ivity. And here we touch upon one of the
main sources whence German organization after the war will draw its
vitality. It is on the operations of these financial institutions that
it behoves us to lay stress. They are so many magnetic centres which
attract nearly all the free capital of the country and then employ it
as they think fit. And one momentous consequence of this command of
money is the possession of almost unrestricted power over industrial
enterprises, present and future. For it depends on the banks to extend
these and to restrict the output of those in consonance with the
economic policy pursued by the State.

Nor should it be forgotten that the power and influence of the banks
is not limited by the amount of capital they actually possess. Over
and above this they wield all the financial force conferred by the
vast amounts deposited with them by customers. This was evidenced in
the case of the Banca Commerciale in Italy, which had a working
capital of L6,240,000 in the year 1914. Now, of that sum only 2.5 per
cent. was owned by Germans, yet the bank itself and all the industries
dependent on it were exploited by the German Board of Directors.[149]
In the Fatherland we observe the same phenomenon. All the German banks
together, excepting the hypothecary institutions, owned L195,000,000
sterling, about 44 per cent. of which belonged to the eight principal
banks of the empire.[150] Possessing only L86,050,000 of their own,
they disposed of L259,600,000 belonging to other people.

[149] Giovanni Preziosi, _La Germania alla Conquista
d'Italia_, 2d edizione, p. 150.

[150] Deutsche Bank, 248 million marks; Diskonto
Gesellschaft, 149 millions; Dresdner Bank, 261 millions;
Darmstaedter Bank, 192 millions; Berliner Handelsg. 145
millions; Commerz- u. Diskonto Bank, 100 millions;
Nationalbank, 98 millions; Mitteldeutsche Kreditbank, 69
million marks.

One effect of the establishment of groups of monopolies will be to
increase the number of persons dependent for their livelihood on the
State. It is calculated that the total, including heads of families,
will amount to tens of millions. The corn monopoly will bring in five
million farmers, heads of families, who will have to look to the State
for the amount of their yearly income. For it is evident that the
Government will be "co-operating" not with the peasants, but with the
great landed proprietors. Now, these are the men whose ba