COMPETITIVE CONDITIONS IN INTERNATIONAL TRADE. 99

dustrial combinations, the German traders, the German banks, and
the German merchant marine work together in an effective way for
the business in hand. By reason of this organization of effort, other
commercial countries have been impressed with the largeness of
operation, the intelligence of direction, and the increasing aggressiveness
 in the extension of German commerce.
Character of German foreign trade.—The import and export
trade of Germany has had a rapid growth in the last 80 years, the
increase from 1887 to 1918 being about 230 per cent. Up to the
present war Germany’s trade was second only to that .of Great
Britain, and was typical of an industrial country. More than half
the imports were raw materials for the use of German manufacturers,
 while two-thirds of the exports were manufactured articles.
In 1912 Germany’s exports were valued ‘at $2,200,000,000 and her
imports at $2,700,000,000; of the total imports about $400,000,000
worth were finished manufactures ready for consumption, and the
remainder was made up of animals, food products, and raw and
crudely manufactured products for further use in manufacturing.
On the other hand, finished goods ready for consumption made up
$1,400,000,000 of the total value of exports.
Imports and exports.—The principal imports and exports of
Germany in 1913 are listed in the table on page 100.
German business men, economists, and statesmen have regarded the
development of foreign trade as necessary to the desired industrial
progress of the country. For German industry to expand normally
such materials as cotton, hides and skins, wool, silk, jute, flax,
lumber, rubber, saltpeter, petroleum, copper, etc., and such foodstuffs
 as wheat, barley, corn, oats, eggs, coffee, rice, vegetable oils,
cocoa, fruits, etc., had to be imported in great quantities. The most
practical means of paying for these imports was by the export of
manufactured articles. Accordingly the policy of developing foreign
 markets for German manufactured products has been vigorously
 and consistently supported by the German Government.
The success of these endeavors permitted the great expansion of
German industry, and the rapid increase in the material well-being
of the German people. As long ago as 1900 a prominent German
writer estimated that one-fifth of the entire population of the Empire
 participated directly in foreign trade.
The excess of German imports over exports is paid for by an income
 derived from investments in other countries estimated at about
14 billion marks ($875,000,000) annually, and such investments have
been an important factor in the growth of German foreign trade.*
- =
i Germany's Economic Forces, Berlin, 1913, p. 24.
3K. Helfferich, Germany's Economic Progress and National ‘Wealth, p, 38,
' 2. ; Aral, Deutschlands Stellung in d. Weltwirtschaft, 1918, p. 11.