AMERI CA AND THE RACE FO R WO R L D D O M I N I O N

A M ERICA AN D THE RA CE FO R WO R L D D O M IN IO N

Form erly P ublished in France under the “ ’ title Le DéeIin De L Euro e , p

J BY D M N N l! A . E A G EO PRO 38803 GEOGRAPHY AT THE SORBONNE

T R A N S L A T E D B Y ARTHUR BARTLETT MAURI CE

' h u m a n c rrv N . Y . A N D 1 0 3 0 N ro , , : D B P G 8: CO MPAN Y OU LEDAY, A E 1 9 2 1 1 4239 A

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no unwm v, n o : co u rm ALL HTS ESE VED NC D THA 0! TRA T O RIG R R , I LU ING T NSLA I N N O YORBIGN N ES C D THE SCAND V AN I T LA GUAG , IN LU ING INA I PU B L I S H E R ’ S N OT E

ALUATIONS o f foreign imports , ex

o rts . . p , etc , etc , mentioned in Professor ’ D em angeo n s book are interesting pri marily for purposes of comparison with the cor fo r o r responding figures previous years periods, as showing growth or decrease . Translation of these am ounts into terms ' o f American money w o f ould, therefore, be only secondary interest or pertinence . However, for the convenience o f as ar such readers may be interested , the p values o f foreign m oneys mentioned in the book are here given

Par Value in Am erican Mo ney (Great Britain) Po und Sterling Shilling

o 8 Fl rin .4

(Japan) Yen

(Argentina) Peso

(Spain) Peseta (Italy) Lira

(France) Franc

AMERI CA AND THE RACE FO R W O R L D D O M I N I O N x ii INTRODUCTION

in a word, she fed the world wi th the treasures of

s r . her money, her t ength , and her life But has the hour of the passing of o ur hegemony struck ! Is o ur o ld continent on the po int of eclipse by the suns o f young and rising nations ! The end of the nineteenth centu ry had al ready shown us the vitality and the power of o f certain nations outside Europe ; some, like the

o United States, nourished by the blood f Europe ; ’ others, like Japan, modelled on Europe s ex ’ ample, and directed by Europe s advice . In ff stimulating the e ort of these newcomers, in r at ophying the productive virtues of Europe, has not the war brought us to the very brink of the precipice !

a o Depopul ted and impoverished, will Eur pe be likely to hold the economic ties that have been the foundation of her wealth ! Will she continue to be the great bank furnishing the capital to ! As new lands capitalistic powers Japan and, S above all , the United tates, have become her rivals . Will the equipment that transports from sea to sea the men and the products of the earth remain in her hands ! Other merchant marines are being built to dispute the profitable sh e monopoly. Will be always the great fac tory selling to young peoples the manufactured articles ! In the United States and Japan great INTRODUCTION industries are organizing and developing in menacing opposition . Will she always be the great economic force ! No longer is she alone in exploiting, colonizing, and financing . Well may it be said that we are beholding o Europe in decay . Therefore it is wise to c n sider in just what parts o f the world the in fluence of Europe is crumbling and which are the nations directly benefiting by this change of

. ff fortune It seems clear that, in di erent spheres

ff o f and by di erent means , the heirs Europe are S the United tates and Japan . The Monroe Doctrine has long limited European political ambition upon the American continent ; the tremendous effort o f the United States in in du strial production is imposing similar bounds ’ upon Europe s economic expansion . Latin o u r s America, long commercial va sal , is yielding o little by little t Yankee influences ; and , more a o l over, by curious turn in the current, d Eu rope herself is actually opening to young America o a kind f land to be colonized . In the Far

East, Japan is working to achieve economically the aspira tion that her missionaries and diplo mats are preaching from India to Siberia : Asia f r s o the Asiatics . Thus race from among whom Europe long recruited slaves and labourers are beginning to demand a political equality that INTRODUCTION will be the first step to their economic independ i ence . It s the entire fortune of Europe that is

tottering . It will perhaps take years for this shifting of no w o n o u r power, going before eyes , to become

complete . But both duty and interest warn us

to keep open this new page of history . The writer has drawn his information from various parts of the globe ; wherever Europeans have

visited . His attempt is merely to correlate the most significant facts, with the hope that in every land men better informed about local

conditions will lend their cooperation . For the moment it is enough to indicate the subject ’ s

importance and direction . l

lTh e rm cx al so urce o f nfo r a o n are c ed in th e co ur o f th p p s i m ti it se e narrative . Mo s t o f the figures q uo ted are fro m eith er o flicxal do cum ents o r eco no m ic pu blica io ns The au ho r has ra n m uch fro m ar c es h a h ave a ar n F n t . t d w ti l t t ppe ed i re ch and fo reign newspapers ; bu t these articles h ave always been verified and co m h l t! : t ared . An es ec a de is o ed to t e B le uo rdm r the Da Bu e in p p i l bt w a Q ( ily ll t ) , and the Bulletin Peri odigue de la Preu e Etrangere (Perio dical Bulleti n o f the Fo re n Press u sh ed th e Mi n s r o f Fo rei n Affa rs and the M n s r o f ig ) , p bli by i t y g i , i i t y W Th c n h bh catio n es a ar. e ar es i ese u s ec ho se dea n Wi h So u h ti l t p , p i lly t li g t t

Am er ca h ave een re ared i h the rea es care. i , b p p w t g t t AME R I CA AND THE RACE FO R W O R L D D O M I N I O N

4 AMERICA AND WORLD DOMINION

o ! w in the early part of the reign of L uis III, as reduced almost to ruin ; most of the forges stopped work, and some never resumed activity .

It took a long time to reap the blessings of peace, ff and despite the e orts of Colbert, the century ended without metallurgy having fully recovered its earlier prosperity . Nearer at hand, we know that the Napoleonic wars left France enfeebled, while across the Channel the industrial revo lu tio n builded the modern wealth o f Great

Britain . But these comparisons are inadequate because the great war has been a plague on a scale hitherto unknown ; bringing to grips armies of many millions, representing lands of many hundreds o f millions ; employing destructive engines that have mowed down millions of lives , annihilated what had been wrought by s o f centurie toil and thrift, brought about the upheaval o f the earth itself. The war struck th e o f at roots a wise and exact civilization , disorganizing the agencies that supported it, tumbling down the very foundations o f its existence, the intensive production of fields, the l o f de icate and specialized work factories, the business of transport and of international rela i tions . In attempting to estimate the evil , it s f seen that, above all , the war has had three ef ects upon European economy : it h as s topped pro THE WEAKENING OF EUROPE 5

duction , it has forced Europe to buy overseas, thus turning former debtor nations into creditors ; n a d, as a terrible agent of destruction , it has s ubstituted the task of reconstruction fo r that f r o f creating new wealth o exchange . Above all , in its destruction of life, it has dried up the source of energy and vitality .

TH E I O F O U TION N U RO P I . CR SIS PR D C I E E

U O E R PE , even before the war, was unable to No w sh export food products . e is becoming more and more dependent upon other lands .

With the war, while her agricultural yield was being gravely diminished, forcing her to costly r impo tations, overseas production was stima lated in order to supply the enormous needs of

the belligerent nations . France may be taken as an illustration o f the agricultural countries in which the soil is idle when labour is lacking . If we compare the — years 1 903 1 9 1 2 to 1 9 1 8 in the matter of crops and cultivated area we find that the growth of wheat fell from 1 6 million acres to I O million 6 acres, and from 9 million to million tons ; oats 6 from 9 million acres to million acres , and from 5 million to 2% million tons ; potatoes from 3 million 700 thousand acres to 2 million 400 I 6 thousand acres, and from 3 million to million 6 AMERICA AND WORLD DOMINION

. o f tons Thus, the French production wheat 0 f . o fell approximately 3 per cent ; potatoes, more 1 than 00 per cent . In contrast to this reduced production we see in S 1 00 1 1 8 the United tates, from 9 to 9 , the wheat crop bound from 380 to 670 millions of bushels ; the maize crop from to million s o f bushels ; the oat crop from 600 to millions o f bushels ; the potato crop from 1 60 to 280 1 1 millions of bushels . The wheat harvest o f 9 8 was rivalled in the agricultural history of the United States only by that of 1 9 1 5 ; despite the 22 continual increase of population , nearly 5 millions of bushels were available for exportation . 1 1 The 9 9 harvest was almost as good . While

Europe was worrying about its daily bread, the f r United States feared overproduction, o the surplus was thrown into the market against that o f the Argentine and Australia . Without the New World crops Europe could not have satis

fied its hunger . It was a situation that had existed before the war, but the war rendered it 1 1 6 critical . In 9 alone Europe received from the United States more than two billion francs ’ worth of flour ; sh e will continue to depend upon the United States and other new markets for a great part of her means of subsistence . To cover the deficit of European crops the THE WEAKENING OF EUROPE 7 countries working under peace conditions have been developing their production . Nowhere has this development been more rapid than in

t ro Sou h America, where it has assumed the p portions of an industrial revolution . England and France bought wheat on a vast scale from the

Argentine, and wheat was sown over great stretches o f land that had formerly been devoted to the cultivation o f maize . The greatness o f the crops brought the new problem o f storing them and shipping them to Europe . In the single year 1 9 1 7— 1 9 1 8 the Argentine had 4 million tons ready for export ; the sale of wheat to Europe became a national problem , which , 1 1 in 9 9 , was regulated by a convention between the governments of the Argentine and of Great F 1 1 8 Britain , rance, and Italy . In 9 the Argen tine exported tons of grains , of a value o f 535 million pesos l (wheat, tons ; oats, linseed, maize, this commerce represented the fortune o f the 1 1 o f nation . In the beginning of 9 9 the strike dock workers in Buenos Aires, that threatened is to bring this commerce to a stop, seemed as d astrous as a plague . Again it was Europe that absorbed almost the entire crop o f Uruguay . But the countries of the Plata had long been in

’ 1 F ar h oo o r par values o f foreign m o ney see Publishers No te in fro nt p t o f t e b k . 8 AMERICA AND WORLD DOMINION possession o f those vast wheat fields that made them the purveyors of Europe . The appearance o f Brazil in the market o f the world as an ex porter o f wheat is th e really significan t fact o f th e new economic evolution . Before the war Brazil produced little wheat ; it even imported wheat fo r its o wn use . But when the scarcity o f freight ships , as a result of the war, threatened o f its supply, it began the cultivation wheat fields in its southern states to such an extent that the crop no t only suffi ced fo r the needs o f the s country, but also permitted elling to Europe . In 1 9 1 7 almost 37 millions of bushels of wheat were gathered in Minas Geraes ; 35 million bushels in Rio Grande do Sol ; 27 million bushels in 85 0 Paulo ; 7; million bushels in Parana ;

- S 5 57 million bushels in anta Catharina . Whereas 1 06 in 9 Brazil imported tons of wheat, 1 1 1 8 in 9 7 it imported only 7 tons, and e xported o f tons, of a value francs .

Other industries , stimulated by foreign demand, a were developed at the same time ; rice, m nioc, and beans were shipped from Brazil to the Old

World . The entire American continent con tributed to the feeding of Europe, which , in capable of repaying in the same coin, had to give gold or ask credit . Europe is in debt all over the earth . THE WEAKENING OF EUROPE 9

Fo r other needs Europe is becoming dependent u pon other lands . For a long time Great

i . Britain has been buy ng Argentine meat France, ff having su ered great losses of cattle , is now obliged to turn to the same source of supply . Between 1 9 1 2 and 1 9 1 8 the number o f bovines in France fell from to millions ; of sheep, from to millions ; of pigs, from

to 4 millions . In the matter of sheep and pigs these figures indicate an enormous loss .

With horned cattle the loss seems less, but the average age o f the animals h as so decreased that their weight, that is to say the amount of meat they supply, has been greatly reduced . More over, we are very short on milch cows . There fore the exportation of Argentine meat increased from 70 million dollars in 1 9 1 3 to 1 20 million dollars in 1 9 1 7 ; it is likely to grow to such an extent that Europe will never wholly recover her independence, for equipped with modern refrigerating plants, the Argentine, with Aus ’ tralia Z and New ealand, dominates the world s meat market . Like Buenos Aires of the Ar entine it g , Montevideo of Uruguay sends s o f cargoes frozen meat to Havre, Bordeaux,

London , and Liverpool . The whole farming industry has been drawn into the same move 1 1 ment . In 9 7, the Argentine , for the first 1 0 AMERICA AND WORLD DOMINION

h as time, exported cheese to Europe . Brazil

'‘ great refrigerating plants near Saio Paulo and in Minas Geraes, and exporting no frozen meat 1 1 1 1 in 9 4, it exported tons in 9 5 , and 1 1 tons in 9 7 . Besides, the production of sugar has increased ; it may be said that Latin America saved the United States and the powers O f the Entente from a su gar famine . Porto

Rico, Santo Domingo, and above all Cuba have no w been the great sugar countries, but other lands, such as Honduras, Nicaragua, Costa i ‘ R ca, Venezuela, Chili, Peru, and Bolivia are w 1 1 also feeding the market, hile Brazil in 9 7 ten exported more than tons of sugar,

1 1 2 . times as much as in 9 A vital necessity, sugar imposes on Europe a heavy debt that, sh e lacking the products for exchange, must pay for in gold . It is not food products alone ; for many other o f the necessities of life that war h as depleted in Europe there is an equal de mand . The great railway companies are turn ing to certain forests o f South America for huge supplies o f wood . All this gives but a slight idea of what Europe has lost through lack of production . We must take into consideration not only what sh e had to sh e to buy in order to live, but also what had

acquire to enable her to fight . A great industrial

1 2 AMERICA AND WORLD DOMINION

1 05 million pounds sterling less than the exporta tions of 1 9 1 3; for that year of 1 9 1 8 the excess o f importations over exportations reached 790 ix million pounds sterling, s times as much a 1 1 a s in 9 3, and five times s much as in the average year o f the ten years preceding th e Fo r ix 1 1 war . the first s months o f 9 9 it reached almost 38 million . A great part of this decrease o f as re- is exportation w in exportation , that to sa y , in the most profitable and exclusive factor o f British trade . France is even in a worse state according to th statistics of foreign commerce, as shown by e following table

YEARS

1

1

1 1 5

The no rm al value o f th e franc in cents is Its great depreciatio n in ex ch an e h o c h n o f h w g as c m e sin e t e e d t e ar.

fo r For France, as the other belligerent nations, the war thus represents an enormous THE WEAKENING OF EUROPE 1 3 loss o f wealth of which the countries that were spared the plague o r were less tried by it reaped the benefit . It has been calculated that one year of war destroyed the economies O f four years of peace . Thus the war balance sheet shows an enormous debt .

DE BTS O F THE WARRING CO UNTRI Es l (millio ns o f dollars)

G B A 1 1 1 F 1 1 . eb . 8 reat ritain ( ug , 9 4) ( , 9 9) S r 1 1 1 1 1 Ma . 1 . United tates ( 3 , 9 7) (Jan 3 , 9 9) F 1 1 1 Mar 1 1 1 c . ran e (July 3 , 9 4) ( 3 , 9 9)

I 0 1 1 Oct. 1 1 1 8 taly (June 3 , 9 4) ( 3 , 9 ) R 1 1 1 1 s . 1 . 1 u sia (Jan , 9 4) (Jan , 9 9) 1 M Fro m Go l e . a 1 1 0 t uarterl . o Econ. . t i b Q y 7 f y. 9 9, P 5 5

CENTRAL POWERS

G 1 1 1 1 1 1 Oct . . ermany ( , 9 3) (Jan , 9 9) A A 1 1 1 . 1 1 Oct . 1 8 ustria ( ug , 9 4) ( 3 , 9 ) H A 1 1 1 1 1 1 Oct . 8 ungary ( ug . , 9 4) ( 3 , 9 ) M r 1 1 1 66 1 1 1 T k a . Dec . 8 ur ey ( 3 , 9 4) 7 ( 3 , 9 )

- war Thus, for these nine countries, a before debt o f 26 billion dollars became an after- war o f 2 6 1 0 debt 3 billion ; 7 billion for the Allies, 66 and billion for the Central Powers . There was a time when it could be said that a successful r No w wa always brought back something . it ffi is di cult to consider a war, such as the one as recently ended, anything but a great material catastrophe . Peace has come ; now it is nec ff essary to work to pay o the debt . But the 1 4 AMERICA AND WORLD DOMINION countries which have not suffered will work under less handicap and with a greater chance of success . Other burdens weigh unhappily upon th e warring nations ; the result o f damage and o destruction . We must work and also borrow t repair the ruins . These burdens are not shared equally by all the belligerents ; they are vastly Fo heavier on the lands that were battlefields . r the countries far from the seat of war they n do not exist . On the other hand, for norther S France, Belgium , erbia, and Roumania, they spell the need of an entire rebuilding of the means t ruc of existence . It is estimated hat the dest tion of war cost Belgian industry more than eight and a half billion francs . In the north o f France it has been a cataclysm that has over I turned everything . t is not merely a matter of forests laid waste, and factories, mines, and dwellings wantonly wrecked by the enemy ; o ne must see in imagination that zone of death , 00 6 to 1 3 miles long, 5 miles wide, that follows the battle front and where the lack of cultivation and the destruction of the earth have transformed

everything into a desert, a savage steppe, a

land of earthquake . Altogether the material loss to the French regions has been estimated at 1 20 billions o f francs ; millions for THE WEAKENING OF EUROPE 1 5 h ouses and public buildings ; for agricul ture ; millions for the coal mines ; m illions for metal mines and factories ; 1 m illions for textile industries . Everywhere the cyclone- swept farm buildings must be re

built, farm material renewed, the fertility of the re soil restored, factories reconstructed and — in recre equipped a word , all economic life

ated . There is no reason to despair o f the crea o f tive power labour . But while waiting for these devastated lands to resume their normal

gait, other countries, untouched, and provided t with the ools of toil, will take the lead, and add

to their wealth instead of spending their capital .

Europe, and above all certain regions of ’ Europe, thus find themselves , at the war s end , ffi u sav in an extremely di cult sit ation . Their ings are gone ; they must set aside to pay th eir

creditors ; and set aside to rebuild their ru ins .

