This is, for Holland, an only apparently beneficial and ashort-sighted policy; for if Holland would give preferentialadvantages to German manufactured goods both in the mother countryand in her colonies, the demand in Germany for Dutch colonialproduce would increase in the same proportion in which the sale ofGerman manufactured goods to Holland and her colonies increased,or, in other words, Germany would be able to purchase so much themore colonial produce in proportion as she sold more manufacturedgoods to Holland; Holland would be able to dispose of so much morecolonial produce to Germany as she purchased from Germanymanufactured goods.This reciprocal exchange operation is, atpresent, rendered impracticable by Holland if she sells hercolonial produce to Germany while she purchases her requirements inmanufactured goods from England, because England (no matter howmuch of manufactured goods she sells to Holland) will always supplythe greater part of her own requirements of colonial produce fromher own colonies, or from the countries which are subject to her.
Hence the interests of Germany require that she should eitherdemand from Holland a differential duty in favour of Germany'smanufacturing production, by which the latter can secure to herselfthe exclusive market for manufactured goods in Holland and hercolonies, or, in case of refusal, that Germany should impose adifferential duty on the import of colonial produce in favour ofthe produce of Central and South America and of the free markets ofthe West Indies.
The above-named policy would constitute the most effectivemeans of inducing Holland to join the German Zollverein.
As matters now stand, Germany has no reason for sacrificing herown manufactories of beetroot sugar to the trade with Holland; foronly in case Germany can pay for her requirements of this articleby means of her own manufactured goods, is it more to her advantageto supply that requirement by an exchange trade with tropicalcountries, than by producing it herself at home.
Hence the attention of Germany should be at once chieflydirected to the extension of her trade with Northern, Central, andSouth America, and with the free markets of the West Indies.Inconnection with that, the following measures, in addition to thatabove adverted to, appear desirable: the establishment of a regularservice of steamships between the German seaports and the principalports of those countries, the promotion of emigration thither, theconfirmation and extension of friendly relations between them andthe Zollverein, and especially the promotion of the civilisation ofthose countries.
Recent experience has abundantly taught us how enormouslycommerce on a large scale is promoted by a regular service ofsteamships.France and belgium are already treading in thefootsteps of England in this respect, as they well perceive thatevery nation which is behindhand in this more perfect means oftransport must retrograde in her foreign trade.The German seaportsalso have already recognised this; already one public company hasbeen completely formed in Bremen for building two or three steamvessels for the trade with the United States.This, however, isclearly an insufficient provision.The commercial interests ofGermany require not only a regular service of steam vessels withNorth America, especially with New York, Boston, Charleston, andNew Orleans, but also with Cuba, San Domingo, and Central and SouthAmerica.Germany ought to be behind no other nation in respect tothese latter lines of steam navigation.It must certainly not beignored that the means which are required for these objects will betoo great for the spirit of enterprise, and perhaps also for thepower of the German seaports, and it seems to us they can only becarried into effect by means of liberal subsidies on the part ofthe states of the Zollverein.The prospect of such subsidies aswell as of differential duties in favour of German shipping, oughtat once to constitute a strong motive for these seaports to becomeincluded in the Commercial Union.When one considers how greatlythe exports of manufactured goods and the imports of colonialproduce, and consequently also the customs revenue, of the statesof the Zollverein would be increased by such a measure, one cannotdoubt that even a considerable expenditure for this object mustappear as only a reproductive investment of capital from which richreturns are to be expected.
Through the increase of the means of intercourse of Germanywith the above-named countries, the emigration of Germans to thosecountries and their settlement there as citizens would be no lesspromoted; and by that means the foundation would be laid for futureincrease of commerce with them.For this object the states of theZollverein ought to establish everywhere consulates and diplomaticagencies, by means of which the settlement and undertakings ofGerman citizens could be promoted, and especially to assist thosestates in every practicable way in giving stability to theirgovernments and improving their degree of civilisation.