissues, wholly or partly- of silk 674 000 873 000 981 000 961 000 950 000 Books.,. 465' 000 743' 000 911 000 917 000 906*000 176 GERMAN TRADE AND THE WAR. TABLE III. GERMANY'S IMPORT TRADE, BY COUNTRIES AND PRINCIPAL ARTICLES, 1909 TO 1913 Continued. UNITED STATES. Articles. 1909 1910 1911 1912 1913 Total imports $300 490 000 $282 652 000 $319 726 000 $377 464 000 $407 246 000 Cotton 96,715.000 94,578,000 108 001 000 110 561 000 109 896 000 Copper ... 42 072 000 45 206 000 49 383 000 65 945 000 69 981 000 Wheat... 13,888,000 6,701,000 11 523 000 18 597 000 39 243 000 Lard 25 230,000 15 161 000 19 927 000 25 074 000 26 71l'oOO Fur skins, raw 16,535,000 14,950,000 10,495,000 14,657 000 15* 827* 000 Kerosene . . 12, 569, 000 11,013,000 9 110 000 11 882 000 12 612' 000 Oil cake . . 8 510,000 6 930 000 7 442 000 8 589 000 7' 684 'oOO Wood of conifers sawn 4 830 000 5 894 000 6 745 000 9*519 000 6 535 000 Barley... 12,000 ' 13,000 ' 3l'oOO 346 000 5 480 000 Phosphate of lime natural 4 791 000 3 550 000 4 507 000 4 077 000 5 013 000 Oleomargarine. . . 4,772,000 4,606,000 5 346 000 6 139* 000 5 000 OX) Lubricating oils mineral .... 3 236 000 3 178 000 3 582 000 4 390 000 4 755 000 Turpentine resins 3,232,000 4, 822, 000 7,476,000 6,472 000 4 676 000 Corn... 2,975,000 2,836 000 3 968 000 3 914 000 4 595 ooo Reaping machines 2,760,000 2,375,000 2,307,000 2,742,000 4' 247' ooo 3 753 000 4 182 000 3 426 000 3 657 000 3 919 000 Prunes 1 152 000 ' 938' 000 '768'000 2 221 000 3 896 000 Linters . 1 648 000 814 000 2 050 000 2 891 000 3' 889* 000 Bran 2,103,000 sss'ooo 3 550 'OOO 5 027 000 3 664 000 Benzine, raw . . 865 000 249 000 2 182 000 3 604 000 2 239 000 Apples and pears, dried 1,808,000 677, 000 2,160 000 2' 241 '000 2 206 000 Premier jus . 648 000 209 000 1 488 000 2 755 000 2 170 000 Intestines, stomachs, and bladders of animals 2,716,000 2,376 000 2 814 000 2 292 000 2 049 000 Malt sprouts 1 462 000 1 452 000 1 710 000 1 707 000 2 023 000 Salmon. . . 1,341,000 1,541,000 1,634,000 1 687 000 '984' 000 Nickel. 1 005 000 1 314 000 1 338 000 969 000 745 000 Tobacco . 1 951 000 1 794 000 1 723 000 1 910 000 705 000 Oats 34,000 ' 10,000 ' 27' ooo 2' 561 'OOO 'en' ooo Cottonseed oil 3 183 000 1 231 000 1 496 000 2 931 000 595 000 Cattle hides.... 501,000 973.000 1,124,000 1 036 000 '575 ooo Lead 1 656 000 1 268 000 2 389 000 1 948 000 423 000 Metal-working machinery 871 000 1 093 000 1 231 000 1 696 000 381 000 Paraffin 488 000 612 000 874 000 1/394 'ooo ' 243' ooo Acetate of calcium 761 ' 000 777 000 841 000 1 055 000 'l63' 000 Apples fresh 536 000 585 000 922 000 1 05 9 000 068 000 Cash registers, speedometers, automatic scales . 954 000 1 016 000 1 095 000 964 000 1 015 000 Oils of camphor, juniper, rosemary, and other volatile oils . . 251 000 549 000 561 000 1 154 000 1 014 000 Cotton waste . . . 300 000 449 000 371 000 623 000 991 000 Typewriters and calculating machines. . Goat and kid leather, dressed 743,000 1 102 000 977,000 1 253 000 1,178,000 1 502 000 1,178,000 1 002 000 972,000 958 000 Tin 33 000 60 000 134 000 '681 000 906 000 Peaches and apricots, dried . 519' ooo 601 '000 638 000 1 102 000 889 000- Cedar wood 1 056 000 923 000 988 000 927 000 885 000 Oak wood 594 000 615 000 779 000 1,171 000 876,000 URUGUAY. Total imports $8, 097, 000 $6,798,000 $8,427,000 $11,972,000 $10,294,000 Wool, raw. 2 366 000 1 637 000 3 979 000 5 413 000 4 497 000 Meat extract 1,734,000 1,381,000 1,330,000 2,123,000 2, 573, 000 Cattle hides. . . 2 793 000 2 970 000 2 483,000 3 295,000 2 184 000 Linseed 276 000 1 000 27 000 294 000 376 000 Intestines, stomachs, and bladders of animals 117,000 201,000 208,000 263,000 237,000 Lamb and sheep skins 160,000 96,000 63,000 39,000 94,000 VENEZUELA. Total imports $3,585,000 $3,771 000 $3 974,000 $4,736,000 $4,913,000 Coffee 1,472,000 955,000 1,171,000 1,773,000 1,897,000 Balata gum 576,000 898,000 941 000 832,000 1 184,000 Cocoa 551,000 668,000 716,000 823,000 700,000 Cattle hides. ... 293,000 393,000 302,000 225, 000 282,000 Divi-divi 144,000 184 000 153,000 241,000 243,000 Medicinal plants 46,000 62,000 74,000 154,000 159,000 India rubber 279,000 432,000 382,000 324,000 131,000 Egrets. 56,000 36 000 44,000 95,000 108,000 Appendix B. EXTRACTS FROM THE PRESIDENT'S ADDRESSES. In his public addresses President Wilson has discussed at some length the aims and activities of " the Prussian military and commer- cial autocracy," and has laid down a number of principles affecting Germany's future position and course of action in international com- mercial relations. In the opening chapter of the present monograph the pertinent sections of the President's speech at Buffalo on November 12, 1917, are reproduced. In his Flag Day address, delivered June 14, 1917, in Washington, he discussed German penetration in the East, middle Europe, and Germany's desire to " close its bargain before it is too late, and it has little left to offer for the pound of flesh it will de- mand." The pertinent paragraphs are here quoted, together with some annotations of the address as published by the Committee on Public Information i 1 GERMAN PENETRATION IN THE EAST. " But the rulers of Germany themselves knew all the while what concrete plans, what well-advanced intrigues lay back of what the professors and the writers were saying, and were glad to go forward unmolested, filling the thrones of Balkan States with German princes, putting German officers at the service of Turkey to drill her armies 2 and make interest with her Government, developing plans of sedition and rebellion in India and Egypt, setting their fires in Persia. " The demands made by Austria upon Serbia were a mere single step in a plan which compassed Europe and Asia, from Berlin to 1 Conquest and Kultur," by Messrs. Notestein and Stoll, issued by the Committee on Public Information on Nov. 15, 1917, gives further "Aims of the Germans in Their Own Words " ; in this compilation free use was made of Grumbach, already referred to. 2 Not long ago, after the treaty of Berlin (1878), German officers, one of whom was Gen. von der Goltz, set about reorganizing the Turkish Army. In 1888 German financiers, de- pending upon the Deutsche Bank, asked for a railway concession. In the next year tne Kaiser, William II, visited Abdul Hamid. By 1891 German influence at Constantinople became evident. Germans in Turkey were directing the building of railways and Germans at home were urging the necessity of German railways to the Persian Gulf. In 1898 the Kaiser went to Constantinople and on to Palestine, where he declared himself the friend of 300,000,000 Moslems. In 1899 Dr. Siemens, a Berlin capitalist, signed the Bagdad Railway convention with Turkey. By 1900 the route was sketched, and in 1903 the Turkish decree was issued constituting the company. Although capitalists of other nations were allowed to share in financing the road, German interests maintained control over it. Since that time German officers have been going to Turkey in numbers, drilling the Turkish troops, teaching them modern warfare, equipping the army with the best new artillery, and thoroughly fortifying strategic points. Meanwhile German diplomats were studiously indifferent to Armenian atrocities perpetrated by the Turks. When the Young Turk movement culminated in the revolution of 1908 the Kaiser's Government was quick to show favor to the new Government. German officers assisted the Turks in their two Balkan wars, 1912-13. These different moves have all been part of a general plan. For two decades German policy has been to create in Turkey a strong but subordinated mili- tary ally and to bring her within the German economic system. Rich territories in Asia Minor and the Mesopotamian Valley might thus be developed, an all-German route to the East assured, and Britain's routes to India and her position in Egypt brought within striking distance. 43339 18 12 177 178 GERMAN TRADE AND THE WAR. Bagdad. They hoped those demands might not arouse Europe, but they meant to press them whether they did or not, for they thought themselves ready for the final issue of arms. " Their plan was to throw a broad belt of German military power and political control across the very center of Europe and beyond the Mediterranean into the heart of Asia ; and Austria-Hungary was to be as much their tool and pawn as Serbia or Bulgaria or Turkey or the ponderous States of the East. Austria-Hungary, indeed, was to become part of the Central German Empire, absorbed and domi- nated by the same forces and influences that had originally cemented the German States themselves. The dream had its heart at Berlin. It could have had a heart nowhere else. "It rejected the idea of solidarity of race entirely.' The choice of peoples played no part in it at all. It contemplated binding to- gether racial and political units which could be kept together only by force Czechs, Magyars, Croats, Serbs, Roumanians, Turks, Ar- menians the proud States of Bohemia and Hungary, the stout little Commonwealths of the Balkans, the indomitable Turks, the subtile peoples of the East. " These peoples did not wish to be united. They ardently desired to direct their own affairs, would be satisfied only by undisputed independence. They could be kept quiet only by the presence or the constant threat of armed men. They would live under a common power only by sheer compulsion and await the day of revolution. " But the German military statesmen had reckoned with all that and were ready to deal with it in their own way. "And they have actually carried the greater part of that amazing plan into execution ! Look how things stand. Austria is at their mercy. It has acted, not upon its own initiative or upon the choice of its own people but at Berlin's dictation, ever since the war began. Its people now desire peace, but can not have it until leave is granted from Berlin. The so-called Central Powers are in fact but a single Power. Serbia is at its mercy, should its hands be but for a moment freed. Bulgaria has consented to its will, and Roumania is overrun. The Turkish armies, which Germans trained, are serving Germany, certainly not themselves, and the guns of German warships lying in the harbor at Constantinople remind Turkish statesmen every day that they have no choice but to take their orders from Berlin From Hamburg to the Persian Gulf the net is spread. " Is it not easy to understand the eagerness for peace that has been manifested from Berlin ever since the snare was set and sprung? Peace, peace, peace, has been the talk of her Foreign Office for now a year and more; not peace upon her own initiative, but upon the initiative of the nations over which she now deems herself to hold the advantage. A little of the talk has been public, but most of it has been private. Through all sorts of channels it has come to me, and in all sorts of guises, but never with the terms disclosed which the German Government would be willing to accept. " That Government has other valuable pawns in its hands besides those I have mentioned. It still holds a valuable part of France, though with slowly relaxing grasp, and practically the whole of Bel- gium. Its armies press close upon Russia and overrun Poland at their will. It can not go further ; it dare not go back. It wishes to EXTRACTS FROM THE PRESIDENT'S ADDRESSES. 179 close its bargain before it is too late and it has little left to offer for the pound of flesh it will demand. 1 " The military masters under whom Germany is bleeding see very clearly to what point fate has brought them. If they fall back or are forced back an inch, their power both abroad and at home will fall to pieces like a house of cards. It is their power at home they are thinking about now more than their power abroad. It is that power which is trembling under their very feet, and deep fear has entered their hearts. They have but one chance to perpetuate their military power or even their controlling political influence. If they can secure peace now with the immense advantages still in their hands which they have up to this point apparently gained, they will have justified themselves before the German people ; they will have gained by force what they promised to gain by it an immense expansion of German power, an immense enlargement of German industrial and commer- cial opportunities. Their prestige will be secure, and with their prestige their political power. If they fail, their people will thrust them aside; a government accountable to the people themselves will be set up in Germany as it has been in England, in the United States, in France, and in all the great countries of the modern time except Germany. If they succeed, they are safe and Germany and the world are undone ; if they fail, Germany is saved and the world will be at peace. If they succeed, America will fall within the menace. We and all the rest of the world must remain armed, as they will remain, and must make ready for the next step in their aggression ; if they fail, the world may unite for peace and Germany may be of the union." BASIS FOR ENDURING PEACE. In his annual address before the joint session of the House of Representatives and the Senate, on December 4, 1917, the President interpreted the voice of humanity in the formula " No annexations, no contributions, no punitive indemnities." He gave a further answer to German pretensions, as follows: " Germany's success by skill, by industry, by knowledge, by enter- prise we did not grudge or oppose, but admired, rather. She had built up for herself a real empire of trade and influence, secured by the peace of the world. We were content to abide the rivalries of manufacture, science, and commerce that were involved for us in her success and stand or fall as we had or did not have the brains and the 1 The rapid industrial development of Germany after the war of 1870, though due to economic causes, greatly enhanced the prestige of the military classes, who assumed the credit for it. Their present position on the war map is highly advantageous to them from an economic point of view, for they now control the chief centers of European industry outside Great Britain. They hold the greater part of Belgium, one of the most highly developed industrial centers of the world. They are exploiting the chief mining and manufacturing part of France, the oil and wheat fields of Routnania, and one of the few important manufacturing districts of Russia. They have secured the Balkan cor- ridor to the Near East, with its boundless possibilities of cemmercial exploitation and of further political aggression in the direction of Egypt and India. If they can retain these conquests they will be permanently enriched at the expense of their impoverished neighbors. If they can capitalize their present advantageous positions on the war map, whether by annexations or otherwise, this war also, like that of 1870, will appear in the light of a profitable business adventure. War itself will indeed have become one of the greatest of national industries, with the military caste necessarily in supreme political control. In such an atmosphere democracy can not develop. Nor can the triumph of democracy be expected In Germany till the prestige of the military caste has been de- stroyed. The celebrated Prof. Hans Debrucke, of the University of Berlin, wrote early in 1914 : " Anyone who has any familiarity at all with our officers and generals knows that it would take another Sedan, inflicted on us instead of by us, before they would acquiesce in the control of the army by the German Parliament." 180 GERMAN TEADE AND THE WAR. initiative to surpass her. But at the moment when she had conspicu- ously won her triumphs of peace she threw them away to establish in their stead what the world will no longer permit to be established, military and political domination by arms by which to oust where she could not excel the rivals she most' feared and hated. The peace we make must remedy that wrong. It must deliver the once fair lands and happy peoples of Belgium and northern France from the Prus- sion conquest and the Prussian menace, but it must also deliver the peoples of Austria-Hungary, the peoples of the Balkans, and the peoples of Turkey, alike in Europe and in Asia, from the impudent and alien dominion of the Prussian military and commercial auto- cracy." Discussing the partnership of nations after the war is over, Presi- dent Wilson said: " That partnership must be a partnership of peoples, not a mere partnership of governments. It might be impossible, also, in such untoward circumstances, to admit Germany to the free economic intercourse which must inevitably spring out of the other partner- ships of a real peace. But there would be no aggression in that; and such a situation, inevitable because of distrust, would in the very nature of things sooner or later cure itself, by processes which would assuredly set in." Before a joint session of the House of Representatives and the Senate on January 8, 1918, the President set forth the following 14 principles in " the program of the world's peace " : 1. " Open covenants of peace, openly arrived at, after which there shall be no private international understandings of any kind, but diplomacy shall proceed always frankly and in the public view. 2. "Absolute freedom of navigation upon the seas outside terri- torial waters alike in peace and in war, except as the seas may be closed in whole or in part by international action for the enforcement of international covenants. 3. "The removal, so far as possible, of all economic barriers and the establishment of an equality of trade conditions among all the nations consenting to the peace and associating themselves for its maintenance. 4. "Adequate guaranties given and taken that national arma- ments will be reduced to the lowest point consistent with domestic safety. 5. " A free, open-minded, and absolutely impartial adjustment of all colonial claims, based upon a strict observance of the principle that in determining all such questions of sovereignty the interests of the populations concerned must have equal weight with the equitable claims of the Government whose title is to be determined. 6. " The evacuation of all Russian territory and such a settlement of all questions affecting Russia as will secure the best and freest cooperation of the other nations of the world in obtaining for her an unhampered and unembarrassed opportunity for the independent determination of her own political development and national policy and assure her of a sincere welcome into the society of free nations under institutions of her own choosing and, more than a welcome, assistance also of every kind that she may need and may herself desire. The treatment accorded to Russia by her sister nations in EXTRACTS FROM THE PRESIDENT'S ADDRESSES. 181 tho months to come will be the acid test of their good will, of their comprehension of her needs as distinguished from their own inter- ests, and of their intelligent and unselfish sympathy. 7. " Belgium, the whole world will agree, must be evacuated and restored, without any attempt to limit the sovereignty which she enjoys in common with all other free nations. No other single^ act will serve as this will serve to restore confidence among the nations in the laws which they have themselves set and determined for the government of their relations with one another. Without this heal- ing act the whole structure and validity of international law is for- ever impaired. 8. "All French territory should be free and the invaded portions restored, and the wrong done to France in 1871, in the matter of Alsace-Lorraine, which has unsettled the peace of the world for nearly 50 years, should be righted, in order that peace may once more be made secure in the interest of all. 9. "A readjustment of the frontiers of Italy should be effected along clearly recognizable lines of nationality. 10. " The people of Austria-Hungary, whose place among the nations we wish to see safeguarded and assured, should be accorded the freest opportunity of autonomous development. 11. "Roumania, Serbia, and Montenegro should be evacuated; occupied territories restored; Serbia accorded free and secure access to the sea; and the relations of the several Balkan States to one another determined by friendly counsel along historically established lines of allegiance and nationality; and international guaranties of the political and economic independence and territorial integrity of the several Balkan States should be entered into. 12. " The Turkish portions of the present Ottoman Empire should be assured a secure sovereignty, but the other nationalities which are now under Turkish rule should be assured an undoubted security of life, and an absolutely unmolested opportunity of autonomous development, and the Dardanelles should be permanently opened as a free passage to the ships of commerce of all nations under inter- national guaranties. 13. "An independent Polish State should be erected which should include the territories inhabited by indisputably Polish populations, which should be assured a free and secure access to the sea, and whose political and economic independence and territorial integrity should be guaranteed by international covenant. 14. "A general association of nations must be formed under specific covenants for the purpose of affording mutual guaranties of political independence and territorial integrity to great and small States alike." The third principle the removal, so far as possible, of all eco- nomic barriers and the establishment of an equality of trade condi- tions among all the nations consenting to the peace and associating themselves for its maintenance is of particular significance as a statement of international commercial policy. In the same speech the President elaborated this point somewhat, as follows: " We have no jealousy of German greatness, and there is nothing in this program that impairs it. We grudge her no achievement or distinction of learning or of specific enterprise, such as have made her 182 GERMAN TRADE AND THE WAR. record very bright and very enviable. We do not wish to injure her or to block in any way her legitimate influence or power. We do not wish to fight her either with arms or with hostile arrangements of trade if she is willing to associate herself with us and the other peace- loving nations of the world in covenants of justice and law and fail- dealing. We wish her only to accept a place of equality among the peoples of the world the New World in which we now live instead of a place of mastery." PEACE TERMS AND INTERNATIONAL TRADE. On February 11 the President, speaking to Congress, made reply to public addresses on peace terms by Chancellor von Hertling, of Germany, and Count Czernin, of Austria. The following extracts discuss the position of commercial and industrial life in a stable world peace : " The United States has no desire to interfere in European affairs or to act as arbiter in European territorial disputes. She would dis- dain to take advantage of any internal weakness or disorder to im- pose her own will upon another people. She is quite ready to be shown that the settlements she has suggested are not the best or the most enduring. They are only her own provisional sketch of prin- ciples and of the way in which they should be applied. But she entered this war because she was made a partner, whether she would or not, in the sufferings and indignities inflicted by the military masters of Germany against the peace and security of mankind ; and the conditions of peace will touch her as nearly as they will touch any other nation to which is entrusted a leading part in the maintenance of civilization. She can not see her way to peace until the causes of this war are removed, its renewal rendered as nearly as may be impossible. " This war had its roots in the disregard of the rights of small na- tions and of nationalities which lacked the union and the force to make good their claim to determine their own allegiances and their own forms of political life. Covenants must now be entered into which will render such things impossible for the future; and those covenants must be backed by the united force of all the nations that love justice and are willing to maintain it at any cost. If territorial settlements and the political relations of great populations which have not the organized power to resist are to be determined by the contracts of the powerful governments which consider themselves most directly affected, as Count von Hertling proposes, why may not economic ques- tions also ? " It has come about in the altered world in which we now find our- selves that justice and the rights of peoples affect the whole field of international dealing as much as access to raw materials and fair and equal conditions of trade. Count von Hertling wants the essen- tial bases of commercial and industrial life to be safeguarded by com- mon agreement and guaranty, but he can not expect that to be con- ceded him if the other matters to be determined by the articles of peace are not handled in the same way as items in the final account- ing. He can not ask the benefit of common agreement in the one field without according it in the other. I take it for granted that he sees that separate and selfish compacts with regard to trade and the EXTRACTS FROM THE PRESIDENT^ ADDRESSES. 183 essential materials of manufacture would afford no foundation for peace; neither, he may rest assured, will separate and selfish com- pacts with regard to provinces and peoples. " Count Czernin seems to see the fundamental elements of peace with clear eyes and does not seek to obscure them. He sees that an independent Poland, made up of all the indisputably Polish peoples who lie contiguous to one another, is a matter of European concern and must, of course, be conceded; that Belgium must be evacuated and restored, no matter what sacrifices and concessions that may involve; and that national aspirations must be satisfied, even within his own Empire, in the common interest of Europe and mankind. If he is silent about questions which touch the interest and purpose of his allies more nearly than they touch those of Austria only, it must of course be because he feels constrained. I suppose, to defer to Germany and Turkey in the circumstances. Seeing and conceding, as he does, the essential principles involved and the necessity of candidly applying them, he naturally feels that Austria can respond to the purpose of peace as expressed by the United States with less embarrassment than could Germany. He would probably have gone much further had it not been for the em- barrassments of Austria's alliances and of her dependence upon Gert many." Appendix C. PAN-GERMANISM AND MITTELEUROPA. PAN-GERMANISM. [From an article by Prof. Thomas G. Masaryk, of Prague, in The New Europe, London, Oct. 19, 1916.] Very often we read discussions about the importance of this or the other front; whether this is a war of the west or a war of the east or the south, and on which front the final decision is likely to be reached. The question is not quite clear; it may have a strategical meaning, and in that case it must be borne in mind that the importance of the respective fronts is liable to change in the course of the war. So far, however, as the political meaning is con- cerned, more is to be learned from the Germans who started the war than from the allies, who have hitherto been on the defensive. Now the Germans have stated clearly enough, both before and during hostilities, why they were looking forward to this war, and what they wish its result to be. The meaning of the present war is reflected in the voluminous political literature which propagates the pan-German program and the discussions which still center around it. * * * Pan-Germanism reached its highest point during the reign of the Emperor William II, growing into the political doctrine of German imperialism, which proclaimed, in the first place, the need of economic and political union between Germany and Austria-Hungary, and of adding the Balkans and Turkey to this union. This plan is expressed in the watchword " Central Europe," which involves a further program for the annexation of the Baltic and some purely Russian Provinces of Russia, and would thus provide an opportunity for re- constructing Poland under German leadership. Further, this plan enlarges Central Europe by taking in Holland and Belgium, Switzerland, and Scandi- navia. The relations to be maintained between these countries and Germany are formulated in various ways by various pan-German politicians. A kind of customs union is demanded, but it is evident that, as a matter of fact, many pan-Germans have in their mind also a political and military union, if not annexation pure and simple; and this applies especially to the lands in the immediate neighborhood of Germany. * * * The earlier pan-Germans proclaimed the consolidation of the German nation; their successors of to-day advocate the program of world power. Especially since the renovation of the German Empire the pan-Germans adduce so-called historical rights. The German Empire, they say, can claim the territories of the old Germano-Roman Empire, i. e., not only the Bohemian lands and Austria in general, but also Belgium, Holland, Switzerland, and parts of Italy and France. But the pan-Germans also demand the annexation of non-German territories. Germany, they argue, needs colonies, needs a hinterland. They point to the growth of population. Anxiety concerning their daily bread forces them to extend their frontiers; Germany requires more land to cultivate, and must therefore simply take it. * * * The votaries of pan-Germanism appeal to German inclination for war; war is positively adored, and with that goes the worship of militarism. They tell us that Germans and Teutons are naturally gifted with the necessary con- structive statesmanlike ability ; in the Slavs this ability, according to them, is lacking; therefore the Slav States were founded and subsequently annexed by the Germans. But not only the Slavs, the French and other nations also were according to these theorists formed by the Germans, just as even Christ Himself was of German origin. Pan-Germans do not disguise the lust of power and the greed of imperialism; they proclaim German aristocratism, social, 184 PAH-GERMANISM AND MITTELETJROPA. 