220 ECONOMIC PRINCIPLES

hand, is believed to have a large amount of foreign capital
employed in her industries. The net amount, after deducting
American capital invested abroad, was estimated, in 1897,
at a figure of 1000 millions sterling. Even if it were
considerably less than this at that time, and have since
been reduced, a substantial sum in annual interest is due for
remittance.
What falls under the fourth heading has already been
partly dealt with. A ship-owning nation may expect to
derive a revenue from its property, and if its subjects are
largely engaged in working the ships, their earnings will be,
in great part, transmitted home. This ship-capital employed
outside the country may be compared with capital invested
in industrial enterprises outside the country where it is
owned. The difference is that the ship-capital, unlike the
industrial capital, is not invested in another country. But
the fact, that it is invested outside of the country of ownership,
 leads us to look for a payment to that country
representing interest and depreciation, with some addition
for management and working, which, however, fall under
the next head. The countries which are not great shipowning
 countries, but whose foreign trade gives employment
to much shipping, are those which pay the sums received
by the ship-owning countries. The differences between the
values of the imports of the world and of the exports, values
of the same goods in different places, afford the source of the
revenue for such transport services, As Great Britain owns
about half the shipping of the world, a large share of this
sum is due to that country, and affords a partial explanation
of the excess of imports. The relatively small amount of
shipping owned in the United States makes that country’s
share a small one. The annual income from shipping
owned in the United Kingdom, including commissions
discussed below, is estimated, by the authority quoted on
the subject of interest due, at a sum nearly equal to that due
as interest on investments abroad as that term is ordinarily
understood. It certainly represents a substantial fraction
of the total excess of imports.
The fifth item on the list includes such services of