These frightful expenses , of which humanity

had never dreamed, have cruelly impoverished

them . But on other lands fortune has smiled ;

other lands have found themselves enriched .

I UM N W . U O N M G ON II . THE H A ASTE E R PEA E I RATI

’ Eu RO PE s centuries- old influence on the world came no t only from the power o f her material

l M Du o to the Ch a o f F o m a re o r m a e s m er De u es. r p t d by . b i b p ti 1 6 AMERICA AND WORLD DOMINION

resources, but also from her wealth in human

Ho beings . w far has the war weakened this source O f energy ! We know almost exactly how many men have perished . The roll has been o f ffi kept by most the belligerents, but the O cial

figures are below the actual facts, for they do no t include deaths resulting after demobilization .

Also in some lands we have only estimates . But approximately, here is the account

DEATH LOSS : KI LLED OR DISAPPEARED France Belgium Great Britain New Zealand Italy Portugal Serbia South Africa Roumania Russia United States Germany Canada Austria-Hungary Australia Turkey India

These deaths represent more than 3 per cent .

o f . the total population of France, 4 per cent of 2 S 1 . o f s Roumania, and per cent erbia ; figure T unparalleled in history. hey mean the ex in 8 termination Europe of % million men , equal F to a fifth o f the population of rance . Of those between the ages of 20 and 44 France has lost 20 o f 1 out every hundred ; Germany, 5 , and Great

1 0 . Britain , Not only have murderous arm s decimated THE WEAKENING OF EUROPE 1 7

Europe ; one must also take into account the sufferings and illnesses that have led to pre mature death and limited the birth rate . In considering only the seventy- seven depart ments of France not invaded , and only the h tm civil population of t ese depar ents, we find an enormous decrease in births . Here is the table

BIRTHS DEATHS

th e In Paris civil registers show, from August, 1 1 to 1 1 9 3, August , 9 4, deaths and 1 1 1 1 6 births ; from August, 9 5 , to August, 9 , deaths and births . A similar condition is to be found elsewhere in Europe . In Germany 1 1 statistics showed, in 9 3, more births than deaths ; in 1 9 1 6 there were more 1 1 8 deaths than births, and in 9 , more u o f deaths than births . Before the war the n mber men and women between the ages of 20 and 30 was approximately equal ; in 1 9 1 9 there were women to men . The great towns, where 1 8 AMERICA AND WORLD DOMINION

conditions of life are harder than in the country , m paid bitter tribute . In Dresden births fell fro in 1 9 1 3 to in 1 9 1 6 ; in Berlin from in 1 9 1 2 to in 1 9 1 7 ; the deaths in creased from to small children

being the chiefvictims . The plague did not spare 1 1 1 1 6 the United Kingdom , between 9 3 and 9 the births decreasing 1 09 to the thousand in England ; 88 to the thousand in Scotland ; and

6 . 8 to the thousand in Ireland From May, 1 1 1 1 8 9 5 , to June, 9 , in the United Kingdom there were born children instead o f 3 million , which should have been the figure 1 - according to pre war mean statistics .

How long will the wound last, and how best can the gap be filled ! This depopulation does not seem to have affected equally the economic

capacities of all European countries . It will be particularly heavy on nations where the devel o pm ent o f well- being has already drained the

birth sources, as in France ; and where the drain is beginning to be felt, as in Great Britain

and Germany . In France, to fill the gaps in o f the army labour caused by the mobilization ,

Annamites, Kabyles, Chinese, Greeks, Portu

u ese S . g , and paniards were called in But, the war over, all the French have not returned to

1 36 6 Ro al Stati stical Socie I !8 . I I your“ !of y qy, 9 , p

20 AMERICA AND WORLD DOMINION still in Europe prolific races on poor land and outside of Europe fertile spaces to be filled . But the new tendencies will play their part . Certain countries have suffered so much that a economic distress is cert in to stimulate, for the moment at least, the desire for emigration . The people of eastern Europe, who even before the war had begun to emigrate in great bodies, will try to continue to do so ; to many of them the war has left only ruins and little hope . Coun tries like Russia, Austria, Hungary, Italy,

Greece, Roumania, Serbia, Bulgaria, and Turkey form a human reserve of nearly 290 millions of people, that is to say two and a half times as many as the o ld industrial nations o f the West

Great Britain , Germany, Scandinavia, Holland ,

Belgium , and Switzerland ; further emigration must be expected from these lands . Even in o f o l the West, in the countries d civilization bleeding from the war, certain men seek to expatriate themselves in the hope o f finding elsewhere a more comfortable level of life This is often the case in Germany among the culti — a v ted classes engineers, agriculturalists, sea ffi and land o cers, industrial employees, foremen and specialized workmen ; the movement is generally directed toward North America and above all toward South America ; and is of such THE WEAKENING OF EUROPE 2 1 a magnitude that the uneasy German Govern m ent attempts to organize and regulate it . In Great Britain a similar condition is to be found ; m any soldiers, having in the course of the war a n met Canadians and Austr lians, k ow that in Canada and Australia they would receive con

cessions of land ; and, like many of their country

men before the war, and with better reason in

view of the increased cost of living at home, are drawn by the hope o f finding be yond the sea

happy and permanent homes . Also , all the new countries are in pressing need of man power to hasten their economic evolution ; South America so badly that she h as already called upon the

Japanese colonies . European labour is scarce

in the coffee plantations o f Brazil . The Ar gen tine lands clamour fo r farmers and farm

. s labourers The British dominions , upported fo r by the shipping companies , are asking new

colonists . Therefore it is not likely that the stream o f men that Europe has been pouring o u t for decades will immediately become stag

nant and cease to flow . But it is a question whether Europe can much rOl f longer maintain this e of sower o men . o f There were certain facts, a year or two ago, that presage at least a slackening of the human h current . The United States then furnished t e 22 AMERICA AND WORLD DOMINION

o f proof. There th e number immigrants fell from in 1 9 1 3— 1 9 1 4 to in 1 9 1 5 1 1 6 1 1 6—1 1 in 9 ; in 9 9 7, and 1 1 —1 1 8 9 7 9 , the last figure being the lowest, 6 1 62 1 1 8 1 8 8 . with those of and , since 44 This decrease of immigration is not likely to continue 1 o n the same scale . But there are reasons for uncertainty as to the future . First, the social level of the immigrants of the recent stream has been so low that the American nation fears that it cannot assimilate them ; many voices have been raised in the United States to proclaim that the flood of ignorant and unskilled labourers from eastern and southern Europe threatens to submerge American civiliz a tion . Measures have been suggested to curb this immigration to a point where the American iz a tio n of the newcomers will be possible . There was another fact that seemed to in dicate at that time that the tide of immigration from certain European countries was slowing was up of itself; that , that emigrants were leaving the United States in great numbers . At the beginning of the war many Euro peans, leaving their work in the factories of

America, returned to their countries to join the various armies . This turn of direction

i alr to av turn lDdeed the tide seem s eady h e ed . THE WEAKENING OF EUROPE 23 was even more marked immediately after the termination o f the stru ggle . There were s departure from New York in September, 1 9 1 8; in October ; in November ; 1 1 in December ; in January, 9 9 ; in February ; in March ; in wa April ; in May ; in June . It s a

s . teadily rising exodus At the end of June, 1 1 f 9 9, oreigners in the United States had applied for permission to cross the Atlantic . It was estimated that half o f the Roumanians of the United States returned to the land o f the ir th e birth, and that more than one third of Serbs,

Russians, and Slovaks wished to return ; also many Italians with their wives and children left the country . The New York Immigration au th o rities were quoted as considering that the m ovement was likely to grow . This wholesale movement toward repatria o f tion showed that, despite the disasters the war, th e immigrants did no t fear to find in Europe the conditions that drove them to the New

World . They returned in most cases to lands where the political and social revolutions that have taken place seemed to assure them free land, more personal liberty, and fewer military

s . burden As for the high cost of living, they had suffered so much from that in the United States 24 AMERICA AND WORLD DOMINION

that they felt they had little to fear at hom e . Among the immigrants from Austria- Hungary is to sa o f th and Russia, that y the majority all e n immigrants, the greater number did not belo g to the race that dominated politically an d socially : 97 out of every hundred Russi a n o r emigrants to the United States were Jews, o r n Poles, Lithuanians, or Finns, or Letts ; amo g the foreign population of the United States those wh o spoke Russian did not represent 3 per cen t .

o f . o those who had been born in Russia Als ,

- from Austria Hungary came, not Germans and

Magyars, but Slavs . But in eastern Europe the war has put an end to the oppression Of “ ” “ ” subject races by dominant races ; those whom misery and persecution had driven from home were returning feeling that a new order had been established . The house would be e better to live in ; with more quality and liberty, f existence would be more com ortable . That was the great new fact behind the turning o f the tide of emigration at the end of the war .

A . s has been said, the future is problematical But at that the heads of American industry were watching uneasily these changes . Hand labour would be diffi cult to recruit ; the facto ries would be in need o f workers . Economists realize that m such an exodus is a loss, for the work en , who THE WEAKENING OF EUROPE 25

have gained huge wages in the munition plants,

in naval shipyards, and other factories, carry away with them to their native lands large

savings in American dollars . But such conditions are not merely conditions o f American economics . Their direction is uni r l versal . They show us that the O e o f Europe

as a purveyor of men is diminishing, and may perhaps be taken as an indication that the flood o f migration o f eastern Europeans westward

is abating . Moreover, such an eastward move ment suggests the picture of a coming resurging

tide . It would be America sweeping toward Europe ; the march of civilization changing its o f direction . Many those who immediately after the War returned to Europe had lived long years in the United States ; brought in them f selves the tastes , the customs, the ideas o

America . In the near future they will spread

those tastes, customs, and ideas about them ; so they will become, to speak, the representa tives of America, her missionaries, her agents ; in establishing close relations between their n ative lands and the land o f their adoption they will contribute to spread the circle o f A merican influence . CHAPTER II

TH E FI NANCIAL POWER

i ACING Europe, impoverished by ts

vast expenses and losses, are countries

enormously enriched . Europe possessed the financial power born of savings a ccumulated o through centuries f labour . This power is passing into the hands of young nations situated

o f o f co nfla ratio n : outside the theatre g Japan ,

. n and above all , the United States Europe is o longer alone in lending the capital necessary to make virgin soil valuable, to equip growing to h a nations, and develop civilization . She s rOle lost her exclusive of world banker . Even when by force of labour and economy sh e shall sh e have cleared her debts will find , in many

lands, her place taken by her rivals . While waiting, she needs their help to recover her productive strength . Already th e United States is mobilizing her capital fo r the restoration o f

Europe . We are taking part in one o f the mo s t

26

28 AMERICA AND WORLD DOMINION

UNITED STATES FO REIGN TRADE (millio ns o f do llars)

E! PORTS IMPORTS

During the fifty- one months o f the war the excess o f exports reached ten billion nine hun dred million dollars ; whereas for the one hundred

- five 1 8 1 1 and twenty years from 7 9 to August, 9 4 , the excess had not been more than nine bil lion s even million francs !approximately Before th e war the surplus value o f exports over that o f imports was already a feat ’ ure of America s foreign trade ; but it had never 0 in exceeded 65 million dollars one year, whereas — in 1 9 1 6 1 9 1 7 it reached approximately 3 billion o n 600 million dollars . Moreover, account o f the fact that in the trade o f the United States with Asia and South America the imports are greater than the exports, it is almost exclusively i the European m arke t that accounts for the Fo r great export excess . the Single year ending THE FINANCIAL POWER 29

0 1 1 8 June 3 , 9 , American exports to Europe reached a value of a sum greater than the entire foreign commerce of Great r 1 1 B itain and France combined before 9 4 . The result of this disparity has been th e direction of a flood of gold toward the United

States . All the gold o f the buying countries h a b ff s een thrown into American co ers . The gold supply of the United States amounted to :

1 1 August, 9 4 1 1 2 006 ooo 000 9 5 , , , 1 9 1 6 1 1 I oo ooo Jan . 9 8 3, , , ooo

At th e beginning of the year 1 9 1 9 it was still a is a ro x i bout 3 billion dollars ; that to say, pp ’ m ately one third of the world s supply . Thus the United States holds th e greatest gold reserve ’ in history, and New York controls the world s m oney market . During the war this strength was shown in many ways . For example, the e time came when, British exchange b ing shaky in Tokio and strong in New York, the Japanese dealt in English stocks in New York . The ’ Spaniards did the same . The war s end has not stopped th e flow of European gold westward ; on the contrary, since peace came, a flood of German gold has been added to that o f the

Allies . 30 AMERICA AND WORLD DOMINION

TO settle fo r what she bought in the United

States, Europe not only gave up her gold, but also emptied her pockets of American securities . 1 1 2 0 In July, 9 5 , she still held billion 7 4 million ’ dollars Worth of American railway securities . 1 1 sh e 1 1 8 By January, 9 7 , held only billion 5 a million , and since then most of that rem inder f has gone the same way. Of the total shares o

S t 2 . the U . S . teel Corpora ion , about 5 per cent was owned outside of the United States in 1 1 1 1 t e March , 9 4 ; in June, 9 9 , this had been du ced to 9 per cent . o ff The United States, paying foreign credit ’ o rs . , is becoming in turn the world s creditor Without its financial aid the Allies could no t o f have won the war . The accumulation war wealth has made the country also the great S money lender of the world . ince Europe had not enough money to meet her American bills, S the United tates has advanced to her, in the

o f - s form Short term loans and commercial credit , more than 9 billion dollars . According to the Fina ncia l Ch ronicle f 8 1 1 o February , 9 9 , the actual amount of foreign debt to the United Sta tes is

million dollars, of which millions are owed by Great Britain , by France,

62 1 . by Italy, 4 by Canada, and 73 by Belgium

Cz ch o - - S Ro u e Slovakia, Greece, Jugo lavia, and THE FINANCIAL POWER 3:

o f mania are also debtors America . Thanks to this wealth the United States can assume a financial burden double that of any other country . rOle be The of world banker, that formerly

o . longed to L ndon , is passing to New York London was once the great international clearing house . Because Great Britain was the greatest importer of heavy merchandise and the world ’ s chief carrier, most international business was r u b eg lated y means of drafts on London , which were considered as good as gold . The war disturbed this system . England was the first country to declare a moratorium deferring fo r payments, and the moment, from the i nternational point of view, British credit was was weakened , the world feeling that London no o f f longer the sanctuary finance, safe rom

all its vicissitudes of war. At the same time direct dealings between the United States and other lands began to develop . Before the war th e American Exchange operations were limited

to the United Kingdom , France, and Germany ; since the war they have been extended through “ o u . t the world From February to December, 1 1 8 th s 9 , e busines of the European Allied nations with the United States amounted in all to 26 billion dollars ; that of European countries other 32 AMERICA AND WORLD DOMINION

than the Allies to nearly millions ; that of Asi a to millions ; and that of Central s America, Mexico, and the We t Indies, to

millions . It is the application of the Monroe ” n 1 Doctrine to international fi ance . The accession of the United States to the supremacy o f the international market is a a veritable revolution in financi l geography, marking as it does the shifting of wealth from a one continent to another, and in ugurating Amer

ican capitalistic expansion . The Americans are

becoming the providers o f world capital . The o f war no w debtors before the , they are the in creditors . They are drawing now a yearly terest o f 66 about 5 millions of dollars, a revenue that they do not need to live, and that their debtors cannot pay entirely in money. There fore it Will remain in other lands invested in industrial enterprises, the old ones that are to be restored and the new ones that are to be created . In this way is the rOle of the United States as a world capitalist developing and spreading . ’ a t i c n t t t C pi al sti Ex pa sion in the Uni ea S a es . Until the eve of the war th e direction o f American capital was toward home investment . Of was course, it also widely placed in British and

I - - - . D am s e itotr U 1 1 1 1 8 a nc litat U u ec . Le cha n e d s I nis . Fr e s n ! p g , 9 4 9 , A ri 1 1 1 8 p l, 9 9 . p . 5 . THE FINANCIAL POWER 33

Bu Latin America . t it was above all to national e nergies that it lent its strength . The great o f th banks the East, e capital of New England, o f New York, of Pennsylvania, sought outlet in

the development o f the virgin lands of the Wes t . wa s The West s the creation of the Ea t, and the tie binding the two sections of the country was

strong . Thus, alm ost simultaneously, came the concentration of industrial capital in the East

and the opening of the iron mines of Minnesota . Every Eastern steel company owns its Minne o s ota iron mines. More th an three quarters f the mineral reserve is controlled by the powerful

U . S . Steel Corporation . These great com him ations o f capital are the very genius o f new

nations . Indus trial companies and railway com c pani s control economic life, develop the mines, a t build factories, cultivate the e r h, people

. h as regions, and create cities That been the m n national school o f A a ica capital . Strong in

expe rience, it sees itself destined for a World

mission . The United States aims at being the international clearing house with the dollar

taking the world place o f the pound sterling. To this end powerful organizations are already an o sk l at work . M . Lew d w y has described the

“ La u ssance financi ere des Ea ts-Un Revue Jet Dew: p i is. - Moni es Fe b. 1 1 1 8 6 8 6 , , 9 . p. 7 79 34 AMERICA AND WORLD DOMINION

a o f methods of these organizations, especi lly the “ National City Bank of New York . Since the new law h as gone into effect allowing national banks to establish foreign branches, the National City Bank has opened seven offices in South

‘ : Sao America at Buenos Aires, Rio, Paulo,

Montevideo, Santiago, Caracas, and an agency in Havana . Another American bank has also created an agency there, the First

National Bank of Boston , representing great 0 New England industries . Since th e war 7 per o f cent . the commercial transactions of Latin o n America are settled by drafts New York, that is to say in American dollars ; whereas before th e war the pound sterling was almost the exclusive medium of exchange . In other parts o f the world the National City Bank is establishing 1 1 o f itself. In 9 5 it obtained control the Inter national Banking Corporation that possessed in agencies China, Japan , India, Manila, Pan ama, Mexico , and, in addition , a London branch . National City Bank agencies are being planned fo r Europe . One in Genoa has just begun s are business, and other in embryo in Switzer h land and Spain . Ot er great banks are preparing to enter the race . In Paris there has been established an agency of o ne of the most powerful financial organiz atio ns

36 AMERICA AND WORLD DOMINION

December 6th a pound was worth francs and a dollar francs . If the rela tive value o f the dollar were to continue to rise, the English , French , and Italians would no e t have the m ans to pay, and their pur chases from th e United States would have to cease . h as Thus this very financial triumph, which made the United States the gold holder and th e

it . creditor, carries with it s danger If condi tions do not improve, Europeans will buy from i Americans only what s absolutely indispensable, making all other purchases Where the rate o f f exchange is m ore avourable . If Europe does no t f not buy, the United States will sell ; there ore it is to the best interests o f the United States to extend credits to a length that will enable Europe o f to restore her power production, and con Th f r sequen tly her ability to trade . e matter o the United States to consider is not whether or not it wishes to extend these credits, but whether it wishes to continue to sell and ex o n in port . Europe is counting this extension , order to rebuild and Win back again to normal life . Of all the European countries France h as been most severely tried by the war . She bore the brunt of the struggle ; sh e suffered in her flesh and THE FINANCIAL POWER 37 in her soil ; sh e exhausted her resources in money a n d deeply impaired her capital . She had l o aned much to the world ; many of these loans h o ave become w rthless ; now She, the great

le . nder, must borrow in her turn This derange m ent o f fortune is the best example of the s ituation o f Europe as regards the United States ; we , more than any one else, need American financial support in order to renew ourselves and

restore our rich patrimony . h There has been discussion , and t ere will be s much more di cussion , as to the best manner “ ” o f financing Europe ; as to how to interest Americans in placing new loans ; as to the method o f this vast system of credit (whether it should be th e work o f the state o r o f private capital) ;

and as to the nature of the security to be given . But at every turn one fact stands out : that is the undoubted world hegemony o f the United L States . ord Robert Cecil has compared the situation O f the United States after the great war with that of Great Britain after the Napo

lconic wars . But the cases are not quite the fo r th e s ame, former hegemony of England o f applied only to Europe, while that America

- - o f to day is world wide . The great well raw m o f aterial , of manufactured products, and h as n capital, the United States become a econ 3s AMERICA AND WORLD DOMINION o m ic hearth and a financial centre without which th e world can neither work nor ex change .

