338 
Indiana University 
Since the population of the new empire increased rapidly, a 
situation in general was created which was full of promise to 
the industrial entrepreneur. 
The essential elements in the new situation were (1) a large 
supply of coal, (2) a huge ore reserve, (3) a large population 
from which to draw both labor and capital, and (4) an or- 
ganizing genius both in business and state. Deprived of any 
one of these items, Germany’s industrial chain would lose a 
valuable link. To bring about the most effective use of them a 
system of education which laid great stress on technical in- 
struction was built up. 
The effect of all these forces on the industrial development 
of Germany was marked. In 1871 when a part of the Briey 
basin was annexed, one-half of the German people were en- 
gaged in agriculture; in 1914 less than one-third were in this 
vocation. Cities grew by leaps and bounds. The population 
increased from 41,000,000 in 1871 to 68,000,000 by 1914. At 
this time it was estimated that the national wealth exceeded 
every other nation except the United States. Six and one- 
quarter million dollars was invested abroad. German goods 
had entered the markets of the world. The mariners of 
Hanseatic times, altho prodigiously successful for their day, 
would have been amazed could they have seen the modern 
German sea captain marketing his products everywhere. The 
European countries east of Germany did one-fourth of their 
trading with her. As a producer of pig iron and steel, only 
the United States surpassed the indomitable Teutons. 
Within a generation Germany had by ‘‘peaceful penetra- 
tion” entered the markets of the world. Spheres of influence 
were staked off in some lands; colonies were obtained in 
others. In common with her European neighbors, this Hohen- 
zollern state embarked on a policy of imperialism. Every 
continent felt the touch of German Kultur ; every sea carried 
argosies under the German flag. What Bismarck had done at 
home with blood and iron, his successors determined to do 
abroad with coal and iron. 
Naturally such a policy was bound to meet with opposition 
from the other nations of the world. No opposition, however, 
was so serious but that it yielded to the usual methods of 
diplomacy until the troubles of 1914 appeared. Altho alliances 
and counter-alliances had been formed, their existence failed 
to prevent recourse to the sword as an arbitral agency. Try 
