Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1916-10-09
GERMAN wAR TINANoN.
BY Professor Moritz julius Bonn,
President of the Commercial Uni
versity Of the City OF Munich.
(Contlnuation.)
THE EcoNoMIc ISOLATION.


All that would not have been pos
sible but for Great Brltain's blockade.
In an ordinary year Germany imports
for $2,500, 0,000,000. If her frontiers
had been open she would have relied
on foreign imports, as England did.
And Germanys problem of foreign
finance would have been almost un-
solvable.
AS it is, it is not SO much prob
lem OF finance; it is problem of
material resources. Oversee goods,
no doubt, have been kept away from
Germany to a considerable degree.
The goods of her neighbors are with
in her reach. Her situation would
have been dangerous had she been
small overcrowded island, like
England herself, OF a country with
out industrial resources, as was the
Southern Confederacy But the
blockadcd territory Of the Central
Powers covers an area of 100000
square miles; the occupied hostile
territory has added another 200, 900
square miles. This occupied terri
tory alone is good deal larger than
the New England States and the
Middle Atlantic States combined, in
cluding New York and Pennsylvania.
rhe neutral States accessible to the
Central Powers for unhindered inter-
course cover another 100000 square
miles. The combined area, from
which the Central Powers can draw
supplies, is 100000 square miles,
or about two-thirds of the territory
of the continental United States. The
territory is inhabited by about 200,-
100000 people. One hundred and
forty-hve millions belong to the Cen
trail Powers, nearly 40,0O0,00O lived
in the occupied districts before the
war. The self-supporting area,
which is the outcome of Great Brit
aims blockade, is about fifteen times
the size OF Great Britain and Ire
land. 1t is inhabited by more than
five times as many people.
COTTON, FOR INSTANCE.
Even in such big area many over
sea commodities, as for instance,
cotton, are missing, though Turkey
raised 100000 bales in 1912. There
Is a shortage OF other goods, espcc-
tally as each of the component parts
Of the big area is bound to provide
first for its own people. But wars are
not won by cotton, especially since
cotton is no longer necessary for the
manufacture of explosives. And
human consumption is very elastic.
Fifty years ago-before the war of
1S66-the German people consumed
only 100000 bales Of cotton, or
about one-tenth of their consumption
before the present war; their COM
bined consumption of tea, coffee and
cocoa was $1,000 tons against 220,-
600 today. They won three wars at
these low rates of living. Surely it
is not likely that they will lose a
fourth war because they are reduced
to their former standards Of living
for the time being.
In all essential things the resour-
ces OF the Central Powers are very
great The Central Powers produce
about 5000, 600 tons of wheat and
rye, l. O.. as much as Canada, the
United States and the Argentine Re-
public raised in 1913 (the occupied
territory is not included). The stock
Of cattle OF Germany, Austria and
Bulgaria was 40,000,000 head
France, Italy and England combined
have about 31,000,000. Germany
and Austria produced over 20,0U0,-
600 tons Of pig iron in 1912; Eng
land, Russia, France, Belgium and
Italy combined nearly 10000, 900
tons. Since the occupied area Of
Belgium produced more than 2,00O,-
600 tons and since 20 per cent. of the
great French iron production is in
German hands, the resources of the
Allies have decreased corresponding
ly, whilst those of Germany have
grown. The iron-producing capacity
of both grOuDg TODAY Is about 25-
900 tons for the Central Powers
and about 15,000,000 tons for the
Allies, who have access to oversea
markets, must buy such huge quanti-
ties from the United States.
The resources Of the Central Pow