52 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE,

Direct promotion of sales.—The great German banks are directly
represented in the management of hundreds of German industrial
concerns. Shortly before the present war the directors of the
Dresdner Bank were on the boards of nearly 200 industrial companies.
 In 1910 the Deutsche Bank was represented on the boards
of 116 German and foreign concerns, some of which are dominating
factors in leading German and international cartels and combinations.
Its connections in 1914 with such enterprises and with banks are
shown by the accompanying chart. (Chart 1, facing p. 62.) In
this chart only the important companies have been shown and no
effort has been made to include the many subsidiaries of these companies,
 which usually are also more or less directly connected with
the bank.
Similar connections of various other German banks with indus
trials are tabulated in Part IT, pages 519-533.
Commenting on these relationships and their influence in promoting
 trade a prominent German economist says:
The representatives of the banks on the supervisory boards of the
industrial companies-have always taken special care to fulfill one
very effective part of the “advisory function” of the supervisory
board, viz, to provide for the disposal of the products of the industrial
 companies in question to suitable industrial enterprises on which
the banks were able to exercise some influence.
When such potent influence is exercised on manufacturers, trading
companies and steamship lines by banks devoted to the upbuilding of
German foreign trade, it is not surprising that there seems to be a
remarkable unity of effort by all these agencies for the securing of
business abroad. More substantial reasons than mere patriotism
make German finance the advance agent of German commerce.
The interlocking of financial and industrial control is not peculiar
to Germany. In every country, including the United States, the
several branches. of business—financial, manufacturing, mining,
iransportation—are more and more controlled by the same men. Tt
follows that in every country the extension of financial enterprise
abroad is a means to the expansion of exports, and particularly of
exports of the products of the larger industrial corporations.
It is said to be a customary provision in the loan arrangements
between British and German banks and their South American borrowers
 that the proceeds of loans shall be spent with manufacturers
in the countries which advance the funds.
An official report from Honduras states:
Heretofore European goods have ‘been introduced because local
importers or shipping agents have been in reality a combination of
bank and manufacturers’ representatives, not making loans or financ-J.

 Riesser, op. cit. Dn. 375.