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OCR Page 1 of 8N/o connection ion with a attached
HOW TO CKECK GERMANY'S ECONOMIC NATIONALISM
paper. HST
Points Submitted for Discussion
William F. Russell Dear Teachers
l. The Disproportionate Growth of the German Industry as
coller lotion with w stest
Main Reason for German Economic Nationalism
ARCHIVES AND
SERVICEN
German economic nationalism has been connected since
incipience, in the 1870's, with the fate of the Reich's steel
industry which rapidly outgrew the limits set for it by the
market situation in Germany and abroad. This disproportionate
development of the German steel industry in turn was stimulated
by both the Reich's protective tariffs, which facilitated the
forming of closely knit cartels, and by the parallel rise of a
steel industry in the disputed border district of Lorraine, a
phenomenon which at first was of purely technical character but
which in the 20th century assumed political shape.
(a) When the Reich was founded, in 1871, it gained control
over Alsace-Lorraine which possesses the richest iron ore
deposits in Continenta] Europe, known as the Minette district.
However, since the development of technology in the years
immediately following German annexation of these districts
was not yet far enough advanced to allow exploitation of the
type of iron ore, rich in phosphorous, that is found there, the
Reich in the 1870's left them unused and established the
foundations of its modern steel industry on the Right bank of
the Rhine and in the Ruhr valley, known for its coal deposits
and coal mines, and an old center of iron production. Things
became different a few years later when the invention of the
British engineer Thomas, to de-phosphorize iron ore, gave
Lorraine an entirely new importance. This forced the German
Ruhr industry to take a hand in the Lorraine development, not
rithstanding the fact that it already suffered from over-produc-
tion which drove it to imperialism and expansion. Additional
technical inventions and improvements such as the utilization
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