The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-11-16
The Growing Wealth OF Germany

the announcement that 1t will be asked to
double the appropriation for the Navy In
vito attention to the pecuniary resources
OF the German Empire. 1t will DO found
that the commercial and industrial prog
ress made by Germany during the last
thirty years promises to place 1t among
the great financial powers OF the twentieth
century.
We shall merely touch on the well-known
expansion OF Germany's foreign trade, and
then pass to less familiar evidences OF
growth. In 1872, the foreign trade OF the
Empire fell little short Of one billion four
hundred million dollars In 1898, 1t had
risen to 81, $50, 100000. Thus. In little
moro than a quarter OF century, there
was growth OF fully 10 per cent luring
the same period. the foreign trade OF France
was almost stationary, the imports having
increased only IL per cent, while the ex-
ports were diminished by per cent. We
should note that over 90 per cent. OF Ger
man exports are manufactured goods.
Even moro remarkable is the extent to
which Germany has acquired control OF
her own carrying trade. and has
become an ocean carrier for other coun-
tries. While, in the first twenty-five years
of the Empire, the population gained 20
per cent. and the foreign trade. 10 per
cent, the increase In the tonnage OF
commercial shipping was i24 per cent. In
various parts OF the world. entirely new
channels OF traffic have been created by
Germany. The exchange OF commodities
between Germany and China has increased
$50 per cent. The German trade with Aus
tralla shows n gain OF AIS per cent; that
with Mexico and South America an in
crease OF 3l7 per cent. An even more
striking example OF Improvement is fur
| nishcd by the Suez Canal. In 1872 only
! sixteen German ships having an aggregate
tonnage OF l2,1si, passed through the
canal. MS against eighty French ships.
with collective capacity OF 1872. 621 tons
In / 500. the German traffic had grown to
| 322 ships Of ,l2o, $50 tons. and exceeded
the French traffic by about third
| Before noting some OF the proofs OF
Germanys industrial expansion. We should
point out the financial results OF the State
ownership Of railways. Either the Imperial
! Government or the Prussian Royal Gov
! eminent controls nearly every trunk line
! ~ Importance In the Empire. In 1897, out
Of the 1852 kilometres Of railway in Ger
many. only 3,5Io belonged to private
owners the remaining 43.522 kilometres
were owned by the State, and worked by a
State Department. The outcome OF the
system may be considered from military
IA well as a financial point OF view. Tho
46s. 900 officials employed on the State
railways constitute special reserve army;
to the best appointments retired officers
have prior claim, while the minor posts are
perquisites OF non-commissioned officers.
The whole force is under military disci-
plinc. That the German State railways
have proved an admirable investment Ia
undcniable. Only In a single year since
they came under State control have they
paid less than AZ per cent on the capital
invested, and that was In 1891, when the
returns fell to 4.49 per cent. The net
income for 1895 equalled 81. per cent. and
in 1897 1t reached 1921 per cent. Although
railway rates arc cheaper In Germany than
In England the average return OF the Brit
ish railways Ia little more than one-half OF
the German yield. When we bear in mind
that in Germany not only the always but
telcgraphs and telephones, arc in the
hands OF the State, 1t Is obvious that a
government possessed OF such resources is
more independent than one which has To
depend on taxation alone. In the kingdom
OF Prussia tive-sixths OF the public revenue
is derived from sources other than fiscal
The State railways yield an annual profit
nearly twice as large as the taxes levied
while the annual produce OF the State mines
and forests Is not much short OF the annual
charge on the public debt.
1t is when We come to manufactures tina,
the progress OF the German Empire in the
last quarter OF the century appears most
phenomenal. The time has gone by wher
Frenchman could say that war Is the
national industry Of Prussia" Thirty
years ago, the average quantity OF raw
cotton imported annually WAS under 70, DOC
tons. In the past two years, it hai
exceeded 300, 900 tons per annum. During
the three or four years preceding 1870, tn,
quantity OF raw jute worked up by German
factories was only about 2, 900 tons q year
now 1t exceeds 80, 600 tons. Between ss:
and 1895, the number Of persons employed
In mining increased from $50, 900 To 45s,
600; those employed In Woodworking
from 2s5, 600 to $4,000; those engage,
in tho manufacture OF machinery from
: 10000 to 316,o 900. and those employed il
the building trades. from 931 900 TO SOC,
= 600. The only German Industries tina
exhibited but moderate expansion durin.
, the period named were textiles and thos,
: connected with food supplies.
. In the last fifteen years, the bankni
: system OF Germany has made great strides
. Between 1883 and 1897 the number O
5 banks increased from 113 to 100. Thei
D nominal capital was enlarged from SAP,
D 600, 900 TO s54o.ooo,ooO. Their gros
profits were we'll nigh doubled, having risel
5 from $36 $50, 900 to 81, 100000 Ii
E 1897, the dividend paid on bank share
4 averaged Ia per cent We add that tn
. Bank OF England and the Imperial Bank q
n Germany hold about equal amounts OF cash
) but the latter has more than twice the eli
eulation Of the Belk Of England. and it