Their prosperity depends upon import and export trade; for while the home industries provide work for masses of the population, all the products cannot be consumed at home and markets have to be found elsewhere if employment is to continue.
It can never be said to be an economic interest to encourage the establishment of industries in Colonies—at least not manufactories of articles made at home.
The establishment of such may be of interest to provide work for those who emigrate; but from the point of view of countries like Germany, whose existence depends on keeping their men at home, it is far preferable to develop every possible industry at home, and retain the Colonies only as markets and producers of raw material.
This Germany proceeded to do. Developing Colonial trade, she extended her home industries. During eight years her Colonial trade rose from scarcely £5,000,000 to £12,000,000, and the effect of the acquisition of Colonies upon her home industries is marked in the fact that she employed in those industries 11,300,000 men in 1907 as against 6,400,000 in 1882.
Germany, moreover, protects even her agriculture against the competition of her own Colonies—shutting out their meat and their grain.
Germany's conception of the idea of Colonies, therefore, was to build up overseas a new Germany composed of daughter states, which would remain essentially German and be the means of keeping her men at home in remunerative employment by providing raw material for the development of her industries.
A continental nation, surrounded by powerful neighbours, it seemed in her case a suicidal policy to scatter her population abroad; and therefore she exploited her Colonies in such a way as to help her to concentrate her people at home, where she required men in time of peace for economic development and in time of war for defence—and offence.
As a natural sequence to the responsibility of oversea dominions, it becomes a question of life and death to keep open the oversea commerce protected by a powerful navy; and this point was strongly urged by the National Party which, advocating colonisation, arose in Germany in 1892.
But with the growth of Germany's oversea trade and her navy, a new and splendid vista unfolded itself—no less than Germany, from her place in the sun, mistress of the world.