’ 11 N N O . JAPAN S FI A CIAL P WER

I N h as Japan the same thing happened,

s . to o though on a maller scale There, , there

s o f o have been increa e exports, accumulation f o f gold, and the development capitalistic ex

ansio n . f o f p Japan, far rom the theatre war, has seen its exports grow even more quickly than

U . 1 1 a those of the nited States Whereas in 9 4, s th in almost every year before the war, e impo rts o t 1 1 were greater than the exp r s, since 9 4 th e excess of exports has been : 226 million yen in 1 1 1 1 1 6 68 1 1 9 5 , 37 million in 9 , 5 million in 9 7, ’ 1 293 million in 1 9 8. Since the war s end the decrease o f exports suggests a probable return to f more normal conditions . As a result o th e war restricting the energies of her commercial co m

e tito rs . p , Japan was able to , seize new markets From 1 9 1 3 to 1 9 1 5 her exports to Russia in 1 1 creased 870 per cent . From 9 3 to 1 9 1 7 her exports to th e United Kingdom grew from yen to thousand for zinc ; from thousand to thousand for copper ; from t 1 45 thousand to housand for preserves . Much o f this increase must be credited to higher THE FINANCIAL POWER 39

co r prices, since the growth in amount did not r espond to the growth in value ; but, with the e o f 1 1 8 xception certain commodities (in 9 coal, raw silk, and cotton thread) , the actual aug

m entation was impressively great . The result o h as been a flood f gold to Japan . These are the figures of her gold supply :

370 million yen CC CC 34° 5 1 0 7 1 0

Japan , having become rich, is repaying her

f . o f 1 1 8 oreign creditors At the end March , 9 , her foreign debt was no t more than million yen (the yen at francs) in place of 1 m illions in 1 9 5 . l But above all , having gold at her disposa , Japan is becoming a lending country ; lending to l ts o . 1 1 6 i d creditors, even to England In July, 9 , h er good position in the American market e n a bled her to lend England , then owing the U S 0 New nited tates, 5 million dollars in York . 1 1 6 In November, 9 , one hundred million yen was borrowed by England for the purpose of sustaining British exchange in New York . In 40 AMERICA AND WORLD DOMINION

1 1 March and June, 9 7, there were issues o f French Treasury bonds to Japan to the value o f

76 million yen . At the beginning of 1 9 1 8 there was a new loan to Great Britain of 1 00 million yen . Besides these there were purchases of Rus A sian Treasury bonds throughout the war . t the beginning o f 1 9 1 8 the advances o f Japan to 00 the Allies amounted to about 5 million yen . To this sum must be added large investment in 1 the United States and China .

Thus , from a debtor nation , Japan has become a creditor nation . Those who have travelled in Japan since the beginning of the war can tell o f the material changes that this wealth h as wrought in the aspect o f Tokio and in Japanese life . Before the war, except in a few quarters, the city appeared quiet and dormant ; it has taken on something o f th e feverish look of

Western cities of the United States . There are fIx u rio u s h e l s ops, new hous s in the American s style, and the streets are filled with automobile . “ Frenclz Asia fo r 1 1 8 According to April , 9 , the women of Japan display handsome clothes, belts gleaming with gold, fingers loaded with rings ; they are of the class of new rich that

’ lAcco rdin to L Annuaire na ncier et econom i ue da a on for 1 1 8 h e u g fi q y p , 9 t s m o a o f a anese ca a nves e in o h er an s reac ed m l o n en o f t t l J p pit l i t d t l d h i li y , h ch 0 m o ns was in Br sh o nds 2 m l o ns in Russ an o n s 1 m i l w i 53 illi iti b , 54 il i i b d , 55 o ns in Frenc bon s and 220 m o ns var ous str u li h d , illi i ly di ib ted. THE FINANCIAL POWER 4 1 con trasts sharply with the almost Spartan ” m si plicity of the best elements of Japan . Everywhere in Japan business is growing an d new enterprises are being launched . From u 1 1 1 1 J ly, 9 4, to January, 9 8, the capital of the a 2 b nks of Tokio increased 0 per cent . ; that of

n o f 2 . o r 2 the ba ks Osaka, 45 per cent , from 33 o 80 t 5 million yen . In four years the savings 1 1 0 banks accounts have jumped per cent . The o f o f 02 shares the Bank Japan , quoted at 5 yen in 1 1 0 January, 9 4, were worth 77 yen in January, 1 1 9 8. Almost all enterprises have paid big 1 1 o f dividends ; in 9 7, the metallurgical factories 2 0 Osaka, 5 per cent . ; the Kawasaki docks , 4 per th 60 cent ; e Oriental Spinning Company, per 1 cent .

Having acquired wealth from the war, Japan is turning the new capital to the extension of credit and commerce ; aiming at financial foreign 1 1 conquest . At the beginning Of 9 9 the Min istry o f Foreign Affairs at Tokio created an o flice to deal with loans and investments in n Siberia and Chi a . In the Far East the money power of Japan is consolidating ; like the Ameri

’ 1ll Annnaire inancier et econom i ue da a on 1 1 8 ave fo r u 1 1 and f q y p ( 9 ) g J ly, 9 4, u 1 1 8 th e fi nanc a Si u a o n as fo o s in m io ns o f en : S nd ca ed J ly, 9 , i l t ti , ll w ( ill y ) y i t an s o f To o ca a 1 in 1 1 202 In 1 1 8 de o s s a a ns 1 66 ; b k ki , pit l, 43 9 4 ; 9 ; p it , 439 g i t 3 lo ans etc . 0 a a ns S nd ca ed an s o f s a a ca a 0 a a ns , , 49 g i t y i t b k O k , pit l, 5 g i t 94 ;

e o s s 2 a a ns o ans 1 a a ns 1 . d p it , 33 g i t l , 3 9 g i t 99 42 AMERICA AND WORLD DOMINION

can dollar, the yen is at a premium ; when com pared with French money for example . Worth

2 . 8 5 francs before the war, it reached in 1 1 1 20 June, 9 7 , and in January, 9 , a condi tion at once ru inous to European operations and giving Japanese commerce free play . It was at Europe ’ s expense that the United States and Japan established their financial sway during the war. But their wealth is merely the sign of the spirit of expansion that is pushing them into world competition . The is United States, lending to Europe, preparing ’ to usurp Europe s place, and first of all to cap S . o n ture outh America Japan , the other hand,

. all aims at the markets o f the Far East . In lands the condition is only to o apparent . The wa n great European factory s slowed up, eve brought to a full stop ; it had to produce for the N war and abandon its overseas customers . o w

o ld o r Europe sees her rivals in her markets, else sees her old customers equipped for home ’ production . On the seas, Europe s fleets, ex n an ha sted d depleted, can no longer handle world transport ; the United States and Japan have built enough boats to challenge for the f prize . During our centuries o f trading and colonizing, Europe had built her fortune by f the exploitation o the earth . The time seems

CHAPTER III

SEA POWE R

ERHAPS the most intimate source 0 Europe ’ s wealth came from her control of the seas and her supremacy in inter national transportation . The war has brought into the lists of competition two other champions , the United States and Japan . Both having become great exporting countries, they wish to clear their markets by means o f their own ships . The war not only enabled them to do so ; it actually forced them to take up the task . Available tonnage for world transport de creased enorm ously from the outbreak Of hostil ities ; Six and a half million tons belonging to the enemies o f the Entente was shut up in home or neutral ports ; ten million tons o f Allied ship ping, requisitioned for the war, was drawn from trade ; a reduction of almost one quarter o f the merchant fleet of the world . Even before the o f 1 1 beginning submarine warfare, in July, 9 5 , the freight rate for cotton had quintupled, for 44 SEA POWER 45

fo r grains it had more than quadrupled, and

flour had almost tripled, compared with August,

1 1 . to r e o in s 9 3 Then came the p d g , causing great gaps in the merchant fleets ; the losses totalled 1 about 3 million tons, for Great fo r Britain , for her allies, 1 1 neutrals, 9 7 alone being marked by r tons dest uction . Great Britain and France ff 20 had especially su ered , losing respectively 0 and 3 per cent . of their tonnage . Despite the feverish activity of construction during the war n . , the breach could ever be repaired Bidding for the ownership o r lease of boats soared ; it was the golden age for the shipbuilders . The cotton freight rate (per hundred pounds) from the United States to England rose from 2 1 1 0 0 5 cents in July, 9 4, to 4 in September, 5 1 a 1 1 in November, $ in Janu ry, 9 5 , $3in January, 1 1 6 1 1 6 1 1 1 9 , and $5 in December, 9 . June , 9 7, a bargain was made for a ton of coffee from Rio 1 00 Janeiro to Marseilles at almost $ . Nearly $ 1 5 0 a to n was paid fo r rice transported from r o f Burma to Cette . Fo the same type of vessel tons a British shipbuilding firm asked 1 1 0 in February, 9 ; in May, 1 1 1 1 9 4 ; and in January, 9 5 . In the summer o f 1 9 1 7 the French Government paid fo r o l an d boat that, ten years 46 AMERICA AND WORLD DOMINION

to before, had been sold the Japanese for 1 0 000 l $ 5 , . Facing such conditions it was necessary fo r the United States and Japan to increase their merchant fleets in order to ensure transporta tion . After entering the war the United States realized that the only way to mobilize their enormous resources was to build ships . Thus were developed young and powerful fleets that , since the end of the war, have been travelling the world routes side by side with the fleets o f ff Europe . Henceforth their e orts and progress should be carefully studied .

U TE I . THE NI D STATES FLEET

UNTIL the war the United States presented the paradoxical example of a great industrial country that did not possess a great sea- going fleet and turned the business of its transporta tion over to others . In the first half of the nineteenth century, when ships were wooden th e e built, it had had great st merchant ma th e rine of the world, but with the coming of Al steel ship, Great Britain took first place . so , drawn by the colonization of the prairies and the Far West, Americans had turned their backs

— l S a l er Ec n m i t“ 1 1 1 2 A o R S I ee o rna d o o s . . . s . . m nfluences 7 , 9 7 p 37 37 l I ith N G War u n S in . w Yor 1 1 o f s reat o e . . . thi p hipp g k, 9 9 p 33 SEA POWER 47 o n the sea . Little by little the American flag 1 86 1 disappeared from the oceans . From to 1 9 1 3 th e proportion (in value) o f importations to the United States under the Am erican flag

l . had fal en from per cent . to per cent ; o to of exp rtations, from per cent per

cent . In the same period the tonnage of sea going vessels fell from to

placing the United States behind Great Britain , 1 — n . 1 1 2 1 1 1 Germa y, and Norway In 9 9 3 4 per

- e cent . o f the coast bound trade was under th

e a 2 . Am rican flag, s against 5 per cent carried in 1 2 British and per cent . in German bottoms . The vast development o f manufacturing and the attempt at a colonial empire had already turned the minds o f many Americans to th e f o . idea a national fleet Then with the war, because of the inadequacy o f European ships and the necessity of transporting food and ma — erial fleet a t , they built ships and established a task made easier by reason o f their resources in

coal and iron . The coming of a great American merchant marine must be regarded as one of the capital facts of the economic geography of the

present epoch . ’ M e cha nt rl i buila in r z p g . The United States is unanimous In the resolution never again to

l D in 111 6 - 6 l Eco om ist“ 1 1 . . . . ewavr . owna Jet y n , 9 7 p 3 4 3 5 4s AMERICA AND WORLD DOMINION rely entirely on foreign holds for their com merce abroad . The building of a merchant marine is considered as a national task ; the war has illustrated its need ; the nation wants it carried o u t on a scale corresponding to its strength and its necessity. It was the Govern to re ment itself that, in order concentrate

r r o f . sou ces, undertook the const uction the fleet 1 1 6 On September 7, 9 , while the United States o r was still neutral , the Shipping Board was aniz o f fi g ed, consisting ve members named by ’ the President, with the Senate s approval , and 1 6 presided over by Mr . E . N . Hurley . On April , 1 1 S 9 7, the hipping Board formed a company 0 with a capital of 5 million dollars, for building purposes ; this company, the Emergency Fleet 1 1 8 Corporation, had as its head, after April, 9 , B l . e th e Mr Charles Schwab, the director of the hem Steel Corporation . The Shipping Board controls construction ; a part of th e Govern ff ment, it directed the national e ort, advanced money, established prices, and requisitioned labour . Never had there been a shipbuilding programme involving such enormous sums of

o ne was o . money, or that s rapidly carried out At the beginning of 1 9 1 9 the amount disbursed had reached 3 billion 300 million dollars ; in the course of the year certain months showed a SEA POWER 49 production o f more than tons ; at the s ame time new billions of dollars were being provided fo r the continuation of the programme ; the scheme involved the construction of a total o f 1 2 1 1 i million tons by the end o f 9 9 . With ts coal and iron the United States possesses in great

abundance the main needs for shipbuilding . The steel vessel is th e accepted type o f transport for long and quick journeys ; it is the standard of ’ fl t a ee s value and power . But the desire to “ ” speed up, and to build despite the temporary

s teel Shortage, turned the attention Of American

e ngineers to wooden ships . Some shipbuilders even maintained that a fleet o f rapidly con ru st cted wooden boats would assure, when the war was over, trade between the Southern states o f the Union and Latin America ; therefore

wooden ships were included in the programme,

without giving them the primacy . o f s However, this building wooden hips, h as made necessary by the situation , not been n kept up o the same scale as at the beginning . It was feared that the timber resources o f th e nation would be impaired ; that the forests n would suffer . Also it was o t easy to transport the timber to the dockyards of the Gulf of Mex ico ; and it was felt that too many slow boats in the fleet would have the effect of impairing the 50 AMERICA AND WORLD DOMINION

n 1 1 general eflicie cy . Of the building of 9 8 o n o f hardly e fifth was wood, and since then w wood h as been used less and less . Tonnage as h t e to . quickly needed, and Board turned wood It was the same fever for creating tonnage that

spurred the Shipping Board to the use o f cement . What the dockyards o f the United States undertook and carried out far surpassed anything

that had ever before been done . To ship o f building, those in control the work applied t co n the great American indus rial methods, fining the ships to certain types that were built in series, every dockyard specializing in some n o e type . The dockyards grew like mushrooms

along the seaboard . They resembled those Western cities that had sprung from the earth 1 1 in a few weeks . By the end of 9 8 the United 20 States possessed 3 shipyards, of which 77 were 1 1 for steel ships , 7 (more numerous though fo r 2 smaller) wooden Ships , for ships o f co m bined n wood and steel, and 7 for ceme t ships . 81 0 o f 1 0 There were stocks, which 4 were fo r steel vessels ; the yards employed work 1 1 6 ers in place of the ofJuly, 9 ; the weekly pay roll was 1 These dockyards were divided into three

1 w See Em er enc Fleet Ne s . Pu s e he U S g y bli h d by t . S. hipping Bo ard Em r enc F Co r o ra o n e g y lee t p ti .

5 2 AMERICA AND WORLD DOMINION powerful dockyards were founded : at San fo r Lo s t Diego steel ships, at Angeles for cemen ships . The climate o f th e Pacific coast is so equable that work is seldom interrupted by bad weather, and the shops are simply roofed, f r without walls . Two of these dockyards a exceed the others in importance and rival th e o f o n Delaware and the Clyde, those Oakland, San o f Francisco Bay, and Puget Sound (Seattle,

Tacoma) .

Almost all these enterprises, young and power ful , modernly equipped with American tools, are capable o f a production that was undreamed o f of before the war . A comparison the tonnage 1 1 1 1 8 launched from 9 4 to 9 by American ,

British, and French shipyards indicates the h e m ff extent of t A erican e ort, and shows the passing of the supremacy of British construe

tion, and the plight of French construction .

