630 POPULAR SCIENCE MONTHLY. 



tion which relates to processes of manufacture and the utilization of 

 labor, has been drifting instinctively towards the larger question of 

 the concentration of capital as the logical development of the same 

 general idea of reducing cost and increasing the margin of profit. 

 The question is larger because it has a more direct and more general 

 bearing upon the economic and social life of the nation, upon the inter- 

 ests, real or imagined, of the whole body politic. We have to do with 

 it here only because of its relation to and possible effect upon our 

 foreign trade, and it is interesting to know that so thoughtful an 

 observer as Lord Eosebery perceives in the simplification of the use 

 of capital in the United States which is going on — it may be said 

 experimentally, to a large extent as yet — a tremendous power in the 

 commercial rivalry of the world. 



GERMAN VIEWS OF AMERICAN COMPETITION. 



Germany, as well as Great Britain, seems fully sensible of the 

 seriousness of American competition. In a recent issue, the Ham- 

 burger 'Fremdenblatt'* points out that the United States, which ten 

 years ago exported more than 80 per cent, of agricultural products 

 and less than a fifth of manufactured goods, to-day draws nearly 

 a third of its entire exports from the products of its factories. "In 

 other words, the Union is marching with gigantic strides towards 

 conversion from an agricultural to an industrial nation." "Does not 

 the rapid increase of the United States in the value of industrial 

 exports," the 'Fremdenblatt' asks, "constitute an imminent danger 

 from all competing nations?" Continuing, the 'Fremdenblatt' says: 



If we now turn to an investigation of all the elements which have produced 

 this tremendous, this almost incredible, revolution in the world's situation, it is 

 impossible within our present limits to consider all the factors which are of 

 importance to German interests as well as essential to a comprehensive conclu- 

 sion. Competent experts, well informed as to the industrial and export condi- 

 tions which prevail in the United States, have established the following facts: 



The steel manufactories of the United States, which two decades ago were in 

 their infancy, to-day control the markets of the world, dictate either directly or 

 indirectly the prices of iron and steel in all countries, and partly through the 

 richness of their supply of iron ores and coal, partly by the use of labor- 

 saving machinery and skilful, effective means of transportation, have attained 

 a position to not only compete with the older iron and steel-producing countries, 

 but even to profitably export their products to England. 



American tools, especially hatchets, axes, files, saws, boring implements, 

 etc., enjoy, by reason of their excellent quality, the best reputation, and, in 

 spite of their higher price, stand above competition in nearly the whole world. 

 Also in sewing machines, bicycles and agricultural implements of every kind, 

 the United States has begun to drive England and Germany from the world's 



* Article translated by Consul-General Mason. See 'Advance Sheets' No. 934 

 (January 14, 1901). 



