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. According to a trade census taken in 1925 the total number of businesses was 67,000, of which 61,000 were engaged in retail trade; 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 organization 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, have made it the em porium 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 building there are also several important industrial plants in the Free Port. THE TARIFF The Customs Act at present in force dates from 1924. 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 6; 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 1.5, other paper 8; rice, shelled, 2; salt refined, 0.2; sugar, with a polarization of over 98 per cent., 10; tea 70; tobacco leaf 200; coniferous wood, unprepared, 155 (per cub.metre). Among the ad valorem rates the more important are (the figures indicating the percentage of the value): silk goods 35; electric machinery 7.5; other machinery 5; skins for furriers 20, 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, motor ears 25 øre per kilo, plus 5 per cent. of the value, and motor tyres 40 øre per kilo plus 6 per cent. of the value. IMPORTS AND EXPORTS The value of the total imports and exports and the import 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. 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 1925 total imports amounted to 2095 million kr. and the following table shows how this amount is distributed over the more important groups of commodities: Raw iron, etc. semi-manufactured iron goods.. 65 Manufactured iron goods... 39 Other metals and metal goods..... 48 Ships, vehicles, machinery, instruments, clocks.. 180 393 The biggest groups among the imports were unground grain and pulse and feeding stuffs. The heaviest import quantity in these groups was that of oil-cake, there having been imported for consumption 794 million kilos in 1925; of maize there were imported 457 million kilos, of rye and wheat 339, and of barley and oats 106 million kilos. The total crop yield of Danish cultivation is, of course, much greater than the feeding stuffs imported from abroad, but it must be remembered that a supply of nitrogenous fodder (especially oil cake) for the purpose of supplementing the domestic root crops is necessary to the intensive animal husbandry of Denmark. Of groceries Denmark imported in 1924 21 million kilos of coffee, 11 million kilos of rice, 10 million kilos of oranges, 9 million kilos of dried fruits, about 5 million kilos of wines, etc. There was also a considerable importation of sugar (25 million kilos). Normally the country supplies itself with sugar and, in the good years, has had a surplus for export. For most of the goods named the imported quantities were a good deal bigger than before the · even taking into consideration the growth of the population. Coal and coke form a very considerable item in the value of Danish imports, and are obtained relatively cheaply, owing to the proximity of Denmark to Great Britain, and because the greater number of the towns are by the sea. In 1925, the imports of coal, coke, cinders and briquettes amounted to 4 million tons. Of petroleum 97,000 tons were imported, gasoline 98,000 tons and other fuel oils 80,000 tons. war The following are the imported quantities of important industrial raw materials in 1925: As a summary of the imports the following percentage distribution of the total value for 1924 is given, showing the goods systematically grouped: Foodstuffs and drinkables.. Raw materials for industries............. Semi-manufactured articles and auxiliary materials Industrial products Total... 1924 per cent. 16.1 11.4 21.9 15.0 12.0 23.6 100.0 Thus the importation of raw materials and auxiliary materials formed more than half of the total import value. The value of the exportation af Danish goods in 1925 was 1789 million kroner, which was distributed over the following groups: Exports of Danish Goods. 1925 Mill. Kr. Live animals (except fish, etc.)......... 50 Bacon, beef, and other slaughter-house products.. Lard, condensed milk, etc., tinned goods, and other |