The manufacturing of cigars and tobacco, which covers the greater part of the consumption, is carried on by a comparatively large number of concerns, there being 659 in 1922. Most of these are small, and the principal part of the production comes from a few big factories. In 1922 there were produced more than 200 million cigars, 71 million cigarillos and 775 million cigarettes, apart from pipe tobacco, chewing tobacco and snuff. The total value of the production was 66 million kroner, and the number of persons employed in the manufacture of tobacco in 1922 was, on the average, about 5,700.

The brewing of beer also gave employment to more than 5,000 workers in 1922. The number of breweries was 234, but of these 193, with a total of about 500 workers produced >>tax-free beer<< only. The production of beer which, in accordance with the prevailing tax regulations, came under tax class I (beer with 24 per cent. alcohol and more), was 1.3 million hl.; of beer of tax class II (»lager< beer with less than 24 per cent. alcohol) 127,000 hl., and of »tax-free beer« 688,000 hl. The sales value of the total beer output was more than 100 million kroner.

There were seven spirit distilleries in 1922, with about 500 workers, and they distilled 5.2 million litres of 100 per cent. spirit of which 3.1 million litres were methylated. The distilleries also niade 42 million kilos of yeast.

Practically the whole of Denmark's consumption of bricks, etc. is covered by domestic production. In 1922 there were 279 brick works and lime-sand brick works which, in the season, employed about 6,000 workers. The selling value of the output amounted to 232 million kroner.

In many fields there is in Denmark a highly developed art industry of which porcelain and silversmith work must be especially mentioned. The objects of art produced by these industries are sold all over the world. Furthermore, there is a considerable manufacture of flour, chocolate and confectionery, rubber articles, lime and chalk products, glass, matches, soap, and fertilisers, etc.

It will be seen from the foregoing that there are many industries in which the output is concentrated in a few large concerns; indeed, in many cases these concerns come under joint management. Where this is not the case there is often an agreement between the various factories as to prices, production, etc. As examples of industries in Denmark which have been the objects

of large amalgamations may be mentioned the sugar, beer, spirit, glass, chicory, and paper industries.

Practically all the big industrial concerns are carried on in the form of joint stock companies, with the exception of the dairies and bacon factories and other concerns engaged in the preparation of agricultural produce, in which the co-operative system is practically the sole form.

TRADE

HOME TRADE

In olden times trade, like the handicrafts, was regulated by a large number of ordinances and regulations, and it was only with the Trading Act of 1857 that the principle of freedom of trade was introduced. This Act still forms the legal basis of trade.

In 1921 a good tenth of the population of the country earned their living by commerce, about half of these as dealers in commodities, whilst fifty years ago only half as large a portion of the population supported themselves in this way. In 1916 the number of independent traders was about 34,500, which almost corresponds to the number of concerns. On the whole the Danish concerns are small, as on the average only one assistant is employed per business; there are, however, large, world-wide firms, and Denmark has always had the reputation of having a skilful and enterprising commercial class.

There is no statistical information as to the size of the turnover in the home trade, but as a result of the organisation of trade as a whole it is relatively large, as agriculture buys large quantities of grain, fodder, etc., and sells farm produce. Some of this business goes through purchase and sales societies as a link in the agricultural co-operative enterprises. In the retail trade a very extensive co-operative movement has gradually grown up. In 1919 there were 1,656 such co-operative societies with 316,846 members and with a total annual turnover of 149 million kroner. In the towns there are as yet only few such societies, but of late years these have begun to get a footing there too.

FOREIGN TRADE

A country which like Denmark has an essentially agricultural production and suffers under a lack of various important raw

materials and other necessities, must necessarily have a comparatively large foreign trade; apart from this, the position of the country, and the easy access to it by sea, has made it the emporium of a considerable trade between other countries, some of which is carried on by Danish firms for their own account, and some merely as transit trade for foreign account. The Credit Store system, which was introduced by the Customs Act as early as 1797, and the Bonded Warehouses as well as the Copenhagen Free Port, have been facilities of great importance in this trade. The Free Port was opened in 1894 and, in its present form, is a fully modern port with a considerable area, extensive quays and technical equipment. Beside warehouses, grain silos and storage buildings there are also several important industrial plants in the Free Port.

The Customs Act at present in force dates from 1908, although it incorporates various later increases in the tariff for certain articles of luxury. Among the imports which are exempt from duty may be named animals and animal products, feeding stuffs, seeds, grain and milling produce, as well as other garden and field produce, coal and coke, raw metals, iron and steel in bars, plates, etc., mineral fuel oils and ships. The duties are for the most part specific although ad valorem duties are in force for certain commodities, especially for the articles of luxury, the duty on which has been increased during the last few years.

Among the more important specific duties are: (øre per kilo) Wine in barrels 75 and 115 (according to percentage of alcohol); oranges 6.5, most other fresh fruits 1; sheet glass, unpolished, 6; raw coffee 17; cocoa beans 12; rope, uncoloured string 4; woollen yarn, undyed, 16; cotton yarn, undyed, 10; woollen piece goods 80-130 (according to weight per sq. metre); iron goods, rough, wrought, 3; vegetable oils 5; packing paper, common, 2, newspaper 5.5, other paper 8; rice, shelled, 2; salt refined, 0.2; sugar, with a polarisation of over 98 per cent., 10; tea 70; tobacco leaf 200; coniferous wood, unprepared, 250 (per ton).

Among the ad valorem rates the more important are (the figures indicating the percentage of the value): silk goods 33%; electric machinery 7.5; other machinery 5; skins for furriers 25, and all goods not named in the Customs Act 7.5. Finally, there are various combined weight and ad valorem duties, including:

footwear 60 øre per kilo, plus 7.5 per cent. of the value, and motor cars, 25 øre per kilo, plus 5 per cent. of the value.

The following section treats »>the special trade«<, i. e. goods imported for consumption, and Danish goods exported. The value of this import and export since 1876 has been:

The wholesale prices in the last column are calculated on the basis of prices for the most important goods in the foreign trade and in such a manner that varying importance is attached to the goods in accordance with their importance to trade.

As will be seen, Denmark has always had bigger imports than exports, and the deficit on the balance of trade has to some extent been covered by earnings from freights on foreign shipping, from the transit trade and from other revenues from abroad, but otherwise it has had to be met by raising loans in other countries.

In 1923, imports for consumption amounted to 1907 million kr. and the following table shows how this amount is distributed over the more important groups of commodities:

*) Export surplus.