ENGLAND FRANCE

This tonnage for the United States means that records have been made that have far o u t SEA POWER 53 s tripped all previous records in the history of ship 0 1 1 construction . For the year ending June 3 , 9 9 ,

ships were built in the United States,

amounting to gross tons, or two thirds

o f . the world production In the month of May,

1 1 1 6 . 9 9 , 3 vessels of tons were launched Tuckalzoe The collier , of tons, was con

structed in twenty- seven days The shipbuilding in the United States is now the first

in the world, having more dockyards, more

stocks, and employing more workmen , than all

other countries, the United Kingdom included . no t fo r It works merely home construction , but,

like British shipbuilders, to sell abroad . The American dockyards are receiving orders from

Brazil , Norway, France, Japan , and Great

Britain . The scarcity of ships is so great through out the world that the demand comes from all quarters and involves prices that would have

sounded incredible before the war . In June, 1 1 ff 1 9 9, a British syndicate o ered $ 3 fo r the eighty- ship fleet of the International S b Mercantile Marine . The United tates is e a coming ship market . When it has acquired its own fleet it will be the shipbuilder for the

w . en 1 1 o f orld At the d of March, 9 9, the tons then in the course o f construction

in the entire world, were being built 54 AMERICA AND WORLD DOMINION

in the United States, and in Great n Britai . In less than two years the United States will have realized the marvel of creating a merchant i fleet that ranks second in the world, st ll ex i ceeded by the Br tish fleet, but far outstripping all other fleets . They have the right to think that they will eventually attain the first rank . Their ocean- going tonnage (vessels of tons r and upward) , inc eased from in June, 1 1 1 1 6 9 4 ; to in June, 9 ; to in S 1 1 eptember, 9 7 ; to in September,

1 1 8 1 1 . 9 ; and to in June, 9 9 While in 1 9 1 4 their fleet was one ten th that of the 1 British, it is now almost one half. It is with justified pride that Americans now “ regard their fleet and think of its future . We ” - 1 1 are to day, said Mr . Hurley in March, 9 9 , “ fo r the greatest maritime nation of the world, the reason that we possess the greatest organiza tion for building ships . The future is bright for those Americans who choose the sea as a ” career . Already this happy promise is being realized ; the American fleet is daily growing ’ more important in the country s foreign co m merce, rapidly wiping out British supremacy .

Before the war British ships carried 49 per cent .

1 M u 1 - 2 Revue de la ari ne m arclzande 1 . . 1 . , J ly, 9 9 p 39 39 SEA POWER 55 o f the imports of the United States ; per cent . 1 1 o f th e exports . At the beginning of 9 9 the

fi gures were respectively per cent . and

per cent . Before the war American bottoms

c a 1 . o f rried per cent the imports, and per 1 ce nt . o f the exports . At the beginning of 9 1 9 they carried per cent . of th e imports and

of the exports . The Americans are re sea turning to trade, and the swiftness of their return threatens the position o f Europe . M t l s a ri im e re ation . The merchant fleet is becoming a powerful lever o f commercial ex an i n ff p s o . Its e ort is clearly directed toward

South America . The exports of the United S o States to outh America d not cease to grow, particularly those to the tropical countries, so ff because the two continents, di erent, are ff necessary to each other, one o ering its manu factu re d articles, its machinery, its coal and iron ; its the other its copper, tin , and manganese, cc nitrates, its fruit and farm products, To m ent this tie, to monopolize this trade, transport control is necessary .

Latin America is the centre o f a keen struggle . There United States expansion meets two o b s tacles : - first, the semi monopoly of the European f fleet be ore the war ; secondly, the national aspirations that spur every state to create its 56 AMERICA AND WORLD DOMINION

o wn . fleet The European monopoly, more par ticularl all y the British monopoly, rests, above

o n . e s in the Argentine, solid bases Wher a Argentine exports include products of which th e m United States have little need, exporting the

themselves, they find an outlet in Great Britain , an industrial country of which the crowded cities consume quantities of cereals and meat .

In return , British manufactured articles are sold in the Argentine . A third of the Argentine foreign trade is with England ; it is hard for the United States to capture this market from

British influence and the British merchant fleet . The markets O f Brazil and Chili are easier to h as conquer ; but there, also, the United States met British enterprise, always bold and tena ’ n S re cio s . ince the war s end England has ’ leased, for her trade s sake, a great part of the 1 1 8 requisitioned fleet ; and since December, 9 , she has been able to transport from Liverpool to Rio Janeiro at a price one half less than the f reight charges from New York . This condition has caused many bitter complaints in the Amer ican business world and resulted in contracts signed for transport to South America Often

being cancelled . Besides, every Latin Amer

ican country is trying to do its own carrying . In the Argentine they have just established a SEA POWER 57 s teamship company under the national flag ; A rgentine boats already assure regular trans o rta tio n p between Buenos Aires and Brazil , c a o n rrying, on the trip north , cereals , and the

re . turn trip sugar, cocoa, tobacco , and coal

Likewise, Brazil wishes to fit herself for the task o f transporting goods to Europe ; the Brazilian Lloyd Company has a fleet o f tons ; a r u eg lar line, with calls at Lisbon and Oporto, runs to French and English ports, carrying frozen m eats, sugar, and rubber ; another line links

Rio with Mediterranean ports, and another with New York . These national fleets are in u rio u s j to European interests , and they interfere with American plans . But despite any threat e nin g South American competition , Yankee enterprise had already struck hard at Europe ’ s

commercial monopoly in South America . In

the chief ocean lanes to Latin America, United S States Ships are moving more and more . ince 1 9 1 7 a regular service has been established

between New York and Chili , equipped with six great steamships of the Grace Company built in th e Philadelphia dockyards ; the voyage

takes seventeen or eighteen days, the route

being through the Canal , with calls at Colon , An to fa as Callao , Mollendo, Arica, Iquique, g

ta, Coquimbo, and Valparaiso . At Valparaiso 5 8 AMERICA AND WORLD DOMINION

these bo ats connect with the railway running

across the Andes to Buenos Aires . United States Atlantic lines touch all the eastern ports of South America . The Philadelphia and South S America teamship Company has been running , 1 1 6 o Since the end of 9 , to Rio, Montevide ,

Buenos Aires, and Rosario ; another line con n t ec s New York with Buenos Aires ; a third ,

Baltimore with the River Plate ; a fourth, since o f 1 1 the beginning 9 7, New York with Santos A and Rio ; a fifth, Boston with the Argentine . t 1 1 the beginning of 9 9 , with the idea of using a certain number of the German ships that were S apportioned to the United tates, other lines were designed to bring the two continents closer S 1 together . The hipping Board counted on 4 big Ships to be put in service before the end of 1 1 9 9 . Thus the links were to be formed ; it was the rough draught of a network of co m m unica

tion that, little by little, is to cover the world . We h ave seen it already leave American waters and attain far seas ; the America n Asiatic Com h as pany a line to the Far East (New York, S Vladivostok, Yokohama, Kobe, hanghai , Hong

Kong, Manila, Singapore) ; the Grace Company f has regular services rom New York, San Fran S cisco, New Orleans, and eattle to Shanghai . The American Navigation Bureau h as just

60 AMERICA AND WORLD DOMINION chain of o ld European domination ; Spain h as lost Cuba and Porto Rico ; and Haiti and Santo

Domingo are under Yankee influence . Long ago the United States avowed its need o f the islands commanding the route from Atlantic to t Pacific, and has consistently maintained tha its sovereignty would be jeopardized by any political change in the West Indies, and that therefore it would oppose the cession of land in the western hemisphere to a European power . o f 1 1 6 2 Toward the end 9 , for 5 million dollars ,

St . it bought the Danish West Indies, of which Thomas had become a flourishing port o f call

- for the ships Of the Hamburg America Line . Thus the Caribbean is assuming the aspect o f an American lake . Probably the United States tr to will y buy other West Indian Islands , now belonging to France, England, and Holland, that from Porto Rico and St . Thomas stretch in a o f semicircle to the coast South America . The 1 idea is not new . In 895 the American Govern ment had already considered the purchase from o f Holland the Dutch West Indies (Curacao) , three thousand intervening miles make the permanent union of a European nation and an American possession unnatural S and impractical . ome Americans, thinking s of the debt that Europe owes their country, SEA POWER 6 1

are asking themselves if Great Britain and France would not prefer to liquidate those debts by the cession of certain o f their colonies commanding the approach to the Panama

Canal . To hold firmly the great interocean way the United States needs not only water control but

also land control . Thus the American influence is being extended over all the Central American isthmus . A recent treaty with Nicaragua grants to the nation the right to establish a naval base

o n . in the Bay of Fonseca, the Pacific side At the other end of the Nicaraguan lakes it is plan n ing a military station in the Corn Islands . A ne o tia railway would unite the two . Besides , g tions have been opened with Colombia for the acquisition of two Pacific islands commanding

the outlet at Atrato . Thus established at Pan

ama, in Nicaragua, and near Atrato , the United States would dominate the three great natural ways of interoceanic communication across Cen

tral America .

But territorial control is not, in itself, enough .

There must be the means of long- distance

communication , permitting the rapid trans o f u mission news and orders . Maritime s prem

acy demands a network of cables . Already the Pacific cable connects San Francisco and 62 AMERICA AND WORLD DOMINION

s Manila, pa sing through Honolulu, Midway T . h e Island, and Guam , all American lands United States looks to the future ; in view o f its trade with South Am erica it wishes to shake itself free from British monopoly ; thanks to the efforts of the Central and South American

Co . n Telegraph , and its associate the Mexica T Co . th elegraph , American wires will soon link e United States with all the nations of South n America . The Mexican and Central America lines of this company leave the territory of th e Union at Galveston and reach the Pacific ports San an of Guatemala, Salvador, Nicaragua, d

Costa Rica, after having crossed the Isthmus o f

Tehuantepec . The South American lines go directly from New York to Colon with a relay at Guantanamo (Cuba) . From Panama they reach as far south as Valparaiso, with three S relays, at anta Elena (Ecuador) , at Chorillos

ru . (Pe ) , and at Iquique (Chile) The Central

Co . and South American , owns also the trans continental line that goes over the Andes to

Buenos Aires . After long years of perseverance the company h as succeeded in penetrating Brazil in the face of the monopoly of the British 1 Western Telegraph . In 9 1 7 the Supreme Court of Brazil authorized the establishment of two American lines from Buenos Aires to Rio SEA POWER 63

J a n eiro and to Santos ; these lines have not yet been established on account of a delay in dcliv o f ery cable that is manufactured in England, but when they are finished, Brazil will be linked to the American netwo rk and the principal centres o f Latin America will communicate with the n S 1 U ited tates by American wire . The same spirit of enterprise plans wireless telegraphy ; a recently formed company is to undertake the construction o f a station at Buenos Aires that will communicate directly with New York . f This control of ocean routes, foreseen be ore the war, is now a political necessity . The wealth o f the United States was formerly o n land , in the fields, the mines, and the factories . l sea Henceforth , it wi l lie also upon the , in the th e richness of carried merchandise, in number

o f th e s . and quality ship A vast foreign trade, secured by a native fleet, is an idea dear to

Americans . No one has better expressed it than President Wilson in his Speeches to stimulate

the building o f an Am erican merchant marine . that would free the United States from its de n pe dence on other nations . And nothing means more in the cherished future of the United States than the closeness of its relations with South

America .

l M 1 1 Se T Am icas arch 8. e lte er . , 9 64 AMERICA AND WORLD DOMINION

Y u o know that, with a lack of foresight fo r surprising in America, we have generations negle cted to provide the means o f handling o u r own sea commerce, and are therefore, in this respect, dependent upon other nations, even at 1 this hour when they are plunged in war . “ The time has come to reconquer our com m ercial freedom upon the water . We do not own enough ships . We are not in a wn ff ea Our condition to conduct our o a airs at s . liberty is limited by o u r shores ; it ends at our to frontiers . We are not even allowed use the vessels of other nations when we compete with the merchants of those nations, and we have no means of exten ding o u r commerce despite the in demand fo r our goods . This situation is tolerable . Not only should the United States possess the economic independence that only a su fli cien t merchant fleet can guarantee ; but the entire American hemisphere, regarded as one body, should be equally free . We can not successfully pursue a real American policy o f without ships ; I do not mean ships war, but ships of peace, that will carry our merchandise, and what is more, will create friendly relations, and render indispensable services, on this side

’ 1 Fro m a Fr nc a s a o f e r n n o Pres en so n s P s ur S eec . a n h t l ti id t Wil itt b gh p h J . 2 1 1 6 9, 9 . SEA POWER 65

O f the Atlantic . Communication between the n two Americas must o t be interrupted . Ships will be the shuttle to weave the fabric of sym pathy, of understanding, of confidence, of mutual dependence with which we wish to adorn o u r ” aim 1 of America for the Americans .

’ 11 . JAPAN S FLEET

IN TH E Far East Japan was soaring in full economic flight when the war broke out . The last years of the nineteenth and the first years of the twentieth century had been , for her, years of uninterrupted progress . Beginning with 1 868 tons in , her steam merchant fleet amounted 1 1 to tons in 9 3, giving her the Sixth place among the nations . It controlled nearly r n half her fo eig J rade . With the war a new field opened ; the ships of Europe had to be replaced . Soon Japanese industry reaped huge 1 1 1 1 6 profits . Secondary companies in 9 5 and 9 600 paid dividends o f 220 per cent . and even Yu sen per cent . The dividends of the Nippon 1 0 1 1 1 Kaisha jumped from per cent . in 9 4 to 5

1 1 60 . 1 1 8 per cent . in 9 7, and per cent in 9 ; of the Osaka Shosen Kaisha from 1 0 per cent . in 1 1 1 9 1 4 to 45 per cent . in 9 7 ; of the Toyo Kisen

’ l F F A n r . Dec ro m a rench translatio n o f President Wilson s ddress to Co g ess . I 1 71 9 5 66 AMERICA AND WORLD DOMINION

1 1 Kaisha from per cent . in 9 4 to per

1 1 . o f o ld n cent . in 9 7 By the sale boats certai Th ship firms realized enormous profits . e

Wada Mara o f th e , tons, bought before was war for yen by a firm of Dairen , sold 1 1 r in November, 9 5 , for yen , and late resold for yen . To indicate freigh t Clto u Ma ra its rates, the little steamer f earned 1 Al purchase price every 75 days . l this led to construction , and consequently, to new mari time relations . t in Construc ion . Shipbuilding Japan is ser th o f o r io usly handicapped by e scarcity iron e . One can easily understand the situation o f Japan when the United States decided to forbid the exportation of iron and steel in order not to ' o f I n reduce the resources its own dockyards . o f 1 1 o the first third 9 7, of the total iro n import f h yen value, came from t e

United States . The prospect of a scarcity o f iron threw the Japanese dockyards into a panic that was quieted by an agreement being reached by which Japan was to receive steel in exchange for tonnage . Despite these diffi culties the Japanese ship yards have worked with a hitherto unknown

’ “ - u 1 1 6 2 M S ee Bulletin econom i ue dc l I m lo Cl ne . . . A so au ras R e q , 9 p 7 l g is ” M n Mar e . Revue d l M o f th e a anese erch an e a arine m archa nde une 1 1 . J p t i , J , 9 9 - 1 2 2 . p. 3 3 3

68 AMERICA AND WORLD DOMINION inco mplete if there were no t repair shops as well as building sho ps . One co mpany is co n s tru cting five repair basins o n the Island o f i I to sak o f H Kosak , opposite , prefecture iro S o n a . shima, the shores of the Inland e o f Far removed from the theatre war, having lost in the course of the five years of hostilities only tons, having regularly renewed her

fleet by new building, Japan sees her boats Sh everywhere in demand . e has sold many to S Great Britain , to the United tates, to France ; — o f 1 1 1 1 8 the production of 9 7 9 , tons went to the Allies ; at th e end of 1 9 1 8 England bought from her tons, and France

tons . But above all sh e took care to develop her o wn merchant marine ; from 1 9 1 7 the Tokio Government worked o u t a rule that prohibited the conveying, chartering, or mort o f gaging, without permission , vessels of Japa to nese registry, and forbidding the dockyards contract unrestrictedly with foreigners . By the 1 1 8 end of 9 the Japanese fleet ranked third , having passed those of Germany, Norway, and

France . Her total tonnage was more than 3 millions ; sh e possessed 5 99 steamers o f to tons or more, amounting in all tons, an increase over 1 9 1 7 of 1 5 5 boats and tons . SEA POWER 69 Both the shipbuilding industry and the coun ’ t ry s merchant marine represent a large national 1 1 — 1 1 re venue . In five years ( 9 4 9 8) the country re f ceived yen rom the sale of ships, 6 yen from freights abroad, 44, yen for carrying merchandise ; all o f f t old, a return more than a billion yen rom 1 1 f t h e fleet during the war . In 9 7 the reight ’ revenues almost equalled the value of Japan s s ilk export .

Ma ritim e relations . Possessing a large fleet at the time when the fleets o f Europe had disappeared from certain parts of the world, the Japanese shippers were able to extend their operations to seas where Europe had before been supreme . During the war the need of freight forced the Allies to call upon Japan fo r transport help ; an entire Japanese fleet was employed carrying provisions and coal between

England and France, and between the United

States and Europe . France asked Japan to take care of her colonies in the Indian Ocean . The S f its United tates, once in the war, and be ore ship yards were ready, needed a great tonnage ; in ex change for steel it received Japanese ships from the beginning o f 1 9 1 8; Japanese boats were hired by America to bring nitrates from Chili and carry munitions to Europe . About the middle 70 AMERICA AND WORLD DOMINION o f 1 9 1 8 Japan had abroad a fleet o f 1 43 vessels o f tons . If th e fleet did well o n the Atlantic it did

better o n the Pacific . While European tonnage m dwindled, Japanese tonnage increased fro 1 1 1 1 o a in 9 4 to in 9 7, that is t s y Fo r more than two thirds of all tonnage . l th e 1 f 1 6 . o s month of June, 9 7, 5 per cent the boat leaving San Francisco and 85 per cent . of th e S boats leaving Puget ound were Japanese . At the beginning o f 1 9 1 9 the greater part of th e

business between Seattle and 1 the Philippines

was in the hands of Japanese shippers . Elim inatin n - ar g Ho g Kong, for which statistics e in lacking, Japanese ports lead in the Pacific value of merchandise ; Yokohama and Kobe S are outstripping hanghai , Singapore, Sydney, ” . i San Francisco, and Seattle This unusual s t u a tio n t h is largely due to the war ; soon , wi h t e return o f the British and the coming of th e e n American fleet, the Japanese fleet will

counter competition . But it will enter the

struggle with sound bases and resources . The Japanese merchant marine is continually spreading and establishing new ties . In th e Far East Japanese ships traffic not only in Corea

1 Asia . 1 1 . 0 9 7. p 47 . ’ Geo ra l ucal R vi ew 1 1 8 g p e . 9 . p . 77. SEA POWER 7 1

and China ; they are multiplying in the ports o f

: - European colonies Java, Cochin China, Ton

quin , India ; their competition has seemed so dangerous that the Indian Government has ffi been putting di culties in their way, a proced m ure of which Japan co plained bitterly in June, 1 1 a 9 9 . More and more Jap nese ships are seen

in the ports o f British dominions . The Nippon Yusen Kaisha runs a regular line to Sydney, M Z elbourne, Adelaide, and New ealand .

