this rapidly growing
industry. In Germany also, as in America, there is a willingness to
discard old methods and machinery, whatever the initial expense. In a
few years the losses due to the change are retrieved and the German
business is creating values more efficiently than ever.

Such an industry must in its nature be immensely productive. The
Germans, like the Americans, are successful in mass production, the
fashioning of vast quantities of cheap, standardised articles.
Factories tend to grow larger. Formerly competing concerns are united
into associations or cartels, which buy or sell in common, save a vast
amount of unnecessary friction within the trade and act as a clearing
house for information and ideas. A high protective tariff enables
these cartels to maintain a remunerative price in the home market while
dumping their surplus products upon foreign markets.

What this "dumping" may mean for manufacturers in the countries upon
which the wares are dumped may be made clear by an example. "The
German ironmasters," writes Prof. Milloud, "sell their girders and
channel iron for 130 marks per ton in Germany, for 120 to 125 in
Switzerland; in England, South America and the East for 103 to 110
marks; in Italy they throw it away at 75 marks and _make a loss of from
10 to 20 marks per ton_, for the cost price may be reckoned at 85 to 95
marks per ton."[3] Other iron products have been sold by Germans in
Italy far cheaper than they could be sold or even produced in Germany,
with the result that the struggling Italian iron industry is hardly
able to exist. Nor is this dumping a mere temporary expedient to
relieve the German manufacturer of an unexpected surplus. It is {120}
systematic, organised and intentional, designed to destroy competitors
and establish a monopoly. It is a procedure with which we in America
are unpleasantly familiar, since it has been long the practice of our
trusts to destroy competition in a circumscribed local market by
temporarily reducing prices and then to raise prices after the
competitor is _hors de combat_.

The most striking difference between the flooding of adjacent markets
by German cartels and the destruction of competitors by American trusts
is that in the former case the operation is international, and the
manufacturers who suffer live in one country and those who profit in
another. Moreover, the German Government is itself directly concerned
in the process. Not only is