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TRANSACTIONS OF SECTION F. 595 
bat rather the demand of a growing population for food-supplies and industrial 
opportunities of employment. Up to this time Transatlantic enterprise had been 
of a somewhat incidental significance for German national economic life: it now 
became vital. Larger exports of merchandise and capital for foreign investment, 
the establishment of large commercial fleets, insurance and cable companies, now 
became necessary to meet the increasing requirements of the importing interests. 
By inaugurating a Colonial policy in 1884 Bismarck meant to crown the process cf 
empire-making. 
The censuses of 1882 and 1895 show a remarkable transformation in the 
economic structure of Germany. Unable to employ a larger number of people in 
its pursuits, agriculture had thrown the full surplus population into industria! 
occupations. The agricultural classes in 1895 numbered about 18,000,000, about 
the same as a hundred years ago, whilst the industrial population had increased 
600 per cent. The standard of life had improved throughout, chiefly in the middle 
and lower classes. In spite of the introduction of scientific methods, agriculture was 
unable to keep pace with requirements. 
By 1900 one-fifth to one-fourth of the foodstuffs, and more than nine-tenths 
of the raw material for clothing, &c., had to be imported. Tad nct a rapid 
development of foreign trade and rising foreign investments closely followed 
the resulting necessities, either starvation, or emigration, or foreign war would 
have resulted. 
To avoid a precipitated industrialisation and a dangerous decline of agriculture, 
the country decided upon an increase of agricultural protection. Germany’s 
geographical position will always necessitate an ample agricultural resource at 
home to avoid the dangers of starvation in war times. She was compelled to 
sacrifice some of the industrial possibilities of tariff-treaties to this point of view. 
The situation to-day is that Germany’s foreign commerce amounts to 
750,000,000/., of which 425,000,000/. are imports. 
Of the difference, fifteen to twenty millions are made up in the earnings of 
German shipping, the rest in the interest from foreign investment, consisting of 
450,000,000/, investments in trans-oceanic countries, 800,000,000/. foreign stocks 
and bonds (of which more than 100,000,000V. is trans-oceanic), and more than 
250,000,000/. other investments. 
Of the imports, about 40 per cent. come from over the sea outside of Europe, 
while of the exports a little less than 25 per cent. go to foreign continents, more 
than 30 per cent. of its trade. 
With neighbouring countries Germany exchanges more than 40 per cent. 
The trade with the United Kingdom amounts to about 20 per cent. of exporta- 
tion and 14 per cent. of the importation, and with the British Empire 24 per 
cent. of exportation and 22 per cent. of importation. While England has ceased 
to be paramount in German and foreign trade, it still holds the first rank. Of 
the commerce of the world, incoming and outgoing, the three leading countries, 
England, Germany, and the United States, to-day control the greater part in 
either direction. Of this a large share is transacted among these three countries. 
German exports have not increased as rapidly as the demand for imports. 
The foreign investments are rising in importance. They may become the leading 
feature by the time that machine-using industries have become more extended in 
tropical and sub-tropical countries. Germany will have to improve her commercial 
and industria] processes, her means of transportation, and her business organisation 
to keep pace with foreign competition. The real dangers of the competition of 
the future are neither to be found in England nor in Germany, nor even in the 
United States, though this latter country makes a more rapid progress than the 
two former, They will ensue from the working of certain natural laws: 
increasing populations, increasing demand for the products subject to diminishing 
returns, and increasing supplies of the products subject to increasing returns. 
The political tasks of Germany’s future are continental, in consequence of its 
central position, and will continue to centre on the mainland of Europe, though 
her economic tasks will necessarily consist of a gradual extension of every form of 
her commercial sea-interests. ‘Sr 
QQ2 
