be raised to the rank of statehood this great colony would well
deserve the honor. The gross profits for the last year were
$9,000,000, half of which was written off and the rest devoted to the
reserve, to dividends, and to contributions to the invalid and pension
funds of the employees, which now amount to $9,500,000. The employees
also have on deposit with the management $8,700,000. The contribution
of the Krupps to the workmen's state-insurance fund amounted, in 1910,
to $1,320,000. The Krupp family is rich, but what would their wealth
have been had they practised the gobbling and juggling financial
methods of ----; but I will not pillory my own countrymen by name, for,
after all, our political methods have made them, and not they
themselves.

The German manufacturer has been at a disadvantage, too,
for several reasons, and this may well be noted as one of Germany's
problems. She has not the deposits of coal that have made England
rich, nor the wonderful soil of America, from which alone we take
$9,000,000,000 every year, nor France's population, now at a
standstill, and which can feed itself off its own soil. She has been a
large borrower of capital to finance her enormous expansion of
industry and commerce, and, above all, the gold supply of the world,
which in the last resort is the foundation of credit, is not in her
hands, nor can it be so long as British and American fleets keep the
ocean highways over which that gold travels.

The world's gold output in 1911 was $493,100,000; of this $177,600,000
came from the Transvaal; $100,350,000 from the United States;
$63,600,000 from Australia; $42,300,000 from Russia; $23,300,000 from
Mexico; $35,600,000 from Rhodesia, India, and Canada; and $15,650,000
from Central and South America, or $458,000,000, of the total output
of $493,100,000, from countries which in time of war would be unlikely
to ship gold to Germany. More than one half the output comes from the
British Empire alone. To those who are satisfied with the easy answer
to the reason for the increased cost of living, that the output of
gold has increased, it must be puzzling to learn that of the total
output, in round numbers, of $500,000,000, $150,000,000 is used in the
arts and manufactures and $150,000,000 goes to India, where it is
buried and hoarded, and $100,000,000 is retained in the United States
for currency and other purposes. In spite of the fact that the gold
output of the world doubled between 1