August I, 191 8 
Land & Water 
right to got tliem out by German enterprises. It must 
preclude any restriction. . . ." 
"The Government of the country in question can be per- 
mitted to exercise its right of requisitioning them (i.e., its 
own materials) only, with the consent of the proper German 
officials. To guarantee the fulfilment of these demands 
certain pledges must be given." 
"The amount of raw materials turned out can never be 
permitted to decrease artificially because of a selfish desire 
to charge a higher price, nor can their quantity be reduced. 
. . . Therefore, it must be made possible for the German 
Government to interfere without foreign countries protesting 
that their sovereignty is violated." 
" It will not alone suffice to demand unlimited opportunities 
to secure raw materials in foreign countries . . . , for their 
]>rice, by the time they reach (iermany, mav have been raised 
to inadmissible amounts by export or transit charges, freight 
rates, the refusal of export premiums which are granted to 
other foreign business of a similar kind, and by other ]x'tty 
forms of chicanery . . . (for instance, a refusal to build 
connecting railways, or to recognise the expropriation rights 
of German enteq^rises, etc.). The commercial treaty must 
place an absolute bar to such arbitrary advances in the final 
price of raw materials. . . . The retaliatory measures to 
i)e applied in case of infringement must be determined upon 
beforehand with all severity." 
" Provision must be made in ad\ance that foreign officials 
employ all the force at their command against the originators, 
promoters, and participants in boycotting movenwnts which 
injure our export trade, and that in such cases the German 
Government have a right to be consulted, and to share in 
deciding the measures of opposition." 
"That stolen rights of ownership (in German patents) are 
restored to their former owners unimpaired, that full com- 
pensation is made for the financial loss incurred up to the 
time when the property is restored, and that a priority right 
in hostile countries is assured to the German patents awarded 
during the war ; but the treaty must also make certain that 
special statutory measures make occurrences of this sort 
impossible again." 
Proceeding with the terms of the treaties, which Herr 
Herzog emphasises as being "only a selected few from amorig 
the points which suggest themselves in this connection, and 
that they represent the minimum demands," this adviser of 
the German Government proceeds to lay down that except 
where they are absolutely indispensable "it must be expected 
that German technical skill will be excluded from supplying 
■ our present enemies. Such a condition as this would be 
insufferable. It must be prevented from arising. The com- 
mercial treaty must stipulate that German shippers are 
eligible wherever foreign material and foreign workmanship 
are patronised at all. It must be absolutely impossible for 
manufacturers from countries now allied against Germany 
to enjoy under any form or pretext whatsoever a preference 
in competing for State work. But no confidence can be 
placed upon paper concessions alone. On the basis 0/ statistical 
data, we must specify the proportion in which German products 
have to be included in official consignments from foreign coun- 
tries. . . . Purchases according to this proportion must be 
guaranteed by the State which is a party to the treaty. ' 
"The objection will then be made," plaintively complains 
this German arbiter of our domestic business, "that such a 
demand is an attempted intrusion upon the sovereignty of 
the State." Undoubtedly any .Allied State might raise 
that objection. Well, he has a familiar answer all ready— 
the usual German answer to everything. "The patience of 
Germany before tlie war was stretched further than was 
really well ; it was exercised only to keep the peace. We 
have gained nothing by generously yielding a point time 
after time r- instead of insisting upon our rights. 
... It must be a matter of figures, and put down in 
black and white. The duty of the guarantors will be to see 
that the pledged security goes unforfeited because the guaran- 
tee is fulfilled." 
Another item that this Prussian sabre is to cut out of us 
is set forth thus : 
"As an integral constituent of the commercial treaty, 
there must be an import guarantee given by the foreign 
power in figures for each individual kind of German industry 
(the figure understood as the percentage of German goods 
to all other imported goods of the same industry)." 
To conclude, it is laid down that all German governmental 
or commercial agencies established in any coun^try to oversee 
and enforce these "minimum demands "remain unhampered 
and tax free. 