185 political, cultural, racial, and linguistic, and carry it mercilessly to its extreme logical results imperare, regnare, over all the nations and lands. This pan-German relapse into the law of brute force was facilitated by va- rious scientific theories. Darwinism, for instance, was utilized to argue the rights of big and powerful nations; while Nietzsche's Darwinistic " Ueber- mensch " (superman) and " Herrenvolk " (ruling race) were especially ac- cepted in a pan-German sense. The will to power was proclaimed as the will to ' world power." Marxist historical materialism also strengthened pan-Ger- manism by its demand for large economic territories and by its materialistic and purely economic conception of politics. In this war the German social- ists have accepted the pan-German ideal. The pan-Germans became intoxicated by the successes of Germany in science, industry and finances, art and literature (take, for instance, the importance of Wagnerism), philosophy, and culture in general. The superiority of German culture became an excuse and even a justification for dominating less educated nations in short, for ruling the whole world. * * * In France and England the folly of regarding the pan-German movement as Utopian is only now becoming clear. The Utopia of yesterday often happens to be the reality of to-day. In every political" plan which considers the distant future there is a Utopian element ; but pan-German political literature has been evolved in close connection with German history, science, and philosophy. That German policy, in following the pan-German scheme, was not in the least Utopian has been amply demonstrated in the Balkans and in Turkey. A Hohenzollern was enthroned in Koumania, an Austrian vassal in Bulgaria, and German princesses went to Greece and Montenegro. List, the well-known econo- mist, was one of the first to speak of a central European customs union the earlier Zollvereins showing the political effectiveness of such an economic policy. List, who directed Germany to the Far East, and Moltke, are proclaimed by the Germans as the first and weightiest authorities for Berlin to Bagdad. One of the earlier propagandists of a customs union under the leadership of Germany, Paul Dehn, directed Germany to the east and southeast and preached the eco- nomic union not only of Germany and Austria, of the Balkans and Turkey, but also of Switzerland, Belgium, and Holland. Dehu speaks of " Weltwirtschafts- politik" and " Weltpolitik,' these ideas becoming the stock ideas of pan-Ger- man policy. William II officially inaugurated the pan-German imperialistic world policy. Very early one of his ministers, Bronsart von Schellenhof (Minister of War, 1883-1889), voiced the pan-German scheme of central Europe; the Kaiser him- self rejoiced over Germany as a " world empire " ; William II was a pupil not only of Lagarde, but of the later pan-German philosophers and historians, notably of Houston Chamberlain; he himself went to Constantinople and Asia Minor in order to strengthen the German financial and economic penetration of the Orient. Pan-German Central Europe was practically extended to Mesopo- tamia and the Persian Gulf. " Berlin to Bagdad " became under William II the general watchword. The Germans soon acquired concessions for building rail- roads (the line Haidar Pasha to Angora is German). Within a year of William II's visit to tha Sultan in. 1898 the line to Bagdad was approved and the aid of the Deutsche Bank and other financial institutions secured. Even long before the war pan-German imperialism dominated not only intel- lectual circles, but also wider classes of the population of Germany and Austria- Hungary, and supplied them with their political education. It is simply not true that only a few people participated and cooperated in pan-German propa- ganda. The number of such writers is very great ; pan-German books and pam- phlets had and still have to-day a very large circulation and run through many editions. The pan-German plan of " Berlin to Bagdad " has been upheld by men like Moltke, List, Rodbertus, W. Roscher, Lassalle, Lagarde, C. Frantz, Wind- horst, and others. Pan-German ideas w r ere propagated by energetic societies and clubs, notably the Allgemeiner deutscher Verband (Pan-German League, 1890), Mitteleuropiiischer Wirtschaftsverein (Central European Economic Union, 1904), and Vorderasien-Komitee (Asia Minor Committee, 1911) ; the latter was founded by Hugo Grothe, and among its trustees are to be found such names as Ballin, von der Goltz Pasha, Karl Lamprecht, Hans Meyer, Cornelius Gurlitt, Dr. von Jacobs (president of the German Levant Line), and R. Willing. The pan-Germans expressed explicitly and in plain language what the others expressed implicitly ; they have dared a political plan of international bearing. 186 GERMAN TRADE AND THE WAR, But they spoke in the name of all Germany, and I can not understand how any- body can speak of men like Lagarde, not to mention Treitschke, Bernhardi, and many others, as political dreamers. And why should a Utopia be only theoreti- cal? Can not a war, or practical work, sometimes be Utopian? And is only a victorious war non-Utopian? * * * There can be no doubt that German policy is primarily concerned with continental aims the absorption of Austria-Hungary and the conquest of the Balkans and Turkey. With this end in view, Germany must prevent Russia from reaching Constantinople, and must weaken her to the utmost of her power. Once Germany has achieved " Central Europe," the time for a blow at Britain would soon come. Germany, with Austria-Hungary, the Balkans, and Turkey at her disposal, has a free path to Egypt and India, and nothing could then stop her march into Holland and Belgium and the maritime north of France, if occasion should arise. Once Berlin-Bagdad and Berlin-Cairo be- came a reality, the power and riches yielded by this Central Europe would perhaps even render the fight against Britain in Europe superfluous ; moreover, the progress of aeronautics and the development of the navy would facilitate the invasion of England, if that were still required. The possession of Trieste, Saloniki, and Constantinople would assure to " Central Europe " dominion over the Adriatic, ^Egean, and Mediterranean ; Turkey would secure to Ger- many access to Africa and India, and Britain would collapse in pitiful iso- lation. States are often undone by what has made them great, and in that case, the amphibious German would swallow up the British fish. * * * If Berlin succeeds in creating " Central Europe," the aim of the war is attained, even if, at the worst, some time should elapse before the completion of the Constantinople-Bagdad and Constantinople-Cairo routes. If successful, Prussia-Germany would become an Asiatic and African power like Russia, Britain, and France; nay, more, she would become the greatest world power. Pan-Germanism is a program for the final solution of the Eastern question. The great war is a daring attempt to organize Europe, Asia, and Africa the Old World under the leadership of Germany. AUSTRIAN SLAVS OPPOSED TO MITTELEUROPA. [Dr. Alois Rasin in the Narodni Listy, Prague, Oct. 21, 1917.] The declaration of May 30, 1917, by which the Bohemian representatives in the Austrian Parliament demanded a reestablishment of Bohemia as an inde- pendent State, will be a permanent landmark in the history of Bohemian politics. The ideas and aspirations .expressed therein have, indeed, for gener- ations, consciously or unconsciously, been the common property of the Bohemian people. The declaration derives its significance from the fact that the ultimate object of our national aspirations has been clearly defined. The war aims of the central Empires have placed our problem not only before our own eyes, but before the whole world. Nothing could have thrown a better light on our situation than the agitation for " Mitteleuropa." Austria- Hungary and Bulgaria were to become a highway for the march of German imperialism through Constantinople and Bagdad toward the Persian Gulf. [Seven lines erased by the censor.] That was the ideal set up by the German nation as the object of this w r ar and as the object of the State in which we live. The Germans could not receive any other answer than the one they have received from us and the Yugoslavs : A determination that these two Slav peoples shall form two independent States, capable of defending themselves successfully against the aggression of the Germans of both Empires, closely allied with the Magyars. There is no other way for us, and the people feel in the depths of their souls that it would be useless to seek other ways in the belief that the execution of those plans would be postponed. Herr Naumann may for a time quit roaming over central Europe, public agitation for Mitteleuropa may stop, but in reality no new idea, no program has been offered which would make amends for the centuries of oppression. The dissensions in the German ranks are not an expression of personal con- troversies, neither are they a result of serious differences in political programs ; they are simply due to disagreement among the German parties as to the PAN-GERMANISM AND MITTELEUROPA. 187 tactics to be pursued, whether the ultimate ends of German imperialism should be carefully disguised or openly supported. All the pronouncements of the Austrian and the Austro-Hungarian Govern- ments have been designed to conceal the real intentions. We hear only words of which we have a large collection from the past, but otherwise everything remains as of old ; not one of the bulwarks of German-Magyar hegemony has been given up, and the only change that is being given half-hearted consider- ation concerns Poland, and that within the limits of the .pan-German program. After a war in which the peoples of Europe have shed rivers of blood we can not return to the conditions prevailing before the war, under which all the fundamental laws of Austria and the Hungarian law of nationalities, which have never been observed in practice, would only be furbished up anew and provided with a theoretical introduction about the self-determination of nations, which in practice would again be determined by German bureaucracy and Magyar nobility. The war can not preserve and strengthen these amazing fictions which have shaken the foundations of the monarchy while concealing the true state of things from the outside world. In the intoxication of victory, however, the persecution of the Slavs, the proposed changes of the fundamental laws$ and the plan of Mitteleuropa have uncovered the true intentions of the central powers. The mask has been cast off, and it is now useless to put it on again. Everybody knows what is hidden behind it. The Bohemians and the Yugoslavs have seen through the disguise. They can not believe that Austria's repentance is sincere. The only way for the Bo- hemian representatives is firmly to stand by the declaration of independence, lay bare all insincerities, destroy fictions, and reject beautiful words which have no meaning, compromises of which it is known that they will not be kept, and treacherous peace agreements which would be followed by renewed strife as soon as our opponents had recovered. A great war can only result in great changes. And a small nation, too, has a right thoroughly and permanently to arrange the conditions of its life in the most perfect forms, to defend itself and to attack, to submit its plea to honest judges and to all those who have taken up arms for the ideals of a new polit- ical arrangement of the world. The Bohemian representatives have no other way before them but the one leading directly to a full independence of the whole Czecho-Slovak race, and our political labors both at home and elsewhere must tend to convince everybody that this is the only way to make peace secure for the future in this part of Europe. HUNGARY AND MITTELEUROPA. The Hungarian position on the subject of Mitteleuropa and on the relations of Hungary and Austria is well shown in excerpts from the leading newspapers of Budapest, quoted in the Literary Digest for March 9, 1918. It is pointed out that these statements, which are reproduced below, are significant since they appear in a governmeiit- controlled press, passed by the censor. The following is from Az Est : We want nothing whatever from Austria, who has nothing but ill-will for us and whose decomposing internal State life and senile useless traditions act on our vigorous young State life as a source of infection. We do not want any- thing from Austria or the present monarchy. All we want is complete economic freedom so that we can control our own imports and exports, and, if we sell anything, can see that we get real value in exchange and not worthless paper. We want freedom for our industry, our railroad system, and all our possi- bilities of progress. * * * What we wan" is to be a free and independent country, with only those points of contajt with Austria which are inseparable from the circumstance of having a common ruler. And we do ^ot merely wish for this; we are perfectly certain that we are going to get it. The war has shaken to its verj foundations the world in which the unhappy nations of mankind have been living, and wlien the axis of the whole world has been displaced things can never go on again as they did before. 188 GERMAN TRADE AND THE WAR. The following is from Pesti Naplo: To-day, when the question of a customs union with Germany is being ad- vocated, comes the great object lesson of Count Hadik's downfall, to teach us our need of economic independence. We can learn from it that the more gen- erously we surrender our independence the more unpleasant are the surprises in store for us. To-day it is the Austrians who decide who is to be our food controller. To-morrow perhaps the Germans will come and tell us whom we must have as Hungarian minister of commerce. And who knows? Perhaps in a little while it will be the Great Council of Mitteleuropa that will say who shall be prime minister in Hungary. Truly a fine prospect for us. But, after all, perhaps \\e ought to thank the Austrians, for their unjustifiable inter- ference in our own private affairs is a more effective propaganda for Hun- garian independence than a thousand orators. Appendix D. THE LEIPZIG FAIR IN WAR TIME, The subject matter in the following report has been partly covered in the text of the present publication, but it has been deemed of sufficient interest in this connection to justify reproduction in full. Appendix E should also be read in this same connection. [Frankfurter Zeitung, Aug. 30, 1917 ; the present translation was published in Commerce Reports for Oct. 20, 1917.] The seventh war fair (Kriegsmesse) is "best characterized by the one word '* warenhunger," hunger for merchandise. Bread is not the only thing the desire for which has been quickened by the war; the whole world is suffering from a real hunger for wares to such an extent that the condition might be termed almost an epidemic. The causes are well known the increasing scarcity of raw materials, lack of workers, and, finally, a scarcity of fuel. The influence of these factors can be seen very plainly at the fair, for many important, even leading, firms are not represented at the fair at all, because they wish to spare themselves and their customers the disagreeable admission that they are unable to fill orders. It can not be said, however, that there are many vacant spaces at the fair owing to the absence of those firms, for the management of the fair has induced a large number of new firms to send in their exhibits, and, more- over, the industries have had such a great success in the manufacture of sub- stitute articles during the war that an untrained eye will hardly notice any change in the fair. In many branches it is really difficult to find any difference in the war ex- hibits as compared with exhibits shown in peace times. On the other hand, the absence of aluminum and rubber wares, of many leather wares, and many tex- tile fabrics naturally is noticeable at once. For these the inventive German industry has naturally found substitutes immediately, and we find a really wonderful inventiveness in the manufacture of substitute articles also in the metal industries, which lack not only aluminum but also copper and brass and have to be very economical in the use of iron and steel. It needs hardly to be mentioned that, owing to a scarcity of leather soles, the wooden and -the paper soles are very much in demand, but the prices of these substitute articles are even now quite high and will doubtless go still higher. With the progress of the war, however, price has become a matter of secondary consideration only. The most important thing for the pur- chaser is that he obtains any goods at all, and it should be noted in this con- nection that the exhibitors have taken pains to offer to the purchasers as much as they have been able to offer at all. The largest stocks were exhibited by the china and earthenware and the glass industries, by the manufacturers of articles of luxury, and the wooden- ware industries. The toy industry also had considerable stock, although the lack of clothing on dolls was readily noticed. Prices were much higher in all branches, the increases varying between 30 per cent (wooden wares) and 100 or more per cent (china and special articles). In all branches of the industries represented at the fair trade was good, in part even unusually good, and many exhibitors received in the first two days of the fair as many orders as they could handle at all satisfactorily. By the end of the second day the fair bureau had issued about 40,000 cards to visitors from outside the city, a record number for the period of the war. A number of neutral press correspondents at Leipzig attend the fair on the second day, and the astonishingly large number of visitors convinced them that the reports circulated so industriously by the enemy press about the alleged failure, partial or total, of the Liepzig Fair were only "hot air." Neutral 180 190 GERMAN TRADE AND THE WAR. countries were represented very wen at tne tair, tne Netherlands and Switz- erland particularly so. Many buyers had come frfom the Scandinavian coun- tries and also from Poland, for the hunger for wares is quite strong in the occupied territory. It is hardly necessary to add that the countries of our allies, Austria-Hungary, Bulgaria, and Turkey, too, were well represented. Among the various industries represented, those that seek to produce substi- tute articles had exhibits of special interest. The paper industry exhibited a large number of imitation textiles designed to take the place of linen, cotton, jute, and other fabrics. It must be admitted that in many cases the imitations are surprisingly successful, so that it is somewhat difficult to distinguish these table covers, napkins, aprons, hatbands, or even articles of underwear, in the manufacture of which paper is the chief material employed, from similar articles of the genuine materials. Good imitations of leather were also shown in large quantities. The prices of these new articles are not low, but still not excessive; fears have been expressed, however, that the prices will soon be increased considerably. Sales were satisfactory both in the paper trade and in the woodenware indus- try, wooden soles being particularly in demand as a substitute for leather. The demand for household articles w r as not as large as formerly, owing to the de- crease in the number of marriages, but it was still good and could hardly be satisfied in many cases. The lighting industry has to work largely with substi- tute articles ; it has produced some very beautiful models, nevertheless. Trading was not as brisk as formerly, owing to the limitation placed on the consump- tion of lighting materials. The demand for metal wares and small hardware was very good, and the buyers paid the higher prices willingly. The toy indus- tries suffer greatly from scarcity of both materials and workers; many large firms were not represented at the fair at all, but those that still had goods to sell made very good sales. The ceramic industries again found a very good market for articles of common use and particularly good for articles of luxury. The absence of French, Belgian, and British manufacturers of glassware, and of Galle and other specialists in the production of articles of luxury, was hardly to be noticed ; on the other hand, the German and the Austrian industries fur- nished proofs that they were fully able to compete with foreign manufacturers of china, fine glassware, and even fine articles of jewelry. The importance of this fact for the transition period and the period after the war is not to be underestimated, and a similar observation may be made concerning the manu- facturers of foods, now represented at the fair for the third time, who have shown great inventiveness and zeal in the preparation of substitute articles. In this branch of industry trading was unusually lively, and large sales were made. The industry of foodstuffs at the fair, better known as a surrogate industry, is still in its infancy, but has furnished such strong proofs of its right to exist that it deserves to be fostered by the authorities as much as possible. The value of the substitutes for tea, coffee, and oil, and the value of German tobacco, Ger- man soup, roots, meat extracts, vegetable soups, etc., can be properly estimated only after the war when the numerous decrees and ordinances have been re- pealed, when good raw materials will be abundant, and the manufacturer will be in a position to offer goods of quality. The attempt to introduce a few marketable products of the textile industry seems to be very promising. The laces, trimmings, etc., shown have found uni- versal approval and permit us to hope for the future. The little exhibit of the association of Saxon artisans and craftsmen also attracted many amateurs and purchasers. All in all. the seventh war fair has had a very good success and has proved to be an excellent selling organization and also an excellent means to educate popular taste and stimulate production. Appendix E. CHRISTMAS IN BERLIN, 1917. Following is an exact translation of the Berlin correspondence of the Algemeen Handelsblad, Amsterdam, January 1, 1918. It is a sympathetic view which throws much light on actual conditions in Germany, especially when read in conjunction with the foregoing report on the Leipzig Fair, written four months earlier : BEELIN, December 27, 1917. The Berlin newspapers of Monday morning relying on the authority of the official weather bureau, which, too, is working under difficulties during the war made the unanimous announcement that we should have brisk Christmas weather ; a moderate frost with sunshine and without snow. The Berliners of 14 to 60 years of age did not have to fear that they would be compelled to perform involuntary exercises on the snow'-covered asphalt pavements of the streets. People hajl scarcely finished reading the good news when the first snowflakes fell, small, hard crystals which remained on the ground. And it has been snow- ing ever since that Monday morning. I suppose that such is the traditional Christmas weather, snow, with a light frost, so the snow will not melt. Everything is white; the streets, the roofs, the trees, and the people. If we only had the currant cake and the gingerbread, nuts, apples, and punch, not to mention the more important eat- ables, that prompt decoration by the powers above would have been received with jubilation. Three years ago we still had all those delicacies during the first winter of the war we were living in a fairyland flowing with milk and honey but it rained then. A year later the currant cake and the gingerbread were baked without currants or raisins and from a brown flour, with saccharin, an attempt to keep up appearances which deceived nobody, but we still had apples and nuts and even the festive roast; the snow melted into a chocolate porridge. Again, a year later, the punch, the nuts, the apples, and the goose, the latter now as dear as a fat pig had been in former times, awakened sad memories of the happiness gone by ; the weather w r as stormy, there was a heavy rain, and the gutters overflowed. Now, on the fourth " war Christmas," the municipal authorities here and there would graciously provide chocolate and cakes for the children. The adults had to be satisfied with punch innocent of alcohol, for there were no sweets, no apples, no nuts. And the Christmas tree bore no candles. But the snow remained on the ground. The powers above had done their duty. They showed still more plainly how man had failed completely in his duty through inhumanity. The snow which formerly would have been awaited with eagerness now became a burden. I stayed indoors all through the holy Christmas eve. I watched the world through the window and saw that most houses across the street, houses with children, were dark. Only a gigantic tree with electric lights upheld the repu- tation of the street. The owner of the tree is a dealer in foodstuffs. Was everybody downhearted? Not at all. A light shines at Brest-Litovsk and throws its rays over all Germany. The voices heard there permit us to believe that peace will really come to the world. Were there no Christmas trees? Were the railways unwilling or unable to carry them? Not at all. Fourteen days ago when the first trees were brought to the city it looked as if the people would have to buy early if they wished to get a tree. The merchants charged war prices, 4 or 5 marks for a tiny speci- men, 8 to 10 marks for a larger tree. When the War Bureau declared the Christmas trees to be articles of necessity and fixed maximum prices for them people who wanted the trees would make haste to purchase what could be 191 192 GERMAN TRADE AND THE WAR. had, knowing well from experience that whenever a maximum price had been established the article in question immediately disappeared from the market. * It was not so with Christmas trees, however. It would not pay to keep them for the next year. And the trees came in enormous numbers. The quantities shipped were unusually large, considering the lack of laborers and the diffi- culties of transportation. There were so many trees in the market that the merchants could not dispose of them. As the days passed, the finest and largest trees could be had for a mark and a half ; trees which would have commanded double the price in times of peace. On the very last day the price had fallen to 75 pfennigs. In the Netherlands anyone would have paid that price with- out a moment's hesitation, just to get the tree for fuel. The poor man on the corner of my street lost his small capital. For two weeks he had been exposed to rain and wind, standing on the corner or walking around his little forest of trees to keep warm. For the night he always piled up his trees in a corner of the portico. He could not leave his treasure un- guarded as in former years. The streets are now dark, the policemen are few, and the people have acquired a more accommodating conscience. The poor man had speculated. He had hoped to make war profits, and suffered a war loss instead. The Berliner's love for the Christmas tree does not go so far as to make him willing to set before his children a tree without candles, and without ornaments of bright-colored paper, without waxen angels, silver garlands, nuts, dolls, and gewgaws, and without a table under the tree with candies and toys. The owners of department stores and other large stores say that they have done very good business this year. If they had had more goods, the Christ- mas trade would have been a brilliant success. But the lack of goods, not only of foods and beverages, but also of articles obtainable on permits only, such as clothing and footwear, of toys, glass, china, of useful and useless trifles, set a limit to profits. Dealers in gold, precious stones, crystal, objects of art, and articles of luxury in general, are the best satisfied. Dealers in furs have had a singular experience. A short time ago they might have asked any price for genuine skins, even if the genuine wares were but imitations prepared from rabbit skins properly dyed. But now they noticed that the customers were no longer willing to pay high prices, and the prices naturally declined. The cause of the sudden change must be sought in the peace negotiations with Russia. It is a question, however, whether the importation of fur skins will increase all of a sudden when peace has been concluded. Germany has a more urgent need of other things. It is easier to explain why the prices of tea on the clandestine market have been declining during the last week. The pro- fessional speculator is afraid that his stocks may be left on his hands and is now offering larger quantities for sale. Some remarkable developments may be expected in the food market when the general peace treaty has been signed. The Railway Administration had announced that no extra trains would be run during the Christmas holidays. The public were urgently requested to give up all unnecessary traveling, but the appeal was made in vain. This year the railway traffic was even larger than in peace time. The receipts of the Stettin railway station at Berlin for December 21, 1917, were 30 per cent higher than in the preceding year, the yield of the increase in rates not being included ; the receipts for December 22 were 40 per cent higher, and those for Dceniber 23, 25 per cent higher. The number of passengers leaving Berlin by rail during the four days, December 21 to 24, was 221,872 in 1913; it de- clined to 194,315 in 1914, rose to 199,425 in 1915, and 300,854 in 1916. In 1917 the number was estimated at not less than 400,000, although the number of' trains dispatched was smaller than ever. The scenes at some of the stations can easily be imagined. The administration had introduced a new regulation for the most popular trains, requiring a special card of admission besides the regular ticket. Without a card no one would be admitted to the perron (sta- tion platform), and the card could be obtained only by the early coiners. The result was that people desiring to leave early on Saturday were on hand Friday evening; the crowds became unmanageable, barriers were overthrown and windows broken. Many people waited 15 to 20 hours in front of a sta- tion hoping to board a cheap accommodation train where the fare had not been doubled. They had no business to attend to anywhere but were de- termined to take a " pleasure " trip and see their relatives or friends. A Berliner would rather eat pebbles than give up traveling. Meanwhile, the snow continues falling. The male inhabitants between the ages of 14 and 60 years have to sweep a path through the center of the street. CHRISTMAS IN BERLIN, 1917. 