The deposits in German credit banks in creased from 1895 to 1912 more than $1,875, having risen from $442,500,000 to $2,340,000,000; the yearly average having been about $140,000,000. The German savings banks increased from $1,700,000,000 in 1895 to $2,200, 000,000 in 1900 and to $4,450,000,000 in 1911. This is a total increase of $2,750,000,000 from 1895 to 1911, or an average of $172,500,000 a year. The assets of the labor insurance institu tions have a yearly gain of at least$125,000,000.
The sum of these items of new issues of securities, bank and savings bank deposits and the increase of labor insurance assets amounts to $1,125,000,000. This sum, however, repre sents only a part of the increment as it does not include the new capital that goes into the numerous private companies and enterprises that escape statistical notice, nor the ever-growing personal property of the general public. The increasing demands for articles of comfort and luxury as individual incomes increase is also a large factor in the disposition of the income increment. A still further manifestation of the national savings is seen in the increased price of land, especially in growing cities, a form of increment which is unearned as far as the indi viduals who are the beneficiaries of it are con cerned, but which in the eventual analysis is an increment earned by the public in general, and in the main coming into the hands of the for tunate individuals obtaining it through increased rents and the increased cost of merchandise resulting therefrom. In some German states, however, this increment is the subject of a tax. According to the estimates which have been given, about one-third of the total wealth of Germany is represented by the property as sessed in Prussia for the property tax, amount ing to $26,000,000,000, while two-thirds of the total wealth is represented by the property in sured against fire, or some $55,250,000,000.
Using these figures as a basis for calculation and deducting one-fourth as an allowance for a more rigorous assessment and a more com plete insurance, the following conclusions are reached regarding the growth of the entire national wealth of Germany. The increase of the property tax from $15,900,000,000 in 1896 to $26,000,000,000 in 1911 was about $10,000,000,000. The increase of the total wealth according to that ratio would be three times as great, or $30,000,000,000. Deducting the one-quarter allow ance noted the net sum would be V.2,500,000.000_, or an average of $1,500,000,000 a year for 15 years. The increase, however, was much more rapid during the latter part of the period, in creasing from about $1,000,000,000 a year during the early years of the period to about $2,500, 000,000 a year during the latter part. Estimates of the yearly increase based on the figures for fire insurance show the increase to be some what larger. The increase in insurance was from $29,325,000,000 in 1896 to $55,250,000,000 in 1911, or about $26,000,000,000. Adding half
this amount and deducting the one-fourth allow ance, the total increase would be or nearly $2,000,000,000 per year. The increase during the first few years of the period is a little less than an average of $1,500,000,000 per year while during the last few years of this period the increase is a little less than an aver age of $2,500,000,000 a year, or very similar to the average shown by the first estimate.
From these estimates it would appear that the annual increase of Germany's wealth aver aged from $1,500,000,000 to $1,750,000,000 for 15 years, and that in late years the increase was at the rate of about $2,500,000,000 a year, about one-half of which came into evidence in the new securities and other visible forms of invest ment mentioned. This includes, of course, as nearly as may be ascertained the unearned in crement before mentioned. Various estimates have been made of the total of the unearned increment, the most careful computations plac ing it at from $375,000,000 to $500,000,000 per year, including all lands and properties to which such value accrues. Deducting this from, the previous figures the yearly increase of the national wealth directly earned is seen to be from $2,000,000,000 to $2,125,000,000 per year.
While these figures are as nearly correct as may be it is obvious that no estimate of na tional wealth can lay any claim to mathematical exactness. The approximation, however, is sufficiently valid to indicate in broad outline the resources, income and capital of Germany. A further factor of uncertainty is the value of money itself which appears to have depreciated to a certain extent all over the world, though not sufficiently to have any great effect on the figures given. From the estimates made, Ger many's wealth may be summarized as follows: The national mcome amounts to $10,000, 000,000 per year as compared to $5,500,000,000 to $6,250,000,000 in 1895. Of this income of $10,000,000,000 about one-sixth, or $1,750,000,000, is devoted to public purposes, and about $6,250,000,000 is consumed for private purposes, while from $2,000,000,000 to $2,125,000,000 (in creased to $2,500,000,000 by the unearned incre ment) is annually added to the national wealth, compared with from $1,125,000,000 to $1,250, 000,000 annually 15 years before. The total national wealth of Germany in 1911 amounted to more than $75,000,000,000 as compared to $50,000,000,000 in 1895. These figures demon strate the strides made by Germany before the war.
Bibliography.— Helfferich, Dr. Karl, 'Ger many's Economic Progress and National Wealth> (Berlin 1914); Koester, Frank, 'The Price of Inefficiency' (New York 1913) ' • and 'Secrets of German Progress' (New York 1915) ; Dresdner Bank, 'Germany's Economic Forces> (Berlin 1913) ; 'Deutschland als Weltmacht> (Berlin 1911).