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is important�察�but the half that is untrue is perhaps equally important when 

a fundamental reconstruction of society is being considered。 

     Socialist   and Anarchist   critics   of   existing   society   point�察  �with   perfect 

truth�察�to certain capitalistic factors which promote war。 The first of these is 

the   desire   of   finance   to   find   new   fields   of   investment   in   undeveloped 

countries。 Mr。 J。 A。 Hobson�察�an author who is by no means extreme in his 

views�察�has well stated this point in his book on ``The Evolution of Modern 

Capitalism。''��55�А�He says�此�

       ��55�А�Walter Scott Publishing Company�察�1906�察�p。 262。 

       The economic tap´root�察�the chief directing motive of all the modern 

imperialistic expansion�察�is the pressure of capitalist industries for markets�察�

primarily markets for investment�察�secondarily markets for surplus products 

of   home   industry。   Where   the   concentration   of   capital   has   gone   furthest�察�

and     where     a  rigorous     protective    system     prevails�察   �this  pressure     is 

necessarily   strongest。   Not   merely   do   the   trusts   and   other   manufacturing 

trades that restrict their output for the home market more urgently require 

foreign     markets�察   �but   they  are   also   more    anxious    to  secure    protected 

markets�察�and this can only be achieved by extending the area of political 

rule。 This   is   the   essential   significance  of   the   recent   change   in American 

foreign policy as illustrated by the Spanish War�察�the Philippine annexation�察�

the Panama policy�察�and the new application of the Monroe doctrine to the 

South American States。 South America is needed as a preferential market 

for investment of trust ``profits'' and surplus trust products�此�if in time these 

states   can   be   brought    within   a   Zollverein   under   the   suzerainty   of   the 

United States�察�the financial area of operations receives a notable accession。 

China as a field of railway enterprise and general industrial development 

already begins to loom large in the eyes of foresighted American business 

men�察�the growing trade in American cotton and other goods in that country 



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will    be  a   subordinate     consideration      to  the   expansion     of   the  area   for 

American       investments。      Diplomatic      pressure�察   �armed     force�察  �and�察  �where 

desirable�察 �seizure of   territory  for  political   control�察 �will be   engineered   by 

the financial magnates who control the political destiny of America。 The 

strong     and    expensive       American      navy     now     beginning      to   be   built 

incidentally   serves   the   purpose   of   affording   profitable   contracts   to   the 

shipbuilding and metal industries�此�its real meaning and use is to forward 

the aggressive political policy imposed upon the nation by the economic 

needs of the financial capitalists。 

     It should be clearly understood that this constant pressure to extend the 

area   of   markets   is   not   a   necessary  implication of   all   forms   of   organized 

industry。   If   competition   was   displaced   by   combinations   of   a   genuinely 

cooperative   character   in   which   the   whole   gain   of   improved   economies 

passed�察�either to the workers in wages�察�or to large bodies of investors in 

dividends�察  �the   expansion   of   demand   in   the   home   markets   would   be   so 

great as to give full employment to the productive powers of concentrated 

capital�察   �and    there    would     be   no   self´accumulating        masses     of   profit 

expressing themselves in new credit and demanding external employment。 

It   is  the  ``monopoly''      profits   of  trusts   and   combines�察     �taken    either  in 

construction�察      �financial    operation�察   �or   industrial    working�察     �that  form     a 

gathering      fund    of  self´accumulating        credit   whose     possession      by   the 

financial     class   implies     a  contracted     demand      for   commodities       and    a 

correspondingly restricted employment for capital in American industries。 

Within certain limits relief can be found by stimulation of the export trade 

under cover of a high protective tariff which forbids all interference with 

monopoly   of   the   home   markets。   But   it   is   extremely   difficult   for   trusts 

adapted to the requirements of a profitable tied market at home to adjust 

their methods of free competition in the world markets upon a profitable 

basis   of   steady   trading。   Moreover�察      �such   a  mode   of    expansion   is    only 

appropriate       to  certain    manufacturing       trusts�此  �the   owners      of  railroad�察�

financial   and   other trusts   must look   always   more   to   foreign   investments 

for    their  surplus    profits。   This    ever´growing       need    for  fresh   fields   of 

investment for their profits is the great crux of the financial system�察�and 

threatens   to   dominate   the   future   economics   and   the   politics   of   the   great 



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Republic。 

     The     financial    economy       of   American      capitalism      exhibits    in  more 

dramatic      shape    a   tendency     common       to   the   finance    of   all  developed 

industrial   nations。   The   large�察     �easy   flow   of   capital   from   Great     Britain�察�

Germany�察�Austria�察  �France�察  �etc。�察  �into   South   African   or   Australian   mines�察�

into    Egyptian     bonds�察    �or  the   precarious     securities    of   South    American 

republics�察  �attests   the   same   general   pressure   which   increases   with   every 

development of financial machinery and the more profitable control of that 

machinery by the class of professional financiers 

       The   kind   of   way   in   which   such   conditions   tend   toward   war   might 

have been illustrated�察�if Mr。 Hobson had been writing at a later date�察�by 

various     more     recent   cases。    A   higher   rate   of  interest    is  obtainable     on 

enterprises in an undeveloped country than in a developed one�察�provided 

the  risks   connected   with   an   unsettled government   can   be   minimized。 To 

minimize these risks the financiers call in the assistance of the military and 

naval   forces   of   the   country   which   they   are   momentarily   asserting   to   be 

theirs。 In order to have the support of public opinion in this demand they 

have recourse to the power of the Press。 

     The Press is the second great factor to which critics of capitalism point 

when they wish to prove that capitalism is the source of modern war。 Since 

the running of a big newspaper requires a large capital�察�the proprietors of 

important organs necessarily belong to the capitalist class�察�and it will be a 

rare and exceptional event if they do not sympathize with their own class 

in opinion and outlook。 They are able to decide what news the great mass 

of newspaper readers shall be allowed to have。 They can actually falsify 

the   news�察  �or�察  �without   going   so   far   as   that�察  �they   can   carefully   select   it�察�

giving   such     items   as   will   stimulate   the   passions   which   they   desire   to 

stimulate�察  �and   suppressing   such   items   as   would   provide   the   antidote。   In 

this   way  the   picture of   the   world   in   the   mind   of   the   average   newspaper 

reader is made to be not a true picture�察�but in the main that which suits the 

interests   of   capitalists。   This   is   true   in   many   directions�察  �but   above   all   in 

what con´ cerns the relations between nations。 The mass of the population 

of a country can be led to love 

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