193 It is no longer the janitor who handles the broom or shovel ; the householders attend to the work themselves, selecting one of their number as manager of the little cooperative society for the removal of snow. It is remarkable how many things have had to be done. There have been protests by the city fathers, a deluge of letters to the newspapers, a great deal of joking, grumbling, and cussing. But when it comes to a showdown, the Berliner understands that it is in the interest of both city and country that he should toil and sweep and shovel, and he does it as if he had never been accustomed to do otherwise. They do so in my neighborhood, at least. Such public spirit certainly is rare. The Berliner removes the snow from the street, although the sno\v continues to fall as if all Berlin were to be covered up. The machine is running. And it will not stop until the authorities give the order, " Stop." 43339 18 13 Appendix F. INTERLOCKING OF GERMAN BANKS AND OTHER CORPORATIONS. The brief reference to the interlocking 1 of directors among the German banks and between the banks and the big industrial enter- prises on pages 36 and 37 of " German Foreign-Trade Organization," Miscellaneous Series No. 57, has been received with such signs of interest that there are republished here, without change, the detailed tables showing the interrelationship of German banks and industrials, originally published by the Federal Trade Commission in its report on " Cooperation in American Export Trade," Part II, pages 519- 536. It should be borne in mind that numerous changes have taken place since the publication of the sources on which these tables are based. INTERRELATIONSHIP OF GERMAN BANKS AND INDUSTRIALS. DIRECT CONNECTIONS OF THE LARGER GERMAN BANKS. DIRECT CONNECTIONS OF THE LARGER GERMAN BANKS WITH THE " DIRECTION " (MANAGEMENT) OF OTHER GERMAN CORPORATIONS. [Prepared from Saling's Borsen-Jahrbuch for 1914-15 by William J. Clark, of The General Electric Co., 30 Church Street, New York, N. Y.] REICHSBANK. CONNECTIONS OF ITS "DIRECTION" WITH THE "DIRECTION" OF OTHER CORPORATIONS. [Approximate capital, $63,600,000.] Other corporations. Connection through Approxi- mate capi- talization. Bank f iir Handel und Industrie Dr Johs. Kaempf Paul $48 000 000- A G Korting's Elektricitatswerke Bernhard,Dr. Hugo Op- penheim. Paul Bernhard 1 800 000 Deutsche Hypothekenbank A G Dr Emil Hecker Carl 8 300*000 Bank des Berliner Kassen-Vereins Furstenberg, Edmund Helfft, Max Richter. Dr Emil Hecker E J 2 590 000 Disconto-Gesellschaft Meyer, Fritz Andreae, Carl Joerger, Edmund Hellfft, Dr. R. von Men- delssohn, Dr. Hugo Op- penheim, Ed. Arnhold, Karl Mommsen. Dr Emil Hecker, Dr 75 000 000 Concordia Spinnerei und Weberei Louis Ravene, Dr. A. S. Salomonsohn, E. Hardt. Dr Emil Hecker 850 000 - Tempelhofer Feld A G fur Grundstucksverwertung Dr Emil Hecker Dr Karl 5 000 000 Bergmann-Elektricitatswerke A. G Helfferich. Dr Emil Hecker 22 500 000 Hafengesellschaf t Haidar Pascha Dr. Emil Hecker 5, 642, 000 Gesellschaf t f iir elektrische Hoch- und Untergrundbahnen Dr. Emil Hecker . 37 650 000 Deutsch-Ostafrikaniache Gesellschaft Dr Emil Hecker Edw 2 500 000 Allgemeine Berliner Omnibus A. G Woermann, Dr. Hugo Oppenheim. Dr Emil Hecker, Dr P 4 600 000 Ostafrikanische Eisenbahn-Gesellschaft von Schwabach. Dr Emil Hecker Carl Joer- 26 000 000 AnatolischeEisenbahn-Gesellschaft ger, Dr. O. Braunfels. Dr Emil Hecker 28 280 000 Bank f iir Orientalische Eisenbahnen in Zurich. .. Dr. Emil Hecker... 18,200,000 194 INTERLOCKING BANKS AND OTHER CORPORATIONS. 195 Direct connections of the larcicr German ftanfcs Continued. REICHSBANK Continued. Other corporations. Connection through- Approxi- mate capi- talization. Betriebs-Gesellschaft der Orientalischen Eisenbahnen Dr. Emil Hecker $11, 000, 000 Saloniki-Monastir Eisenbahn Dr. Emil Hecker 16, 000, 000 Deutsche Bank Dr. Emil Hecker, F. von 62,500,000 F. Fuld. Sachsische Bank zu Dresden Dr. P. von Schwabach, Dr. 9, 500, 000 E. von Oppenheim. Preussische Central Bodenkredit A. G Dr. P. von Schwabach, Dr. 16, 000, 000 A. Salomonsohn. "Landbank" A. G. in Berlin Dr. P. von Schwabach, 12,500,000 Engelbert Hardt. Banca Commerciale Italiana (Italy) Dr. P. von Schwabach, Dr. 31, 250, 000 John Kaempf. Banca Generala Romana in Bukarest Dr. P. von Schwabach, Dr. 3, 000, 000 A. Salomonsohn. Braunkohlen u. Briket-Industrie A. G ^ Dr. P. von Schwabach 4, 856, 000 Hedwigshutte (Coal Co. ) British connections do 1, 500, 000 Bergwerksgesellschaft Hibernia Dr. P. von Schwabach, 26,000,000 Carl Fiirstenber?. Otavi Minen u. Eisenbahn Gesellschaft (virtually a foreign Dr. P. von Schwabach 4,000,000 holding company.) Rybniker Steinkohlen Gewerkschaft j Dr. P. von Schwabach, 4,600,000 Fritz von F. Fuld. Vereinigte Koenigs- u. Laurahiitte A. G. fiir Bergbau u. Dr. P. von Schwabach 14,500,000 Huttenbetrieb. Deutsche Erdol A. G Dr. P. von Schwabach ... 7,675,000 Anglo-Continentale Guanowerke Dr. P. von Schwabach ... 4, 250, 000 Vulcan-Werke I Dr. P. von Schwabach, 7,000,000 Carl Furstenberg. Deutsch-Atlantische Telegraphen-Gesellschaft j Dr. P. von Schwabach, Dr. 12, 500, 000 E. von Oppenheim. Felten u. Guilleaume Carlswerk A. G | Dr. P. von Schwabach, 22, 000, 000 Carl Furstenberg. Deutsche Waffen u. Munitions Fabriken Dr. P. von Schwabach, 5, 000, 000 Ed. Arnhold. Dommitzscher Thonwerke A. G Dr. P. von Schwabach 250, 000 Norddeutscher Lloyd in Bremen ! Dr P von Schwabach ... 56, 000, 000 A. G. f ur Verkehrswesen Dr. P. von Schwabach, Dr. 4,000,000 A. Salomonsohn, Dr. Hugo Oppenheim. Neu Guinea Compagnie Dr. P. von Schwabach, Dr. 2,750,000 Louis Ravene, Arnold von Siemens, Dr. A. Salomonsohn, Dr. Hugo Tabak-Regie-Gesellschaft des Tiirkischen Reiches (Turkey) ! Dr. P. von Schwabach 10,000,000 " Nordstern ' ' Lebens-Versicherungs A. G | Dr. P. von Schwabach, F. 5, 000, 000 W. von Krause, Dr. A. Salomonsohn. "Nordstern" Unfall-, Haftpflicht u. Feuer-Versicherungs A. G. J Dr. P. von Schwabach, Dr. 1, 650, 000 A. Salomonsohn. Kamerun Eisenbahn-Gesellschaft, Berlin Dr. P. von Schwabach, 4,000,000 Carl Furstenburg. Luxemburger Bank (Internationale Bank in Luxemburg) Dr. Emil von Oppenheim . 6, 700, 000 Deutsch-Luxemburgische Bergwerks- u. Hiitten A. G. in Dr! Emil von Oppenheim, 56,000,000 Bochum. Dr. Louis Ravene. Gelsenkirchener Bergwerks A. G Dr. Emil von Oppenheim, 80,000,000 Dr. A. Salomonsohn. Westfalische Eisen- und Drahtwerke A. G ! Dr. Emil von Oppenheim . 4, 000, 000 Rheinisch-Westfalische Sprengstoff A. G Er. Emil von Oppenheim. 2, 125, 000 Deutsch-Niederlandische Telegraphengesellschaft Dr. Emil von Oppenheim. 4, 750, 000 A. E. G. fiir Verzinkerei u. Eisen- Konstruktion Dr Emil von Oppenheim 1,000,000 Deutsch-Asiatische Bank, Shanghai Dr. Hugo Oppenheim, Dr. 5, 000, 000 , . TT ^ Otto Braunfels. Vereinsbank in Hamburg Dr. Hugo Oppenheim 9, 000, 000 Oberrheinische Eisenbahn-Gesellschaft A. G do 5,000,000 Ostdeutsche Eisenbahn-Gesellschaft "b"r. Hugo Oppenheim, Dr. 1, 125, 000 A. Salomonsohn. Keneh- Assouan Eisenbahn-Gesellschaft Dr. Hugo Oppenheim 13, 500, 000 Neue Boden A. G Dr. Otto Braunfels 11, 000, 000 Mannesmannrohrenwerke Dr. Otto Braunfels, Arnold 21, 325, 000 Berliner Hagel-Assicuranz-Gesellschaft Dr. R. von Mendelssohn, 900, 000 E. J. Meyer. Berliner Hypothekenbank A. G Dr. Jolis. Kaempf 5, 675, 000 Siiddeutsche Boden-Creditbank in Miinchen Dr. Johs. Kaempf 6, 750, 000 Wiirttembergische Bankanstalt (vormals Pflaum u. Cie.) Dr. Johs. Kaempf 2, 500, 000 Amsterdamsche Bank (Holland) Dr. Johs. Kaempf 9, 000, 000 Siiddeutsche Immobilien-Gesellschaft in Mainz Dr Johs. Kaempf 5, 000 000 Hugo Schneider A. Q ! Dr. Johs. Kaempf 5,000,000 196 GERMAN TRADE AND THE WAR. Direct connections of the larger German Panics Continued. REICHSBANK Continued. Other corporations. Connection through Bankfiir Deutsche Eisenoahnwerthe Berliner Handels-Gesellschaft Bismarckhiitte Harpener Bergbau A G Oberschlesische Eisen-Industrie Rheinische Stahlwerke zu Duisburg-Meiderich. Rombacher Hiittenwerke Schlesische Kohlen u. Kokes Werke. . . . Gewerkschaft Victoria in Liinen Handelsgesellschaft fur Grundbesitz. . . . Elektrochemischewerke Ges. m. b. H . . Berlin-Anhaltische Maschinenbau A G . Accumulatoren Fabrik Allgemeine Elektricitats-Gesellschaft. . . Bank fiir elektrische Unternehmungen . Berliner Elektricitatswerke Elektro-Treuhand A. G Kraftiibertragungswerke Rheinfelden . Gasanstalt-Betriebs-Gesellschaft Aluminium Industrie A. G Deutscher Eisenhandel A. G Eisenhiitte Silesia. . Julius Pintsch A. G Rhenania Vereinigte Emaillierwerke A. G. Vereinigte Deutsche Nickelwerke A. G .... Westfalische Drahtindustrie A. E. G. Schnellbahn A. G Grosse Berliner Strassenbahn Zucker Raffinerie Tangermiinde-F. R. Meyers Sohn A. G.. " Phoenix, " A. G. fiir Bergbau u. Hiittenbetrieb Deutscher Lloyd Transport- Versicherungs A. G Allgemeine Deutsche Credit-Anstalt Brasilianische Bankfiir Deutschland Deutsche Ansiedlungsbank Werschen-Weissenfelser Braunkohlen A. G Kaliwerke Eschersleben Naptha-Productions-Gesellschaft Gebriider Nobel (Russia) . Freiherrlich von Tucher 'sche Brauerei Vereinigte Kom-Rottweiler Pulverfabriken Deutsch-Ueoerseeische Elektricitats-Gesellschaft Ludwig Loewe & Co., A. G Preussische Pfandbrief Bank zu Berlin Kattowitzer A. G. fiir Bergbau u. Eisenhiitten Betrieb. A. G. Mix u. Genest, Telephon u. Telegraphen- Werke. Bergisch-Markische. Industrie Gesellschaft Preussische -Lebens- Versicherungs A. G Schantung-Eisenbahn-Gesellschaft The Southwest Africa Co. (Ltd.) (British company). Siemens-Halske A. G Siemens-Schuckertwerke Stahlwerke Rich. Lindenberg A. G Gewerkschaft Ludwig II Stassfurt Berliner Weissbier Brauerei A. G Vereinigte Chemische Fabriken zu Leopoldshall A. G. "Archimedes" A. G. fiir Stahl- u. Eisen-Industrie Ammendorfer Papierfabrik Schlesische Elektricitats- u. Gas A. G Deutsche Wasserwerke A. G Crollwitzer Aktien- Papierfabrik Berlinische Lebensversicherungs Ges Braunkohlen u. Brikettwerke Roddergrube A. G Russiche Eiseaiadustrie A. G. in Gleiwitz C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg, Dr. A. Salomonsohn. C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg,Ed.Arnhold. C. Fiirstenberg C. Fiirstenberg, F. von F. Fuld, Ed. Arnhold, Dr.A. Salomonsohn. C. Fiirstenberg, CarlJoerger. C. Fiirstenberg C. Fiirstenberg, Carl Momm- sen. C. Fiirstenberg, Carl Joerger. C. Furstenberg C. Fiirstenberg C. Furstenberg. Dr. Louis Ravene", Dr. A. Salomon- sohn. C. Fiirstenberg, Dr. Louis Ravene'. C. Fiirstenberg C. Furstenberg C. Fiirstenberg C. Fiirstenberg C. Fiirstenberg, Ed. Arn- hold,Dr. A. Salomonsohn. C.Fiirstenberg.Ed. Arnhold. C. Fiirstenberg Engelbert Hardt Engelbert Hardt, F. von F. Fuld. Dr. A. Salomonsohn Dr. A. Salomonsohn Dr. A. Salomonsohn Dr. A. Salomonsohn Dr. A. Salomonsohn Dr. A. Salomonsohn Dr. A. Salomonsohn Dr. A. Salomonsohn, Dr. E. F. von Oppenheim. Dr. A. Salomonsohn Dr. A. Salomonsohn, Ed. Arnhold. A. K. G. von Donhoff A. K. G. von Donhoff, G. F. H. von T. Winckler, Dr. Louis Ravene". A. K. G. von Donhoff A. K. G. von Donhoff A. K. G. von Donhoff A. K. G. von Donhoff, Ed. Arnhold, Dr. Otto Braun- fels. Edw. Woermann A. von Siemens, Carl Momm- A. von Siemens Carl Joerger Carl Joerger Carl Joerger Carl Joerger Carl Joerger Carl Joerger CarlJoerger, Fritz Andrae... Carl Joerger Carl Joerger Carl Joerger F. von F. Fuld F. von F. Fuld, K. Fursten- berg. INTERLOCKING BANKS AND OTHER CORPORATIONS. 197 Direct connections of the larger German ~banks Continued. REICHSBANK Continued. Other corporations. Connection through- Approxi- mate capi- talizStion. Bank fur Brau-Industrie Fritz Andreae $2 750 000 Nationalbank fur Deutschland . Fritz Andreae 26 400' 000 Diisseldorfer Eisenhiitten-Gesellschaft Fritz Andreae '500' ooo Bauland Seestrasse-Nordpark A. G Fritz Andreae 450*000 A. G fur Beton u. Moneirbau Fritz Andreae 1 400'oOO Deutsche Bierbrauerei A. G Fritz Andreae 1 500 000 Deutsche Linoleum u. Wachstuch Compagnie . Fritz Andreae 2' 200' ooo Poppe u Wirth A G Fritz Andreae i 'soo' ooo Kolfinar u. Jourdan A. G. (Uhrkettenfabrik in Pforzheim) Fritz Andreae l',600'oOO Mechanische Weberei Fritz Andreae 950 QQQ Elektricitats-Lieferungs-Geseilschaft Fritz Andreae 15 000* 000 Leonhard Tietz A. G. (department stores, trading concern) Fritz Andreae. . 9 OOO' 000 Heinrich August Schulte. Eisenhandlung A. G Dr Louis Ravene 900 000 Action- Verein des Zoologischen Gartens zu Berlin > Dr L Ravene 1 500 000 Norddeutsche Grund-Credit Bank E. J. Meyer 2 100 000 Preussische Hypotheken-Actien-Bank E J Meyer 20 000 000 Mitteldeutsche Creditbank E. J. Meyer, Carl Mommsen 17 250 000 Internationale Baugeaellschaft E J Meyer 2 500 000 Pfalzische Hypothekenbank E. J. Meyer.. 10' ooo' ooo Chemische Fabrik Griinau Landshon* & Meyer A. G E J Meyer 900 000 Oesterreichische Sudbahn E. J. Meyer... 440 000' 000 Dresdner Bank Ed. Arnhold 65 000 000 A. G. fur Anilin Fabrikation Ed Arnhold 8 OOD'OOO Westliche Berliner Vorortbahn Ed. Arnhold l' 900' 000 Harkort'sche Bergwerke u. chemische Fabriken zu Schwelm. Max Richter.. . 2,300 000 Allgemeine Hauserbau-A. G. in Berlin Max Richter 500 000 Terraingesellschaft am Neuen Botanischen Garten A. G Max Richter 900,000 Berliner Bierbrauerei A. G. vorm. F. W. Hilsebein Max Richter . 800 000 Boehmisches Brauhaus A. G Max Richter 1 600 000 Chemische Fabrik Auf Action (vorm. E. Schering) Max Richter . 2 500'oOO Verein chemischer Fabriken A. G. in Zeitz Max Richter 1 500 000 Norddeutsche Gummi- u. Guttapercha-Waren-Fabrik Max Richter . . 450*000 Berliner Waschefabrik A. G. vormals Gebr. Ritter. . Max Richter 528 000 Admiralsgarten-Bad in Berlin . Max Richter 1 688'000 Berlin-Neuroder Kunstanstalten Max Richter 'soo' ooo Allgemeine Deutsche Kleinbahn-Ges. A. G . Max Richter 7 320*000 Braunkohlenwerke Leonhard A. G Carl Mommsen 3' ooo' ooo Orenstein & Koppel Arthur Koppel A. G . Carl Mommsen 18 000 000 Elektrische Licht-u. Kraftanlagen A. G Carl Mommsen 14' 200' ooo "Siemens" elektrische Betriebe A. G Carl Mommsen 10 500 000 Deutsche Eisenbahn-Betriebs-Gesellschaft in Berlin Carl Mommsen I'soo'ooo Teutoburger Wald Eisenbahn-Gesellschaft zu Giitersloh Carl Mommsen 2 000 000 Deutsche National bank, Kommanditgesellschaft auf Akti6n J. L. Schrade . . . 9 000' 000 Hamburg-Amerikanische Packetfahrt A. G J. L. Schrade 69 000 000 Total 2 573 388 000 Reichsbank ; 63 600 000 Grand total 2.636.988.000 DISCONTO-GESELLSCHAFT. CONNECTION OF ITS "DIRECTION" WITH THE "DIRECTION" OP OTHER CORPORATIONS. [Approximate capital, $75,000,000.] Other corporations. Connection through- Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Deutsche Hypothekenbank A. G . . Bank des Berliner Kassen-Vereins. Neu Guinea Compagnie Dr. E.Hecker, Dr. G.Strupp Dr. E. Hecker, H. Waller... Dr. W. Schlauch, A. S. von Oppanheim, A. Lent, Dr. O. von Hentig, Dr. L. Ra- ven e". Brolthaler Eisenbahn Dr. W. Schlauch, A. S. von Oppenheim. $9.500.000 2,590,000 2, 750, 000 $1,565,000 198 GERMAN TRADE AND THE WAR. Direct connections of the larger German banks Continued. DISCONTO-GESELLSCHAFT Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Hiistener Gewerkschaft A G Dr. R. Fuss. T. Hinsberg, H. Mathies. Dr. R. Fuss, J. Holier $1,900,000 1,335,000 8,000,000 Maschinenfabrik und Miihlenbaunstalt G. Lu- ther, A. G. Deutscher Eisenhandel A. G Dr. R. Fuss, L. Ravene" Dr. L. Raven, H. Mathies. . R F Ullner Heinrich August Schulte Eisenhandlung A. G . . Deutsche Erdol A G $1,000,000 11,980,000 Deutsche Dampschifffahrts-Gesellschaft" Hansa" A. G. fur Maschinenpapier-Fabrikation Dr. F. Boner 12,500,000 5, 800, 000 420,000 688,000 G. Wiss . . Farbwerke Franz Rasquin A. G. zu Muhlheim a. Neuwalzwerk A. G P. Brandi P. Brandi Otavi Minen u. Eisenbahn Gesellschaft Dr. P. D. Fischer... 4 000 000 The Southwest Africa Co. (Ltd ) Dr. P. D. Fischer, J. B. Schroder. Dr. P. D. Fischer, J. Holter, A. S. von Oppenheim, Dr. O. von Hentig. E. Hardt.. . 8,750,000 17,000,000 5,000,000 50, 000, 000 1,500,000 Landbank Phoenix, A. G. fur Bergbau u. Hiittenbetrieb. Deutscher Lloyd Transport- Versicherungs A. G . A. Schaaffhausenscher Bank-Verein A G E. Hardt, L. Hagen, W. Beukenberg, A. S. von Oppenheim, R. Esser, H. Hartung, G. von Langen. E. Hardt E. Kirdorf, O.Ulricht, A. S. von Oppenheim, H. Har- tung, A. Ballen. L. Hagen, Dr. M. J. Schroder, R. Es- ser, W. Benkenberg, W. Hoesch, P. Klockner, G. von Langen. E. Kirdorf, R. Esser, A. Salomonsohn, H. Mathies. E. Kirdorf, L. Hagen, J. Holter. E. Kirdorf, G. von Langen, L. Hagen, R. Esser. E. Kirdorf . 42,500,000 Gelsenkirchener Bergwerks A. G 80,000,000 2, 625, 000 6,500,000 Rheinisch-Westfalische Sprengstoff A. G Vereinigte Koln-Rottweiler Pulver-Fabriken . . . Rheinisch-Westfalische Elektricitatswerke A. G. A. G. fur Gas u. Elektricitat 20, 000, 000 4,100,000 8, 680, 000 E. Kirdorf... Wasserwerk fiir das Nordliche Westfalische Kohlenrevier. Deutsche Waflfen- u. Munitions Fabriken E. Kirdorf E. Kirdorf, L. Hagen.. 5,000,000 Stahlwerk Oeking A. G E. Kirdorf... 850,000 "Nordstern" Lebens Versicherungs A. G Oberrheinische Eisenbahn Gesellschaft A. G Concordia Spinnerei u. Weberei . E. Kirdorf... 5,000,000 4,000,000 850,000 7,000,000 95, 000, 000 13,200,000 E. Kirdorf Dr. E. Hecker, Frederick Jay. A. Ballin. . Vulcanwerke Hamburg u. Stettin AllgemeineElektricitats-Gesellschaft A. Ballin, L. Hagen, A. S. von Oppenheim. A. Ballin A. Ballin, H. F. von Oppen- heim,. F. von Schroeder. A. Ballin . Elektro Treuhand A. G Hamburg- Amerikanische Packetfahrt A. G Norddeutsche Versicherungs-Geselischaft " "69," 666," 666 5,000,000 Allgemeine Deutsche Credit- Anstalt J. Favreau, Dr. G. Strupp, F.Jay. J. Favreau . 39,666,666 Fritz Schulz jun. A. G 1,850,000 10,000,000 2,500,000 A. G. Brown Boveri & Cie. in Baden, Schweiz. . Porzellanfabrik Kahla J Favreau J Favreau Dr G Strupp Deutscher Eisenhandel A. G J Favreau 8,000,000 Aussig Teplitzer Eisenbahn. .. . j Favreau 18,750,000 9,500,000 6,000,000 2, 500, 000 8,850,000 Sachsische Bank zu Dresden F Jay Deutsche Grundcredit Bank F.Jay. Landkraftwerke Leipzig A. G. in Kulkwitz F.Jay... Grosse Leipziger Strassenbahn F.Jay Preussische Central-Bodenkredit A. G A. S. von Oppenheim. H. Klitzing. A S von Oppfynheim 15,000,000 5 000 000 Deutsch-Asiatische Bank . . . Eschweiler Bergwerks- verein . . . A. S. von Oppenheim 13,000,000 2,300,000 Gussstahl-WerkWitten A. S. von Oppenheim, R. Esser, T. Hinsberg. INTERLOCKING BANKS AND OTHER CORPORATIONS. 199 Direct connections of the larger German banks Continued. DISCONTO-GESELLSCHAFT Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. A S von Oppenheim .... $31,000,000 Rheinische A. G. fur Braunkoliienbergbau u. Brikettfabrikation Coin. Werschen Weissenfelser Braunkohlen A. G A G fur Elektricitats-Anlagen A S von Oppenheim $13,000,000 A. S. von Oppenheim 4,800,000 A. S. von Oppenheim 4,260,000 Elektrische Licht u Kraftanlagen A G A S von Oppenheim 14,200,000 22,000,000 Felten u Guilleaume Carlswerk A G . A. S. von Oppenheim, L Hagen,, A. S. von Oppenheim, L. Hagen. A S von Oppenheim Basalt-Actien-Gesellschaft 2,680,000 785,000 Deutsche Eisenbahn-Speisewagen-Gesellschaft . . Deutsch-Ostafrikaniscne Gesellschaft A. S. von Oppenheim, A. von Langen. A. S. von Oppenheim, G. von Langen. A S von Oppenheim 2,500,000 Kolnische Feuer-Versicherungs-Gesellschaft-Co- lonia. Concordia, Colnische Lebens-Versicherungs- Gesellschaft. Kolnische Hagel-Versicherungs-Gesellschaft Kolnische Riickversicherungs-Gesellschaft 3,250,000 8,250,000 2,250,000 2,500,000 A. S. von Oppenheim, G. von Langen. A. S. von Oppenheim, R. Esser. H. Mathies, W. Marx, J. Holter, Dr. L. Ravene, R. Esser. T. Hinsberg, R. von Vill- nagel. T. Hinsberg, F. A. von der Heydt, W. Marx T Hinsberg Deutsch-Luxemburgische Berwerks-u. Hiitten A. G. Westdeutsche Bodenkreditanstalt ............ 56,000,000 2.830,000 28,600,000 460,000 Barraer Bank-Verein Hinsberg, Fischer & Co . Schenck u Liebe-Harkort A G Vereinigte Deutsche Nickel-Werke A G T Hinsberg 2,500,000 9,000,000 Leonhard Tietz A G T Hinsberg Rheinisch-Westfalische Boden-Kreditbank E. Ladenberg, W. Hoesche, L. Hagen, R. Esser, G. von Langen. E Ladenberg 5,800,000 15,000,000 800,000 2,100,000 Suddeutsche Disconto-Gesellschaft A. G. in Mannheim. J D Riedel A. G Berlin-Britz Dr. O. von Hentig A. G. Mix. & Genest Telephon-u. Telegraphen- werk. Kattowitzer A. G. fur Bergbau-u. Eisenhiitten- betrieb. Eisenhiitte Selisia Dr O von Hentig Dr L Ravens' 15,775,000 4,000,000 1,500,000 Dr L Raven6 Aktien Verein des Zoologischen Garten Dr. L. Raven6 Norddeutsche Grundcredit-Bank Dr. G. Strupp 2,100,000 Bank fur Thiiringen (vorm. B. M. Strupp A. G. in Meiningen). Mltteldeutsche Creditbank Dr G Strupp 3,000,000 Dr G. Strupp 17,250,000 A G fur Montan-Industrie Dr. G. Strupp, Dr. F. Barn- burger. Dr G Strupp .. . 1,200,000 3,400,000 720,000 745,000 663,000 715,000 408,000 2,073,000 1,360,000 643,000 745,000 1,936,000 313,000 2,680,000 8,300,000 5,000,000 1,396,000 "Eintracht," Braunkohlenwerke u. Briketfabri- ken. A G Johannes Jeserich Dr G Strupp Saline u Soolbad Salzungen Dr G Strlpp Vereinigte Thiiringische Salinen Dr G. Strupp Porzellanfabrik Konigszelt Porzellanfabrik Schonwald Dr. G. Strupp Dr. G. Strupp Triptis A G. Dr G Strupp H. Berthold Messinglinienfabrik u. Schriftgies- serei. Kammgarnspinnerei Wernshausen Westdeutsche Jute Spinnerei u Weberei Dr G Strupp Dr. G. Strupp Dr G Strupp Vereinigte Eisenbahnbau- u. Betriebs-Gesell- schaft. E Wunderlich & Co A G Dr. G. Strupp Dr G Strupp Wiirttenibergische Notenbank R vonVellnagel Deutsche Effecten- u Wechsel-Bank R von Vellnagel Madgeburger Bank-Verein H Folsche Maschinenfabrik Buckau A. G. zu Madgeburg. . Kaliwerke Aschersleben H Folsche J. Hoeter, A. Salomonsohn. . J. Hoeter, G. von Langen, L. Hagen. 4,000,000 12,500,000 Deutsch-Atlantische Telegraph en- Geeellschaft. . 200 GERMAN TRADE AND THE WAR. Direct connections of the larger German banks Continued. DISCONTO-GESELLSCHAFT Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Rteichs- bank. Not shown in connections of Reichs- bank. Deutsch-Niederlandische Telegraphen-Gesell- schaft. Deutsch-SudamerikanischeTelegraphen-Gesell- schaft. Gesellschaft fur elektrische Unternehniungen . . J Hoeter L Hagen $4,750,000 9,000,000 J Hoeter, L Hagen J Hoeter $28,000,000 5,160,000 Gebr Bi hler & Co A G J Hoeter W Marx Ludwig Loewe & Co. A. G Grosse Berliner Strassenbahn J. Hoeter J Hoeter 7,000,000 54,000,000 Badische Lokal-Eisenbahn A. G J. Hoeter 4,213,000 Ostafrikanische Eisenbahn-Gesellschaft Westdeutsche Eisenbahn-Gesellschaft J. Hoeter J Hoeter 26,000,000 5,000,000 6,000,000 4,225,000 1, 430, 000 6,800,000 1,500,000 4,135,000 390,000 656,000 900,000 7,500,000 800,000 Frankfurter Allgemeine Versicherungs A. G Th Goldschmidt A G Essen O Ulrich W Marx Dusseldorfer Eisenbahn-Bedarf (vorm. Carl We- yer & Co.). W Marx W Marx .. Hoffmanns Starkefabriken A G W Wolde rlasper Bison u Stahlwerke .... F. A. von der Heydt, P. Klockner. F A von der Heydt . Erste Deutsche Fein-Jute-Garn-Spinnerei A. G . Kammgarn Spinnerei Diisseldorf F A von der Heydt Hermann Schott A G F A von der Heydt Ostbank f iir Handel u Gewerbe H von Klitzing Deutsche Labens-Versicherungsbank H von Klitzing Anglo Continentale Guanowerke H. von Ohlendorff 4,250,000 Hamburg-SudamerikanischeDampfschiffahrts- Gesellschaft. Rheinische Stahlwerke zu Duisburg Meiderich.. Rutgerswerke A G H. von Ohlendorf 10,140,000 Dr J Hasslacher 16,000,000 Dr J Hasslacher 7,100,000 1,070,000 23,500,000 8,160,000 2,945,000 370,000 550,000 1,150,000 9,000,000 2,895,000 460,000 2, 300, 000 23,400,000 Mfisohinfinfabrik Ban Dr j Hasslacher Farbwerke(vorm. Meister, Lucius & Briining).. Luxemburger Bank (Internationale Bank in Luxemberg). Rheinisch-Nassauische Bergwerks u. Hiitten A. G. A. G.fiir Rheinisch-Westfalische Cement Indus- trie Beckum. Maschinenfabrik Grevenbroich K. von Weinberg R Esser R Esser R Esser R Esser P. Klockner Waggonfabrik A. G. (vorm. P. Herbrand & Cie.). Masohinenbau- A Tistalt " TTmnboldt " R Esser R. Esser, P. Klockner, W. Hoersch. R. Esser, P. Klockner, L. Hagen. R Esser Faconeisen Walzwerk 1, Mannstaedt & Co. A. G. A G f iir Rheinisch-Westfalische Industrie Lothringer Hiitten-Verein Aumetz Friede L. Hagen, P. Klockner, W. Hoesch. L. Hagen L Hagen Vereinigte Koenigs- u. Laurahiitte A. G. fiir Bergbau. The Nobel Dynamite Trust Co. (Ltd ) .... 14,500,000 Berlin- Anhaltische Maschinenbau A G L Hagen H Hartung 4,000,000 Deutsche Maschinenfabrik A. G. zu Duisburg 4,590,000 980,000 18,000,000 525,000 1,200,000 1,375,000 886,000 1,325,000 550,000 8,600,000 3,060,000 5,150,000 1,300,000 2, 200, 000 6,150,000 8,157,000 600,000 Kalker Werkzeug Maschinen Fabrik Brevier Schumacher & Co. A. G. Orenstein & Koppel Arthur Koppel A. G L Hagen L Hagen Annaburger Stemgutfabrik A G L Hagen H Hartung . . Glas u Spiegel Manufactur L Hagen Diirener Metallwerke A G L Ha^en Vereinigte Metallwaarenfabriken A. G. (vorm. Haller&Co.). Mecklenburgische Bank . . . . L Hagen H Hartung Carl Ernst & Co A G H Hartung Eisen u. Stahlwerk Hoesch A. G. in Dortmund. . Gerb- u Farbstoffwerke H. Renner & Co W Hoesch W Hoesch Mittelrheinische Bank in Coblenz P. Klockner Krefelder Stahlwerk A. G. in Fischeln bei Krefeld Hochofenwerk Liibeck A. G.. P Klockner P Klockner Vereinigte Stahlwerke van der Zypen u. Wis- sener Eisenhiitten A. G. Gasmotoren Fabrik-Deutz P Klockner P. Klockner, G. von Langen . P. Klockner.... Schwelmer Eisenwerke Miiller & Co. A. G Bergmann Elektricitatswerke A. G... P. Klockner.... 