Imports.
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1913
1918
Mill, kr
Per cent.
Mill, kr.
Per cent.
Raw material for agriculture . Raw material, etc., for industry Partly manufactured articles . Articles of food or luxury Fuel and illuminants Articles of industry .
170 130
48 148 81 200
23 16 6
19 10 26
33 183 130
56
299 209
4 20
H 6
33 23
Entire import for home con- sumption ....
777
IOO
910
IOO
The figures show the remarkable changes in the relative values of different imports arising in consequence of the war, but the varying advance in prices must also be taken into account, and the corresponding changes in quantities imported are not indicated. As for fuel, the yearly import before the war was about 3,000,000 tons, while during the war it fell below 2j million.
A comparison of the exports during the normal year 1913 with the war-year 1918 gives the following:
Exports.
1913
1918
Quantity: Mill. kgm.
Value: Mill. kr.
Quantity: Mill. kgm.
Value: Mill. kr.
Butter .... Pork Eggs Horses (number) Cattle (number) Meat Other agricultural prod- ucts ....
Total .... Fish Articles manufactured
91
135
454 28,000 152,000 15
2OO 164
33 21
4 8 14
71
15
3 328 29,000 114,000 H
"3
8 68
75 70
39 150
551 12
74
523 17 170
Total ....
637
710
The chief articles of export were the more or less manufactured agricultural products. But between 1913 and 1918 this export was so much reduced that, notwithstanding the great advance in prices, the total value declined. After the Armistice the export of farm products increased. The value of manufactured products and eggs exported was in 1920 about 920 million kr. and of live animals about no million kr. The butter export rose in 1920 to 75,000,000 kgm. and the pork export to 45,000,000 kilogrammes. The trade with foreign countries in 1913, 1917 and 1918 was as follows:
Imnorts.
Exports.
1013
1917
I9l8
Home
Home
Home
Country
1913
1917
1918
manu-
manu-
manu-
per cent.
per cent.
per cent.
factured articles:
factured articles:
factured articles:
per cent.
per cent.
per cent.
United Kingdom .
16
26
21
63
27
7
Germany
38
22
33
25
50
43
Sweden
8
13
25
2
9
23
Russia
9
I
2
i
i
United States
10
20
4
I
Norway .
i
3
5
. 2
6
16
Other Countries
18
15
12
5
7
10
The export of home-made articles to the United Kingdom in 1913 was 398 million kr., of which butter (180 million kr.), pork (160 million kr.) and eggs (31 million kr.) made up 371 million kr., or more than 90% of the total. Exports to Germany were in 1913 valued at 159,000,000 kr., cattle and meat 65,000,000 kr., and hides 10,000,000 kroner. Before the war Denmark did most of its business with England and Germany, but during the war much business was done with the Scandinavian countries, especially with Sweden. A considerable part of the foreign trade in war-time was conducted by agreements between the countries concerned as to desirable interchanges of supplies. After the war foreign trade partly returned to pre-war lines. The import and export of raw materials and agricultural produce is largely conducted through the farmers' own cooperative organizations. During the war only a limited quantity of goods was admitted from England and America. Agreements to that effect were made with the United Kingdom in Nov. 1915 and with the United States in Sept. 1918, negotiations being conducted between the respective Governments and the Danish commercial and industrial organizations, " Grosserersocie- tets Komite " and " Industriraadet." These organizations also distributed the imported quantities among such Danish firms as had hitherto been importing or using the articles in question. The export of agricultural produce is mainly conducted through Esbjerg or Copenhagen. Copenhagen is by far the most important commer-
cial city. A part of the retail trade is in the hands of the peasants' own cooperative societies.
Economic Legislation During the War. Immediately upon the outbreak of the war, on Aug. 7 1914, the Government was authorized to take measures to ensure supplies and to prevent an unfair rise in prices. A special committee was appointed for the regulation of prices and supply of necessaries of life and of other articles, and ex- port was either prohibited or required a licence. For such articles as butter, pork, etc., the object of control was not merely to ensure the supply of the home market but quite as much the control and regulation of the export trade.