German reports do not make light summer reading. But 
it seems essential- that they should be presented verbatim 
to the business worid, and that they be .taken in detail for 
careful study. They embody clearer than anything else the 
present and unrelinquished purpose of the German [jeople 
not only to take by force and upon their own terms whatever 
we have which is of use to them, but to compel us to build 
up their commercial— and incidentally thereto their militarj' — 
power upon orders permanently given in Berlin. 
It is small wonder that the German chancellors all insist 
upon revealing their peace terms only in secret. To pubHsh 
such demands as these baldh' and plainly, as they have 
them drawn up, would be to add fury and flame to the already 
universal determination not to treat with them at all, on 
any basis. 
But in this coming commercial warfare the German pre- 
paration provides an alternative and supplementary plan of 
operations which leaves no conceivable weapon, trick, or 
contingency out of its calculations. 
At the outset it is naively admitted in Herr Herzog's 
illuminating book that "German export trade must enter 
hatred as a liability" and that it will meet the "passive 
resistance of her present enemies, of whom there are, to be 
sure, more than is necessar\^ or profitable." 
To meet this German plan of conquest, Herzog declares 
that German houses are to open their campaign through 
neutral countries; the German "make-up" is to be dis- 
carded for an American or English masquerade in appearance 
and in inscription — the German looms, presumably will be 
turning out' the "Abraham Lincoln Liberty Petticoat." 
Great stress is laid upon the necessity for German agents 
not only speaking and writing English, but in disguising 
themselves as "natives" down to the last mannerism. 
With this humorous suggestion, and a chapter devoted to 
entirely praiseworthy emphasis upon the necessity for good 
workmanship, the best materials, and scrupulous honesty in 
commercial deahngs, the programme turns from legitimate 
to Teutonic methods of competition. 
The foundation of the offensive is to be a Bureau of Trade 
Statistics. Every German abroad, whether ambassador, 
paid spy, traveller, professor, or workman, is to be 
enrolled in this service. Reporting upon uniform blanks, 
the result is to be an accurate and up-to-date return from all 
fronts, showing exactly what German products are normally, 
or ought normally, to be taken by every country, and which 
are "indispensable." The General Staff can then tell every 
day "whether, and to what degree, the proportional amounts 
are being altered by the open or concealed attacks of foreign 
countries" or firms. And it can thereby decide "what 
German products foreign countries cannot do without, and 
for what ones they substitute (openly or secretly) the products 
of (other) foreign countries." 
The " Foreign Brigade " of Spies 
The very foundation arid heart of the whole plan is based 
upon a mihtary control of all industry and of every German 
by the Government. Every single German is to be under orders 
from Beriin, and is to act as a spy and Government agent. The 
success of the whole scheme depends upon immediate and accu- 
rate information from the front. Nor are trade statistics the 
least of it. Every German inventor and chemist, every 
laboratory and plant in the empire are to be under the orders 
of the General Staff — the Commercial Federation^and are 
to be kept working constantly improvising substitutes for 
raw material, and improved methods and processes. Every 
individual connected with any of this work, including all 
workmen, managers, directors, and financiers of the "Indis- 
pensable Industries" are to be guarded under mihtary 
authority, and absolutely prevented from giving or divulging 
anything whatever outside the empire. On the other hand, 
all members of the " foreign brigade" are to report in minutest 
detail every discovery, invention, innovation of process, or 
sign of progress in every foreign industry throughout the 
world. If it be true that the Intelligence Service is the 
backbone of battle, we are to be checkmated at the outset. 
They are to have all our plans — we are to have none of theirs. 
With this information in hand, the General Staff is to 
prepare for invasion by mobilising under five great organisa- 
tions the entire commercial strength of the country. This 
is not to be a trust or combination. It is to be an army of 
manufacturers and miners and bankers, under command of 
a staff composed of the heads of the trades and the State 
officials, and controlled by the Government. 
Any one who believes the scheme chimerical will do well 
to observe the process by which these industries are to be 
made and maintained "indispensable." Under our system 
■ t simply cannot be met by private business. 
Every business in the empire will be called upon to contri- 
bute to a "guarantee fund." This fund, which will be made 
as large as is nci'dc^d, will be used to jjrovide these offensive 