22,500,000 INTERLOCKING BANKS AND OTHER CORPORATIONS. 201 Direct connections of the larger German banks Continued. DISCONTO-GESELLSCHAFT-Continued. Other corporations. Connection through- Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Diisseldorfer Eisen- u. Draht-Industrie Koln-Neuessener Bergwerks-Verein Continentale Gesellschaft fur elektrische Unter- nehmungen. Elektricitats A. G. (vorm. Schueket & Co.) Mannesmannrohren Werke Privatbank zu Gotha P. Klockner... G. von Langen. G. von Langen. G. von Langen. G. von Langen. P. Schoeller... $21,325,000 $1,827,000 3,360.000 10,045,000 31,490,000 3,000,000 Total. Reichsbank. Dr. E. Hecker. Dr. L. Ra- vene, Dr. A. Salomon- sohn, E. Hardt. 781,595,000 694,259,000 63,600,000 Grand total. 781,595,000 757,859,000 BANK FUR HANDEL UND INDUSTRIE. CONNECTION OF ITS "DIRECTION" WITH THE "DIRECTION" OF OTHER CORPORATIONS. [Approximate capital, $48,000.000.) M Klitzing Dr H Oppen- $2 590 000 Boden-Aktien Gesellschaft am Amtsgerioht Pan- heim. H Marks A Rosen $1 250 000 kow. NeneBodenA G in Berlin H Marks 11,000 000 Deutsch-Sudamerikaiiische Telegraphen-Gesell- H. Marks 9,000,000 schaft. Mixu Genest Telephon- u Telegraphenwerke... H. Marks... 2,000,000 Gebriider Stollwerk A G H Marks 5 000 000 Berliner Hypothekenbank A. G G. von Simson 6,800,000 Ostbank fiir Handel u Gewerbe G. von Simson, M. Herz. ... 7,500,000 Deutsch-Luxemburgische Bergwerks u. Hutten A. G. Bank fur elektrische Unternehmungen G. von Simson G von Simson 56,000,000 34 000 000 Continentale Wasserwerks-Gesellschaft G. von Simson 2,800,000 Liibeck-BiichenerEisenbahn-Gesellschaft G von Simson 15 000 000 Filter- u brautechnische Maschinenfabrik A. G. J. Andreae, jr 1,300,000 (vorm, L. A. Enzinger). Deutsehe Lebens-Versicherungs-Bank J Andreae jr S Boden- 800 000 Harpener Bergbau A G heimer. S Bodenheimer 31 000 000 Eisenhiittenwerk Thale A G S Bodenheimer 2,390,000 Borsigwalder Terrain A G in Berlin S Bodenheimer 1,100,000 Brauerei Ernst Engelhardt, nachf A. G. Berlin. S Bodenheimer 1,000,000 Ostelbische Spritwerke A G S Bodenheimer 1, 250, 000 Berlin-GubenerHutfabrickA.G.(vorm.A. Cohn) S. Bodenheimer 900,000 Berliner Spediteur-Verein A G S Bodenheimer 500,000 Edward Lingel Schuhfabrik A. G S. Bodenheimer 1,900,000 A G Korting's Elektricitatswerke A. G P Bernhard 1,800,000 Baverische Celluloid-Waarenfabrik (vorm Alb R Gutmann 500,000 Wacker) A. G. Reiss & Martin A G R Gutmann 325,000 Terrain-Aktiengesellschaft Miillerstrasse in Ber- A. Rosen 1,300,000 Suddeutsche Immobilien Gesellschaft A Rosen J Andreae C 4 000 000 Gustav Genschow & Co. A. G Malzbierbrauerei Groterjahn & Co. A. G. in Parkis, Dr. J. Kaempf. A. Rosen A. Rehfeld 900,000 300,000 Berlin. Berliner Hypothekenbank A G J Kaempf 6 800 000 Siiddeutsche Boden-Creditbank Dr J Kaempf J Andreae 9 250 000 Wurttembergische Bankanstalt (vorm Pflaum Dr. C. S. Polex. Dr J Kaempf C Parkis 3 500 000 &Cie. Amsterdamsche Bank ......... Dr J Kaempf J Andreae 9,000,000 Banca Commerciale Italiana C. Parkis. Dr J Kaempf 31, 250, 000 Hugo Schneider A. G.. in Leipzig... Dr. J. Kaempf... 1,800,000 202 GERMAN TRADE AND THE WAR. Direct connections of the larger German &anfcs Continued. BANK FUR HANDEL UND INDUSTRIE-Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reitjhs- bank. Chemische Fabrik Griesheim-Elektron Dr. C. S. Polex, J. Andreae Felten u. Guilleaume Carlswerk A. G Dr. C. S. Polex, T. Guil- ! $22,000,000 leaume. C. Parkis. Elektricitacs A. G. (vorm. W. Lahmeyer & Co.) Dr. C. S. Polex, T. Guil- leaume, C. Parkis. Adlerwerke (vorm. Heinr. Kleyer) A. G j Dr. C. S. Polex "Concordia " Bergbau A. G Ed. Carp Rheinisch-Westf alische Sprengstoff A. G Ed . Carp, T. Guilleaume .... 2, 625, 000 Niederrheinische Giiter-Assequrenz A. G Ed. Carp. . 1 Vereinigte Berlin-Frankfurter Gummiwaaren H. Rinkel Fabriken. Norddeutsche Jute-Spinnerei u. Weberei H. Rinkel Vereinigte Koto-Rottweiler Pulverfabriken T. Guilleaume 6, 500, 000 AllgemeineElektrieitats-Gesellschaft T. Guilleaume, Dr. F. G. 95,000,000 Brockdorf. Deutsch-Atlantische Telegraphen-Gesellschaft . . T. Guilleaume 12, 500, 000 Chemische Fabrik Gronaulandshoff u. Meyer Prof. J. Riesser 900,000 A. G. Westliche Berliner Vorortbahn Prof. J. Riesser 3,250,000 "Union," Allgemeine Versicherungs A. G. zu Prof. J. Riesser Berlin. Schantung-Eisenbahn-Gesellschaft Prof. J. Riesser 17, 000, 000 Bank des Berliner Kassen-Vereins Dr. H. Oppenheim 2, 590, 000 Deutsch-Asiatische Bank Dr. H. Oppenheim 5,000,000 Vereinsbank in Hamburg Dr. H. Oppenheim 11,OOU,000 Aktiengesellschaft f iir Verkehrswesen Dr. H. Oppenheim 4, 150, 000 Deutsch-Ostafrikanische Gesellschaft Dr. H. Oppenheim 2, 500, 000 Neu Guinea Compagnie j Dr. H. Oppenheim 2,750,000 Ostafrikanische Eisenbahn-Gesellschaft Dr. H. Oppenheim 26, 000, 000 Keneh Assouan Eisenbahn-Gesellschaft Dr. H. Oppenheim 13, 500, 000 Siiddeutsche Eisenbahn-Gesellschaft H. Bachstein Deutsche Hypothekenbank A. G C. Parks 9,500,000 Brauerei Gebr. Dietrich A. G C. Parks Henn. Lohnert A. G M. Herz Posener Strassenbahn M. Herz Frankfurter Hypothekenbank A. E. Schonberg Preussische Pfandbrief-Bank zu Berlin J. Andreae 9, 000, 000 Farbwerke (vorm. Meister Lucius & Broning) Dr. L. Gans in Hochst. "Silesia " Neu-Oppelner Portland-Cementfabrik Dr. L. Nasse zu Oppeln. Deutsche Grundcredit Bank Dr. F. G. Brockdorff Bismarckhiitte Dr. F. G. Brockdorff 7,500,000 | Actiengesellschaft Eisenwerke Kraft Dr. F. G. Brockdorff Schlesische Actiengesellschaft fur Bergbau und Dr. F. G. Brockdorff Zinkhiittenbetrieb. Vereinigte Koenigs- und Laurahutte A. G. fur Dr. F. G. Brockdorff 14, 500, 000 Bergbau u. Hiittenbetrieb. Oppelner Actien-Brauerei u. Presshefefabrik i Dr. F. G. Brockdorff Vereinigte chemische Fabriken zu Leopoldshall ! Dr. F. G. Brockdorff 3, 000, 000 A. G. "Union" Fabrik chemischer Producte zu Stet- Dr. F. G. Brockdorff tin. "Archimedes" A. G. fur Stahl u. Eisen-Indus- Dr. F. G. Brockdorff 1,200,000 trie. Schlesische Dampfer Compagnie A. G Dr. F. G. Brockdorff Brieger Stadtbrauerei A. G Dr. L. Grunfeld Total 558,455,000 Reichsbank Dr. J. Kaempf, P. Bernhard Dr. H. Oppenheim. Grand total 558,455,000 INTERLOCKING BANKS AND OTHER CORPORATIONS. 203 Direct connections of the larger German banks Continued. NATIONAL BANK FUR DBUTSCHLAND. CONNECTION OF ITS " DIRECTION " WITH THE " DIRECTION " OF OTHER CORPORATIONS. [Approximate capital, $26,400,000.] Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Bank des Berliner Kassen-Vereins M. Winterfeldt, F. Andreae. M. Schiff $2, 590. 000 2,100 000 Norddeutsche Grund-Credit-Bank Berliner Makler-Verein M Schiff Carl Hagen $1,250.00 Deutsche- L,uxemburgische Bergwerks- u- Hilt- ten A. G. Huttenwerke C. Wilh. Kayser u. Co. A. G. zu Berlin. Consolidate Alkaliwerke M. Schiff-. 56. 000 000 M. Schiff, Prof. H. Paasche . 1,200.00 6.000 000 2,000 000 M Schiff Gebriider Goedhart A. G. in Diisseldorf M. Schiff. . Neue Boden A. G M. Schiff 11. (XX Stahnsdorfer Terrain A. G. am Teltowkanal Tiefbau u. Kalteindustrie A. G. (vorm. Geb- hard & Koenig). Deutsch - Ueberseeische Elektricitats - Gesell- schaft. Gesellschaft fiir elektrische Unternehmungen . M. Schiff, L. Born M. Schiff 1,700,000 1,400,000 M. Schiff, F. Andreae 67, 000, 000 M Schiff 28,000,000 Kraftiibertragungswerke Rheinfelden M. Schiff... 6, 400, 000 H. Schonberg & Sohne A. G.. M. Schiff 430,000 400,000 Leipziger Gummi-Waaren-Fabrik A. G. (vorm. J. Marx Heine & Co.). Deutsche Waffen- u . Munitionsfabriken Ludwig Loewe & Co M. Schiff M. Schiff . . . M. Schiff, Dr. P. von Gont- ard. M Schiff 5,000,000 7,000,000 7 300 000 Allgemeine Deutsche Kleinbahn-Gesellschaft A. G. Grube Leopold bei Edderitz, A. G. in Edderitz.. Deutsch-Niederlandische Telegraphengesell- schaft A. G. Conn. Deutsch-Sudamerikanische Telegraphen-Gesell- schaft. Continentale Wasserwerk-Gesellschaft . E Wittenberg r mooo E.Wittenberg 4, 750, 000 9,000,000 E Wittenberg E Wittenberg 2, 800, 000 700,000 Eisengiesserei A. G. (vorm. Keyling & Thomas). Deutsch-Asiatische Bank E. Wittenberg, L. Born. . . H. Winterfeldt . 5.000 000 10. 000 000 17.000,000 Oberschlesische Eisen-Industrie A. G. fur Berg- bau & Hiittenbetrieb. Schantung-Eisenbahn Gesellschaft H Winterfeldt T. Marba L Born . Alkali Ronnenberg A. G T Marba 5,000,000 800,000 1,200,000 1,700,000 1,100,000 300,000 800.000 2, 100, 000 "Handelsstadte" Bellealliance A. G. zu Berlin. Terrain- Aktiengesellschaft Mullerstrasse zu Ber- lin. " Union. " Baugesellschaft auf Actien T. Marba T Marba . .. T. Marba... Aktien Brauerei Friedrichshain... . T Marba A. G. vorm. H. Gladenbeck & Sohn Bildgiesserei. Habermann & Guckes A. G. in Kiel T. Marba P. Koch Carl Lindstrom A. G. in Berlin. . P Koch Deutsahe Bierbrauerei A. G F Andreae P Koch 1,500 000 9,000 000 Preussische Pfandbrief Bank in Berlin P Koch ' Norddeutsche Credit- Anstalt . . . R Witting 6,800,000 18, 100, 000 2,950,000 Oberschlesische Eisenbahn-Bedarfs A. G R. Witting, Dr. O. Nie'dt . . Zechau-Kriebitzscher Kohlenwerke Gluckauf A. G. Terraingesellschaft am Neuen Botanischen Gar- ten A. G. Berliner Bockbrauerei A. G R Witting R. Witting 00,000 R Witting A Philipsthal 1,900,000 7,100,000 Linke-Hofmann-Werke Breslauer A. G. fur Eisenbahnwagen-Lokomotiv- u. Maschinen- bau in Breslau. Schlesische Elektricitats- und Gas A. G. . L. Born. R Witting R. Witting, F. Andreae... R. Witting.. 6, 750, 000 Breslauer Elektrische Strassenbahn 1,700,000 2,000,000 6,000,000 Rositzer Zucker-Raffinerie R. Witting, Prof. H.Paasch R Witting e Frankfurter Allgemeine Versicherungs- Gesell- schaft A. G. Kamerun-Eisenbahn R. Witting . 4,000.000 Vereinigte Stahlwerke van der Zypen und Wis- sener Eisenhiitten A. G. Donnersmarckhutte, Oberschlesische Eisen- u. Kohlenwerk* A. G. C Scheibler 6.150,000 5,000,000 Dr. E. Holz 204 GERMAN TRADE AND THE WAR. Direct connections of the larger German banks Continued. NATIONAL BANK FUR DEUTSCHLAND-Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Westfalische Stahlwerke Dr. E. Holz... 14,700,000 2,700,000 1,300,000 22,000,000 80,000,000 2,300,000 Chemische Fabrik Honningen u. vorm. Mes- singwerk Reineckendorf R. Seidel A. G. Hon- ningen a. Rh. Eisenhiittenwerk Marienhiitte bei Kotzenau A. G. Dr. E. Holz. .. . Dr. E. Holz H. S. von Hahn Gelsenkirchener Bergwerks A. G C. Hagen Gussstahlwerk Witten C. Hagen Gewerkschaf t Gliickauf zu Sondershausen G. Sauerbrey Maschinenfabrik A. G C. Hagen C. Hagen . . " $s66 '666* 1,100,000 2,200,000 Vereinigte Berlin-Frankfurter Gummiwaren Fabriken. C. Lorenz A. G C. Hagen C. Hagen 500,000 900,000 Hermann Schott, A. G. zu Rheydt C Hagen Bank fur Brau-Industrie F Andreae 2,750,000 500,000 450,000 1,400,000 34 000 000 Dusseldorfer Eisenhiitten-Gesellschaft F Andreae Bauland Seestrasse-Nordpark A G F Andreae A. G. fur Beton u. Monierbau F. Andreae . Bank fiir elektrische Unternehmungen . F. Andreae Elektricitats-Lieferungs-Gesellschaft F Andreae 15,000,000 2,200,000 1,300,000 1,600,000 850,000 9,000,000 50,000,000 Deutsche Linoleum u. WachstuchCompagnie. . Poppe u. Wirth A. G . . . . F. Andreae . F. Andreae Kollmar u. Jourdan A. G. (Uhrketten Fabrik in Pforzheim). Mechanische Weberei . F Andreae F Andreae Leonhard Tietz A. G. (trading concern) F. Andreae. .. "Phoenix" A. G. fiir Bergbau u. Hiittenbetrieb. A. G. Deutsche Kaliwerke Bernterode H. Kost . "io "666 '666 270,000 360,000 1,200,000 H Kost "Finkenberg" A. G. fur Portland-Cement-u. Wasserkalk-Fabrikation. R W. Dinnendahl A G H. Kost i H Kost Glas- u Spiegel-Manufactur Dr P Mallinckrodt Bismarckhutte L. Born. Dr. P. von Gontard, A. Philipsthal. L. Born, A. Philipsthal 7,500,000 A. G. H. F. Eckert 1,860,000 Allgemeine Elektricitats-Gesellschaft L Born 95,000,000 12,500,000 Deutsch-Atlantische Telegraphen-Gesellschaft. . Gebr. Bohler & Co. A. G L Born L. Born, Dr. P. von Gontard 5,160,000 4,250,000 7,700,000 1,250,000 525,000 3,000,000 895,000 3, 983, 000 1,744,000 4,000,000 1,600,000 711,000 Berlin-Charlottenburger Strassenbahn L Born Hamburger Strassen-Eisenbahn-Gesellschaft Posener Strassenbahn L Born L. Born Erfuter elektrische Strassenbahn A Philipsthal Magdeburger Strassen-Eisenbahn-Gesellschaft . . Bank fiir Bergbau u. Industrie A Philipsthal Prof. H . -Paasche . . Gesellschaft fiir Brauerei Spiritus- u. Presshefe Fabrikation (vorm. G. Sinner), Karlsruhe- Griinwinkel. Howaldtswerke, Kiel. Prof. H Paasche Prof. H Paasche Rheinische Metallwaren- u. Maschinenfabrik Telephon-Fabrik A G vorm J Berliner Prof H Paasche Prof H Paa^che Norddeutsche Lederpappen-Fabrik . . . Prof. H. Paasche "Archimedes." A. G. fiir Stahl- u. Eisen-Indus- trie. Deutscher Eisenhandel A. G Dr O Niedt 1 200 000 Dr. O. Niedt.. . . 8,000,000 9,250,000 Schlesische A. G. fiir Bergbau u. Zinkhutten- betrieb. Vereinigte Koln-Rottweiler Pulverfabriken Daimler Motoren- Gesellschaft Dr P. von Gontard Dr P von Gontard 6,500,000 Dr P. von Gontard 3,856,000 1,375,000 9,250,000 Diirener Metallu erke A G Dr P von Gontard Preussische Boden-Credit-Actien-Bank Dr E von Eichhorn Total 479,590,000 307,919,000 63,600,000 Reiohsbank F Andreae Grand total 479,590,000 371,519,000 INTERLOCKING BANKS AND OTHER CORPORATIONS. 205 Direct connections of the larger German banks Continued. BANK DES BERLINER KASSEN-VEREINS. CONNECTIONS OF ITS "DIRECTION" WITH THE "DIRECTION" OF OTHER CORPORATIONS. [Approximate capital, $2,590,000.1 Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Bank fur Handel und Industrie Dr. Hugo Oppenheim 548.000,000 9,500,000 75,000,000 850.000 5,000,000 11,000,000 4,150,000 ' 2,500,000 Deutsche Hypothekenbank Dr. Emil Hecker. Edmund Helfft. Dr. Ernil Hecker, Herman Waller r Dr. E mil Hecker.. . Disconto-Gesellschaft Concordia Spinnereiund Weberei... Deutsch-Asfatische Bank Dr. Hugo Oppenheim. Paul von M. Bartholdi, Albert von Blaschke. Dr Hugo Oppenheim Vereinsbank in Hamburg A. G. fur Verkehrswesen . ... Dr. Hugo Oppenheim Deutsch-Ostafrikanische-Gesellschaft Dr. Hugo Oppenheim Neu Guinea Compagnie Dr. Hugo Oppenheim 2,750,000 26,000,000 1,600,000 13,500,000 62,500,000 Ostrafrikanische Eisenbahn-Gesellschaft Dr. Hugo Oppenheim, Carl Joerger. Dr. Hugo Oppenheim Ostdeutsche Eisenbahn-Gesellschaft Keneh Assouan Eisenbahn-Gesellschaft .. Dr. Hugo Oppenheim, Max Winterfeldt. H. Wallich, P. Mankiewitz. . H Wallich Deutsche Bank Deutsche Uberseeische Bank $16,000,000 Banca Commerciale Italians H. Wallich, Max Winter- feldt. H Wallich 31,250,000 6,700,000 900,000 36,500,000 26,400,000 A G fur Anilin Fabrikation Berliner Hagel-Assecuranz Gesellschaft vom 1832. Berliner Handels- Gesellschaft H. Wallich. Ernest Joaquin Meyer, Rot. von Mendell- sohn. Max Winterfeldt. Nationalbank fur Deutschland Max Winterfeldt, Fritz An- dreae. Max Winterfeldt Bergwerks-A G Consolidation 7,500,000 2,000,000 "i,"25o,"666 Gewerkschaft Fiirst Leopold zu Hervest- Dorsten. Bergwerks Gesellschaft Hibernia Max Winterfeldt Max Winterfeldt 26,000,000 A. G Thiederhall . Max Winterfeldt Handelsgesellschaft fiir Grundbesitz Max Winterfeldt 6,000,000 Leipziger Bierbrauerei zu Reudnitz Riebeck & Co. A. G. Berliner MaschinenbauA.G. (vorm.L.Schwartz- kopfif). Deutsche Continental Gas-Gesellschaft Max Winterfeldt 4,000,000 5,200,000 15,000,000 5,000,000 3,750,000 15,000,000 Max Winterfeldt Max Winterfeldt A. G. fur Glassindustrie (vorm. Friedr. Sie- mens). Westfalische Drahtindustrie Max Winterfeldt, Max von Klitzing. Max Winterfeldt Allgemeine Lokal- und Strassenbahn-Gesell- schaft. Pfalzische Hypothekenbank Max Winterfeldt Ernest Joaquin Meyer Ernest Joaquin Meyer 8,000,000 20,000,000 17,250,000 2,500,000 Preussische Hypotheken Aktien Bank Mitteldeutsche Creditbank Ernest Joaquin Meyer, Carl Mommsen. Ernest Joaquin Meyer. . . ... Internationale Baugesellschaft Chemische Fabrik Cronau Landshoff und Meyer A. G. Oesterreichische Siidbahn Ernest Joaquin Meyer 900,000 440,000,000 Ernest Joaquin Meyer Dresdner Bank Ed Arnhold 65,000,000 4,000,000 95,000,000 5.000,000 7,000,000 10,625,000 54,000,000 1,500,000 1,500,000 Berlin-Anhaltische Maschinenbau A G Ed. Arnhold,P. Mankiewitz. E d. Arnhold , Max von Klitz- ing, Albert von Biaschke. Ed Arnhold Allegemeine Elektricitats-Gesellschaft Deutsche Waflen- und Munitionsfabriken Ludwig Loewe & Co. A. G Ed. Arnhold, Max vonKlitz- ing. Albert von Blaschke. Ed. Arnhold AEG. Schnellbahn-A. G Grosse Berliner Strassenbahn .... Ed. Arnhold, Max vonKlitz- ing. Carl Mommsen, Carl Joerger. Carl Mommsen Deutsche Eisenbahn-Betriebs-Gesellschaft in Berlin. 206 GERMAN TRADE AND THE WAR. Direct connections of the larger German banks Continued. BANK DES BERLINER KASSEN-VEREINS Continued. Other corporations. Connection through- Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connect! on of Reichs- bank. Teutoburger Wald-Eisenbahn-Cesellschaft zu Gutersloh. Carl Mommsen $2,000,000 Max von Klitzing $7,500,000 Deutsch-Luxemburgische Bcrgwerks- und Hiit- ten A. G. "Phoenix" A. G. fur Bergbau und Hiitten- betrieb. Rheinisohe A. G. fiir Braunkohlenbergbau und Briket tfa orikation-Coln . A. G. Firma Saar- und Mosel Bergswerks- Gesellschaft zu Karlingen Boden A G Berlin-Nord Max von Klitzing 56,000,000 50,000,000 Max von Klitzing Max von Klitzing 13,000,000 9,500,000 4,000,000 20,000,000 Max von Klitzing Max von Klitzing Tempelhofer Feld A. G. fiir Grundstiicksver- wertung. Rheinisch-Westfalisches Elektricitats- Werk . . . . Bauland Seestrasse-Nordpark A G Max von Klitzing 5,000,000 Max von Klitzing Fritz Andreae 450,000 1,400 000 Fritz Andreae Ed Arnhold Albert von Blaschke, Ed. Arnhold Albert von Blaschke 3, 250, 000 17,000,000 15,000,000 14,500,000 07,000,000 Schantung-Eisenbahn Gesellschaft Preussische Central-Bodenkredit A. G Vereinigte Koenigs und Laurahiitte A. G. fur Bergbau ..und Hiittenbetrieb. Deutsche Uberseeische Elektricitats Gesell- schaft. G esllschaft fiir elektrische Unternahmungen . . . Barlin-Charlottenburger Strassenbahn A Ibert von Blaschke Albert von Blaschke, Max von Klitzing. Albert von Blaschke, Max von Klitzing. Albert von Blaschke . 28,000,000 4,250,000 Deutscher Lloyds Transport- Versicherungs A . G . Liegnitz-Rawitscher Eisenbahn Albert von Blaschke 1,500,000 Albert von Blaschke 2,500,000 4,666,066 18,000,000 14,200,000 13,200,000 11,000,000 31,000,000 Orenstein & Koppel (Arthur Koppel) A. G Elektrische Licht- und Kraftanlagen A. G Carl Mommsen Carl Mommsen Elektro-Treuhand A G Carl Mommsen Siemens elektrische Betriebe A G Carl Mommsen Carl Mommsen " Allianz " Versicherungs A G Max von Klitzing 6,000,000 ""5," 666, "066 1,250,000 3,000,000 31,000,000 ^ Kamerun-Eisenbahn-Gesellschaf t Max von Klitzing 4,000,000 Westdeutsche Eisenbahn-Gesellschaft Max von Klitzing P. Mankiewitz, Herman Waller. P Mankiewitz Hohenlohewerke A. G. zu Hohenlohehiitte Kreis Kattowitz. The Southwest Africa Co. (Ltd.) (British company). Accumulatoren-Fabrik A G P Mankiewitz P Mankiewitz 8,750,000 6,000,000 6,400,000 5,000,000 56,000,000 P. Mankiewitz P. Mankiewitz, Carl Joerger. P. Mankiewitz P Mankiewitz Kraftiibertragungswerke Rheinfelden Aluminium Industrie A. G Norddeutscher Lloyd ""3," 666,' 666 5,000,000 15,000,000 Bank fiir Thiiringen, vorm. B. M. Strupp A. G. in Meiningen. Magdebujger Bank-Verein Herman Waller Herman Waller Siiddeutscher Discontogesellschaft A. G. in Mannheim. Stahlwerke Rich Lindenberg A. G Herman Waller Carl Joerger 1,400,000 1,000,000 425,000 3,000,000 1,200,000 34,000,000 6,750,000 1,100,000 850,000 900,000 2,750,000 500,000 1,500,000 15,000,000 Gewerkschaft Ludwig II Stassfurt Carl Joerger Vereinigte Chemische Fabriken zu Leopaldshall "Archimedes" A. G. fiir Stahl- u. Eisen-Indus- trie. Bank fiir elektrische Unternehmungen Carl Joerger . Carl Joerger, Fritz Andreae.. Carl Joerger, Fritz Andreae.. Carl Joerger Carl Joerger Schlesische Elektricitats- u Gas A G Crollwitzer Aktien-Papierfabrik Berlinische Lebens-Versicherungs-Gesellschaft. . Carl Joerger Fritz Andreae Fritz An draee... Elfiktrioitats Lieferunes-Gesellschaft. . . INTERLOCKING BANKS AND OTHER CORPORATIONS. 207 Direct connections of the larger German banks Continued. BANK DP:S BERLINER KASSEN-VEREINS-Continued. Other corporations. Connection through- Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Deutsche Linoleum- und Wachstuch Compagnie Poppe und Wirth A G Fritz Andreae ... $2,200,000 1,300,000 1,600,000 850,000 9,000,000 Fritz Andreae KoTlmar and Jourdan A. G. (Uhrketten Fabrik in Pforzheim). Fritz Andreae Leonhard Tietz A G (trading concern) Fritz Andreae Total 1,708,500,000 $222,700,000 63,600,000 Reich sbank H Waflich, P Manidewitz Grand total 1,708,500,000 $286,300,000 DEUTSCHE HYPOTHEKENBANK A. G. CONNECTIONS OF ITS "DIRECTION" WITH THE "DIRECTION" OF OTHER CORPORATIONS. [Approximate capital, $9,500,000.) Bank fiir Handel u. Industrie Handelsstadte "Bellealliance" A. G. zu Berlin. . Fabrikisolirter Drahte zu elektrischen Zwecken C. Parkis ! Dr.G.Hirte Dr G Hirte C Sobernheim $48,000,000 "$8o6,"666 1 000 000 (vorm. A. J. Vogel) A. G. Bank fur Deutsche Eisenbahnwerthe Dr. C Fiirstenberg 2, 700, 000 Berliner Handels-Gesellschaft Dr C Fiirstenberg 36,500 000 Bismarckhutte . Dr. C. Fiirstenberg 7,500,000 Harpener Bergbau A G Dr C Fiirstenberg 31,000 000 " Bergwerks-Gesellschaft (Hibernia) Dr. C. Fiirstenberg 26, 000, 000 Oberschlesische Eisen-Industrie A G fiir Berg- Dr C Fiirstenberg . . 10, 000, 000 bau & Hiittenbetrieb. Rheinische Stahlwerke zu Duisburg Meiderich Dr C Furstenberg 16, 000. 000 Rombacher Hiittenwerke Dr. C. Fiirstenberg 24,000,000 Schlesische Kohlen- u Kokeswerke Dr. C. Fiirstenberg 3,000,000 Gewerkschaft Victoria in Ltinen Dr. C. Fiirstenberg 3,000,000 Handels-Gesellschaft fiir Grundbesitz Dr. C. Furstenberg 6,000,000 Elektro chemische Werke Gesellschaft mit Dr C Furstenberg .... 2, 500, 000 beschrankter Haftung. Berlin- Anhaltische Maschinenbau A G Dr C Furstenberg 4,000,000 Vulcanwerke Dr. C. Furstenberg 7,000,000 Accumulatoren Fabrik A G . .... Dr C Furstenberg 6,000,000 Allgemeine Elektricitas-Gesellschaft Dr. C. Furstenberg 95,000,000 Bank fiir elektrische Unternehmungen Dr. C. Furstenberg 34,000,000 Berliner Elektricitatswerke Dr C Furstenberg . . . 42, 000, 000 Felten & Guilleaume Cartswerk A. G Dr. C. Furstenberg 22,000,000 Kraftiibertragungswerke Rheinfelden . . Dr C. Furstenberg 6,400.000 GasanstaJt-Betriebs-Gesellschaft Dr. C. Furstenberg 3,000,000 Aluminium Industrie A. G Dr. C. Furstenberg 5,000,000 Deutscher Eisenhandel A G Dr C Fiirstenberg 8,000,000 Eisenbiitte Silesia Dr. C. Furstenberg 4,000,000 Rhenania Vereinigte Emaillierwerke A G Dr C Furstenberg . ... 1,000,000 Vereinigte Deutsche Nickelwerke A G Dr C Furstenberg 2 500 000 Westalische Drahtindustrie Dr C Furstenberg 3, 750, 000 A. E. G. Schnellbahn A G Dr C Fiirstenberg 10,625 000 A. G. fiir Verkehrswesen Dr. C. Furstenberg 4,150,000 Grosse Berliner Strassenbahn Dr C Furstenberg . . . 54,000,000 Zucker-Rafflnerie Tangermiinde F R Meyers Dr C Furstenberg 3 500 000 Sohn A. G. Kamcrun-Eisenbahn Dr C Furstenberg 4,000,000 Ostdeutsche-Eisenbahn Gesellschaft Dr. C. Furstenberg 1, 600, 000 Neu-Westend A. G. fur Grundstucksverwertung Dr L Darmstaedter . . 3 400 000 Reichelt Metallschrauben A G Dr L Darmstaedter 750 000 Liegnitz-Rowitscher Eisenbahn A Goldschmidt 2 500 000 Ostbank fiir Handel u Gewerbe N Hamburger 7 SOO'OOO Bierbrauerei A G (vorm Gebr Hugger) H Hamburger C Sobern- 400 000 Herm, Lohnart A. G heim. N Hamburger 400 000 Hermannmuhlen A G zu Posen 350 000 Bank des Berliner Kassen-Vereins Dr E Hecker E HeLfft ... 2,590,000 Disconto-Gesellschaft. . . Dr. E. Hecker. Dr. G. Strupo 75,000,000 208 GERMAN TRADE AND THE WAR. Direct connections of the larger German banks Continued. DEUTSCHE HYPOTHEKENBANK A. G. Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Dr E Hecker $850,000 2,300,000 Harkort'sche Bergwerke u. chemische Fabriken zu Schwelm. Allgemeine Hauserbau A G in Berlin M. Richter M Richter 500,000 900,000 800,000 1,600.000 2,500,000 Terraingesellschaft am Neuen Botanischen Gar- ten A. G. Berliner Bierbrauerei A. G. (vorm. F. N. Hilse- bein). B6hmisch.es Brauhaus A G M. Richter M. Richter Max Richter . . Chemische Fabrik auf Actien (vorm. E. Scher- ing). Union Fabrik chemischer Producte in Stettin. . Norddeutsche Gummi-und Guttapercha-War- en-Fabrik. Berliner Waschefabrik A. G. (vorm. Gebr. Ritter). Max Richter . . Max Richter . . 13,250,000 Max Richter . 450,000 528,000 1,688,000 500,000 7, 300, 000 Max Richter . . Max Richter . . Berlin-Neuroder Kunstanstalten Max Richter Allgemeine Deutsche Kleinbahn-Gesellschaft, A.G. "Fortuna/' Allgemeine Versicherungs A. G Bank fur Brau-Industrie . Max Richter Max Salinger 650,000 "25" 666,' 665 1,200,000 700,000 1,280,000 5,000,000 550,000 1,800,000 Curt Sobernheim C. Sobernheim 2,750,000 Commerz-u Disconto-Bank A G fiir Montan-Industrie C Sobernheim . . Baroper Walzwerk A G Barop i West C Sobernheim . . C Sobernheim.. Held & Francke A G C Sobernheim - - "Adler," Deutsche Portland-Cement Fabrik A.G. Deutsche Bierbrauerei A G . C Sobernheim . C Sobernheim 1,500,000 Waggon-Fabrik A. G. (vorm. P. Herbrand & Cie.). Maschinenbau-Anstalt "Humboldt" C Sobernheim . . 1,150,000 9,000,000 800,000 1,400,000 1,250,000 500.000 1,600,000 9,000,000 2,200,000 1,250,000 650,000 2,000,000 1,250,000 750,000 1,800,000 C Sobernheim . . . G. Sauerbrey Maschinen-Fabrik A. G Tiefbau- u. Kalteindustrie A. G. (vorm. Geb- hardt & Koenig). Hackethal-Draht u Kabel-Werke A G C Sobernheim - . C Sobernheim C Sobernheim . . C Sobernheim.. . Telephon-Fabrik A. G. (vorm. J. Berliner) Frankfurter Allgemeine Versicherungs A.G... Niederlausitzer Eisenbahn-Gesellschaft C Sobernheim . C Sobernheim . . Spritbank A. G A . Zulinzinger Berliner Kindl-Brauerei A G Dr H Arnhold Hofbierbrauerei Schofferhof u. Frankfurter Bur- ger brauerei. Deutsche Gussstahlkugel- u. Maschinenfabrik.. A. G. fiir Fabrikation von Eisenbahnmaterial zu Gorlitz. A. G. Gorlitzer Maschinenbau-Anstalt u. Eisen- giesserei. Total Dr H Arnhold. Dr. H. Arnhold . C Peters C. Peters 553,731,000 88,139,000 63,600,000 Reichsbank Dr. E. Hecker, C. Fiirsten- burg, Ed. Helfft. Max Richter. Grand total 553,731,000 151,739,000 INTERLOCKING BANKS AND OTHER CORPORATIONS. 209 DIRECT CONNECTIONS OF THE SIEMENS-SCHUCKERTWERKE AND SIEMENS- HALSKE A. G. DIBECT CONNECTIONS OF THE "DIRECTION" (MANAGEMENT) OF SIEMENS-SCHUCK- ERTWERKE AND SIEMENS-HALSKE A. G. (ELECTRICAL MANUFACTURERS) WITH THE " DIRECTION " OF OTHER GERMAN CORPORATIONS. [Prepared from Saling's Borsen-Jahrbuch for 1914-15 by William J. Clark, of the General Electric Co. 30 Church Street, New York.] CONNECTIONS OF ITS SIEMENS-SCHUCKERTWERKE. 'DIRECTION" WITH THE "DIRECTION" OF OTHER CORPORATIONS. [Approximate capital, $60,000,000.] Other corporations. Connection through w Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Deutsche Bank C. K16nne,C. von Siemens. . $62, 500, 000 Siemens-Halske A. G Dr. F. A. Spiecker, C. F. von Siemens, A. von Sie- mens, Dr. W. von Sie- mens, C. Klonne. A. von Siemens, G. Gill- hausen. A. von Siemens 31,000,000 21,325,000 2,750,000 11,000,000 Mannesmannrohren Werke Neu Guinea Compagnie " Siemens " Elektrische Betriebe A. G W. von Siemens, E. Budde, R. Werner. C. Klonne G Gillhausen Essener Credit-Anstalt $28,600,000 15,150,000 Bochumer Verein fur Bergbau u. Gussstahl- fabrikation. Braunkohlen u. Brikettwerke Roddergrube A. G. Gewerkschaft Ver. Constantin der Grosse. . . C. Klonne, G. Gillhausen.... C Klonne 7,000,000 C Klonne 9,600,000 6,000,000 2,250,000 5,460,000 5,225,000 Gewerkschaft Dorstfeld C. Klonne Gewerkschaft des Steinkohlenbergwerks Ein- tracht Tiefbau zu Freisenbruch. Essener Bergwerks- Verein " Konig Wilhelm" . . . Essener Steinkohlenbergwerke A. G C. Klonne C. Klonne C. Klonne... Gelsenkirchener Bergwerks A. G C. Klonne C Klonne 80,000,000- 31,000,000 3,230,000 1,400,000 Harpener Bergbau A. G Konigsborn A. G. fur Bergbau C. Kltfnne Stahlwerke Rich. Lindenberg A. G. zu Rhem- scheid. Oberschlesische Kokswerke & Chemische Fa- briken A. G. Rombacher Hiittenwerke zu Rombach C Klonne C. Klonne. 5,770,000 C. Klonne... 24,000,000 3,000,000 Gewerkschaft Victoria in Liinen C Klonne Gewerkschaft Gliickauf zu Sondershausen Gewerkschaft "Gliickauf Berka" zu Sonders- hausen und Gewerkschaft "Gliickauf Ost," Sondershausen. Wilmersdorfer Terrain Rheingau A. G C. Klonne 2,200,000 600,000 1,260,000 7,100,000 16,000,000 4,590,000 1,325,000 "26," 666," 666 8,680,000 1,100,000 C. Klonne C. Klonne Riitgerswerke A. G C. Klonne .. Maschinenfabrik Augsburg-Nurnberg A. G C. Klonne, O. von Petri, A. von Rieppel. C. Klonne, G. Gillhausen . . . Deutsche Maschinenfabrik A. G. zu Duisburg . . . Ernst Schiess Werkzeugmaschinenfabrik A. G. . . Elektro-Treuhand A. G C. Klonne C. Klonne C. Klonne 13,200,000 Rheinisch-Westfalisches Elektricitatswerk A. G. Wasserwerk fur das Nordliche Westfalische Kohlenrevier. Vereinigte Berlin-Frankfurter Gummiwaaren Fabriken. Julius Pintsch A. G C. Klonne C. Klonne C. Klonne 6,800,000 Reichelt-Metallschrauben A. G C. Klonne . 