Across the Pacific, relations, long Since estab lish e e S d, have be n strengthened with outh Amer

ica . In that great continent Japan seeks markets

o - fo r her cott n cloth, silks, tea, and manufactured l a rticles . On the At antic and on the Pacific

Japanese shipping is at work . It is not merely a matter o f finding outlets for Japanese indus 1 try ; but also o f capturing freight . Since 906 there has been a regular Japanese service between Yokohama and Callao ; now for the coast trade along the Pacific side of the American continent the sea- bordering countries are calling on Japan

ese boats . New enterprises are being undertaken . The Toyo Kisen Kaisha maintains a line be tween Hong—Kong and Coronel (Chile) ; another

Japanese company, the Mitsui Bussan Kaisha, carries freight between Punta Arenas and other S 1 1 ports o f outh America . In 9 7 the Osaka 72 AMERICA AND WORLD DOMINION Shosen Kaisha created the Yokohama—South — Africa- Buenos Aires Brazil Line ; in 1 9 1 9 the same company organized a new line of boats that, calling at Buenos Aires, go on to Cuba and the United States, and return to Japan by the

Panama Canal , the voyage lasting eight months . ’ o Japan s sea expansion , overfl wing the Pacific,

- v . is in ading far western oceans Since June , 1 1 6 Yu sen 9 , the Nippon Kaisha has been run ning a regular line between Kobe and New

- York, via Panama, a 44 day trip . In April , 1 1 8 S 9 , the Osaka hosen Kaisha established a regular monthly service between Bombay and S C Marseilles through the uez anal , connecting

- with its Japan Bombay service ; lately, this service h as become a direct line from Japan to

M . o f 1 1 arseilles At the beginning 9 9 , other regular lines were being started or were resum o ing their runs to L ndon , Antwerp, and Rotter dam . Japanese ships are becoming familiar 1 1 Sights in European waters . In July, 9 9 , at Copenhagen there arrived the first Japanese boat that had ever carried a cargo into a Danish rOle port . The of the Japanese fleet has become

- one of world wide proportions .

Marts of trade . Everywhere in the world ’ there are signs o f the disintegration of Europe s SEA POWER 73

s upremacy on sea . The question is whether

Europe, in losing the carrying monopoly, is not in grave danger of losing the monopoly of the m o f arts, which has been hers since the era all d iscoveries . For centuries Europe, and above the trading nations of western Europe, has sold to the world commodities and articles not o f w estern European source , but the merchandise, brought in ships from the four corners o f the e o f arth , collected in the warehouses western

E . urope, and resold at high profit Raw mater ial o f f s Russia and the Baltic were, be ore the war , gathered in London and Hamburg, and thence reshipped to ports all over the world . o f o f The products of India, the Far East , S o f Australasia, of outh America, and South f Africa, were brought to Europe be ore being redistributed to the buying countries . Also many articles made in Europe and even in the United States were held for a time in London or Hamburg before being sent to their eventual destinations . Through European merchants , S acting as middlemen , the United tates received P from India coprah, quinine, eruvian bark, tobacco , and rubber ; much Australian wool for S the United tates passed by way of London , despite the direct lines between Australia and S the United tates . London had always been 74 AMERICA AND WORLD DOMINION

the heart of this great business of reexportation . o f With its surplus capital seeking investment, the constant going and coming of buyers and r o r selle s , its quays lined with ships bringing in o u t taking rich cargoes, the traditional cleverness of its merchants trained in negotiation , London appeared like a merchant fortress, dominating a great part of the business of the world . The war changed that . Now much merchandise, passing London by, goes direct from its source 1 to its destination .

This is the result of the crisis in ship tonnage . S hips being scarce, it was found expedient to b send them y the shortest routes, without considering pri ces o r markets ; it was a matter of quick delivery, and of avoiding dangerous N zones . o nation has developed this direct communication with more perseverance than the S f United ta tes . In our years of war the direct importations from Australia increased 270 per

00 . cent . ; from the Argentine, 4 per cent Boston is becoming a great wool and leather market . The same applies to the rubber and tin importa tions that are sent direct to the United States from the East Indies . Here are the convincing figures 2

1 R Sm h In nc o f h Gre W U Sh i n w flue e t e a ar n i . N Yo r . . . o J it t p pp g e k . 1 1 8 —8 9 9 . p . 5 7 . z l M 1 2 T ) : arc 1 . . Am eri cas, h 9 9, p

76 AMERICA AND WORLD DOMINION

no t needs business experience, and London will

give up without a Struggle . But the United S i in tates s strong in population , in fleet, and

wealth . ’ Little by little old Europe s fortune is dis integrating and the centre of gravity is passing th e from her . Corresponding to this change is ea w shifting of the great s highways, and the gro P s t ing importance of the acific . Formerly mo of the shipping from the Far East to the markets of western Europe passed through the Suez

Canal and the Mediterranean . This curren t has been materially affected by the Panam a Canal and the magnetic strength of the United o f States as a hearth production , consumption , an and saving . Trade between the Far East d the Pacific ports of America is going ahead o f the trade between the Far East and the ports of

Europe . The Pacific, long regarded as a limited o f th e and antipodean ocean , is becoming one ’ ar world s busiest sea routes . Regular lines e multiplying . It is enough to consider the links that were established in the middle o f 1 9 1 9 be o r - tween Singapore Hong Kong and America . Between Singapore and the United States : the — Japan New York line, via Singapore, Calcutta , o C Yu sen Colomb , Durban , ape Town (Nippon e— Kaisha, monthly) ; the Singapor Seattle line SEA POWER 77

(Ocean Transport, monthly) ; the Singapore K San Francisco line (Toyo isen Kaisha, every three weeks) ; the San Francisco— Calcutta line S M S via Manila and ingapore (Pacific ail . S . and the Singapore—Seattle and Tacoma

S - line (Osaka hosen Kaisha) . Hong Kong is even more Closely linked with America by three

Japanese lines , one English line, two American

D . lines, and two utch lines starting from Batavia Against these 32 big Steamers between Hong m Kong and A erican Pacific ports, the lines navigating between the Far East and Europe have only about twenty irregu lar passenger o r vessels cargo boats (Messageries Maritimes, ul Yu sen Penins ar and Oriental, Nippon Kaisha, Holt and

This commercial current across the Pacific , uniting the eastern and western worlds , indicates not only a new direction of ocean traffi c ; it shows us, in a concrete form , that the routes of Europe are being abandoned , that the great products o f exchange are going to the United States and

Japan, and will become scarce and dear in E o ur uropean markets, and that industries will lack in raw material to the resulting benefit of

America and Asia .

1 — 6 Revue de la Mari ne m arcliande u 1 1 . . 1 1 , J ly, 9 9 p 45 4 CHAPTER IV

INDUSTRI AL POW E R

E war destroyed many factories ; others had to close down ; others were diverted

to military use ; others, deprived of many f o . their workmen, produced only feebly On account of the insecurity of the oceans and the no tonnage crisis, overseas customers longer received from Europe their accustomed supply . f Reduced manu acture, restricted exportation , enlightened the world as to the industrial weake ning of Europe . It was natural that the slowing up o f European export would stir the spirit of enterprise of other lands . The result has been two developments threatening to industrial Europe . First , in advanced countries S e like the United tat s and Japan , rich in capital and already modernly equipped , the world demand has stimulated production ; they have manufactured feverishly and created new plants .

Secondly, in young and still badly equipped f lands like Brazil , industrial li e has taken root and budded . Everywhere they are planning 7s INDUSTRIAL POWER 79 to capture the markets that Europe has been obliged to abandon ; or to manufacture inde pendently of Europe . It is an economic move ment o f universal scope that will affect pro n l fo u d y the commercial relations of the nations .

TH E U TED T E 1 . NI S AT S

LONG before the war a deep economic change had taken place in the United States ; this land had ceased to be exclusively a great grain and m eat market, and was building up its sales of m anufactured products . The war hurried this evolution by strengthening American industries ; some of them have so far distanced European o ne rivals that can hardly speak of competition . Fo r coal and iron , the colossal and fully developed resources o f the United States assure 1 1 a crushing superiority . In 9 4 that country ’ already produced almost one third o f the world s 1 1 To iron ; in 9 5 this rose to nearly one half. it all the Allies turned for metal ; in th e second o f 1 1 half 9 7 it sent to England, France, and Italy tons of steel for shells ; tons of ship sheeting ; tons o f rails ; tons of rough iron ; tons o f construction iron ; and tons of iron wire . The produc tion of steel rose from 24 million tons in 1 9 1 3 to 1 4 5 million tons in 1 9 8. 80 AMERICA AND WORLD DOMINION American coal production has left British o f coal production far behind . The extraction coal in the United States increased from 5 1 3 million tons in 1 9 1 4 to 685 million tons in 1 9 1 8 ; whereas the same period showed a reduction o f from 297 million tons to 25 5 million tons in

British mining . These figures not only indicate the richness of the Am a ican beds ; they also reveal an economic situation that is causing th e

English much uneasiness . The Americans dig their coal at a lower cost . In England hardly one tenth of the coal is taken o u t by machines ; in the United States the proportion of machine mined coal is o ne half. The average price in 1 1 was July, 9 9 , of British export coal 35 shillings a ton ; whereas American coal was sold in 20 1 886 Atlantic ports at shillings a ton . From 1 890 to 1 9 1 8 the annual capacity of one miner in England has fallen from 31 2 tons to 226 tons ; in the United States it has risen from 400 tons to 0 77 tons . The place of British coal is threatened in the world mart ; already cargoes of American coal are coming to European ports . Thus the industrial flight of the United States is first seen in its capacity o f production in iron and fuel . But that feature of its economic life is not new ; the war developed it ; it did not give it birth . INDUSTRIAL POWER 1

What really characterizes the evolution of American industry and makes it particularly dangerous to Europe is the development o f hand- made articles that represent value rather 1 1 1 1 8 than bulk . From 9 3 to 9 United States fo r exports multiplied 75 times steel ingots , 5

times for Sheet steel and iron wire, 8 times for

1 fo r . bars and rods, 4 times sheet tin From 1 9 1 4 they increased (in millions o f dollars) from 1 46 to 322 for copper articles ; from 1 1 5 to 26 1 fo r machinery ; from 32 to 1 1 8 for automobiles ; from 20 to 43 fo r leather goods ; from 5 1 to 1 36 1 fo r cotton articles . Strides as rapid have been made with chemical products, rubber and silk goods . The United States is not confining itself to the wholesale production of raw or half finish ed material ; it is turning out the kind of work that was formerly the specialty of the

artisans of o ld Europe . One o f the most prosperous and enterprising o f American industries is the automobile in du s try . It is typical of the faculty of adapta tion and improvement that is making the

Americans formidable world competitors . Long before the war the automobile had ceased to be S a luxury in the United tates . It was seen “ 1 1 1 —2 R Ma . Th 00. . m . e y, 9 9 . p 99 J . S ith Am er can Trade Ba an Annals O the A m erican Acad o P li t cal a nd i l ce . f em y f o i M 1 — S oci al Science a 1 . The Am ericas u 1 1 8. . 1 20 . , y, 9 9 , J ly, 9 p 9 82 AMERICA AND WORLD DOMINION

t h e commonly in hands of farmers, and some 1 1 times o f labourers . In 9 4 Europe owned automobiles ; the United States o ne car to every 1 7 Americans as against o n e car to every 300 Englishmen and to every 400

. in Frenchmen Powerful and prosperous, the dustry employed 5 50 factories and workmen . But until the war it paid little attention to export, the home market taking i most of the production . W th the war came new outlets, and the production grew . The American factories turned out cars in 1 9 1 4 ; i n 1 9 1 5 ; 1 i n 1 1 1 000 in 9 7 ; in 1 9 8. The exports grew cars in 1 9 1 3; in 1 9 1 5 ; 1 1 1 in 9 7 ; almost all for the Allies . Out side o f Europe the United States captured the ’ markets at Europe s expense . During the year

1 1 6- 1 1 9 9 7 it sold to India, Ceylon , Australia, Z and New ealand worth of cars , leaving Great Britain far behind with a sale o f

worth, a loss for the latter of three quarters of her sale . In South Am erica the advance has been as marked as in the British dominions ; before the war the Argentinians, t Brazilians, and Chileans cared lit le for American cars, preferring the motors of European manu

’ i - Fro ntz Reiche . L Aoensr une 2 1 1 . l , J 7, 9 9

34 AMERICA AND WORLD DOMINION

1 1 Atlantic . Until 9 4 the United States de pended upon Germany for most of its chemicals ; during the war heavy capital was devoted to ff home e ort, with the result that already the nation is beginning the conquest of foreign mar kets, exporting sulphuric acid, soda, and ben zol . The dye industry has been widely estab lish ed ; munition factories have been changed into 1 1 dye factories . By the end of 9 8 the Amer icans made enough for home use and also were even selling to France, Italy, Spain, the United

Kingdom , Canada, the Argentine, Brazil, and

Japan . Germany will never win back her old markets ; one can foresee the day when the United States will be the source of most o f the dyes o f the world . All over the vast Union the manufacturers have been seeking material from which to produce potash fertilizer in order to destroy the German monopoly . Before the war the United States bought annually from ’ 20 Germany million dollars worth of potash . 1 1 In April, 9 9 , there was formed at Denver a potash company with the idea of making the

United States independent of foreign merchants .

In California a cement factory, handling the dust, drew from it enough potash to make the

- cement only a by product in comparison . The making of nitrates with nitrogen from the air is INDUSTRIAL POWER 85

d eveloping . A great factory has been con s tructed at Sheffi eld (Alabama) ; and another is g o ing up at Muscle Shoals (Alabama) to utilize h t e power of the Tennessee River . The American silk industry was important w r be fore the a . Now its competition seriously m Fo r i perils the French silk industry . the a s e o f l t fifty y ars the production Lyons, in co mparison with that of the rest of the world , h as been diminishing. During the war the disparity reached alarming proportions . The m ills of Paterson worked to full capacity to u 1 1 s pply the American market . In 9 9 Ameri can factories turned out as much silk as all the s o f other factorie the world . America alone 80 raw receives per cent . of the Japanese silk so supply that France, having already lost

markets for her weaving, may find the sources

of the raw material closed to her . This danger is the greater because the depreciation of French money keeps French buyers away from the markets of Canton and Shanghai as well as

of Yokohama . The rise o f the dollar, the yen, and the tael thus shackles French pu rchases o f ra w material and places the Lyons m anu fac tu rers at a further disadvantage to the Ameri

cans . Little escapes the enterprise of Ameri fl ur m can competition . The Scotch o ills are 86 AMERICA AND WORLD DOMINION threatened by the huge cargoes of flour landed

at Glasgow . American sugar refineries, thanks

to the tropical sugar of Cuba, the Philip fo r pines, and Hawaii , are seizing markets merly controlled by the European sugar

industries .

These beginnings, this progress, and this ambition Show the vitality of an industry o f

accumulating power . It is the more formidable for the reason that behind it are the sentiment

and support of the nation . Public opinion in the co m United States is hostile to the trusts, the

binatio ns injurious to the home consumer . But it allows combination for the purpose of foreign

enterprise . Since the passage of the Webb Law powerful industrial groups have been formed

to seek o u t and exploit remote markets . The copper interests have formed the Copper Export o f f Association , and a production o

o f . I n pounds copper, wish to export a million the steel group several companies have com bined to organize the North American Steel

Corporation . The Textile Alliance Ex port Cor po ra tio n has been formed for the sale of cotton stuffs and wool ; there will be a Similar organiza A tion for coal. S if for an economic crusade

they are sending missions abroad, especially to e Europe, to study the markets, and organiz

88 AMERICA AND WORLD DOMINION country that supplied mos t to Japan before the

war.

IMPORTATIONS FROM THE UNITED KI NGDOM i NTo JAPAN

I 91 3 I 91 7

(millions o f yen)

R bb oo 81 u er g ds . 7 533 Sulphate o f ammonia ool 455 Paper pulp 268 25 Iron Cotton tissues Wool tissues 5

Certain products urgently needed in Japan o f reached enorm ous prices . It was a matter seizing the opportunity, not only of supplying ’ s th e the country s needs, but also of upplying other markets cut o ff from European exporta tions . Almost spontaneously industrial enter prises sprang into being, enlisting vast capital . e The entire nation saw the chance . The stat u was e g aranteed, and, when it needed, gav o f 1 1 o f national support . A law 9 7 gave such the metallurgical factories as produced at least tons a year the right to take over th e lands and houses they needed to extend their plants . All enterprises producing at least tons a year were exempted from taxes for fifteen o f e years ; and they were autho rized to imp rt, re INDUSTRIAL POWER 89

o e o f duty, all the machinery and to ls that th y 1 n eeded . All Japan bubbled with activity . A s warm o f factories grew out of the earth . The t ests o f competition and time were needed ; but it was evidence of an abounding national vitality .

