MINERAL SUPPLIES BLISS. 257 



indispensable to some foreign country. These products are to be 

 placed under a special State control by which they are to be fostered 

 and supported so that it will be possible without killing the industry 

 to place an absolute embargo upon its market in any foreign 

 country that has shown injurious discrimination against Germany. 

 The second class comprises those auxiliary industries that furnish 

 to the protective industries the necessary raw materials. These 

 auxiliary industries are obliged to furnish the necessary raw ma- 

 terials at such low cost that it is possible for the protective industry 

 to remain always in control of the market. The secondary industry 

 will be reimbursed in the course of time by a- percentage share in 

 the earnings of their customers or else through the general guar- 

 antee fund which it is proposed to institute in order to supply the 

 necessary reserve capital that will enable the protective industries 

 to cut their prices below competition and to submit to embargoes on 

 their market while they produce a stock surplus. It was also pro- 

 posed to institute a central sales bureau that should have complete 

 charge of the foreign sale or embargo of the output of the protective 

 industries. 



His scheme as elaborated is chiefly a matter of domestic organiza- 

 tion which had already reached such an advanced point in German 

 industry. Its weak point is that Germany is dependent for many 

 raw materials upon foreign sources. But it must be remembered 

 that this book was written in the confident expectation of a complete 

 German victory by which she would be in a position to dictate her 

 terms to the world. What these terms would have been is stated in 

 Chapter II with a candor for which we can not help but be grateful 

 since " forewarned is forearmed." The terms of their commercial 

 treaty would have entailed assurance of raw materials at suitable 

 prices, prevention of specially discriminating or injurious foreign 

 tariffs, assurance of all concessions and protection to German in- 

 terests that are conferred upon any other nation, and official recog- 

 nition of the various federations that were to furnish the modus 

 operandi of the schemes outlined above (for the protection of German 

 interests). Herzog then goes on to indicate that it would be well to 

 demand exclusive favoritism of Germany in certain points, after 

 carefully eliminating all possibility of any discriminative favoritism 

 against Germany. He demands for her unlimited right to secure 

 raw materials abroad without any export restriction in the country 

 of origin, he insists upon the right of supervision over German plants 

 abroad that are furnishing raw materials to the protective industries, 

 he stipulates for control of foreign freight rates, he eliminates all 

 foreign concessions that could benefit other countries to the exclu- 

 sion or disadvantage of Germany, and he demands a special guar- 

 antee to cover German capital invested in foreign countries. In 



