i THE TREATY OF PEACE 9

£505,000,000, exclusive of transit trade andbullion. That is to say, imports exceededexports by about £33,000,000. On the aver-age of the five years ending 1913, however, herimports exceeded her exports by a substanti-ally larger amount, namely, £74,000,000. Itfollows, therefore, that more than the wholeof Germany ’s pre-war balance for new foreigninvestment was derived from the interest onher existing foreign securities, and from theprofits of her shipping, foreign banking, etc.As her foreign properties and her mercantilemarine are now to be taken from her, and asher foreign banking and other miscellaneoussources of revenue from abroad have beenlargely destroyed, it appears that, on the pre-war basis of exports and imports, Germany , sofar from having a surplus wherewith to makea foreign payment, would be not nearly self-supporting. Her first task, therefore, mustbe to effect a readjustment of consumption andproduction to cover this deficit. Any furthereconomy she can effect in the use of importedcommodities, and any further stimulation ofexports will then be available for Reparation.

Let us run over the chief items of export:

(1) Iron goods. In view of Germany ’s lossof resources, an increased net export seemsimpossible and a large decrease probable.

(2) Machinery. Some increase is possible.

(3) Coal and coke. The value of Germany ’snet export before the war was £22,000,000;the Allies have agreed that for the time being

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