Mineral production in Japan is increasing . Th e yield of coal grew from 1 2 million tons in 1 06 20 1 1 2 1 1 2 9 to million in 9 5 , 5 in 9 7, 7 in 1 1 9 8. Japan produced yen worth

o f 1 08 1 1 . copper in 9 , worth in 9 7 Japanese sulphur mines seized the markets that warring Italy could no t hold ; they sent to Russia sixteen times as much in 1 9 1 5 as in 1 9 1 4 ; to India five times as much ; to Canada three times as much ; to the United States a third

more . The exportation of cement doubled from

1 1 to 1 1 . 9 4 9 5 Whereas, before the war, Japan expo rted zinc o re to Germany and Belgium and

im ported refined zinc, refining was undertaken , o ne refinery being established at Osaka and a nother at Kanno shim a (Department of Oka

IOne o f th e m ost striking ex am ples o f the develo pm ent o f Japanese industry is furn sh e th e M su s Go sh i Ka sh a h a ca a o f m o re h an 1 00 i d by it bi hi i , wit pit l t

m i o n o ars . I dea s in m nes m e a s sh u d n oc s m ech an cal lli d ll t l i , t l , ipb il i g, d k , i

- - co nstruc o n an n s to re o uses a er m a n o il refinin tc. I ts an ti , b ki g, h , p p ki g, g, e b k in sect o n h as severa ranch o flices in a an o ne in Shan h a and o ne in g i l b J p , g i, I ts m n n sec o n nc ude a o u h r co m n Lo ndo n. i i g ti i l s b t t i ty al i es pro ducing 5 m o n o ns and as m an m e a m ines es ec a co er I ts co n ruc io n illi t , y t l ( p i lly pp ) . s t t h a Ko Hiko h sec o n h as s o s t a asa e and s im a . Its us nes c io n h as ti p N g ki, b , b i s se t ranc o flices in the ar e c es o f a an and Ch na and at V adivo s o S n a b h l g iti J p i , l t k, i g C c a n o n G P ri n N Yo r o re a u o d eno a a s a d ew . p , l tt , L , , , k 90 AMERICA AND WORLD DOMINION

S ia yam a) ; they brought the ore from iber ,

- re Australia, and Indo China, and furnished

fined zinc to Great Britain . Fo r a o f iron, that with coal is the found tion o re saw a t great industry, Japan , poor in , herself th e the mercy o f th e United States . During war it was necessary to compromise with th is

u fo r . Bu t powerf l source, trading boats steel this dependence impressed upon Japan th e nee d

. e of independence Japanese metallurgy wish s ,

by acquiring mines in Corea and China, to free itself from the American factories ; the o f territorial ambitions Japan in China spring, to

a large extent, from this grave need . Great metallurgical establishments are being created : or developed the steel works of Yahata, near Wakamatsu (Kiou- Siou) ; o f Mo u ro ran (Ho o f of Yokohama, Tabata (north Side of

- Kiou Siou) . These eflicien t plants have enabled r S Japan to undertake general const uction . ince the war Sh e has been building complete railway carriages (before the war it was necessary to

buy the wheels and springs abroad) , big motors , electric machines , and weaving looms ; the export of the products of mechanical industry increased from 7 million yen in 1 9 1 3 to 44 million in In the realm of chemical industry Japan has

' ’ l Bulletin econom i ue de l I nd -C e 1 1 8 2 — 28 o hin . . . q , 9 p 7 7 7

92 AMERICA AND WORLD DOMINION

1 Oth er indu stries have done am azingly well . The ex po rt o f paper multiplied seven times fro m 1 1 1 1 Th e r so wn 9 3 to 9 7 . leather indust y has gro n a that Japan is selling shoes not only in Chi , a S S A e r but lso in th e Straits ettlements, in outh m f two an n . o ica, d even i Australia At the end years o f war Japanese toys had taken th e pla c e n 1 1 of Germa toys in the world markets ; in 9 7 , ’ 2 more than 0 million francs worth were sold , (as against six and a half million in to n England, the United States, Australia, I dia ,

and China . These toys, in wood, porcelain , b a a t cotton , rub er, met l, and celluloid, are tractive and ingenious ; the German and French manufacturers will henceforth meet them in the

o ld - markets . The Japanese fish preserving in du stry is growing at the expense o f English and French fish - preserving industries ; from 1 9 1 3 to 1 1 9 7 it doubled its exports . Preserved salmon o f Okhotsk and Kamchatka is competing in the i f markets w th the preserved salmon o f Alaska , o

British Columbia, and of Washington . Pre S served akhalin crabs are being sent to the t United States, England, and France , o replace preserved lobsters ; certain buyers already prefer fi Japanese sh preserved in o il to the French

l Bulletin ’ econom i ue de l I ndo-Chi — q ne 1 1 80 s 1 2 1 7 3 1 7 7 7 0 Arie ran( 4 836 I 1 s 81 p f i 9 . . Fi nanci al Chro nicle. A r 1 1 1 p p il 9, 39 . INDUSTRIAL POWER 93

s . ardines Japanese sugars of Formosa, of K agoshima , and o f Ogasawara are supplanting in the Chinese market the sugars o f Hong Kong ; a Japanese syndicate possesses several — s . ugar refineries in Java Hong Kong, that had l ong imported American flour, now uses Japanese fl M our made of anchurian wheat, and , carried in

Japanese coasters . Everywhere, but especially

in the Far East, Japan has been taking the orders o f that her competitors , by reason the war,

c ould no t fill . But it is in the cotton industry that Japan

h as made her greatest Strides . There her prog

ress clearly threatens the old English supremacy . With the development of the Japanese merchant m arine, it may be said that the most decisive fact o f the economic evolution of the Far East ’ is Japan s seizure of the cotton trade . By r o f is o f eason a wage scale that still low, the o f proximity the markets, especially China, and by the knowledge of local dialects and

customs, Japan is becoming a dangerous rival

- of Lancashire in far eastern lands . She did no t grow the cotton ; as with iron , the raw material came almost entirely from abroad ; in 1 9 1 7 she received yen worth from

India, from the United States

from China, from Egypt . 94 AMERICA AND WORLD DOMINION

sh e th e Therefore seeks, for a product which is to foundation of her greatest industrial wealth , assure herself o f less remote and more person a l sources o f supply ; her capital is directed to spreading the cultivation of cotton in China ; fortunate experiments have Shown that certain cantons of Japan , in the departments of Tohori o f and Tochigi, have the proper soil . A kind is American cotton , introduced into Corea, yielding good crops and th e production is in 1 1 1 1 creasing every year . From 9 5 to 9 7 there 2 was an advance of 5 per cent . The extent o f these efforts to secure cotton fields indicates the importance o f the cotton - goods manufacture ’ 1 1 and trade in Japan s economic life . In 9 7, in the Japanese spinning mills were spindles and operatives . The average dividend paid for the first half o f 1 9 1 8 by a group of 32 mills was per cent . ; some paid as high as 1 00 80 per cent . and per cent . This prosperity would have been even greater if the spinners had not been obliged to buy their machines abroad . Most o f the spindles had been coming from

England . The war interfering with this supply, S it was necessary to turn to the United tates, and the United States could not ship until the 1 1 end of 9 7 . Nevertheless, if, for this reason, manufacture could not keep pace with the de

96 AMERICA AND WORLD DOMINION

ff to o f en Japanese stu s the amount y , ’ 1 h in 1 9 1 7 took 5 millions worth . In the Dutc Indies the British sales are one fifth of what they were . Naturally, there is anxiety in Manches e o f u n ter . At a time when the xpense E ropea s production is rising, the English manufacturer realize the uncertain future o f their eastern markets . India buys annually worth o f cotton tissues ; and the English manu factu rers have millions of customers in China . To these poor peasants a reasonable price is th e e first consideration . What will become of thes buyers if increased prices drive them away from British goods ! They will turn to Japanese o th e makers . The situation is s serious that o f 1 1 cotton syndicates Lancashire, in April, 9 9, asked that an official mi ssion be sent to the Far East to study the business o f exporting o cotton products t India, the Malay Archi S pelago, the traits Settlements, China, and Japan . It may be said that the influence o f the war has wrought the manufacturing evolution of h as Japan . It sowed in her being a new leaven

of industrial life . It canno t quite be compared

to the transformation that, in the past, economic ally upset western Europe and then the United

States : Japan has not yet reached that stage .

In her growth, not all that has been created INDUSTRIAL POWER 97 will las t ; factories and wo rksho ps will be tes ted o u t in th e in ternatio nal s truggle ; it will be nec es s ary to stablize all in o rder to reach a so und

an er an n as s . esi es a an a n w d p m e t b i B d , J p , e co m in a t al u n h a no h ra o n er pr c ic b si ess, s t t e t diti o f grea t affairs ; sh e do es no t kno w h o w to serve an d hold a wide clientele ; h er m erchan ts have n o t th e ra ic f r r yet given up p ct e o little t icke ies . u t a in i lar h as n co a n to A s r lia, part cu , se t mpl i ts th e Japanes e Chamber o f Co m merce pro testing a n u a i es a o all o f th e g ai st certain nf ir pract c , b ve cu stom o f sending go o ds inferio r in quality to h e u m s t s bmitted sa ples . Japane e handiwork is still in th e experimental stage ; many wo rkmen l ack proper training ; the workshops are no t always expertly directed . But these are dis a dvantages that time and s tudy will lessen ; and

Japan is learning to cope with them . Many Japanese understand that their country is chang in g, and that industry, in many regions, is taking o f fo r th e place of agriculture . To the eyes the eigner this evolution manifests itself everywhere by facts that it is easy to see : th e multiplication of modern factories employing more than two million workmen ; the presence of workmen in the single industrial centre o f Tokio ; the forma tion o f an industrial class that h as been cruelly tried by the high cost of living ; the increase of 9s AMERICA AND WORLD DOMINION

0 1 1 ff n Strikes, from 5 in 9 4 a ecting workme to 4 1 7 in 1 9 1 8 involving but above all in the development of a policy destined to assure the national manufactures raw materials and commercial outlets .

I B Z II . RA IL

I N C ONTRAST to the old industrial hearths that are changing and developing there are new countries that are awakening to industrial life . Among these young recruits are the nations o f S South America . Until the war the outh Amer ican countries had lived in close relations with Europe resigned to be dependent upon her fo r manufactured articles . With the war th e supply and transport of these products became im I t po ssible . was not a matter of choice. South America had to take up apprenticeship and plan for home manufacture . Under the spur of necessity the nations found resources in their o wn soils ; they acquired confidence in their own strength ; they built factories, and, by a strange o f saw turn the tide, they at times these factories working fo r Europe . In a short time a new life to Am began sprout from the South erican earth .

In Brazil , above all, it is almost an economic

revolution that is maturing . There is much to Show that Brazil is becoming

1 00 AMERICA AND WORLD DOMINION condensing of milk is being considered ; m o re attention is being given to fruit cultivatio n ; schools fo r farming and fields fo r experiment a re

being established . They are draining th e marshes ; in Ceara they are boring artesi a n t ff th e wells . Everywhere is his e ort to improve land in order to produce enough to meet th e o f a demands home consumption, to sell abro d , and to supply industry with raw material . Th e o ff financial situation , threatened by the falling f ff in o the co ee sale, is improving ; capital is creasing ; banks are being formed ; the Bank o f Brazil is increasing its capital ; Japanese labour o r T is being called in f farm work . o meet th e o f need manufactured goods, they are erecting factories ; in the Single state of Rio Grande th e n umber o f industrial establishments grew from 31 4 in 1 908 to in 1 9 1 5 ; their capital has S multiplied six times . The tate encourages all ff these e orts ; in Rio Janeiro, new industries are exempted from taxation fo r a period of five ro f years . In this feve enterprise it is natural that the first effort should be applied to the creation of fundamental industries of which the products were formerly furnished by Europe : metallurgy and weaving . But these two indus no av tries have t made thesameprogress . Onlywe o n f ing has been established any kind o a basis. INDUSTRIAL POWER I o i

Metallurgyl depends o n the coal and iron

. o n s upply Brazil has b th, but unfortunately o e

i . s far from the other Iron deposits, rich and

a . bundant, are found in Minas Geraes They 200 o f e xtend, at a distance of about miles north

Rio 00 de Janeiro, over a territory 3 miles long a n 0 d 3 miles wide, from Itabira do Campo to Serro Frio ; 60 deposits of compact hematite have b een uncovered, and an English company is working it . The problem is to carry this ore to the coal ; it is not far from the coast ; but there is no road fo r the purpose . The Central Brazil Railway has slight carrying capacity o n account o f the stiff grades of the Serra do Mar and the Serrada Mantiqueira . There is another line, that of the valley of the Rio Doce that to uches the Atlantic 300 miles to the northeast of R io Janeiro and that goes up to the centre of the iron basin ; an iron road leaves Victoria (Espirito S 2 0 anto side) , and travels by slight grades 5 m iles into the interior ; by lengthening it 1 00 nf m iles the mines could be reached . U o rtu n

a . tely, fuel supply is lacking The coal deposits r R a e found in the three southern states . In io Grande do Su l they stretch along the valley o f e the Jacuhy, a river that empti s at Porto Alegre, in the great lagoon of Patos ; thanks to the low

l — T A m ri c s A r 1 1 8. . 0 2 he e a . p il 9 p 3 3 1 02 AMERICA AND WORLD DOMINION

net cost, this coal is sent to the Argentine where it costs less than th e English and American coal . Railroads and steamers use it . This basin can supply tons yearly . The State of Santa Catharina possesses the beds of h e Cresciuma and of Ararangua, not far from t coast ; and a railway connects them with

Tubarao . A syndicate has just been formed l o n at Florianopo is to exploit them, and counts an annual supply of tons . Finally, in P C arana, is the urityba bed, from which tons a year is expected . This Brazilian coal is a valuable asset that will soon enable the country to cut down its imports . But it is not adequate for metallurgical purposes ; it does not yield f r o . enough coke, which is needed great furnaces To create and maintain a Brazilian iron and

- steel working industry, therefore, much coke has to be imported . To that end they are consider ing exporting to Europe the ore in vessels that will bring back as return freight the needed coke . Thus factories can be established at the coast or along the Victoria railway line . Also, when the fusion o f metals in electrical furnaces becomes practical from a business point of o f view, Brazil will find in the energy her water falls the means o f handling her iron . The future will tell us if these economic combinations are

1 9 4 AMERICA AND WORLD DOMINION

Many of the factories are modernly eq uipped ; some are ru n by electricity ; and the goo ds they turn o u t compare favourably with those of New o England and Lancashire . Also the road t other lands has been found ; the Buenos- Aires Exposition of 1 9 1 8 introduced Brazilian cotton L n goods to the Argentinians . Throughout ati America they sell in competition with the British 1 and American product . In 9 1 7 they found

their way to France . At the beginning of th e war the industry suffered from lack o f colouring 8 . 5 0 material In Paulo , Minas Geraes, and Parahyba they attempted to make vegetable dyes that would replace the German anilines . They succeeded in establishing factories that lm fo r produce a ost enough home use, and have sold their colourings in the Argentine and even in Italy . ’ On all sides , in all regions , Brazil s newly

awakened and applied energy is manifest . Jus t dis now, in prospecting the subsoil, they are o il 85 0 an covering in Paulo, Rio Grande, d Spirito Santo ; gold in Minas Geraes near Bello an Horizonte ; and also porcelain clay, nickel, d th mica . Just now the crisis in paper has led to e establishment in Campos of a paper factory

working with vegetable fibres . Elsewhere they fo r fac are preparing glass, tannin, and boot INDUSTRIAL POWER 1 9 5

n o tories . Also they are studyi g the matter f converting the waterfalls into electrical power to r n u the railways .

The same general tendency, the budding of i S industrial life, s an evidence in the other outh

American countries . Argentina , too , wishes to free herself from her dependence upon foreigners ; sh e o f is exploiting the coal Mendoza, and the o il of Comodoro Rivadavia ; and is developing

- th o f wool weaving, and e manufacture bags for e o f the grain crops . The nitrat s Chile have e njoyed a hitherto unknown prosperity ; the country is becoming rich ; has paid o ff part of h er debt to England ; and to achieve full eco no m ic independence, is trying to equip herself for

the manufacture of cloth, paper, and chemical n 1 1 8 products . At the e d of 9 the first Chilean s teel works was founded at Santiago . It was

m . odest in capacity, but important in significance fo r European markets have turned to Peru sugar, ac cotton, copper, wool, and skins . With the cruing capital Peru plans to place herself upon an industrial basis by the exploitation of her coal h mines, by t e building of railways, and by the

construction o f looms . All these young coun tries are Stirred by new ambitions ; the future will tell h o w far they are to be realized . As t c ye , positive results are rare, ex ept in Brazil, 1 06 AMERICA AND WORLD DOMINION which has gone farthest on the road toward in r dust ial independence .

Now that the .war is over, the question is Will Europe find again her old outlets ! The return of competition will Shake some o f the new countries ; but with others Europe will have to seriously reckon . Of course her most for m idable rivals will be the United States and vi Japan, mature and tried nations . Not ha ng ff ff su ered as Europe has su ered, they have been growing while she has been exhausting herself. While Sh e has been fighting they have been forging the arms to conquer her in the economic struggles of peace .

1 08 AMERICA AND WORLD DOMINION

An island nation that has become a sea power, Japan is directing her commercial efforts to all corners of the great ocean that grows busier every day. A yellow race, the Japanese natur ally tu rn to their brothers of eastern Asia and its archipelagoes ; where human society, less to developed, looks Japan for the equipment and inspiration that progress demands . When first the Empire o f the Rising Sun becam e dimly o f h conscious her strength, s e turned to the no w ul islands and peninsulas ; , in the f l realiza o f tion her power, she is reaching toward more remote latitudes. The war gave her her chance . Her operations were confined to the Pacific ; there were her acknowledged war aims . Her position forced her to watch the Pacific high ways ; there she assumed a responsibility equal o h to that o f Great Britain . While Australia tain ed control o f the German archipelagoes o f S the outh Pacific, Japan established herself in l the Caroline, Marsha l, and Ladrone Islands situated north of the equator . That gave her a hold o f the routes commanding the eastern approaches to Indonesia and Melanesia ; by this path She is advancing far into tropical realms .

