rt their free port privileges and entered
the general customs union of the empire. Both cities were extremely
loath to give up their ancient unique commercial privileges, for they
feared an immense loss of trade in doing so, but it was hoped that
what they lost in foreign commerce would be made up to them in
increased commerce with other parts of the empire. One reason for the
great development of Germany's foreign trade in late years is found in
the facilities that it possesses for rapid transit to and from Italy
by means of tunnels through the Alps.

[Illustration: North central Germany, showing the ship canal and the
leading commercial arteries.]

FOOTNOTE:

[1] During the last two or three years the foreign trade of the United
States has greatly expanded and has exceeded that of Germany, and is
making a close push upon that of Great Britain. The above statement
was intended to represent the situation as existing during a period of
some years.

THE SPECIAL TRADE CENTRES OF GERMANY

BERLIN (1,700,000), the capital of the empire, is a chief seat of
machinery manufacture. For many years FRANKFORT-ON-THE-MAIN enjoyed
the pre-eminence of being next to London the greatest money market in
the world; but since the establishment of the German Empire
Frankfort's financial business has been absorbed by Berlin. LEIPZIG
(400,000) has the distinction of being the seat of a book-publishing
trade that turns out over 60,000,000 volumes in a year, amounting in
value to $30,000,000. Leipzig has also the honour of being the
greatest fur market in the world. DANTZIG (120,000) is Germany's chief
port on the Baltic, and the chief seat of its great export trade in
timber, grain, flax, hemp, and potatoes. Its harbour, however, is
closed in winter because of ice. DRESDEN (330,000) is noted for its
porcelain manufacture, but the porcelain is not manufactured chiefly
in Dresden, but in MEISSEN, fifteen miles from Dresden. MUNICH
(407,000) manufactures largely the national beverage, beer. Finally,
NUREMBERG (162,000), in southern Germany, is remarkable for its
continuance into modern days of manufactures for centuries carried on
domestically. Of these the most noted are watches, clocks, pencils,
and toys.

IV. TRADE FEATURES OF SPAIN AND ITALY

ITALY, TURKEY, AND SPAIN, THE THREE DECADENT NATIONS OF EUROPE

The Mediterranean from the very earliest epochs of civilisation has
been a chief highway of trade, and along its shores every s