The special committee commenced immediately to forbid the use of rye and wheat for forage. Till that time home-grown grain had been largely used for feeding swine, horses, etc., bread being baked from imported corn, the supply of which completely ceased. In the winter of 1916 the use of sugar and in 1917 of potatoes for forage was prohibited. Licences for potatoes were, however, always granted when supplies for human requirements were sufficient. Max- imum prices for home-grown rye and wheat were fixed about Christ- mas 1914. In May 1915 maximum prices followed for swine and pork. By order in council of Nov. 27 1916 it was notified that any advance in the prices of food decided on by mercantile unions or firms holding monopolies must be notified to and sanctioned by the special committee. On Jan. 31 1917 maximum prices were fixed for potatoes. Sugar production and prices were also placed under observation and control.
Thus Denmark had the distribution of commodities and maximum prices, especially of farm produce of importance to the home market, well under control before the blockade in its severest form took effect. Immediately upon the beginning of the blockade a general decree made it punishable for commerce to raise the percentage of profits above the level of 1914. On May 19 1917 orders were issued to pre- vent the enhancement of prices of commodities as a result of their having passed through more hands than necessary and customary (the so-called " chain-commerce "). The existing maximum prices were retained and new ones were fixed for a constantly increasing number of commodities. In the spring of 1916 the State had already taken possession of the corn harvest, but at the beginning of the blockade it took the sole control of the trade through the Board of Food Control, established in 1917. Before Feb. I 1917 only sugar had been rationed but had not been materially reduced, home pro- duction almost equalling consumption. Grain was rationed in the spring of 1917 and pork in the autumn of 1917. Owing to the in- creasing scarcity similar measures were taken later with regard to butter, margarine, fuels, illuminants, benzine, coffee, tea, rice and other articles. The scarcity of fats made it necessary to introduce special regulations for the soap industry. At the same time maximum prices were fixed for the articles in question. Several other branches of industry were also put under control. After the war, imports having gradually reached their former level, these rules and regula- tions were discarded. In the spring of 1921 only a very few were left, such as regulations and maximum prices for bread and sugar and certain regulations of the beer and spirit industries. To ensure thorough economy in the production of spirits the respective con- cerns formed a combine. These measures for controlling prices were taken after consultation with the different trades.
Taxation and Public Finance. The former basis of taxation of landed property in Denmark was the assessment of Hartkorn which was based on the quality of the land and had remained unaltered since 1844. For other property there was a variety of taxes of old standing. A law of 1903 introduced a new general assessment of all estates and property. Land rent was based on periodical valuations (" selling value "). A general income and property tax of a pro- gressive per-cent. rate increasing in amount almost every year, and at the same time made more progressive, was introduced in the same year. The indirect taxes are the customs duties and the inland taxa- tion of industry and trade. The tariff of 1863 was moderate but became heavier than was intended because of falling prices ; and in 1908 it was revised, all necessaries of life, raw materials and agricul- tural produce being relieved of duty; protective duties were made small and duties on tobacco and spirits relatively high. Objects of taxation giving the best return are beer, spirits, tobacco and feugar. In the financial year 1913-4 the revenues of the Danish State amounted to 124 million kroner. Of these 101 million kr. were raised by taxation, 28 million kr. by direct and 73 million kr. by indirect taxes. The war occasioned an increase of taxation, and at the same time a change from indirect to direct taxation was effected. The State revenues of the financial year 1919-20 were 601 million kr., of which 575 million were from taxes, 347 million kr. direct, 248 million kr. indirect. Yet the main part, 235 million kr., of the direct taxes were extraordinary taxes. The national debt was in 1914 361 million kr. and in 1920 925 million kroner. The debt of all the municipalities was in 1914 375 million kr. and in 1920 750 million kroner. It must, however, be borne in mind that the value of State and municipal assets had proportionately increased.
Money and Banking. Before 1908 the right of the National Bank to issue bank-notes was based on the same system as the Bank of England, but in that year the quota system was adopted. By legislation of 1915 the bank is required to be in possession of gold to the amount of one-third of the notes in circulation, and for the