By force of events, the Japanese fleet, left alone in the Pacific, remained there throughout the

- co n war as an all powerful mistress . On the THE EXPANSION OF JAPAN 19 9 tin en t - of Asia, the fall of Kiao Chow, the German far- eastern base, put Japan , not only at Formosa an d o f Manchuria, at the gates China, but at the v o f ery heart the immense empire . Whatever o f S the political status hantung, and however th e to situation be worded, it is Japan that the f economic control o the country has passed . The real and solid conquests o f Japan in the

o n Pacific have been commercial lines . In the markets that Europe deserted, Japan has pushed a ff vigorous o ensive, invading some, and threat ’ u c ing others . Japan s trade with Pacific coun tries is constantly increasing ; her relations with Europe are slackening ; Asia is becoming the g reat field of her expansion . The part of the United States is also growing ; many lands that no w Japan formerly seemed to ignore, are with f in the range o her activities . To comprehend the extent of this evolution it is necessary to ’ s tudy a brief analysis of Japan s foreign trade fo r 1 1 1 1 0 1 . the years 9 4, 9 4, and 9 7

JA PANESE E! PO RTS

V o f o f o x b v alue, in millions yen, go ds e ported y Japan to arious countries 1 1 0 AMERICA AND WORLD DOMINION

JAPANESE IMPORTS

V o f o f f alue, in millions yen, goods imported into Japan rom various countries

These statistics illuminate Japan ’ s position

with regard to the rest of the world . Nearly

half of her foreign commerce is with Asia, that is to s ay with the monsoon zone that stretches

from Siberia to India, passing through China . Close ties link Japan to these lands from the

importance of rice as a staple of existence . Rice must be transported from China and Indo

China, Canton , Saigon , Bangkok, and Rangoon .

There is a rice civilization and a rice sympathy . Wheat countries and white countries ; rice coun

tries and yellow countries . These are cosmic

distinctions . It is a law o f nature that is urging

Japan to the domination of the yellow races . The accounts illustrate another capital fact : the effa cement of Europe and the progress o f Amer

ica . The war has made Europe a customer o f Japanese factories . The statistics Show the

o f to flow Japanese exports Europe, and the

1 1 2 AMERICA AND WORLD DOMINION

o continent . The beginning of these relati ns goes back to the early years of the twentieth

n - century, a time when the A glo Saxon countries o f the Pacific shores from Canada and the United States to Australia closed their gates to a yellow immigration . Latin Am erica w s more hospitable to Asiatic colonists, making no colour distinction . A young land, thinly populated , badly in need of man labour, Latin America invited rath er than feared the coming o f these o f d recruits . A current immigration , encourage n by the steamship companies, connected Japa and South Am erica ; a welcome was extended to th e the Japanese, whom the Latins preferred to o f m an Chinese . With the war, the question labour became one of prime importance ; many

' flo o o f Europeans returned home, and the d Europe an emigration ceased ; more than ever the Japanese were needed .

Now th e s Japanese are found in almost all th e 1 h South American countries . Turned from t e

United States by the Californi a troubles, they 1 06 l began arriving in Mexico from 9 , sett ing in the tropical regions of Chiapas and the isthmus of Tehuantepec . Lower California had a littl e Japanese colony o f some fifty engaged in rice

i Fo r re-ws r con see o As ie - o ns r n ran aise 1 1 8 . Labro u p diti , L i , f c , 9 4 . p. 5 59 e . ’ ' L sm l eria ism e a onais . Par s . De a rav 1 1 p j p i l g e . 9 1 . THE EXPANSION OF JAPAN 1 1 3

cu . wh o ltivation Certain Yankees , already in im agination see their California populated with in o f o f a century by tens millions yellow men , b e lieve that Mexico is surrendering to the

J a panese . In reality in all Mexico there are h ardly more than Japanese : miners, daily fa rm workers, fishermen, artisans, merchants ; t his handful is not large enough to recruit from it that army of trained soldiers about Which a certain portion o f the American press t n t alks . Until recen ly there was o t a single 1 1 8 Japanese in Bolivia ; in 9 , Bolivia imported s everal thousand Japanes e farmers to cultivate In h er unfertile lands . Peru there have been Japanese since 1 899 ; more have been arriving every year to work in the sugar plantations : the Peruvian Government gives them particular a dvantages in the matters of wages, child educa tion , and naturalization . Chile, while trying to i limit Chinese mmigration , is welcoming the

Japanese, and establishes them in farming fish er regions . There is also a call for Japanese m en for the southern archipelagoes . But it is toward Brazil that the great current o f Japanese emigration is directed . l The first colonists arrived in 1 907 ; others soon flocked to ff the co ee plantations, the gold mines , the rice

l Am eri cas . u 1 1 8. . 2 . The J ly, 9 p 9 1 1 4 AMERICA AND WORLD DOMINION

fields, and the railway workshops . For several years they arrived to the number of ten thousand 5 5 0 a year . However, the State of Paulo repudiated its contract with two of the Japanese emigration companies, and the flow thinned . But during the war after the departure o f many Germans who had worked on the farm s $ 0 o f o f Rio Grande do Sul, of 5 Paulo, and

Santa Catharina, the deficiency in labour caused by the slackening of European immigration caused such a crisis that Brazil saw that her only safety was in calling fo r Japanese immigration . The two governments reached an agreement to n encourage this migration , in Japa the State giving a subsidy to every individual going to

Brazil . Thus the Japanese colony in Brazil grew ; soon there were more than Japanese ff $ 0 in the great co ee plantations of 5 Paulo .

Sober and industrious, the Japanese labourer two works or three years, then with his savings he buys land . Thus more than o f them m have in a short ti e become landed proprietors, aided by a powerful Japanese society organized ff to stimulate the cultivation of co ee and cane . There are little Japanese landowners wh o h ave grown rice on a small scale in the low lands o f 8 0 5 Paulo , and thereby suggested the possibility 1 1 of growing it widely . In 9 7 , Japanese

1 1 6 AMERICA AND WORLD DOMINION

Sul a concession o f about 1 2 miles o f coast for

s r s . 1 1 6 1 1 8 fi he ie In Chile, from 9 to 9 , trade with Japan doubled ; Japanese capitalists are going into business ; a Japanese bank has been established at Valparaiso ; at the beginning o f 1 1 8 o f o f 9 Japanese engineers, the great house Fu u kawa o r d , debarked at Cabildo f the study

. r and purchase of copper beds In two yea s , 1 1 6 1 1 8 n from 9 to 9 , the exchanges between Japa n 00 and the Argentine i creased 4 per cent . h e Despite this marked progress, t position o f Japan in South America must not be over

. n estimated It is the seed that is budding, o t the v 1 1 crop that is being har ested . In 9 7, the entire trade between Japan and South America did not exceed 25 million yen (as against 9 million in But it seems that even these u fo r modest fig res constitute a menace, in the

United States they are uneasy about them, claim “ ing to fear th e formation of centres o f Japani ” sation , and indignantly denouncing underhand is methods . In reality, it commercial rivalry, and u they are reproaching Japan for p tting in check,

‘ - in future fields, economic Pan Americanism .

N N TH E U O N O ON III . JAPA A D E R PEA C L IES

MONG Fa A the rich colonies that, in the r S East and the South eas, compose part o f th e THE EXPANSION OF JAPAN 1 1 7

co e nomic patrimony Of Europe, Japan has

e s . tablished herself Europe, neglecting these

a n . l ds during the war, finds her hold shaken In B r o n itish India, Japanese influence is marching 1 1 1 with giant Strides . In 9 there were in India

n . o ly about thirty Japanese residents Now, in B o mbay, there is a Japanese colony large enough to support a club . During th e war two Japanese banks were established in Bombay . Japanese sh ips are seen in all the large ports of India . In 1 9 1 2— 1 9 1 3 Japanese bottoms carried tons between India and countries other than — Japan ; in 1 9 1 8 1 9 1 9 the figures were tons . As to Japanese goods, at the beginning o f the century, they almost all arrived in English ships, and were distributed in the interior by “ ” - English or Hindoo merchants . To day, said

o Tim es S . 1 2 1 1 a writer in the L ndon of ept , 9 9 , “ 0 9 per cent . of these goods come by Japanese boats ; they are addressed to Japanese firms ; an d these firms sell them . It is the same with the exports . Practically the Association of Jap an ese Cotton Spinners controls the raw cotton market ; it finds Japanese buyers in the rural districts ; it picks and wraps itself the bought ”

o . c tton Besides, the manufactured products o f Japan, machines , matches, beer, toys, cement e are gaining a hold on the native market, wher 1 1 8 AMERICA AND WORLD DOMINION

they have replaced German articles ; the sho ps of Ceylon are literally stocked with goods se n t f r from Tokio and Osaka . An unhappy fact o a Great Britain , cotton , bought in the raw st te f a by Japan , returns in manufactured orm ; Jap nese threads and fabrics are driving o u t th e h British goods ; in this ancient market, a Britis o f m s possession since the dawn colonial ti e , S Japan strides triumphantly on . tatistics o f l trade between Japan and India tel the story .

TRAD E BETWEEN JAPAN AND INDIA (in m illio ns o f yen)

,904 Japanese ex po rts to India I x 68 ndian E po rts to Japan .

Such progress would no t have been possible except for British free trade . Thus Japan is protesting in advance against protectionist plans

that are maturing in the British Empire . Th e Japanese Chambers of Commerce announced in 1 9 1 7 that their country did not intend to be sacrificed if Great Britain concluded preferential n agreements with her colonies . The governme t o f British Malaysia having forbidden the sale to

- foreigners of lands suitable for rubber growing, e in the Japanese planters , at a me ting held 1 1 h Tokio at the end of 9 7, protested against t is

1 20 AMERICA AND WORLD DOMINION

They regard it as paradoxical that a European country as small as Holland should hold in

Asia such vast and rich territories . Yet it must be acknowledged that this imperialism am has never taken concrete form . Japanese bitio n o does not g beyond economic conquest. Even in that form their progress may well disturb the Dutch . Lo ng before the war th e school of languages at Tokio included a course

u - n in Malay, the commercial tong e Of far easter lands . During the war there was distributed

bi- Nikkwa in Java a monthly publication , the , written and printed in Malay in order to reach 1 0 centres of native industry . Since 9 9 there h as been a Japanese consulate at Batavia . Commissions of Japanese financiers and schol ars visit there to study questions of organizing enterprises and placing investments . During the war communications between Holland and her colonies were broken ; new outlets had to be sought for the trade Of the Archipelago . From 1 9 1 3 to 1 9 1 7 importations from Holland to Java fell from to 37 millions of flo rins ; those o f the United States increased from 6 to A 47 ; those of Japan from to 49 . S in British

India, Japanese goods appealed by their cheap ness to the poor peasantry ; Japan supplied them an with jewelry, fabrics, thread, metal ware, d THE EXPANSION OF JAPAN 1 2 1

leather goods closely imitating European designs . At the heels of the traders came big business m en and organizers ; a company was founded in Tokio in 1 9 1 7 for the purpose o f buying several sugar refineries from Dutch capitalists ; and in 1 9 1 8 Japanese capitalists established a refinery at Batavia . The Dutch press has already de n o u nced these proceedings as a national danger and as a wedge for imperialistic ambitions . In the South Seas Japan has developed quickly her trade with the British Australasian

o ff dominions . In these markets, cut by the war from their former sources of supply, Jap al anese articles have taken the lead ; some, ready accepted , are being sold in increasing q uantities ; others, hitherto unknown , are finding a place . The strides of Japanese progress are 1 a stonishing . In thousands ofpounds sterling the s ales o f Japan to Australia increased from 475 in 1 9 1 3 to in 1 9 1 6— 1 9 1 7 for fabrics and clothes ; from 7 to 1 72 for manufactured metals ; from 1 29 to 366 fo r chemical products ; from 2 1 to 263 fo r crockery and glassware ; and from 1 9

to 1 28 . for fancy articles and jewelry Likewise , the purchases of New Zealand from Japan in creased (in thousands of pounds sterling) from

“ I Missio n fran a se en Aus ra e 1 1 8 et en o uve e-Ze lande 1 1 Par s c i t li 9 N ll 9 9 . i ,

but e 1 1 . La . 9 9 1 22 AMERICA AND WORLD DOMINION

1 1 1 1 6 1 26 fo r 9 3 to 9 , from 35 to silk fabrics ; from 1 4 to 63 for cotton fabrics ; from 0 to 1 2 for electric machines ; from 8 to 38 for fancy goods . The Japanese invoices show articles for which Z : New ealand had never before called buttons, hats, blankets, porcelain and glassware, brushes, cardboard boxes . Japanese goods are estab lish e d in Australasia ; sold at low prices, handled re by clever and energetic travellers, they will main there . In the Russian Far East the Japanese influence o f is becoming preponderant . The remoteness these lands from the heart of Slavic power ; the burdens o f the war and the revolution confining all Russian energy to the West ; the geographical — proximity o f the Japanese Empire everything works to the same end . For the moment it is not a matter of Manchuria that depends o n f China ; but o eastern Siberia . Having become o f the ally Russia, Japan drew from the alliance benefits the more important for the reason that sh e alone of all the Entente Powers could com th m unicate freely with Russia . By means of e Transsiberian Railway she furnished her with arms and food for her armies ; and at the same time conquered for her o wn manufactured ar ticles the Russian markets that were closed to 1 1 German products . From yen in 9 3,

1 24 AMERICA AND WORLD DOMINION colonization of eastern Siberia seems to the Japanese to be simply an extension o f the rOle that they have assumed on the coasts opposite their archipelago . In Vladivostok there is a

Japanese colony numbering several thousands , and every day there are more Japanese shops selling Japanese articles, clothes , knitted goods , stockings , handkerchiefs , and gloves .

S - ince the Russo Japanese War, Japan has owned the fisheries rights o f the Siberian side Of the Behring, Okhotsk, and Japan seas ; and Japanese fishermen are almost alone in exploit ing these rich waters . Japanese capitalists are becoming interested in the forests o f Ou sso u ri o f and Amur . The northern half of the Island S akhalin , left to Russia by the Portsmouth

is . Congress, being exploited by the Japanese They furnish the capital and labour to work the mines ; they are building a railway, and through their agent at Alexandrovsk they practically control the Russian zone of the island . The

Russo - Japanese Commercial Association o fOsaka summed up at the end o f 1 9 1 8 what was needed to further Japan ’ s commercial interests in eastern Siberia ; asking that Vladivostok be So u n ar made a free port, that navigation in the g i and the Amur be opened to all nations, that the control of the Siberian railways be put in THE EXPANSION OF JAPAN 1 25

Japanese hands, that Japanese fisheries rights b e x e tended, and that Japan be permitted to bu y the northern part of the Island of Sakhalin . That would carry the Japanese economic sway o t Amur and the surrounding seas . Also Jap anese opinion distrusts any foreign activity in these regions as a threat to Japanese interests, an d points to American suspicion of Japanese “ enterprise in Mexico . If the Monroe Doctrine ” 1 “ applies to Mexico writes M . Kawakami , why should Japan not control the far- eastern regions adjacent to her islands !”

1 A ND v . JAPAN CHINA

IT 1 8 China with its immense resources and e normous population that, above all , appeals o t Japanese ambition . It is in China that she finds most formidable and determined the com petition O f the great commercial nations O f the world . Germany seems to be out of the running for a long time ; German - launched enterprises in Shantung are being turned to Japanese profit . Despite the English alli ance , English and Japanese interests in China frequently clash ; there are constant irritations, particularly over the Yangtse Valley, which, by

I Kaw kam i a N Yo r Th e Macm i a an an r P ac w . an Co d o e e . e . . J p W ld k ll - 1 1 . 0 1 . 9 9 p . 9 9 1 26 AMERICA AND WORLD DOMINION

o f reason its resources, is a kind of promise d f land . The Japanese are always complaining o encountering British competition when they n I n seek railway, mine, and factory concessio s . r r China, Japan uns up against American ente prises ; she divides with the United States th e o Ho rOle of banker t the Celestial Empire . w h ever, her geographical position gives her suc advantages that sh e h as been able to establish herself solidly in Chinese territory and win a commanding place in the business o f the coun

. An As ia try American magazine, , established to study Asiatic questions, denounces Japanese ambitions in Shantung as expressing the policy that annexed Corea, that Japonicizes Manchuria, n and polices Fo u kie . Asia presents the situation “ to its readers in the words : China : Colony — o r Nation Japan : Conqueror or leader of th e Orient !”1 m s o a an s x a n n in ina For f 7 p e e e p sio Ch . In an economic way Japan regards China as a well of raw material and a market for manufactured articles : an immense colony for exploitation at So h e her very gates . long as s can draw profit ’ from China s economic dependence, Japan cares “ To little about the political status . support her population , Japan must become an industrial

‘ Asia Marc 1 1 . . 20 . , h, 9 9 p 9

1 28 AMERICA AND WORLD DOMINION

Japan needs much more than Sh e can receive in this way ; she has an imperative interest in co n

trolling all the iron sources o f the Yangtse basin . A Japanese group has just formed a metallurgical o f organization that, exploiting the mines Tao

- Choun in the province of Ngan houi , should o f produce yearly more than tons iron,

and steel . Other iron mines, for example the

concession in the Nankin region , are not going o Sh o f t escape her . e sees in the acquisition these mineral beds a condition of her economic existence . l Inverse y, the Chinese market must absorb Th the articles manufactured by Japan . e Japanese have fallen heir to a great part o f e S the German client le . hip broker and money beco m lender, Japan rounds out the Situation by

o f ing the great purveyor finished products, cotton thread and fabric , hats , industrial ma chines, and electrical appliances . Her exporta tions to China (Kwang- toung excepted) have 1 0 1 62 1 1 risen from million yen in 9 4 to in 9 4 , 1 1 1 and 3 8 in 9 7 . In order to spread her activi ties, She is improving every day her means o f

o propaganda, adding to the number of her c n su ls o f , increasing the personnel her legation at

- S Pekin . If the Anglo axon nations are still pre no ponderant in Chinese commerce, it is longer THE EXPANSION OF JAPAN 1 29 without a struggle ; the Japanese merchant is pre a f r p ring o conquest . For the purpose o f penetrating and dominat in g China economically, Japan has been able d u ring the war, to forge a powerful weapon F inance . In becoming the banker of a govern m ent threatened with failure and insurrection ,

