That is to say, imports exceeded exports by about $165,000,000.

On the average of the five years ending 1913, however, her imports exceeded her exports by a substantially larger amount, namely, $370,000,000.

It follows, therefore, that more than the whole of Germany's pre-war balance for new foreign investment was derived from the interest on her existing foreign securities, and from the profits of her shipping, foreign banking, etc.

As her foreign properties and her mercantile marine are now to be taken from her, and as her foreign banking and other miscellaneous sources of revenue from abroad have been largely destroyed, it appears that, on the pre-war basis of exports and imports, Germany, so far from having a surplus wherewith to make a foreign payment, would be not nearly self-supporting.

Her first task, therefore, must be to effect a readjustment of consumption and production to cover this deficit.