750,000 1,350,000 6,000,000 1,700,000 F. Kiippersbusch & Sohne A. G C. Klonne " Alltanz " Versicherungs A. G C. Klonne, H. R. von Maffei. C. Klonne "Union," Allgemeine Versicherungs A. G. zu Berlin. Gesellschaft fur elektrische Hoch- u. Unter- grundbahnen in Berlin. Stettiner Elektricitatswerke C. von Siemens 37, 650, 000 C. Dihlmann R. Werner 1,665,000 2,700,000 10,045,000 Chemische Fabrik Ho'nningen und vorm. Mess- ingwerk Reinickendorf R. Seidel A. G Continentale Gesellschaft fur elektrische Unter- nehmungen. H. Natalis H Natalis, O. von Petri, A. Wacker, H. R. von Maffei, A. Pohlmann, A. von Rieppel. 43339 18 14 210 GERMAN TRADE AND THE WAR, Direct connections of the Siemens-Schuckertwerke and Siemens-Halske A, G. Continued. SIEMENS-SCHUCKERTWERKE Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. Deutsch Ueberseeische Elektricitats-Gesell- schaft. Rheinische Shuckert-Gesellschaft fiir elecktri- sche Industrie A. G. Elektricitats A. G. (vorm. Schuckert & Co.) in Niirnberg. Baverische Notenbank H. Natalis, R. Werner $67,000,000 H. Natalis $3, 528, 000 31,490,000 2,800,000 31,000,000 23, 400, 000 1,050,000 1,850,000 8,000,000 2,533,000 3.300,000 4,800,000 2,486,000 H. Natalis, A. Wacker, A. von Rieppel, H. R. von Maffei, O. von Petri, A. Pohlmann. H. R. von Maffei Bayerische Hypotheken- u Wechsel-Bank H R von Maflfei The Nobel Dynamite Trust Co. (Ltd.) G. von Chauvin Griin & Bilfinger in Mannheim . . . O. von Rieppel ElektraA G A von Petri Hamburgische Elektricitatswerke O. von Petri Bergische Klein bahnen O von Petri Gewerkschaft Eimscher Lippe zu Essen G. Gillhausen Sachsische Maschinenfabrfic (vorm. Rich. Hartmann). Blechwalzwerk Schulz Knaudt A G G. Gillhausen G Gilhausen Westfalische Drahtindustrie G. Gilhausen 3, 750, 000 Stiddeutsche Eisenbahn-Gesellschaft G Gillhausen 12,600,000 Total 384,725,000 317,347,000 63,600,000 Reichsbank A von Siemens Grand total 384,725,000 380,947,000 SIEMENS-HALKSE A. G. CONNECTIONS OF ITS "DIRECTION" WITH THE "DIRECTION" OF OTHER CORPORATIONS. [Affiliated with Siemens-Schuckertwerke. Approximate capital, $31,000,000.] Bank des Berliner Kassen-Vereins C Mommsen $2 590 000 Deutsche Bank E Heinemann C von Sie- 62 500 000 Vereinigte Lausitzer Glaswerke A G . . mens, E. Berve,C. Klonne. Dr O Feuerlein Dr A Ber- $1 762 000 Maschinenfabrik Bruchsal A. G liner. R. Pfeil 1 900 000 Eisenbahnsignal Bauanstalt Max Judel & Co R. Pfeil 2 330 000 Siemens-Schuckertwerke Dr F A Spiecker C Klon- 60 000 000 Vereinigte Chemische Werke A G ne, Dr. W. von Siemens, A. von Siemens, C. F. von Siemens. Dr. A Frank 844 000 Mannesrnannrohren Werke ... A von Siemens E Heine- 21 325 000 mann Neu Guinea Compagnie A. von Siemens 2 750 000 " Siemens ' ' elektnsche Betriebe A G Dr W von Siemens Dr A 11 000 000 Schlesischer Bankverein Commandit Gesell- Berliner, C. Mommsen. E. Berve 17 560 000 schaft auf Action. Steffens & Nolle E Berve Dr A Berliner 3 000 000 Donnersrnarckhutte, Oberschlesische Eisen- E. Berve 5 000 000 und Kohlenwerke'A. G. Oberschlesische Eisenbahn-Bedarfs A. G Oberschlesische Eisen-Industrie A. G. fur E. Berve E. Berve io 666 666 18,100,000 Bergbau- u. Hiittenbetrieb. Oberschlesische Kokswerke & Chemische Fabri- E. Berve, C. Klonne 5, 770, 000 ken A. G. Portland-Cement-Fabrik (vorm. A. Giesel) E Berve 495,000 Riitgerswerke A G E Berve C Klonne 7 150 000 Linke-Hofmann-Werke Breslauer A. G. fur E. Berve 7, 100, 000 Eisenbahnwagen-Lokomotiv- u. Maschinen- bau. Elektnsche Licht- u Kraftanlagen A G. E Berve C Mommsen E 14 200 000 Eisenhtitte Silesia Heinemann, Dr. A. Ber- liner, A. Koechlin. E Berve 4 000 000 "Nordstern" Lebens-Versicherunes A. G. zu E. Berve... 5.000.000 INTERLOCKING BANKS AND OTHER CORPORATIONS. 211 Direct connections of the Siemens-Sctiuckertwerke and Siemens-Halske A. G. Continued. STEMENS-HALSKE A. G. Continued. Other corporations. Connection through Approximate capitalization. Also shown in connections of Reichs- bank. Not shown in connections of Reichs- bank. "Nordstern" Unfall-, Haftpflicht- u. Feuer-Ver- sicherungs- A. G. Schlesische Feuer- Versicherungs Gesellschaft . . . E Berve $1,650,000 E. Berve $2,475,000 Deutsch-Asiat ^che Bank " E Heinemann 5,000,000 Deutsche Ueberseeische Bank E. Heinemann 10,000,000 16,000,000 4,260,000 Steaua Romana A. G. fur Petroleum Industrie. . A G filr Elektricitats-Anlagen E Heinemann E Heine'mann Deutsch-Ueberseeische Elektrieitats Gesell- schaft. Gesellschaft fiir elektrische Beleuchtung vom Jahre 1886. Schantung-Eisenbahn Gesellschaft E. Heinemann 67,000,000 E. Heinemann 20,850,000 E Heinemann 17,000,000 Ungarische Lokaleisenbahnen A. G.. E Heinemann 22,000.000 28,600,000 15,150,000 Essener Credit-Anstalt C Klonne Bochumer Verein fiir Bergbau u. Gussstahl- fabrikation. Braunkohlen u. Brikettwerke Roddergrube A. G Gewerkschaftverein Constantin der Grosse Gewerkschaft Dorstfeld C Klonne C. Klonne 7,000,000 C Klonne 7,000,000 6,000,000 2,250,000 5,460,000 5,225,000 C. Klonne Gewerkschaft des Steinkohlen Bergwerks Eintracht Tiefbau zu Freisenbruch. Essener Bergwerks- Verein "Konig Wilhelm"... Essener Steinkohlenbergwerke A. G C Klonne C Klonne C. Klonne Gelsenkirchener Bergwerks A. G C Klonne A. Kirdorf 80,000,000 31,000,000 Harpener Bergbau A" G C Klonne Konigsborn A. G. fiir Bergbau C Klonne . . 3,230,000 Stahlwerke Rich. Lindenberg A. G. zu Rem- scheid. Rombacher Hiittenwerke C Klonne 1,400,000 24,000,000 3,000,000 C Klonne Gewerkschaft Victoria in Liinen C. Klonne C Klonne "'"2" 266, 666 600,000 1,260,000 16,000,000 4,590,000 1,325,000 Gewerkschaft Gliickauf zu Sondershausen Gewerkschaft "Gliickauf Berka" zu Sonders- hausen u. Gewerkschaft "Gliickauf Ost" zu Sondershausen. Wilmersdorfer Terrain Rheingau A. G C. Klonne C Klonne Maschinenfabrik Augsburg-Niirnberg A. G Deutsche Maschinenfabrik A. G. zu Duisburg. . Ernst Schiess Werkzeug Maschinenfabrik A. G . Elektro-Treuhand A. G C Klonne C. Klonne C Klonne C. Klonne, Dr. A. Berliner, C. Mommsen. C. Klonne 13,200,000 Rheinisch-Westfalische Elektricitatswerke A. G. Wasserwerk fiir das Nordliche Westfalische Kohlenrevier. Vereinigte Berlin-Frankfurter Gummiwaaren Fabriken. Julius Pintsch A G 20,000,000 8,680,000 1,100,000 C Klonne C Klonne C Klonne 6,800,000 Reichelt Metallschrauben A. G C Klonne 750,000 1,350,000 6,000,000 1,700,000 28,345,000 F. Kiippersbusch & Sohne A. G C. Klonne " Allianz" Versicherungs A. G C Klonne Union, Allgemeine Versicherungs A. G. zu Ber- lin. Rheinisch-Westfalische Disconto Gesellschaft A. G. Mitteldeutsche Credit bank C. Klonne A Kirdorf C Mommsen 17,250,000 4,000,000 18,000,000 1,500,000 1,500,000 Braunkohlenwerke Leonhard A G C Mommsen Orenstein & Koppel (Arthur Koppel) A. G Deutsche Wasserwerke A. G C Mommsen C Mommsen Deutsche Eisenbahn-Betriebs-Gesellschaft in Berlin A. G. Teutoburger Wald Eisenbahn Gesellschaft zu Giitersloh. Gesellschaft fiir elektrische Hoch- u. Unter- grundbahnen. Accumulatoren-Fabrik A. G Bank fiir Orientalische Eisenbahnen in Zurich. . Total C. Mommspn C Mommsen 2,000,000 C F von Siemens 37,650,000 6,000,000 18,200,000 Dr. A. Berliner... A. Koechlin 521,365,000 406,011,000 1)3,600,000 Reichsbank .... A. von Siemens,C. Mommsen Grand total 521,365,000 469,611,000 Appendix G. GERMAN METHODS IN TRADE AND INDUS- TRY DESCRIBED IN OFFICIAL REPORTS. The following reports on German methods in trade and industry supplement the reports contained in Appendix C of " German For- eign Trade Organization," Miscellaneous Series No. 57. The reports here republished, with the single exception of the report by Dennis K. Moss on the liquidation of German houses in Hongkong, which calls in question some of the long-respected claims of German efficiency in over-sea trade, are all from American foreign-trade investigators. They considerably amplify the material given in the former publi- cation. INCOMPETENT GERMAN METHODS IN CHINA. The following excerpts are from a little book entitled " Britons v. Germans in China," by Dennis K. Moss, of Hongkong. It was pub- lished in January, 1917, by the Hongkong Daily Press (Ltd.). Mr. Moss was officially connected with the liquidation of the German con- cerns in Hongkong, and received official permission " to make use in a general way of knowledge obtained during the process of liquida- tion." One of this writer's conclusions is that the features of German trade which have been actually accepted as successes have really been quite the contrary. Mr. Moss concludes the preface to his little mono- graph as follows : " I venture the opinion that the present time pre- sents the opportunity of a lifetime for merchants at home and abroad to cooperate and prevent any reversion to pre-war conditions existing in British colonies. Fair competition will be welcome at all times, but it would be nothing less than a crime to give Germans, or for that matter the subjects of any other nations, a chance to repeat the dog- in-the-manger tactics that enemy firms have employed in the past in regard to trade." However, let us admit the supposition that they (the Germans) captured more trade per head than the British. There is nothing surprising about it, and nothing else could have been expected, when, as the liquidations have proved, they gave long and dangerous credits, worked many lines at a loss, obtained their capital by dishonest means, and in fact seemed to vie with one another in a mad headlong scramble to obtain business, no matter whether a profit was made or not. This idea that it was necessary to do a huge turnover at all costs seems to have permeated and actuated all the German houses in Hongkong. There is also no reason to doubt that the same selfish methods have been, and are still being, employed by Germans in Shanghai and other places in China. There is nothing to admire in these methods, they can not be called push or en- terprise, as they were not conducted with the methodical and meticulous appli- cation we have come to associate with other German undertakings, and military preparations in particular. Their whole system of trading is only pathetic, considering the vast amount of work put in by their representatives out here and their coworkers in the Fatherland. * * * When the liquidations were commenced it was generally thought that new and successful methods of doing trade would be brought to light, but greatly to the surprise of those merchants and accountants who were appointed liqui- 212 GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 213 dators the average result of their investigations was a more complete knowl- edge of how not to do business * * * The most curious fact which has been brought to notice was that even in their own German and Austrian manufactures they carried on among them- selves an astounding cutthroat competition with each other, which leaves one in speechless wonder as to where the necessity arose for doing such business. Why did they not stop at home, rather than face the discomforts of a tropical climate, without any visible recompense for the same beyond a bare living, and with little or no prospect of putting anything aside for the proverbial rainy day? * * * The above are typical instances showing the general spirit which actuated the Germans in their trading. They could be multiplied and continued at length, but nothing would be gained thereby, as the books of nearly all of the German firms have the same curious tale to tell. Some kept their books with meticulous care, others were a disgrace, but with the exception of a few small and almost retail establishments all pointed to the fact that business had been secured regardless of any other object than to sell cheaper than the other man. Some offices were economically run, but the majority were con- ducted in an extravagant manner. This, however, would have but small bear- ing on the profits if they had not been so imbued with the mania for selling, selling, selling, regardless of loss. * * * THE DYESTUFF INDUSTRY. I From " Dyestuffs for American Textile and Other Industries," Special Agents Series No. 96, by Dr. Thomas Norton, 1915.] CAUSES OF GERMANY'S SUPREMACY. The actual supremacy of Germany in the production of coal-tar dyes has been outlined and its dominating position in international commerce clearly shown. It remains to describe how this supremacy has been won and how it is main- tained. The base of the present structure was laid half a century ago, when the industry of artificial dyestuffs was still in swaddling clothes. A remarkable number of German chemists of the first rank and of the second rank were attracted to the new industry. The admirably equipped laboratories of the German universities and schools of science were devoted largely to research in the new field. Simultaneously, in Germany, the molecular constitution of the aromatic hydrocarbons was revealed by Kekul, and a vast amount of scientific knowledge, keen mental effort, high inventive capacity, and patient labor was devoted to applying the new theories to the discovery of tinctorial compounds among the derivatives of the aromatic series. A small army of plodding but still clever young chemists carried out thousands and thousands of separate researches under the leadership of brilliant men, such as Hoffmann, Bayer, Liebermann, Graebe, Witt, and many others. Far more was done in Germany to develop the possibilities in the province of synthetic dyes than in all the rest of the world. At the same time the young industry was fortunate in securing the generous cooperation of financiers with farsighted courage and technical managers of exceptional sagacity. What is said of Germany is also essentially true of Switzerland, but naturally on a more modest scale. The seventies saw the industry well defined and established upon a solid basis, while the progress of discovery continued at an increased rate. The notable triumph of this period was the introduction of synthetic alizarin. During the eighties there was an increased appearance of new classes of important dyes. It was the golden decade. The industry was recognized as one of the great national assets of Germany. In the nineties there was a decided lull in invention. Great attention was devoted to the standardizing of manu- facture, and especially to the organization of the foreign trade. Germany became practically independent of the world in regard to its supply of coal- tar crudes. The relations between the great manufacturing houses became cordial, and there was a general spirit of cooperation. The manufacture of a large number of valuable medicinals and photographic chemicals from coal- tar intermediates was added to the production of dyestuffs. Great quantities of these intermediates were also employed in the preparation of high explo- sives. All this contributed to making the industry better balanced and more symmetric, while, of course, adding to its complexity. 214 GERMAN TRADE AND THE WAR. The present century has seen a steady development. Synthetic indigo won its great victory. The discovery of new types of colors has become rare. Close trade agreements have come into existence, with Government approval, and have been maintained without difficulty. At present the industry is the most remunerative in the Empire, and the most conspicuous in international trade as distinctly and predominantly German. It has been created in Germany and is regarded by Germans as their most brilliant triumph in applying science to industry. The rest of the world generously recognizes the full right of Germany to be justly proud of its accomplishment. RESEARCH THE CHIEF CAUSE. Unquestionably the chief factor in favoring the early start of the industry and its remarkably rapid and harmonious development was the spirit of research in Germany and the marvelous equipment for facilitating, largely at public expense, the exercise of this spirit. While other countries sought to encourage the introduction of new branches of industry by the aid of tariff protection in Germany manufacturers, capitalists, and Government officials early recognized the creative power and earning capacity of highly organized industrial research. Any marked advance in developing coal-tar chemical industry in the United States must depend upon the full recognition of this fact, for no other industry is so intimately associated with research of the highest scientific character. A most competent authority, Dr. B. C. Hesse, says in this connection : " What we do need is a semimanufacturing laboratory in which to ascertain the most favorable conditions for carrying out those operations which the work of the Germans, both in their patents and in their commercial exploitations of them, has shown to be needful or worthy of prosecution. That, however, is no child's-play task; it calls for engineering skill of the highest order, chemical knowledge of great refinement, and experimental ability of high rank. Much will have to be learned and determined as to the proper mate- rials of construction, the proper size and shape of the apparatus, and the most favorable working unit, which is by no means constant from one dye- stuff or one intermediate to another. Many dyestuffs can not be made com- mercially in lots much greater than 100 pounds; others can be made in lots of 1 ton, but the manufacturing unit, as a rule, is small." GROWTH OF INDUSTRY, CAPITAL, DIVIDENDS, ETC. In analyzing the organization of the German dyestuff industry, it will be found that not only a vast amount of brain effort has been expended in its creation, but that also the cash investment has been extremely large. There are now 22 German establishments devoted to the manufacture of coal- tar colors. Of these, 21 are owned by joint-stock companies. The combined cap- italization of the 21 companies in 1913 was $36,700,000. In that year they paid dividends amounting to $11,600,000, or 21.74 per cent of the nominal capitali- zation. The explanation of this high percentage lies in the fact that for many years the industry regularly devoted a large share of its profits to writing off the real estate and plant accounts and to new construction. One of the oldest and strongest companies has a capital of $13,100,000. Its stock sells at 600. In 1913 its net profits were $6,000,000, nearly one-half of the capital. One-third of this sum was devoted to a sinking fund for the erection of new plants, etc., and to welfare funds for operatives. From the remainder a dividend of 28 per cent was paid. This course has been pursued for so many years that it is now es- timated that at least $400,000,000 have been invested in the industry. It is worthy of note that the next most remunerative chemical industries in Germany are those devoted to explosives, glass, heavy chemicals, metallurgy, soap, and candles. The factories number 252. Dividends range from 11.2 to 11.8 per cent. Most of the remaining chemical industries in the Empire pay dividends of 5 to 10 per cent. It is easily seen that financially the German coal-tar dye industry is ex- ceptionally well fortified and in a position to resist powerfully any attempt to destroy its supremacy. . A marked feature of the industry is its concentration. The plants are all located within an area forming a square, with sides of 300 miles. The actual concentration is even more pronounced, for, with the exception of the GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 215 big works at Berlin, all the leading establishments, as well as the coke fields supplying the tar and the benzol, are situated on the Rhine and its tributaries, in a narrow strip of territory less than 200 miles in length. This means cheap haulage for the bulkier raw materials and facilities for the economical distri- bution of finished products by water to all parts of the world. If an industry of this size in the United States, doing an extensive trans- Atlantic business, were located chiefly along the banks of the Hudson, between Albany and New York, and obtained most of its raw material and fuel supply within short distances from the river, the concentration would be practically the same. RELATIONS BETWEEN COMPANIES. The advantages of this close concentration, permitting each communication and transfer of products between different factories, are intensified by the close relations between the several companies. Three of the largest organizations are closely allied; three other powerful companies form another combine. The re- lations between the two big units are, however, friendly, and this is the case also with the relations between the larger and the smaller firms. There is keen competition to maintain high standards of excellence in products and to diminish the cost of production, as well as to bring out new dyestuffs ; but there is a well-organized combination to maintain prices and to render mutual as- sistance in utilizing intermediates and by-products. For practical purposes the industry is a unit, especially in all that concerns its dealings with foreign markets and with foreign attempts at competition. These trade agreements and cooperative arrangements seem to have prevented the appearance of rivals on German soil during recent years. They have made themselves frequently felt on this side of the ocean, as efforts have been exerted from time to time to secure emancipation from dependence upon German intermediants or finished products. EQUIPMENT OF PLANTS. As the general industry has developed, the individual companies have, in several cases, widely extended their operations, so as to manufacture all or nearly all of the intermediates required in their processes and a large share of the heavy chemicals needed. They have gone outside the limits of color chemistry and manufactured a variety of synthetic medicinal preparations, several synthetic perfumes, and some important photographic chemicals, as well as materials for modern high explosives. This has meant a great diversity of equipment and a delicate adjustment of manufacture, so as to permit the complete utilization of all by-products. In this respect the coal-tar chemical industry shows a marked resemblance to the great American packing industries. Starting with 10 crude coal-tar compounds, it produces a host of valuable articles, but finds methods of utilizing and deriving profit from all its by- products. If any such compounds occur in the evolution of a new product and threaten waste and loss, they are transformed into other new preparations for which uses can be created. All of this involves extended application of cLjmical engineering and means the employment of a wide range of technical devices. A couple of examples may be cited as showing the extensive plant and staff and output of German works and the rate of expansion. The famous " Farbwerke " at Hoechst started in 1863 with five workmen, making the few aniline dyes then known. By 1888 it employed 1,860 work- men and 57 chemists, and utilized 1,840 horsepower in its steam engines. It then produced 1,750 different colors. In 1912, 30.000 horsepower were required. The staff included 7,680 workmen, 374 foremen, 307 chemists, and 74 engineers. Wages amounted to $2,050,000 and salaries and bonuses to $1,240,000. The number of colors reached 11,000. Synthetic alizarin and indigo were leading products, and such materials as autipyrine, tuberculin, and diphtheria serum were made on a large scale. A still larger establishment is the Badische Anilin- und Soda-Fabrik, near Mannheim-on-the-Rhine. It covers about 500 acres, with a water front of a mile and a half on the Rhine. The buildings cover 100 acres. Transportation between the several hundred buildings is effected by 42 miles of railway. Power is generated and transmitted by 158 boilers, 386 steam engines, and 472 elec- tric moters. Steam fire engines number 25, and there are 400 telephones. Each day there is a consumption of 1,000 tons of coal, 40 tons of ice, 40,000,000 216 GERMAN TRADE AND THE WAR. gallons of water, and 2,500,000 cubic feet of gas. In '1908 workmen numbered 8,000; chemists, 217; engineers, 142; and the commercial staff, 918. WAGES IN THE GERMAN FACTORIES. The participation of labor in the cost of finished dyes is not high. It ranges from 10 to 15 per cent, and is usually nearer the lower figure. There has been, however, a steady increase in the average wage rate of late years. The average daily wage in Germany for all labor boys and common skilled labor was $0.65 in 1886. In 1908 it had reached $1.14, an increase of 77 per cent. In 1906 the average daily wage in the Badische works for a 10-hour day was $1.04. To the normal wage should be added the contribution by employers to the State old-age, accident, and sick funds, bonuses gained by many workmen, and the gifts for general welfare. In the case of the Badische this gift was $750,000 in 1908. Including these various items, it may be assumed that the prevalent adult daily wage in the dyestuff works is now about $1.80 as far as the actual outlay by the employers is concerned. A large item in the cost of production is due to the salaries of well-trained, competent chemists and engineers, who supervise every step of the multitudinous processes. Thus, the " Badische " employs 30 well-equipped chemists univer- sity graduates in the research laboratory alone, quite apart from the manufac- ing staff. PAPER AND PRINTING MACHINERY. [From " Paper, Paper Products, and Printing Machinery in Peru, Bolivia, and Ecuador," Special Agents Series No. 143, by Robert S. Barrett, 1917.] METHODS TJSE1J BY EUROPEAN MANUFACTURERS. The methods used by European manufacturers, especially those of Germany and England, to build up their export business are too well known to need much comment, and it is only necessary to say that the same policies used in other lines have been applied to the paper trade with satisfactory results. The lower manufacturing costs, the European system of credits, the facilities afforded by European banking establishments and their branches, and the better shipping facilities have made it far easier for the Peruvian buyer to shop in the European than in the American market. It many cases it has been a matter of custom and tradition. European houses, especially British, had thoroughly canvassed the west coast long before the advent of the American exporter. Some of the Peruvian establishments have been buying certain goods from European manu- facturers for more than two generations. Commercial ties and connections of this sort are not easily severed. The principal factors responsible for the preponderance of European paper and paper products in Peru may be briefly stated as follows : (1) Lower prices ; (2) longer credits; (3) better shipping facilities; (4) more active selling cam- paigns; (5) willingness to produce the goods desired by the Peruvian consumer; (6) better packing; (7) greater attention to detail; (8) influence of European colonies and Europeans engaged in the paper and printing trades. PRICES CREDITS SHIPPING FACILITIES. The first of these factors is the most important, and was really responsible for the greater part of the purchases from Germany. As will later be shown in detail, German paper and paper products cost the Peruvian consumer one-third less than similar goods from the United States. In news print the average was somewhat less, but in some lines prices were one-half those charged by American manufacturers. Credits have heretofore been an essential factor in the transacting of business with Peru, but the importance of this element has been somewhat reduced by the forced liquidation that followed the outbreak of the European war and the placing of the country more or less upon a cash basis. Just how important the question of credits will be after the war remains to be seen, but it is evident that if the European nations revert to their policy of long credits they will have a tremendous advantage over any competitor insisting on spot cash. The better shipping facilities from Europe to west-coast ports of South America have been frequently discussed and apply to the paper trade in as great a degree as to general merchandise. Since the war American manufac- turers have had an advantage over their competitors by reason of better freight GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 217 service and equal, if not lower, rates ; but it is not to be doubted that with the Restoration of peace there will be a resumption of service by the German and English steamship lines that formerly played such an important