22 
DEVELOPMENT 
Whilst in former times, until the middle of the 
nineteenth century, Germany had to borrow 
capital from abroad—from England and Belgium, 
for instance—for building railways, tramways, 
gas and waterworks, etc., and consequently had to 
provide for the interest and repayment of capital 
by exporting articles, as a result of which the 
trade balance of Germany was favourable, gradu 
ally, and especially after 1871, since France sent 
two hundred millions sterling into Germany as war 
indemnity, Germany became a creditor, instead 
of a debtor country; in other words, she could 
afford to export capital. It is estimated that 
the holdings of foreign investments by Germany 
amount at the present moment to between 
750,000,000 to one billion sterling, the returns on 
which, together with shipping freights, insurance 
premiums and commissions (these items are, of 
course, not included in trade figures) turn an 
apparent unfavourable or passive trade balance into 
a favourable or active balance of payment. In 
fact, the excess in imports represents the liquida 
tion of foreign liabilities in respect of interest, etc., 
but not necessarily of capital. In 1911, the balance 
of trade against Germany amounted to 80 millions 
sterling, whilst there cannot be any question about 
the great prosperity she enjoyed in that year. 
In some previous years, the trade balance