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 cannot do. "For over two centures," he said, "British capital has been lent to other countries. Year by year England produced more than she either consumed herself or could exchange for the products of other nations, and she could not obtain a market for the surplus unless she gave the purchaser a long credit. Foreign loans and foreign issues of all kinds were taken up in England, and the proceeds were spent in paying for the surplus production." Quite so; we had an exportable surplus, and sold it abroad, giving credit to the buyers. When we think of all that has been said about Germany's power to compete, there seems to be no reason why Germany should not provide an exportable surplus, and sell the goods and services abroad just as we and she and perhaps other countries were doing before the war. As we all remember in those days her "peaceful penetration" in Italy, Mexico, Brazil, and other places was supposed to be a menace both to our trade and to our financial supremacy. What she did then in order to invest she can do now in order to pay her debts.

In fact it is very puzzling, in view of all the complaints of manufacturers about the cut-throat competition which Germany is alleged to have been carrying on, to account for her