part in the up- building of trade with the South American countries, and the same conditions that preceded the war will again be in effect. Up to the time this report was written the American manufacturer exporting to the west coast of South America had received little or no benefit through the opening of the Panama Canal, as no regular steamship lines had been established between North American Atlantic ports and South American Pacific ports via the canal. The new Grace service between New York and Valparaiso will undoubtedly improve the situation, as it will not only increase the number of sailings but will enable the goods to come through without transshipment. The lower freight rates from Europe" have had considerable effect upon the situation, especially in the cheaper grades of paper, where the freight rate is an important factor in the cost to the consumer. Quotations by European manufacturers and dealers of prices c. i. f. the Peruvian port, as opposed to the American practice of quoting prices f. o. b. the American port, have helped to gain business for the former. SELLING CAMPAIGNS. The selling campaigns of the European manufacturer must be more closely followed by his American competitor, if the latter expects to obtain and hold any considerable part of the Peruvian trade, and it is doubtful whether any great improvement can be made upon the European methods. The essential points of the system include (1) the employment of competent traveling sales- men, (2) the establishment of connections with local commission houses or representatives, and (3) the systematic solicitation of the trade through sam- ples, catalogues, and advertising matter. Salesmen representing German and English paper manufacturers and export commission houses dealing in paper found Peru a profitable field before the war and covered the territory at regu- lar intervals, while American salesmen were rarely seen. As a rule, the former were men well trained in the paper trade, with a fluent knowledge of Spanish and an understanding of the business and transportation problems peculiar to the country. Generally these salesmen arranged for a local commission house to represent their firms and look after future orders. In some instances it was agreed that these firms were to handle only the orders taken by the salesmen, while in other cases the goods were bought outright by the local houses and re- billed to the consumer. In the latter instances the customers were in reality the customers of the commission house and not of the manufacturer. Too much emphasis can not be placed upon the care with which a manufac- turer should select a salesman, as he must depend upon him not only to sell the goods but also to pass upon the important matter of credits as well as to fur- nish information concerning general business conditions, new markets, etc. A fluent knowledge of Spanish is, of course, essential. A salesman should not be sent to Peru as representative of one paper mill or group of paper mills, but should represent a number of concerns in the paper and allied industries. A combination might be made up, for instance, of manufacturers of news print, book and printing paper, writing paper and envelopes, printing machinery, printing ink, linotype and stereotype metals, engravers' supplies, roller paste, etc., all represented by the same salesman. Another combination might be made up of manufacturers of news print, book and writing paper, envelopes, wrapping paper, blank books, papeteries, loose-leaf books, pencils, inks, mu- cilages, rubber-stamp supplies, etc. In such cases each manufacturer would contribute a part of the traveling expenses of the salesman, allowing him a com- mission upon his sales. This plan, in fact, has been developed and extended by certain American concerns. The systematic canvassing of the Peruvian trade by means of samples of paper, catalogues, and correspondence has been productive of excellent results for European manufacturers. Full-size sheets of paper are generally sent as samples, with the weights and measures given in the metric system and the prices (usually quoted c. i. f. Callao or Mollendo) written or printed on each sample. Often cable blanks, with the code address of the manufacture and a coded message, leaving space for the number of reams or pounds, are included, all ready for the signature of the buyer and the insertion of the quantity. The value of catalogues, especially of type and printing machinery, is so well known as to require little comment. The catalogue issued by one American company is 218 GERMAN TRADE AND THE WAR. especially valuable and is superior to any catalogue issued by a European house. It should be borne in mind that catalogues should not be translated, but should be rewritten in Spanish, and that weights and measures should be shown in the metric system. Net and gross weight of machines should always be given. NECESSITY OF CONFORMING TO LOCAL REQUIREMENTS. Unwillingness or inability of American manufacturers to produce the class of goods desired by the Peruvian consumer has caused the loss of considerable business in the past. Instances are cited of the inability of Peruvian printers and stationers to obtain in the United States a cheap combined writing and printing paper or the large-size baronial .envelopes in the cheap grades. The importance of better packing and the need of greater attention to detail are subjects that have been brought to the attention of American nianufac- urers on many occasions. There has recently been a noticeable improvement in both of these important elements in export trade, but the packing of American goods, on the whole, is still much less satisfactory than European packing. For shipping news print, wrapping paper, cheap book paper, paper sacks, etc., the European bale, tightly compressed, bound with iron straps, and with a bur- lap covering, is far superior to the pine box used by the American shipper. For shipping cardboard a New York company has adopted a packing that seems to be excellent. For the tops and bottoms of the bale a three-ply waterproof, pasted board is used and is bent over the edges. Strips of the same material are used to protect each corner, and the bale is held together by five iron straps, each seven-eights inch wide. For bales weighing 500 pounds the tare is only 17 pounds. JOREIGN RESIDENTS IN PERU AND THEIR EFFECT ON PAPER SALES. The large number of Europeans in Peru as compared with the American resi- dents and the ownership of printing and lithographing establishments by mem- bers of the European colonies have an important effect upon the sale of paper. The Italian colony is estimated at more than 7,000, the German at 3,000, the French at 1,500, the English at 1,200, and the American at not more than 500. Practically all of the important importing houses and financial institutions, as well as many of the large retail stores, are owned by Europeans, and when they order printing from a local printer they usually specify the use of paper manu- factured in the country from which the proprietors came. AGRICULTURAL IMPLEMENTS. [From " Markets for Agricultural Implements and Machinery in Brazil," Special Agents No. 140, by Frank H. von Motz, 1917.] BRAZILIAN MARKETS. The Brazilian market in the farm-equipment trade is not nearly so highly organized as that of Argentina. The reasons for this are many and varied, and an attempt will be made to outline a few of them. Brazil is not a country of large farms, producing mainly one of four or five leading crops, as in Argentina. Neither does any one city have a monopoly of the import business, nor is there any city that receives the great bulk of the country's exportable surplus. There is one such place in each great agricultural center, but, as the centers are widely separated geographically, what goes on in one place is of slight importance to any of the others and has very little in- fluence on their commerce, either import or export. It is true that some of the large firms have branch houses in many different cities and districts, but aside from the financial end of the business they have nothing in common; each manager of a branch house is responsible for the work of his house only and engages in different commercial lines as opportuni- ties present themselves and without consulting any of the other branches or the parent house, except, of course, regarding the strictly financial side of the transaction. In other words, there is seldom any concerted effort to take up and handle certain classes of business. In the several branch houses anything savoring of a good business proposition is taken up; competent men, if they can be found, are put in charge ; and in this way the various branches of a given firm might GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 219 be engaged, one in building a railroad, another in different branches of engineer- ing, and still another in shipping, banking, or, in fact, anything, large or small, that can be done along safe lines, consistent with honorable business practice. Most of these houses, especially the German firms, operate with a very large capital. They do not hesitate to undertake engineering or other propositions involving the expenditure of large sums of money ; they have a high sense of business honor, are cautious, courteous, and industrious. The executives and department heads are intelligent, well-educated men. All of them have had legal, engineering, or advanced commercial training, and are easily reached by anyone who possesses similar qualities and who has a bona fide business propo- sition to place before them for their consideration. Few of these men, however, have had much experience with farm equipment. Those who came out from Europe had, for the most part, been engaged in one of the many branches of engineering, in legal work, or in important commercial organizations, and therefore had little opportunity to learn much of the art of scientific farming or the use of modern methods and equipment. In Brazil these men took up the sale of farm equipment because it presented a business opportunity. Too often they had to rely on statements made to them by salesmen, with little experience in the country, concerning the different types of implements in which a good volume of business might be done. Just as often they relied on the statements made to them by local farmers who had had no experience outside the comparatively small district with which they were familiar. The statements of both salesmen and farmers, combined with the dealers' eagerness to do business, resulted in the bringing out of so many types of implements of different kinds (many of which were used with only indifferent results) that much dissatisfaction was caused and a skepticism created that must now be overcome. STATE OF RIO GRANDE DO SUL. Four hours up the Lagoa dos Patos from Rio Grande do Sul is the thriving city of Pelotas, the center of an agricultural district. Between these two cities, and above Pelotas to Porto Alegre (about 16 hours' steamer journey from Rio Grande do Sul) is the center of the Brazilian jerked-beef industry. The State of Rio Grande do Sul supplies and prepares about 40 per cent of the total output o*f jerked or salted beef in South America. Porto Alegre, although at present feeling the effects of world-wide condi- tions, is a thriving commercial city, the seat of the State Government. It is a very important distributing point for the agricultural regions about it, and, in fact, for all that part of the State not directly served by Pelotas or Rio Grande do Sul. Here nearly all the important business houses are German, and many Germans have settled in all parts of the State. The Germans speak Gferman and Portuguese and many of them speak English. The Brazilians have learned German, and only the sons of Portuguese parents possess only one language. [Prom " Markets for American Hardware in Germany, the Netherlands, and Scandi- navia," Miscellaneous Series No. 48, prepared under the supervision of Erwin W. Thompson, Commercial Attache", 1917.] GERMAN EXPORT METHODS. Export methods include all forms and variations of direct and indirect trading, not only in concluding the sale but also in the settlement of bills. These variations include direct trading between foreign buyers and the German manufacturers and also the employment of special exporting concerns in Ger- many having branches, export agents, and commission agents in foreign countries. Export trade with each foreign territory has attained a certain uniformity, notwithstanding the manifold proceedings and usages, which vary by reason of continual change in selling possibilities and credit conditions. It can be said, therefore, that the export methods for any particular foreign territory are in effect well established and standardized for that territory. There has been a tendency in the export trade to eliminate the middle man. It is difficult, however, to generalize in this matter. In those cases where trade moves in well-regulated channels, where business conditions, selling possibilities, and credits approach European standards, and where a certain density of trade has developed, the middle man may be unnecessary. This, 220 GERMAN TRADE AND THE WAR. however, is not the rule, as cases are known where the elimination of the middle man resulted in heavy losses and serious interruption of business con- nections. THE EXPORT HOUSE. In most cases the so-called export house, or exporter, located in Germany, is the principal factor in the export business. The exporter (not the manu- facturer) is either a commission agent, or, as in most cases, a purchaser and seller on his own account. He maintains continued relations with a certain export territory, where he is represented by branch offices, agents, or com- mission agents, and fills orders as they come in from these representatives. For this purpose he is in connection with a number of reliable and efficient manufacturers, who furnish him with samples and catalogues. He computes his selling price, based upon the manufacturer's price and the foreign conditions of payment as a rule c. i. f. port of import and instructs his representative in the foreign territory how to tender his bid. When an order is received it is forwarded to the corresponding manufacturer, who col- lects his bill from the exporter, who in turn must collect from the foreign purchaser. The Hamburg Association of Exporters has stipulated the relationship be- tween exporter and manufacturer in the following terms : " 1. The date of delivery, once agreed upon by the manufacturer, does not permit of an extension, and in case date of delivery is not adhered to or only partial delivery takes place, the exporter is entitled to compensation from the manufacturer for actually suffered losses and for expenses incurred. " 2. On orders calling for f. o. b. delivery or ' alongside ship,' the manufac- turer must deliver goods at his expense on board of ship or at side of ship. "3. Hamburg to be the court of jurisdiction for both parties and according to German law. The foreign port is considered to be the place of delivery. Goods need not be inspected until four weeks after arrival in the city of the foreign customer or until the lapse of four weeks after passing the customs. The exporter is responsible for losses or claims resulting from incomplete or defective shipments. " 4. For claims in regard to quality of goods, assortment, or similar differ- ences experts in the town of destination may be called upon, and their opinion will be decisive for both parties concerned. " 5. Bill of sale must give exact gross weight and dimensions of each case or box, the markings of same, contents, net weight of each item, inclusive of container, and also absolute net weight of each item. " 6. Statute of limitation for collection is one year longer than that set down by the German law. " 7. Packing and make-up of goods must be strictly neutral, without names or trade-marks, unless other directions have been given. " 8. Samples should be sent at the time of rendering the bill for the goods. Other samples and catalogues should not be packed with the goods, but must be sent separately." THE EXPORT AGENT. In important export centers a further link between exporter and manufac- turer has become necessary the so-called export agent. His work is to find suitable manufacturers for the exporter and also to find for the manufacturer a suitable exporter. The export agent frequently maintains a sample show- room where he exhibits the products of the manufacturer whom he represents, the manufacturer bearing part of the cost of rent. The export agent derives his income from a commission on the turnover of all sales to a certain terri- tory, no matter whether sales have been closed directly or through his influence. The manufacturer refunds all expenses, such as postage, cables, and freight charges. These showrooms are of special value to over-sea buyers who are regular visitors ; they are not only a great convenience, making the selection and Durchase easier, but they form a source of information for all local ex- porters who desire to keep posted on the prevailing demands in certain terri- tories. The entire business correspondence, such as copies of orders and statements, must go through the hands of the export agent. Generally speaking, business proceeds as follows : When inquiries and orders come by mail from abroad, the GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 221 exporter communicates with the export agent representing the article in ques- tion and discusses everything with him, first orally, concerning the wishes of his clients in regard to new samples, quality, etc. Then the agent enters into communication with his manufacturers concerning the special requirements of the order, the price, and various other matters. Finally follows the placing of the order and the delivery. As a rule, the exporter has to procure his goods from hundreds of manu- facturers, so that direct communication with them is out of the question. But by the intervention of the export agent all parties are served and their interests promoted, and the method results in equalizing all intermediate expenses. The exporter relieves the manufacturer of all financial risk, as he pays the manu- facturer cash within 30 days, while the exporter must give long credit to his foreign customers. In this manner the manufacturer is able to turn over his money 12 times a year, whereas, if negotiating direct with the foreign customer, he would be compelled to employ larger capital. Thus only very large firms with great resources can carry on direct exportation and make profits. In the hardware trade especially manufacturing and exporting are two distinctly separate enterprises. Many attempts on the part of manufacturers to send traveling salesmen into foreign territory have been abandoned as useless. It is of advantage to the foreign customer, if only for the sake of credit, to be able to order from the exporter. Very frequently, however, over-sea purchasers, wholesalers, department stores, or manufacturers, send orders direct to the manu- facturers as well as to the exporter. Large foreign importers very often have their own purchasing agent in Germany, and when they order direct from the exporter or the manufacturer, a clause is inserted to the effect that orders are subject to confirmation by their purchasing agent. Thus the purchasing agent exercises a control over orders and final shipment, constituting the so- called "confirmed order." His work proceeds as follows : The purchasing agent gets in touch with the manufacturer or exporter, attends to shipment, gives shipping directions, and very often settles the bill or arranges for the financial transaction. He also attends to all complaints and damage claims. COMMISSION AGENTS, BROKERS, AND COMPRADORS. Very often there is in the foreign territory some other connecting link for the sale of German products the branch office, the agent, or the commission agent. The branch office permits a careful and intensive nursing of a foreign territory and is considered the best way in which export interests may be represented. For bringing in orders, the branch office makes frequent use of a middle man, as, for instance, in India the "commission agent," in East Africa the native "broker," and in China the "comprador." The foreign commission agent is not much in favor, because confidence and trust between exporter and importer play an important role, and because, by reason of the great distances, any change in the original arrangements that may be necessary at times of an uncertain or unfavorable market becomes very difficult. Representation by agent is the most usual procedure. The agent should be provided with a power of attorney, because circumstances often require granting of rebates or other concessions. To a number of foreign territories for instance, Canada, South and Central America, the Far East, etc. traveling salesmen are sent regularly. They are provided with sufficient samples and, of course, with more extensive authority than the ordinary domestic traveling salesman. In order to save expenses in covering foreign territory a number of noncompeting exporters often combine and send only one well-ver:',o(l and experienced man abroad and divide the costs. What has been said about catalogues for the domestic trade applies also to the export trade, with the exception that catalogues are sent more liberally. Catalogues for the export trade are not always printed in German, but gener- ally in the language of the country where they are to be used. This enables the native customer to ascertain exactly what the German firm has to sell. If a catalogue were printed in German only, the foreign customer would generally not attempt to read it or even open it. Even if the catalogue is intended to be used in one specific country, it is sometimes printed in several languages. This is a good plan, as it frequently happens that in the same plant there are men of different nationalities to be consulted about the purchase of material, 222 GERMAN TRADE AND THE WAR, or asked to suggest, advise, authorize, or order for branch houses in other countries. Then, too, the same catalogue may be used for different countries, whereby their utility is greatly enhanced. Catalogues are sent very liberally in the export trade and are at times distributed broadcast. They are printed attractively and are of convenient size to fit the pocket for ready reference. They contain, moreover, an appendix of formulas, rules, and general sugges- tions of permanent value to the respective trades. The importance of this point can not be overestimated, for it makes the catalogue an indispensable handbook, and everyone is glad to have a copy and keep it. The German manufacturer does not force upon his foreign customer any standardized goods, or his regular domestic product, or the metric system, but stands ready to make goods in every sense " to order." He even takes pains to mention in his catalogue that he is willing to fill special orders for goods outside of the line of his regular production, and this at no higher cost than for his regular lines. He will work from a model, or even a photograph, submitted to him. TRADE ASSOCIATIONS. Mutual interests of manufacturers, exporters, and wholesalers are well taken care of by trade and protective associations. Their aims are manifold, and embrace one or more of the following: (a) Fostering manufacturing inter- ests, (6) furthering of the domestic market, (c) developing the export trade, (d) promoting uniform selling prices, (e) organization of mutual selling, (/) distribution of orders according to capacity of production, and (g) counteract- ing aggression on the part of labor organizations. The number of such organizations is constantly growing, and covers now almost all specialties. Manufacturers are not only members of these organiza- tions but of other more general bodies, which either promote the interests of the domestic trade or of the exporter. They are also members of commer- cial bodies which represent the interests of a certain industrial district or of the Empire. The following are the descriptive names of some of the many specializing associations: Association of pocketknife manufacturers, association of scis- sors manufacturers, association of flatiron manufacturers, association of blade manufacturers, association of plowshare manufacturers, association of scythes manufacturers, association of car and carriage trimmings makers, association of trimmings makers, and association of ice-box makers. One of the most influential commercial bodies is represented in the collective name " Deutscher Handelstag," which body, in 1914, comprised 154 chambers of commerce located in the important commercial centers of the Empire. These chambers are controlled by the General Government and form a part of the Imperial Department of Commerce and Labor. GERMANY'S POSITION IN THE FOREIGN TRADE. The reasons for Germany's extensive export trade have often been pointed out both by German and by foreign economists, but often some of the impor- tant reasons have been overlooked. It can not be doubted that the matter of price plays a most imjjortant part, for it is certainly necessary to adjust the final selling price to the market con- ditions of the foreign export territory. But this must not be done too much at the expense of quality. German export prices differ only occasionally from the price asked on the domestic market. The reasons for the comparatively low German export price may be summarized thus: The German manufacturer is extremely economical in the use of raw mate- rial ; he does not waste any of it. This endeavor is carried so far that the scrap heap is practically unknown in Germany. A manufacturer of small articles of wood, or one needing small pieces of wood for any purpose, would not buy whole boards, but would get his raw material from a manufacturer of furniture, for instance, who could thus sell his short ends and scrap to advan- tage and at a price lower than for whole boards. This is practical economy, and economy that is practiced to a great extent in Germany. The cost of labor, of course, is of vital importance. Although it is acknowl- edged that wages paid German workmen are about 30 per cent lower than GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 223 those paid American workmen, the American manufacturer has the advantage of labor-saving devices and machinery, which to a certain extent offset the higher cost of labor. If the American manufacturer would exercise the same economy and wise policy in obtaining his raw material, the difference between the German and American scale of wages would hardly be noticed in the final cost of the goods. Prices of raw materials are frequently lower in the United States than in Germany. The matter of price, once successfully settled, must be followed by proper methods in opening up foreign territories and, what is of equal importance, keeping the customers. To follow the German lead, American exporters must consider the following methods: (1) A careful study of foreign conditions by representatives on the spot. (2) The filling of orders to meet those conditions, whether they coincide with American practice or not. (A German will make anything for anybody anywhere. ) (3) The development of American banking facilities in the various foreign countries. (4) The accepting of any reasonable European terms of payment from firms of sound financial standing. (5) The issuing of catalogues in the different languages of European coun- tries, together with such particulars as to freight, duty, etc., as will enable the foreign customer to know the cost of goods delivered in his district. (6) The establishing in the United States of trade organizations that would assist in forming combinations of individual firms for the purpose of pushing foreign trade. (7) The increasing and strengthening of the American Consular Service to render every possible assistance to American traders in foreign countries. (8) The building up of an American merchant marine. The German manufacturer and exporter makes a systematic and careful study of what his competitor is doing. He is assisted by his banks to such an extent that he is able to give long credits even in countries like Russia, where it is almost impossible to do any business at all except on credit. The American rule of making prices f. o. b. New York is absolutely fatal to the creation of a large foreign business. American exporters can not in this manner expect to get a fair share of the business in other countries against competitors who are willing to give reasonable credits to sound concerns and are willing to quote prices for goods delivered at their customers' doors. It is just as easy to find firms of sound financial standing in Europe as it is in the United States, and by methods well known to every business man. Commercial risks are no greater (perhaps actually smaller) in European countries than in America. German manufacturers did not build up their vast foreign trade by staying at home and quoting prices f. o. b. Hamburg. American manufacturers may be certain that they will not capture trade by staying at home and quoting prices f. o. b. New York. HARDWARE. [From ".Turkish Markets for American Hardware," Special Consular Reports No. 77, by G. B. Ravndal, 1917.] TURKISH MARKETS. Hardware is admittedly one of the lines in which American goods have acquired a distinctive character of excellence. That the Turkish market should have felt the influence of this superiority is not surprising, but what may sur- prise even American hardware manufacturers is the important position their product has gained in Turkey, solely on its own merits. Many of them are probably unaware that their goods are sold there, and few of them realize that, in ordinary times, the Turkish market imperatively demands their articles, that of all shelf hardware sold in Turkey fully 60 per cent is sold as American, that about 20 per cent actually is American, and that an utterly insignificant part of it is sold direct to Turkey. The holding of 20 per cent of a country's business in a given line, without the least effort to obtain it, is a fact that commends itself to the careful consideration of all those whose wares are involved. 