other hand, trade in goods imported into Switzerland for finishing and returned to the same country increased from about 47,000 quintals in 1913 to 177,000 quintals in 1917. The increase is due chiefly to the increase in the trade with Germany, which rose from 35,000 quintals to 168,000 quintals in the same two years.

The belligerents had little labor to spare and therefore the passive improvement trade, that is, the finishing of Swiss goods abroad, declined from 78,000 quintals in 1913 to 9,000 quintals in 1917. Repair work on foreign goods in Switzerland declined about 33 per cent from 1913 to 1917. But the repair of Swiss goods abroad declined over 90 per cent in the same period.

The through traffic or direct transport trade between Germany, Austria, France, Italy, Belgium, and Great Britain was practically eliminated, declining almost 90 per cent from 1913 to 1917.

The effect of the war on the industries of Switzerland was disastrous in some cases and beneficial in others. The manufacture of embroideries and ribbons was reduced in Switzerland because of the difficulty that Switzerland experienced in getting raw materials. As a result, the industry was established abroad. On the other hand, the dye industry in Switzerland flourished and expanded. The lack of coal resulted in the increased use of hydro-electric power. Work at high pressure in the munitions industry resulted in a development of the methods of large-scale production.

B. North America

(i) Canada

The effect of the war was to increase the trade of Canada. Exports increased over five times and imports over two and a half times. Before the war there was an excess of imports and since 1916 there has been a large excess of exports.

The change in the commodity groups was striking. Although the total exports in 1918 were four times as great as in 1913, the exports of manufactures were 12.7 times as great and the exports of raw materials increased hardly at all. The industries of Canada developed during the war.

Canada's trade was confined to few countries, both before and during the war. The striking change that is noticeable in a comparison of the figures for 1913 with those for 1918 is an increase in the exports to Great Britain from 37 per cent to 54 per cent and a decrease in the imports from Great Britain from 21 per cent to 8 per cent. Exports to the United States declined from 35 per cent to 28 per cent and imports from the United States increased from 65 per cent to 82 per cent. Exports to France increased from 0.5 per cent to 13 per cent.

(ii) Mexico

The foreign trade of Mexico was affected more by internal political disturbances than by the World War. The imports in 1913 were $97,886,000 and in 1918 $82,235,000. The exports in 1913 were $150,202,000 and in 1918 $183,500,000. The ex

8a Trade Report of the Department of Customs, 1913, 1916, 1918; Monthly Report of the Trade of Canada, December, 1918. Fiscal year ends on March 31.

cess of exports in 1913 was $52,316,000 and in 1918 $101,265,000. The imports of Mexico were confined to a small number of countries in 1913 and in 1918 the number was still further reduced.

FOREIGN TRADE OF MEXICO BY PRINCIPAL COUNTRIES

Mexico, like Canada, does most of its business with the United States. An undeveloped country is dependent upon its industrialized neighbors to a greater extent than is a developed country.

C. South America

(i) Argentina

The imports of Argentina declined during the war and the exports increased considerably.

• Intercambio Económico de la República, 1910, 1917.

The foreign trade statistics of Argentina are not classified into raw materials and manufactures. However, during the war the export of manufactures increased. Factories have been established and existing plants have been expanded. Not only are there packing houses, cheese and butter factories, tanneries, and sugar refineries, but also new plants erected during the war for the manufacture of soap, candles, furniture, glass, tinware, textiles, belting, bags, bricks, paint and toys. The restriction of trade during the war hastened the development of the industries of Argentina.

Trade currents shifted during the war. In the trade with belligerent Europe Argentina exports increased and imports decreased. For instance, between 1913 and 1917 the imports from the United Kingdom declined from 31 per cent to 22 per cent and the exports to the United Kingdom rose from 25 to 29 per cent. The trade with the neutrals of Europe increased enormously, owing chiefly to the elimination of the transshipment business of Germany, which had mediated between the European neutrals and the overseas countries. In 1917 the exports to Norway were four times as great as in 1913. Similar increases in the exports to Sweden and Denmark took place. There was an increase of trade with countries on the American continents. Imports from the United States rose from 15 per cent in 1913 to 36 per cent in 1917 and exports to the United States rose from 12 to 29 per cent. Imports from Brazil rose from 2 per cent to 10 per cent. Imports from Chile in 1917 were almost five times as great as in 1913. Imports from Japan rose over 300 per cent.

In the trade of Argentina one sees the same principle at work as in the other countries-the increase of direct trade resulting from the elimination of the international jobbers. Because of the shortage in shipping available for long voyages, trade with neighboring countries increased.

(ii) Brazil

The imports of Brazil declined during the war and the exports increased slightly. Coffee, which constituted 62 per cent of the exports in 1913, constituted only 37 per cent in 1917.

There was a relative increase in the imports of raw materials during the war and relatively a great decrease in the imports of manufactures. Industries developed in Brazil. Instead of exporting raw cotton, for instance, Brazil has developed her textile mills so that they are able to supply over three-quarters of the country's needs. Instead of exporting leather, Brazil now manufactures over 20,000,000 pairs of shoes a year. In addition, the war has stimulated the development of the manufacture of rubber, furniture, clothing, and metallic goods.

The imports from Europe declined. In 1913 and in 1917, respectively, the United Kingdom furnished 24 per cent and 18 per cent of the imports of Brazil; France furnished 10 per cent and 4 per cent. On the other hand, imports from the United States rose from 16 per cent to 47 per cent. Local trade increased; the imports from Argentina rose from 7 per cent to 13 per cent, in 1913 and 1917, respectively. The imports from India rose from 0.8 per cent to over 2 per cent. The exports to the United States rose from 33 per cent in 1913 to 46 per cent in 1917. Exports to Argentina rose from 5 per cent to 9 per cent. The war tended to mark off new commercial spheres.

9 From the Commercio Exterior do Brazil, 1917.