224 GERMAN TRADE AND THE WAR. GEEMAN HOUSES AS INTERMEDIARIES. With so favorable a basis, the absence of a strong, healthy growth of busi- ness will puzzle all those who are not familiar with the numerous adverse factors with which American trade has to contend in this particular line. The removal of these obstacles lies entirely in the hands of the American manu- facturers themselves. As in the case of various other important lines, Ameri- can hardware is not sold by the American producer to the Turkish distributer. Turkey's imports of American hardware have been practically monopolized by a few firms in Hamburg and Bremen. They are German jobbers, 1 working according to German methods and for German interests. Thus American arti- cles are shipped to Turkey only if they can not be replaced on the same terms by German articles. This tutelage over the American hardware business with Turkey, if not checked, must inevitably result in diminishing our trade, as the German middlemen command a number of essential advantages. They handle all kinds of hardware, and by means of large contracts with the various manu- facturers they manage to secure for themselves exceptionally low prices. For the shipment of these large quantities to their free port zone they obtain from the German steamship companies reduced rates, so that the combined freight from New York to Hamburg and thence to Constantinople is lower than the direct freight charge from New York to Constantinople. In this business the Ham- burg-American Line and the Deutsche Levante Line, both under the same con- trol, work in complete harmony. Were an American factory to ship direct only its own goods, they would, in most cases, amount to so little that the minimum freight rate would have to be paid, where larger quantities might have been shipped for the same price. Further, the shipment of an order involves certain handling charges at the port of shipment and at the port of transshipment. A small order can not as well afford these charges as a transaction on a more extended scale. SPECIAL CATALOGUES IN FRENCH FOB LEVANTINE TRADE. Most American manufacturers usually distribute catalogues in English, whereas the German houses furnish catalogues in French, which is the current business language in Turkey. The selection of the goods is thus facilitated. These catalogues are often specially printed for the Levant, with prices in francs, and often bear the Turkish distributor's name on the cover. They con- tain a complete list of hardware goods. In some cases the American articles are shown on one page and the German imitation on the opposite page, with the advantages of price, quick delivery, etc.,*of the German goods conspicuously indicated. GERMAN IMITATIONS OF AMERICAN PRODUCTS. The Germans, who have acquired the reputation of being master imitators, are thus offering for sale devices and tools that are very close imitations of patented American products, the imitation proceeding even to the brand and name of the article. For instance, there is offered in Turkey the " Blosta " drill, which is an exact duplication of an American tool. This duplicate is sold by the firm of Carl Blombach, of Ronsdorf, Germany, one of the principal Ger- man tool firms operating in the Turkish market. In each case the German product is in appearance a true reproduction of the American article, with a considerable reduction in price. That the Germans keep the American article in the catalogue at all must be ascribed to the fact that there are people who appreciate the excellence of the American prod- uct, in spite of all manipulations and deceptions, and insist on having what they want. That the articles are not completely imitated is probably due to the fact that they are patented in Germany. However, American manufacturers should be warned of the existing danger of seeing complete imitations of their products turned out by the Germans and sold in Turkey, where their rights in the majority of cases have not been protected by patents. That the Germans are alert on the question of patents in Turkey may be inferred from the follow- ing list of patents awarded from January 6, 1915, to February 4, 1916: To Germans, 11 ; to Ottomans, 3 ; to Austrians, 3 ; to Americans, 2 ; total, 19. 1 AB a rule. It is known that certain important American trading companies haye bandied their European business from Hamburg, however. GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 225 EFFECT OF GERMAN PRICE CUTTING. Another factor militating against American imports is the German method of " dumping," not so much for the purpose of disposing of surplus stock as of destroying competition. The factory representatives in such emergencies make no offers, but merely carry the orders away by allowing 5 to 10 per cent discount on the lowest competitive price. A specific instance is related by local dealers in steel rivets. These goods were formerly imported from France and England. Then there appeared on the market the representative of a Ger- man newcomer, the Kronprinz Aktiengesellschaft fur Metallindustrie, with works at Ohligs and Immingrath. The prices ruling at the time were as low as 30s. per 100 kilos (220 pounds) c. i. f. Nevertheless the German cut the price until both the English and French withdrew, and he carried off the order at 16s. Contrary to what one might believe, this practice not infrequently meets with disapproved and mistrust on the part of the trade. The price of rivets has rapidly risen since the French and English withdrew, and considering the qual- ity they are more expensive now than before. This is but one case out of many. The control of the pick trade was acquired in a similar way, all producers in Germany forming a syndicate to drive out competition, LOCAL REPRESENTATIVES AND ORGANIZATIONS, The German houses, with their thorough understanding of the prerequisites to the successful introduction of their various articles, select first-class agents,, intimately familiar with the market's requirements, and the customs and character of the people. These agents are by no means always Germans, but they are invariably German in spirit and predilection and have been carefully- taught German methods. They are thus linked to a perfectly organized suc- cession of elements, all working to the same end. The steady increase of German commerce with Turkey is due in very large measure to this model organization, which starts with the furnishing of capital by the home bank to the small manufacturer against his Turkish customer's notes, proceeds to facilitate the shipment of the goods exported, by land as well as by sea, by granting reduced combined railroad and steamship rates, and finally, through its exterritorial banks, supplies to the Turkish importer the funds necessary for releasing the merchandise and selling it, thus enabling the latter to honor the initial notes. In this connection prominent mention must be made of the Deutsche Levant Line, the stock of which is held by all important German banks and whose steamers call at many ports along the Dutch, Belgian, and Mediterranean coasts, generally obtaining a full cargo and thus making possible low freight rates for German goods. In addition to the above advan- tages a system of through bills of lading has been devised by which manufac- turers in interior towns of Germany pay the same freight rates on their goods destined to the Levant via Hamburg as are paid by manufacturers situated on the seaboard. This is a valuable incentive for the manufacturers in all parts of Germany to seek export trade with the Levant, as it places them on an equal footing with their colleagues in the port towns. Another important feature of the system is that the Deutsche Levante Line has an agent in every manufac- turing town, who is also an insurance and forwarding broker, and in these several capacities he takes the goods from the factory and attends to the for- malities required by all the carriers, whose authorized representative he is himself. Thus it is seen that in every possible way German goods enjoy a preferential position, and American shipments via Hamburg to the Levant have been known to wait for weeks in Hamburg warehouses, while German goods have been hurried forward. The agents of the German houses, as already mentioned, work methodically. If they are general commission agents (which is the rule), they have a bright young man, a native, looking after the hardware branch only. He visits the clients daily, reports the arrival of competing salesmen, and is always ready to take new orders, be they ever so small, because the aggregate quantity or- dered by all dealers invariably reaches a respectable figure. In this work great assistance is rendered by the traveling salesman from Germany, who conies twice a year, examines local market conditions closely, makes price reductions where necessary, and in general encourage the dealers. A competitor is never allowed to gain headway. Not a single instance is known in which a German 43339 18 15 226 GERMAN TRADE AND THE WAR. traveling representative failed to obtain an order from every dealer he visited, though he may have had to call four or five times on the same man. The English and French salesmen admit that they are unable to obtain the same results. It is believed in Turkey that only American alertness, perse- verance, and organization will be able to cope with German adroitness on this score. Especially during the past six years a collosal effort has been made by Germany to capture the Turkish hardware trade, or, better perhaps, to drive out the English and French competitors. The result has been cheaper prices, but also lower quality, which in the end renders the goods more expensive. On Cue whole, the dealers do not favor the German system, but they are obliged to accept it or go out of business. Another factor is the protection given to the German agents by the German embassy. Any claim or difficulty with the Turkish authorities is promptly settled by the intervention of the German diplomatic representatives. ADVANTAGEOUS POSITION OF GERMAN JOBBERS. It has been proved by subsequent direct imports that an American pipe tool has been sold in Constantinople for double the price it actually cost in Ne\v York. Such overcharges are more prejudicial to the manufacturer than to the Levantine consumer, for the latter may turn to an English or French firm for a good tool, or buy a cheap one of German make, while the American manu- facturer loses the trade. At equal prices, numerous American articles excel the German, and this may explain why American articles are found on the Turkish market at all. The local representatives have entered into contracts with the Hamburg and Bremen houses not to ijnport direct from the factories, and the German jobbers in turn have contracts with the manufacturers. Whether these con- tracts include exclusive sales rights in Turkey or some similar clause is not known in Constantinople ; such a condition does not appear very likely, for all the houses mentioned can furnish articles of the same make, usually from stock and very seldom by shipment direct from New York. However, whether such an arrangement exists as yet or not is immaterial, in view of existing practices, because quotations by the factory direct are often higher than those of Ham- burg, besides exacting cash with the order, delivery at the factory or in New York, etc. Under such circumstances the most favorable inclination toward America is discouraged. Only in late years, since the organization of the American Chamber of Commerce for the Levant, have a few American factories granted representation to local agents. The latter, though perhaps perfectly honest, are, in some instances, second-class agents, without means, personal influence, or credit, so that they are exposed to all kinds of quibbling on the part of a dealer who, knowing their financial position, may refuse to accept his order upon arrival of goods on some whimsical pretext or other solely for the purpose of obtaining a rebate at the last moment. A first-class agent would simply release the documents himself and probably sell the goods to the very man who refused them, if the prospective purchaser had dared to attempt any such practice with him. The local trade, knowing it is paying more in Hamburg, is none the less willing to buy the article there rather than direct, for the manufacturer would at best agree only to cash against documents, whereas in Hamburg the pur- chasers get long credit. Small firms especially are only too eager to buy from the Germans, for in the lapse of six or eight months they can dispose of their goods and perform another transaction with the money before they have to pay the original bill. The latter includes all charges incurred by the goods, which are sold c. i. f. ESSENTIAL QUALIFICATION OF AGENTS* It is thus seen that one of the cardinal requisites for the successful intro- duction of hardware, in which line competition is very keen, is the choice of the agent. The latter, especially in the Turkish market, should know how to sell and to whom to sell that is,. his object should be not merely to secure an order by cutting prices or giving away part of his commission, perhaps, but to pro- mote among the buyers an appreciation of business relations with his firm and to sell its goods to people who will keep the values high and not depreciate them on the market by reselling with next to no profit. Such agents may be found in Constantinople, but they must be assured of a reasonable and constant sup- port in the introduction of the new brands. A factory seeking to conquer a GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 227 territory at home would not shrink from making various sacrifices in the way of advertising, meeting the buyer in regard to terms, special inducements in prices, and the like. In this respect the Turkish market is not different from the home market. American files of a certain make are sold there not because they are skillfully introduced but because German files are dearer. Even Bel- gian and French files sell below the German. Such few direct representatives as exist are not able, for some reason or other, to obtain tangible permanent results. To handle the articles successfully, the agent must bring to bear on the situation a good reputation, which means per- sonal influence with the customer, and at the same time an understanding of the American point of view. The poor success of direct dealings hitherto may be partly ascribed to shortcomings in these respects, although the principal drawback always remains the flanking competition from Hamburg. GENERAL OUTLOOK FOB AMERICAN HARDWARE. It can not be urged too strongly that American manufacturers should not neglect what may appear to them as a limited or secondary market. In the past Turkey has been in a state of industrial depression, but it is regarded as certain that this condition will be removed by the present war, and the hardware business will inevitably advance \vith any general revival. The demand will be both pressing and growing. The United States must be ready to respond. Various factors have arisen in favor of America, and the end of the war will probably reveal a condition most auspicious for a development of the importa- tion into Turkey of American hardware. It is true that the steel business, of which the manufacture of tools is a part, is the backbone of the German manufacturing industry, and the war has ap- parently not shaken it within the boundaries of the Empire. But it is doubtful whether Germany will be able to meet foreign competition abroad on the same ground as before the war. Local importers appear skeptical on this ques- tion and are strengthened in their belief by discouraging advices received from the German manufacturers. At present, with export prohibition on nearly every article, prices are announced to be from 50 to 150 per cent higher than before the war, and when the prohibition is removed a further increase is anticipated. Although in some hardware lines German goods, before the war, represented 90 per cent of the total, in general the share of the various countries may be indicated as follows : Germany, 60 per cent ; United States, 20 per cent ; Eng- land, 10 per cent ; France, 7 per cent ; other countries, 3 per cent. There is noticeable a strong tendency for the German and the American share to increase, Germany leading with cheap grades, suited to the low standards in Turkey, and the United States with improved devices. Belgium had started to compete effectively against the German articles when the war broke out. In former years England and France dominated the market. Various Sheffield factories, the Peugeot Works, and firms in Maubeuge and Lille have still had their old-time customers, though their business is shrinking -from year to year. Aside from the moral effect the war may have on future commercial re- lations between Turkey and its present enemies, the devastation of the northern districts of France, the home of this industry, has crippled that country's trade for some time to come. The destroyed factories, even if rebuilt immediately, will probably not be able to supply on the same price level as before and will certainly have to discontinue whatever credit they had been extending. Even Germany, it is announced, will not be able to maintain its credit policy when peace conditions return. German manufacturers have advised their agents that they believe business after the war will be transacted in a manner " not unlike the practices ruling before the war." This vague explanation has cre- ated the impression that credits will be limited and connected with a corre- sponding increase in prices, so that those who can pay cash will have a ma- terial advantage over such competitors as do not have command of large funds. This certainly is a condition that will bring the Turkish market closer to Ameri- can practices. This anticipated inability of Germany to extend long-time credit after the war, the destruction of the principal hardware factories of France, and the complete exhaustion of all hardware stocks, because of requisition for military purposes and the long duration of the war, all combine to create exceptional conditions favorable to America's entrance into this field on a larger and more 228 GERMAN TRADE AND THE WAR. substantial basis than ever before. Turkish merchants will look to the Ameri- can manufacturer for goods to replenish their stocks because of the prospect of immediate delivery and reasonable prices, and the American Chamber of Commerce for the Levant offers means whereby American manufacturers and dealers can get in touch with reliable agents in Turkey in order to seize and maintain this opportunity after the war. [Prom " Brazilian Markets for American Hardware," Miscellaneous Series No. 47, prepared under the supervision of Lincoln Hutchinson, commercial attache" at Rio de Janeiro. 1916.] MARKETS IN BRAZIL. The reason why the Germans met with such success in Braxil will be found in the fact that they visited the customer with their samples, and if these were not suitable, the customer's suggestions were heard, samples were received from him, and these were reproduced exactly. With this system, they were able to obtain a footing in almost every case. These agents did not decline an order from a new customer, no matter what its size might be. They always reasoned that if he could be induced to start business with their firm, he would sooner or later develop into a profitable client. A case may be cited where a German agent took an order for 200 marks' (47.60) worth of pencils, simply for the purpose of getting the good will of a Brazilian house that is one of the largest firms dealing in school supplies, sta- tionery, books, etc. The result was that the firm became a customer of the German house, and the loss that the latter incurred in filling so small an order for pencils was more than covered in the profits obtained from subsequent busi- ness. This same firm of booksellers and editors was approached some time later by the representative of an American concern that desired to sell its products in Brazil. This representative had with him samples of work done by the factory in the United States, but it so happened that these samples were in- ferior to the goods to which the market was accustomed. Instead of hearing what the customer might have to say in the matter, this representative tried to convince him that the American method was the one that should be followed, giving this and that reason. The result of this attitude was that the manager of the local firm received the impression that the American thought that he was ignorant of his own business and that Brazilian methods were all wrong. The American neither secured the particular order nor left the ground prepared for future business upon his return at a later time. A little more tact on the part of one who came to Brazil asking for business might have converted this un- favorable impression into an auspicious one. [Prom " Markets for American Hardware in Germany, the Netherlands, and Scandinavia," Miscellaneous Series No. 48, prepared under the supervision of Erwin W. Thompson, commercial attache", 1917.] THE NETHERLANDS. The Netherlands, although primarily a country of farms, dairies, and fisheries, has also important industrial interests of a diversified character, and, with its seaport activities and growing urban population affords a valuable market for nearly ever branch of the hardware trade. The greater part of the supply comes from outside sources, chiefly Germany, America, and England, although in some special lines as in articles of woodenware, the trade is supplied by domestic manufactures. The wood for these, however, is imported. In a general way it may be said that Germany, with which the Netherlands has a larger trade than with any other country, is the leading competitor in articles for household use, in articles sold in large quantities in bulk, like nails, bolts, screws, etc., and in goods of cheaper grade, while America and England compete more actively in agricultural implements and in the better grades of building tools and building hardware. Conditions in the hardware trade differ materially from those in most other countries. Owin^ to certain circumstances of soil, climate, custom, and tradi- tion, the needs of the Dutch market are peculiar, and the hardware in use, excepting certain standard articles like screws, wire nails, bolts, and nuts, presents a remarkable variety of patterns and designs, considering the size of the country. This fact alone has proved an important factor in competition, for in proportion as the foreign manufacturers have consulted the distinctive GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 229 needs of the Dutch consumer, their trade has expanded at the expense of less watchful rivals. Among Dutch dealers the success of Germany in many special lines, and particularly in household hardware, is attributed directly to the policy of the German manufacturers in studying systematically the peculiarities of the Dutch market. METHODS OF ENTEBING THE MARKET. American manufactures of hardware are bought either by direct order to the manufacturers or exporting agents in New York, or through commission agents in London and Hamburg. Representatives of the Hamburg agencies pay periodical visits to Rotterdam and Amsterdam, taking orders for certain special lines, the goods being shipped direct to the Netherlands from New York. Only rarely does an American firm send representatives of its own to canvass the market. As a consequence, the Dutch buyer, who is within a few hours of the exporting houses of England and who receives frequent visits from representatives of German firms, is comparatively out of touch with American producers. It is suggested by certain Dutch firms which deal in American goods that this situation would be improved if American houses either made a practice of appointing responsible Dutch firms to act as their regular agents and keep a stock of their goods on hand, or sent their own representatives to the Netherlands and deal directly with Dutch importers. Against the aggressive methods of the German exporters there is apparently no active effort to push American goods. Moreover, the inevitable result of order- ing American or other foreign goods through Hamburg is to spur the German manufacturer to renewed efforts to capture the Dutch market. In general, the Dutch dealer, while often preferring certain articles of Ameri- can manufacture on account of their superior quality or, as in the case of wood screws and machine bolts, on account of the relatively low price at which an excellent article is furnished, finds strong inducements to buy from neigh- boring countries, partly on account of their propinquity, but even more on account of the willingness of their manufacturers to meet special trade re- quirements. Even in the larger distributing centers like Rotterdam and Am- sterdam, representatives of American houses are rarely seen, and communi- cation between American exporters and Dutch importers must be carried on almost exclusively through some intermediate agency, usually located in Lon- don or Hamburg, or else by means of post or telegraph. The result is that, except in the case of some of the larger Dutch firms, the hardware merchants of the Netherlands are completely out of touch with the American market and receive little or no encouragement to place orders there. Instead of having their trade solicited, they themselves must seek the oppor- tunity to buy, whether they purchase from the producer direct or from some agency or commission merchant in New York. This does not apply to abso- lutely all American firms, as certain specialties in builders' and carpenters' tools, in farming implements, and in cutlery are well represented in the Dutch market. The manufacturers of the nearest European countries, and particu- larly Germany, are in constant contact with their Dutch customers. German wares, bearing Dutch labels or accompanied by advertising matter printed in the Dutch language, are constantly being brought to the attention of both retailer and wholesaler, and German traveling agents make frequent visits to their customers. It is worth noting that, while the more important hardware merchants in the larger centers usually speak both English and German, the dealers in the smaller cities and in the rural districts, if familiar with any foreign lan- guage, it is more likely to be German than English. SCANDINAVIAN MARKETS. General conditions in the hardware trade of Sweden, Norway, and Denmark are similar. As a producing country, however, Sweden predominates, and the products of- its hardware industries are in evidence in the markets of both Norway and Denmark, whereas but few products distinctive of either Norway or Denmark are to be found in the Swedish hardware market. American manufacturers of hardware would find a profitable market in all these coun- tries if they would take the trouble to cultivate it. The first hardware imported from America arrived in Sweden in 1876, and consisted of spades, forks, axes, and a line of farming implements. These soon 230 GERMAN TRADE AND THE WAR. gained a reputation for superiority over the German makes, but in time the American quality slightly deteriorated, whereupon the German manufacturers improved the quality of their output, and for this reason and because of their ability to place goods on the Swedish market at lower prices, eventually sup- planted the American trade. By 1884 American axes had been pretty well in- troduced in Scandinavia, and the demand for them was quite general, at the expense of the domestic makes. This induced a firm in Stockholm to produce in that year an especially superior line of axes, with the intention of shutting out the American ax. As an inducement it offered to give three new axes for every ax purchased from it that proved defective. This offer soon swerved the allegiance of purchasers from the American to the Swedish ax, as they saw prospects of an extensive free supply of axes. However, it is said that up to date these prospects have not been realized ; that few, if any, " bad " axes have been returned ; that the firm by this maneuver not only established a reputation for its manufacture but created a decided preference, and orders for the American product diminished. The manufacture of these axes is still con- tinued in Aby, Sweden, and they find extensive and continuing sale. This trade could undoubtedly be recovered by American manufacturers, and trade in other lines successfully developed and established if they adopted the methods used by the German manufacturer to introduce and popularize his goods. In the first place, he covers the territory to be canvassed by a trained, experienced corps of salesmen, who speak the language of the country, visit every city of consequence, and do not neglect the country districts. If a slight modification in style or size of an article is desired, he agrees to make the altera- tion, if orders are of warrantable quantity ; he then makes quick delivery in convenient packages and extends reasonable credit usually three months from date of delivery, sometimes more, but seldom, if ever, less. OPPORTUNITIES FOR AMERICAN GOODS. Expressions of opinion secured in reliable, unbiased, and authoritative hard- ware circles in Stockholm and Goteborg fail to indicate any factors that would effectively operate toward a restriction of trade in American hardware in Sweden. So far as could be ascertained, no prejudice exists in the minds of Swedish dealers and consumers against any American hardware product thus far placed on the Swedish market. Quite the contrary is true, and if prices of domestic manufactures and of articles imported from other competing countries could be met, the American quality, finish, and workmanship would quickly obtain preference. The German manufacturer has succeeded in marketing many of his imple- ments and utensils in Sweden, because he first familiarizes the dealer with the article by personal explanation and demonstration and then proceeds to popularize it among the consumers by inducements in the form of acceptable prices and a readiness to meet individual wishes or requirements as to style, size, or finish, if the orders are in approximately warrantable quantities. These are concessions which it is said the American manufacturer has stead- fastly declined to make to the foreign trade, either because of lack of flexi- bility or adaptability in organization and mechanical installation, or simply because he has not deemed it worth while. [From " Markets for American Hardware in Italy, Spain, and Portugal," Miscellaneous Series No. 55, prepared under the supervision of C. W. A. Veditz, commercial attache" at Paris, 1917.] ITALIAN MARKETS. In Italy there is an extensive manufacture of hardware, most of the im- portant factories being located in the Provinces of Piedmont, Lombardy, Tus- cany, and the Marches. Until the outbreak of the European war German manu- facturers were the chief competitors of the Italians. Owing to Germany's favorable treatment of exports, easy terms, quick transportation, etc., certain German articles were sold in the Italian market as cheap as those of Italian manufacture, and in some cases cheaper. England supplied a large quantity of fine cutlery to Italy, and from France came certain quantities of the better grades of tools and other hardware. American manufacturers have almost a monopoly in fine safety locks, spring hinges, pipe-threading machines, bits, saws, files, metal-polishing machines, meat choppers, and other small special machines. However, since these articles are purchased only by the high-class trade, imports are not large. In nearly all GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 231 lines of hardware each dealer shows goods of American manufacture. The quality of the materials employed in their manufacture, the perfect adap- tability to the purpose for which they are used, and particularly the fine finish, make these goods very desirable for window displays and as samples of fine hardware. But though the customer may recognize the superiority of American hardware, he usually considers it too expensive for everyday use. A house at Milan has the agency for many goods of American manufacture, and its catalogues, published in Italian with prices in lire, can be found in dealers' hands throughout Italy. Among the American goods offered by this concern are saws, carpenter kits and tools, grinders' taps and drills, shears and scissors, screw drivers, pliers, pincers, vises and wrenches, thread-cutting machines, and tap wrenches. Before the war a Hamburg firm that handled American hardware and tools sent traveling salesmen through Italy every six months. But the market for high-class articles has been limited. The Hamburg house sold American hard- ware c. i. f. port of arrival in Italy, with payment in three to six months. While this house did a fair trade in Italy before the war, the demand for the goods that it handled was insignificant as compared with the demand for cheap hard- ware of German manufacture. The Italian market demands cheap goods. The Italian mechanic receives $0.80 to $1.40 per day, and can not pay high prices. Rather than pay for a finished shovel, sledge, or hammer handle, he will make his own from any lumber available. He is not particular as to where tools are manufactured so long as they are fairly good and are to be obtained at prices that suit his purse. German manufacturers of hardware, bearing in mind the needs and resources of the average Italian customer, have always offered cheap goods at low prices and on liberal credit terms. English manu- facturers have been making efforts to get a larger footing in this market, but their terms of sale are not acceptable; in fact, dealers are accustomed to the methods and prices of the German manufacturers, most of whom established headquarters in Italy (chiefly in Milan). Many distributing houses, however, are in the hands of energetic Italians, who would handle American goods if they were not so difficult to obtain. This difficulty should grow less as American manufacturers become better ac- quainted with the needs and possibilities of the Italian hardware market, par- ticularly if increased American production for export appreciably lowers prices. The difficulty should lessen as American houses better their selling organiza- tions and methods in Italy and as ocean freight rates and rates of exchange return to normal. Conditions that are favorable to American trade in Italy after the war are the necessity of replenishing depleted stocks when the do- mestic producers and some foreign competitors are occupied, to a great extent, with the problems of reorganization and readjustment. American manufacturers have shown little disposition to consider the whims and habits or even the actual necessities of the Italian customer. Either they have not cared to alter their models for the sake of what was regarded as a limited market, as with screws, pincers, trowels, etc., or they have not cared to alter the prevailing high quality and finish of their goods in order to reduce the price, as, for example, with nails, hinges, and pitchforks and other agricultural im- plements. It appears that often a slight variation in form or finish would have turned an unsalable into a salable article. American manufacturers who wish to acquire and hold a large Italian trade shouid consider how they can produce for these markets good merchandise somewhat inferior and less highly finished than that which they make for home consumption. SYSTEM OF CONDUCTING HAEDWARE TRADE. The wholesale hardware trade in Italy is in the hands of a number of dif- ferent classes of dealers. Cutlery is handled by one class; firearms, fishing tackle, etc., by another. General hardware includes builders' hardware, tools, and kitchen utensils, though kitchen utensils are handled more and more by specialists. Until a few years ago most mechanics' tools also were dealt in by general hardware firms, but now they are usually included in the machine trade. American hardware has not made much progress in Italy. American manu- facturers have not sufficiently considered the great variety of sizes and pat- terns required there. Moreover, American wares were hard to introduce by reason of the almost entire lack of well-organized jobbing houses with staffs of trained commercial travelers who could study the markets. 232 GERMAN TRADE AND THE WAR, Most of the German manufacturers have branch houses and depots in Milan, from which they sent their traveling salesmen periodically with samples and catalogues, and from which they made the prompt shipments for which they were noted. There are also Italians and others who conduct import agencies in Milan, Genoa, Rome, and Naples. The Hamburg houses before mentioned made a specialty of American hardware and sent its traveling men through Italy twice a year, offering goods c. i. f. Italian ports, with payment in three to six months. Before the war there was a brisk export trade with the eastern Mediter- ranean, which was usually carried on by means of commercial travelers work- ing in conjunction with local agents, who were often themselves Italians. Argentina also bought Italian hardware. Italian hardware exports in other directions were negligible. SUGGESTIONS TO AMERICAN EXPORTERS. By way of summary, it may be said that besides the very obvious considera- tion of studying samples, price lists, and catalogues, American manufacturers should make a personal visit to Italy or send a trusted representative, if they find it possible to do so. They should share with their customers in Italy the risks and expenses that accompany the introduction of goods in any market. The failure to do this has called forth some of the complaints that have been heard from Italian customers. German manufacturers usually printed adver- tisements and announcements in the Italian language free of charge, and, having assured themselves of the credit of the people they were dealing with, sent samples for show and distribution and gave every other possible facility. American houses have required payment in advance because they do not know the Italian customer. It does not seem to occur to them that the Italian cus- tomer knows them and their goods just as little, and that even if he personally is convinced that the goods are superior to all others he must show them to his customers before he can get or give large orders. The German exporting houses have accustomed their former Italian clients to long credits, sometimes a number of years. Italian business men freely admit that such a practice, though it was often convenient to individuals, in the long run was an injury to commerce, and none has been heard to ask for more than 90 days. PORTUGUESE MARKETS. The hardware imported into Portugal may be divided as follows, by countries of origin : Germany, 50 per cent ; United Kingdom, 25 per cent ; United States, 12 per cent; France and Belgium, 6 per cent each. The large imports from Germany were due principally to low prices, easy terms, excellent shipping facilities and reasonable freight rates, thorough knowledge of the market, and adaptability to the market requirements. Credit was granted in many cases for one year, and nearly always for three or six months. This practice was made possible by the credit information given by Lisbon agencies of German firms. In normal times the majority of steamers calling at Lisbon are German and sail between South America and Germany via Portugal and France. A thorough knowledge of the market's requirements was gathered by traveling salesmen equipped with extensive lines of samples. German manufacturers were able to produce low-priced goods equal to better goods in appearance, and these articles, when properly handled, were extensively sold. Moreover, the German manufacturers made what the market wanted ; they were willing to modify any features of their products to make them conform to the needs or the wishes of the customers whom they were trying to serve. Many special articles produced by England, France, and Belgium are sought because they have acquired a certain reputation. The German industry is much more recent. Many German articles, therefore, are not yet well known, but at the rate at which the Germans were spreading their propaganda before the European war they would prac- tically have absorbed the Portuguese hardware market in half a dozen years. Perhaps the most important reason, however, why Portugal does not buy more American hardware is that it costs too much for the Portuguese purse. At pres- ent the prices may be paid under the pressure of necessity, but with the return of peace and competition the price question will again be of supreme importance. In nearly all cases it should be possible for American hardware to meet the prices of the English, French, and Belgian products. But lowering the cost of production so as to compete with German articles, if possible, is a problem that GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 233 should engage the serious and immediate attention of the American hardware trade. In practically no line is the preference of other goods to American determined by superior quality, for American hardware is generally considered to be of better quality than that of other countries. Portuguese hardware dealers are unanimous in the opinion that this is especially true of tools and the finer grades of hardware, and that if American manufacturers will come down in their prices and will grant easier terms of payment they will obtain a permanent hold on the Portuguese market. [From " Russian Market for American Hardware," Miscellaneous Series No. 46, prepared under the supervision of Henry D. Baker, commercial attache" at Petrograd, 1917.] GERMAN TRADE METHODS IN RUSSIA. A few German manufacturers, including one or two having their factories in Solingen (the latter specializing to a great extent in cutlery, scissors, tweezers, razors, etc.), have of late years opened their own branches in Moscow, the branch selling the products of the factory by means of travelers. Owing to the keen competition, however, the method has been found unprofitable and the branches have been closed. Just before the war there were in Moscow only two branches of German manufacturers, both of which were in Solingen. Since the war started these two branches have been compelled to close. German manufacturers, however, owe their success mainly to the fact that the majority have sent their own travelers not only to the big cities in Russia, but also to the larger provincial towns, and have provided them with elaborate collections of samples, and in many cases with catalogues printed in Russian and containing values quoted in rubles f. o. b. Russian port or railway station. The majority of the Moscow houses are prepared to buy f. o. b. factory and pay the freight and duty, remitting in foreign checks, but most of the provin- cial dealers and stores insist on prices f. o. b. frontier, duty paid by manufac- turer. The willingness of many German manufacturers to do this has helped toward their success. Furthermore, German manufacturers have been more inclined to give credits, and very extended credits, owing to some extent to the support that they have received from the German banks, which have advanced money on the strength of orders received by manufacturers from Russian dealers. It should be remembered that Germany's success was mainly in articles of more or less inferior quality ; but in a number of lines the Germans have grad- ually been supplanting other countries, even in the better grades of goods, be- cause they have worked the market more intensively and have given more favorable terms of payment. Large quantities of goods before the war were sent to Russia from Germany by post. For postal parcels weighing 5 kilos (11 pounds) or less Germany introduced a low minimum rate (parcels weighing over 5 kilos had to pay extra for overweight, which increased the cost of sending by post), and goods ordered for shipment by post were accordingly sent in parcels of 5 kilos. Experience has shown that the prices of some articles when received by post were lower than those of the same articles when sent in bulk in the ordinary manner. With comparatively high-priced goods that are not heavy the for- warding and clearing firms at ports or places of shipment and destination reckon their charges at a percentage of the value of the corresponding goods ; these expenses are saved when sending the goods by post The postal parcels are sent direct to the house or store, the levying of the duty being made by the authorities at the customhouse. The receiver, therefore, has only the duty to pay, various other expenses not being incurred. On this account some goods are received exclusively by post (for instance, shipments of 12 to 15 parcels, each weighing 5 kilos). Furthermore, the shipment of goods by post is im- portant when they are required urgently. Parcels sent from Germany were only 10 to 12 days on the way to most cities in Russia, including time for clear- ing them at the customhouses. Germany through postal shipments did busi- ness amounting to thousands and tens of thousands of marks. DEVELOPMENT OF GERMAN TRADE AT RIGA. Local dealers at Riga point to the following reasons for the remarkable de- velopment of the demand for German hardware : (a) Good qualities at low prices. 234 GERMAN TRADE AND THE WAR. (&) Speedy delivery and a willingness to fill small orders, as well as a dis- position to make special patterns suited to local requirements. (c) Allowance, under proper conditions, of extensive credits, running from 6 to 9 and even 12 months. It is pointed out that the Russian commercial world is so accustomed to these long credits that the average merchant will prefer a long credit to a short one with more favorable prices. (d) Geographical advantages similar to those of American firms doing busi- ness with Canada. . With fairly good railway and postal connections between the two empires, the German firms were able to keep in close touch with their customers here. The steamship connections in time of peace are excellent. (e) The parcel-post agreement between Russia and Germany, which has en- abled German hardware manufacturers to fill small orders quickly and at mini- mum cost and also to send samples freely. Parcels weighing up to 11 pounds could be sent by post, and often fairly large shipments were broken into small lots and forwarded in this way. In shipping by post certain small expense items are avoided and much time and trouble are saved for the purchaser. Importers say that in recent years thousands of dollars' worth of hardware has come to Riga by parcel post from Germany. American hardware is of excellent quality, but certain factors, some of which it is possible to modify, have tended to turn the balance against the American manufacturer. Among these factors are the following : (a) Stringent conditions of payment, generally cash in advance or settlement upon receipt of documents. (&) Disinclination to consider temporary local demands and tastes and in- sistence upon supplying goods as designed for trade in the United States. (c) Unwillingness to supply small orders; this makes it impossible for the less-important dealer to buy direct from the American manufacturer. (d) Lack of a parcel-post agreement between the United States and Russia. (e) The impossibility of quick deliveries, owing to the great distance between the two countries. In their efforts to overcome some of the foregoing disadvantages American manufacturers have allowed much of their trade to fall into the hands of German commission houses, some of whom have offices in New York as well as Hamburg. These commission houses accept orders of any size or description and allow the terms customary in Russia. It is understood, however, that an American com- mission house has recently established a branch in Copenhagen to look after the hardware business in this part of the world. When the war brake out and German commission houses were cut off from their Russian market, American hardware manufacturers undoubtedly suffered con- siderable loss in this territory. They know little or nothing about the people who have been handling their goods in Russia, nor do the Russian merchants know how to get into touch with the American manufacturers, although they may desire to continue handling American hardware. It has been customary for German traveling salesmen to come to Russia twice a year. These salesmen bring samples with them, take orders, and at the same time make collections. They are very effective in adjusting differences arising from time to time that can not well be disposed of through correspondence. In Riga salesmen have to guard against offending the wholesale dealers by attempting to do business direct with the retailers and small dealers. Trade may also be lost at times by attempting to work through commissio .; agents where there are well-established wholesale houses desiring to import direct. On the other hand, agents of good standing are often very valuable in certain lines. Only an experienced salesman can avoid errors of this sort, which may cost h-s house dearly. In view of the present difficulties of transport, etc., direct relations between Russia and the United States can not now be developed to any great extent, but it is the general opinion that they should develop rapidly after the war. GERMAN SUPEEMACY IN HARDWARE TRADE OF ODESSA. Many products of the American hardware trade are well known in this dis- trict. In fact, even the youngest apprentice in a hardware store easily 05- nizes the American trade-marks, although neither he nor his " boss " seems to know the circumstances under which those goods have been imported into Russia. The fact is that all the American hardware goods offered for sale in Russia came through Hamburg, which was a very important transshipping point between the Russian market and foreign manufacturers. GERMAN METHODS DESCRIBED IN OFFICIAL REPORTS. 235 The big German jobbing houses began many years ago to study the Conditions of the Russian market and the psychology of the Russian dealers. Their sales- men used to travel all over this vast territory in order to get an idea of the demand and of the various goods needed. They not only came with catalogues and price lists printed in the Russian language, but also had boxes full of hardware novelties, which they would present to the Russian dealer as sam- ples and from which the Russian dealer could select the goods most suitable for his clientele. Soon, however, the German manufacturers came to the conclusion that this trade carried on by the salesmen alone was not sufficient, and they appointed commission agents, who were better acquainted with local conditions. Cash terms are totally unknown in the wholesale hardware business of Russia. Therefore it is very important to know the exact credit situation of the various dealers. This knowledge can be acquired only on the spot, because, as a rule, banks in Russia do not give credit information, and the existing information agencies are not reliable enough to make important business dependent upon the information received from them. A system of commission agencies was therefore developed. These commission agents were authorized by the Ger- man jobbing houses or by the manufacturers themselves to extend credit within certain limits to their dealers. The amount of their commission varied from 5 to 10 per cent, and depended largely on the kind of goods sold. This system enabled the German firms to extend their trade without running any great risk. To assist the local agents the German firms have sent several of their ex- perienced salesmen to Odessa at least twice a year, thoroughly to canvass the territory and close the contracts with commission agents. These German salesmen sometimes were so energetic in their efforts to capture the trade that they not only closed contracts with their wholesale commission agents, but competed with them by selling their products direct to the retailers. As a rule they came in March to obtain orders for the next winter season, and in October or November to make arrangements for the next summer season. After the German hardware products were introduced in Russia there was no more need for the German salesmen to carry collections of samples with them. It was sufficient for them to call on their permanent customers to make new contracts. No wholesale hardware business is done in Russia on a cash basis; all deals are based on credit, usually for six months. Most Russian firms, how- ever, have the credit extended for two or three months more. As a rule, the German hardware goods were sold c. i. f. Odessa, the invoice to be paid in German money. Some of the Russian firms, however, prefer to pay in rubles, because in this case they can know in advance the exact amount of the in- voice. The loss of the German firms incurred in consequence of the credit risk is estimated by local hardware merchants to have been not more than 2 per cent and there is no doubt that allowance for this loss is made in the list price of German products. The prices quoted in the price lists were bind- ing neither for the purchaser nor for the seller. There was a great variety of reductions, discounts, allowances, etc., the amount of which usually de- pended on the volume of the Russian dealer's business with the German concern. The liberal credit extended by the German firms, which is opposed to the principles underlying the trade of England, France, and the United States, made it very difficult for these countries to compete successfully with Germany on the Russian market. It was not only the liberal credit policy of the German dealers that made them successful on the Russian market. The German manufacturers were equally anxious to meet the views of the Russian dealers, who very often insisted on various changes in construction and shape. If the German manu- facturer did not see his way clear to satisfy the Russian dealer by making the given article of cheaper material, because this would affect the reputation of his well-known trade-mark, he would furnish cheap articles not provided with his trade-mark, or would create a special trade-mark for the article sup- plied to the Russian dealer. In consequence of this liberal policy of the German dealers and manufac- turers, 75 per cent of the imported hardware goods came from Germany. The Germans laid their hold on the Russian market to long credits, low prices, and the manufacture of products adapted to Russian demands and tastes. 236 GERMAN TRADE AND THE WAR, Russian dealers conduct their business on purely business principles. Still they preferred to buy their goods, even those manufactured in the United States, through the big jobbing houses in Hamburg. They admit that the quality of American hardware is better and that very often the prices are not higher than the prices of German manufactured goods; but up to the out- break of the European war they did not care to look for direct connections with the United States, because the German suppliers did everything in their power to satisfy the Russian dealers and to furnish them with the goods they needed. Another great advantage for Germany was the direct steamship line between Odessa and Hamburg, which made transportation cheap and comparatively quick. 449497 r.C 7994 . ..< UNIVERSITY OF CALIFORNIA LIBRARY