J apan at once found a field for her investments, a nd reduced her debtor to subjection . Her proceedings have aroused the suspicions of ’ m any Chinese who fear fo r their country s i ffi a h o independence . It s di cult to s y just w m uch China has borrowed from Japan , for n either creditor nor debtor is anxious to discuss ff the a air . The loans, from the beginning of the 1 1 8 war to the month of August, 9 , have been 200 22 f 1 estimated at or 5 millions o dollars . In the course o f the first half of 1 9 1 8 alone they

0 to were nearly 6 millions . Destined first of all ’ pay soldiers wages and to buy arms, they pledged to Japan almost the entire wealth of th e o f country ; the revenue from the sale tobacco, the revenue from the telegraph and telephone, a nd the revenue from the Manchurian railways . The forests of Heilungkiang and Kirin were m ortgaged against the vote of the inhabitants, wh o protested that if these forests fell into the

1 M n 1 1 1 - 1 Asi a arc 1 1 21 6 . Asie ra a tse anuar . . . , h, 9 9. p. f c , J y, 9 9 p 44 45 1 39 AMERICA AND WORLD DOMINION hands o f Japan they would have neither build ing no r firewood . Elsewhere the mines were pledged ; the lead and zinc mines of Hunan that had previously been conceded to the German house of Carlowitz and that passed into the hands of the Japanese ; the iron mines o f Mount Phenix (Foung hwang Chan) n ear Nankin supplying an excellent o re that Japa nese factories will use on the spot ; the mines o f - to Kwang toung, conceded the Japanese

Mitsui Bussan Kaisha Bank . Railways to be built were pledged ; the line from Tsi- Ho to

Ch o u en- - te fou (Shantung) , originally given to

- the Germans ; the line from Kirin to Houei lin ,

300 miles in length . This placing of capital involved the furnishing of merchandise ; it carried the condition that the orders should be given to Japanese industry for the telegraphic and telephonic material , for electrical appliances and war goods . It was the same method that Europe had used everywhere to build up trade ;

Japan applied it to China . To complete the chain , in order that the capital loaned should no to run risk, Japan took pains assure a sound

financial administration in China . It was nec to essary control the Chinese monetary system . ’ At the beginning o f 1 9 1 9 Baron Saka tini s Financial Commission went to Pekin to study

1 32 AMERICA AND WORLD DOMINION

forests, her arsenals, her telegraphs, her tele phones, and retain her actual independence . Every day practical necessity sanctions the giving up of something else and permits a new encroachment . At the beginning o f the war to Japan , living in the Far East alone face face

o with China, thought the moment had come t establish her supremacy over her neighbour ; in 1 1 January, 9 5 , the Japanese Minister at Pekin submitted to the President of the Chinese Republic a list of demands divided into five groups . The fifth group contained certain requests o f particular significance . Engage ment by the Chinese Government of Japanese counsellors ; concession to Japanese churches, o wn schools, and hospitals of the right to Chinese land ; introduction into the Chinese police o f a certain number o f Japanese agents ; obligatory purchase from Japan o f at least half o f the munitions of war necessary to China ; concession to Japan o f three railway lines in the Yangtse Valley ; recognition o f the right o f priority o f Japanese capital fo r the construction o o f f railways, harbours, and the exploitation the iron mines of Fo u kien ; recognition o f the right of Japanese subjects to carry on religious ” propaganda in China . China had to yield to a Japanese ultimatum and agree to these de THE EXPANSION OF JAPAN 1 33 mands ; but Sh e has always evaded carrying them out . Moreover Japan , alarmed by the violence of certain anti - Japanese manifestations and by the displeasure of the great powers, did no t insist but changed to a more conciliatory attitude when the occasion presented itself through China ’ s declaration of war against

1 1 . Germany in September, 9 7

China and Japan had become allies . But against what enemy ! The theatre of the Great

War was far away ; and, to tell the truth, neither o f the destiny of China, nor the destiny Japan played any part in it . Fortunately, the clash o f arms drew near to the Far East . The

Russian revolutionists threatened Siberia, and ,

e . in consequence, Manchuria and Cor a It was necessary to prepare for a common danger and establish military co Operatio n . Hence the

Chino- Japanese military convention o f March 0 1 1 8 3 , 9 , in which the principles loudly pro o f claimed were equality rights and duties, but o f which the result would be the landing of “ Japanese troops on Chinese soil in view o f a ” co mmon defence against the enemy . Besides the published military agreement, there were n o f egotiations which the details are not known , b u t which were more or less in the key of the fam ous demands o f 1 9 1 5 . They can be judged 1 34 AMERICA AND WORLD DOMINION

by certain clauses : the unification o f military instructio n and armament ; Japanese instructors in th e Chinese army ; establishment o f arsenals in co mmon ; Japanese counsello rs clo se to th e o f o f Ministries of War, the Navy, and Finance ; a Japanese gents in the police of Pekin , Hankow, el r Nankin , and other large cities ; wireless t eg a phy stations controlled by Japanese o fli cers ;

Chinese ports open to Japanese warships . This co O era tio n fo r p an eventual expedition in Siberia, as well as the known o r secret conditions o f the no t Japanese alliance, were received by many Chinamen as a national blessing ; and there

was considerable open violent manifestation .

Then were added clauses according to which , so long as the invasion of Asia by the Russian

revolutionists was not an accomplished fact, it would not be necessary to carry out absolutely

the terms of the Convention . Once again Japan did not deem it expedient to go too far o n th e r road to the ealization of her national ambitions . is While awaiting the future, nothing being neglected in sowing and enveloping China with

Japanese influences . Japan keeps up the t e li io u s 1 0 h as g propaganda which , since 9 3, been drawing the worshippers o f Buddha to the Ki Di nk o to Congress . The oji ai Benevolent SO ciet e SO y, whos philanthropic work has been usefu l

1 36 AMERICA AND WORLD DOMINION

Yo sh irO - Fu im ara Baron j , was elected to the municipal council of the international con cession , defeating a British candidate by seven 1 votes .

Regions of 7apa nese Ex pa nsion . Business — influ ences trading, financial ties, political these represent the Japanese expansion in China . This expansion aims particularly at two regions where Japan is securing a firm foothold , despite

o f : the principle territorial integrity Manchuria, a frontier land in contact with Corea ; and Shan tung, a land distinctively Chinese, in the heart o f the Middle Empire .

In Manchuria, that vast Chinese province through which passes the road from Corea to Pe tchili Pekin , and the road from the Gulf of to A mour, Japan has widely extended, during the

o f . war, her sphere activity To satisfy the financial obligations that she had contracted with Japan , Russia was obliged to Sign an agree ment with her o ld enemy that was equivalent to a sanction o f her decline as a great far- eastern power . That agreement ceded to Japan th e part o f the Transm anch u rian Railway between

- tch an tse o n Kwang g the south, and Kharbin on the north ; thus advancing more than 1 25 miles northward the Japanese terminus o f th e

l Marc 1 1 . 2201 Asi e r n Ma Asia . a aise rc 1 1 6 8 , h, 9 9 p f f , h, 9 . p. 4 . THE EXPANSION OF JAPAN 1 37 great line and carrying it as far as the banks o f So u n ari to the g River, there connect it by water way with the Amur River . The com merce of northern Manchuria, that formerly had f found its outlet at Vladivostok, will be there ore diverted toward the port of Dalny (Dairen) ,

' near Port Arthur, at the extremity of the f Liaotung Peninsula commanding the Gulf o h Pe tc ili. In fact, all southern Manchuria, south o f Kharbin , falls under Japanese control . The Japanese treat it as their own territory ; estab lishin o f g hundreds business houses, controlling such enterprises as the coal pits and the flour m o So u n ari ills, carrying the river trade f the g , projecting the amalgamation of the railways of

Corea and Manchuria, demanding of China the “ recognition o f their special interest in south

Manchuria and east Mongolia, even keeping a surveillance over the Chinese troops of these C provinces . Thus the hinese army will be, in its relations to the Japanese army, in the same position as the Turkish army was to the German army during the late war . This will make “ Manchuria a second Corea ; as they say, Cor ” niz ea e her .

Manchuria, linked to China is not actually ff of her flesh . It is di erent with Shantung, an integral part of the Chinese body, a land three 1 38 AMERICA AND WORLD DOMINION

times as large as France, rich in coal beds, producing silk, cotton , and hemp, and having a po pulation of more than thirty millions . But ’ Manchuria s chief value lies in her strategic po sitiou betweenno rth ern China and middle China .

- In establishing themselves in Kiao Chow , o f the Germans had put their hands on ! a door o f China, giving access to the historic lands

‘ Pe tchili , leading to the coal basins of Chinsi , and opening northward to the regions of the

Blue River . To exploit this position , they had constructed the railway from Kiao - Chow to n nf T Tsi a o u . This railway connected at sinan fou with another great line, built by German and English capital ( 1 908 and joining

Po u ko w . Tientsin to , opposite Nankin Besides , it was to have been extended as far as Ch o u en

- te fou, that is to say, to connect with the great nk l line from Pekin to Ha o w. This network through Shantung constitutes the economic brace of this part o f China ; it is the implement I o f . n modern exploitation consequence Japan , having driven Germany from Kiao- Chow terri to o f tory, wishes keep , as the spoils conquest ,

what constitutes its commercial value, in other words the control of the railways . By an agree ment o f 1 9 1 8 Japan recognized her obligation

i March 1 1 1 - 6 Asie ran aise . . 1 . / c , , 9 5 p 4

1 40 AMERICA AND WORLD DOMINION

f r Eur civilization . What makes it dangerous o o e it e o f th e p is that is b coming, in the minds

Japanese who write and think, a dominating

idea that spurs and lashes the national pride . Japanese imperialism is not merely a matter of securing m aterial in teres ts ; it implies a kind of mission that destines to make Japan the direct

- ing soul of the far eastern world . Their vic tories in the past over Russia and China gave the Japanese the belief that they were a nation n chosen to govern other nations . The Europea f War, giving Japan a ree hand in the Far East and enlisting her aid for the Allies in the Med i rran n S te ea . and iberia, strengthened that belief

Hot ambitions stirred the Japanese soul , strong

- co nfi ence sentiments were given birth ; self d , o f patriotic pride , consciousness the national f a n dignity, the will to act for the wel are d h e glory of the country, the conviction that t honour and the interests o f the nation marched

Side by side, the feeling that a people that had conquered great territorial rights had assumed great responsibilities to themselves and to others . Until recent years Europe and America were the tutors Of eastern Asia in its apprenticeship in modern civilization . At times they adopted toward the pupils an air of condescension and THE EXPANSION OF JAPAN 1 4 1

disdain that deeply wounded Japanese pride . Japan understands thoroughly that sh e is being reproached for having done nothing more in the war than guard her interests, and for reaping benefits out of all proportion to her sacrifices . When sh e compares the limited part she played to the enormous expenses of America, she finds it annoying to be accused of having profited from the misfortunes o f her allies . She feels that while the western nations recognize her military su flicien tl strength, they do not y esteem and trust her . To her eyes, this mistrust and kind o f antipathy have grown out of the subordin ate position which she was to o long willing to ’ rOl accept, the e of England s watchdog in the

East, and the slight consideration that white powers give to yellow peoples .

To hold her true place, Japan must be at the head o f the East ; she must defend those o f her o wn colour by buying back Asia for the

Asiatics . The first and greatest ally for Japan in the achievement of such a mission would be

China, still a shapeless colossus, but possessing a strength that would be irresistible if properly directed . The duty of Japan is to raise China , sh e o wn as has raised Corea, to her level of civilization in order to form the great Asiatic alliance of which sh e wishes to be the head . 1 42 AMERICA AND WORLD DOMINION

Hers is the task o f directing the advance of the

a o f . E st, and even civilizing the yellow world ” The white peril must be flaunted to bring about an Asiatic union to thwart the European

S o f influence . uch a great league, which Japan

would be the leader, would comprise the Chinese, S the Malays, the Annamites, the iamese, and Fo r in even the Hindoos . , the opinion of the

Japanese, the English have not been successful in India ; and it is difficult to coordinate eastern and western peoples and make them live happily

together . On the other hand , intimacy between a Japanese and a Hindoo could be established in “ a moment . The Japanese are better prepared than the English for th e task of leading the ” Hindoos to the road toward civilization . This rOle of guide to progress will be for the

Japanese o f the rising generation to assume . They must be prepared fo r it ; they must be scattered among the various peoples whose

advisers they are to be . It is not enough that Japanese are living o n the continent o f A M sia ; more must be sent . ere numbers are

not enough . There must be the quality, the

value . Japan will send abroad her best ele ments ; those who will inspire confidence in th e

peoples that they wish to form and help . Tricky r practices will be given up, honest p oducts will

CHAPTER VI

THE Ex pA NSI O N O F TH E UNIT E D STATE S

TE T O A M E E! A O N I . CHARAC RIS ICS F RICAN P NSI

RRIVED at the capitalistic and m e tallu r ical g supremacy of the world , possessing a merchant fleet that will soon put it in f sea ull control of its shipments, the United \ S h as tates beco m e a world power . Not only does the American continent belong to it : its expansion long Since o verflo wed the New World : its strength is felt even in the heart in anci r n . e s a d of old Europe F , manufacturers, fo r merchants work in unity, preparing the way one another in all corners o f the world where

is to . there a part to play, or a market conquer The Americans have thrown themselves into the European struggle, not in the spirit of greed and in the hope of a profitable business deal , but through a sense of national honour and duty .

They have Shared the common danger, made

. no w sacrifices for the common victory But,

to that peace is restored , they are turning again r o f the economic st uggle which, through force

144 S OF S 1 THE EXPAN ION THE U . . 45 e vents, had never been wholly neglected dur ing the war . During that period, two features denoted clearly the evolution of the foreign o f trade the United States . The first, the huge o f inflation exports, should thin out with the return of the world to normal productive condi

tions . If the four years preceding the war and

the four years of the war are compared , it will be seen that the exports to Europe rose from millions of dollars to millions of dollars ; to North America from millions o f dollars to millions of dollars ; to South America from 5 1 1 millions of dollars to 847 m 1 illions of dollars ; to Asia, from 43 millions of dollars to 1 231 millions of dollars ; to Oceania from 234 millions o f dollars to 427 millions of dollars ; to Africa from 1 04 millions of dollars to 1 78 millions of dollars ; totalling in all an in crease from millions of dollars to

millions of dollars . Of course a good par t Of 1 this increase is due to the increase in prices . Of much more significance seems the new division f ’ o f the sources o America s importations . It shows a great exten sion of American demands on

- o the raw material markets, and a corresp nding decrease of the demands for the manufactured

1 - The Am ericas u 1 1 8. . 20 2 1 . The to a m io ns o f do ars , J ly, 9 p ! t l, ill ll , ostensibly wo uld be 1 46 AMERICA AND WORLD DOMINION f f articles o the continent o Europe . Here is a table indicating the part played by the differen t continents in the foreign commerce o f the United States in 1 9 1 2 and in

UNITED STATES FOREIGN TRADE

E ! PORTS IMPORTS

Europe North America South America Asia Oceana Africa

In exports, the destination of the foreign trade o f S the United tates has changed very little . It ’ is not the same with the imports . Europe s sales to the United States have greatly de creased ; the sales of other parts of the world

. S have increased In great bulk, from outh ff America, come the co ee of Brazil , of Vene zu ela o f C , and olombia ; the wool of the Argentine and Uruguay, the copper of Chile, the skins of all lands ; from North America, the sugar of the

1 R n h u e o n u . u e Sm h Th A O t is s bj ct c s lt J ss ll it . e m erican Trade Balance and Pro a e Trade Ten encies Annals o the A m eri can Academ ti c b bl d , f y of Poli al a nd - Ma 1 1 . 6 1 1 Soci al Sci ence . 8 . , y, 9 9 p 7

1 4s AMERICA AND WORLD DOMINION of a group of banks and firms interested in o u t exportation, it proposes to seek , undertake, t and finance, throughout the world, works tha mean the march of modern economic progress : e railways, tramways, harbours, docks, warehous s,

telegraphs , telephones , waterfalls, mines, fac in tories , and agricultural developments . It tends to stimulate everywhere activity according to to American methods, with American capital ,

the greatest profit of America . Europe devoted centuries to establishing her world supremacy ; th e in a few decades, by the American way, To world will be converted to the new power . s build up this hegemony, the State guarantee

help to private enterprise . The same Federal S ff th e tate that, in internal a airs, shows itself o f m o n bitter enemy of combined interests,

o o lies t to p and trusts, tha at home wishes pre o f b vent the crushing the weak y the strong, favours such combines fo r the purpo ses o f

foreign trade . Under state protection there is being planned the organization of a vast selling company fo r the purpose of maintaining

prices all over the world . The Sherman La w abolished trusts at home ; the Webb Law per mits American producers to spread and combine

for business abroad . Even this law does no t satisfy ; the exporters demand that combines THE S OF THE s 1 EXPAN ION U . 49 be authorized not only for the export of national fo r products , but also the import of foreign products . They point out that in certain q uarters o f the world the sales o f an ex porting house are hardly possible unless it can take in payment raw materials or other products ; if this cannot be done, European dealers have the advantage . Their cry is for equality of arms in the struggle . It is an economic Offensive that has as its aim the chaining to the chariot o f Am erica of vast g roups o f human beings that until recently followed the fortunes of Europe . Let us con s ider in what parts Of the world America has m ade the greatest progress .

I TH E U I E T N A N D I N E U R I . N T D S ATES I ASIA O PE SINCE the day when an American admiral f orced Old Japan to open her gates to the, com m erce o f the white races the Far East has never lost its attraction for America . That front of the United States that looks on the Pacific is no longer a Simple coast line beaten by the waves of a useless ocean ; it is a base o f action fo r great deeds . Beyond Hawaii and the Phil i ines o pp , on the opp site shore, are vast com m u nities of human beings among whom all the m ercantile nations have wished to o btain a 1 59 AMERICA AND WORLD DOMINION foothold ; to the acquisition of such a foothold the United States is devoting more and more n n attentio . Under the auspices of the America s s Asiatic As ociation , the study of the Far Ea t and o f the South Seas is being encouraged in

- - commercial circles ; a well printed, well illus trated Asia h magazine, , publishes, every mont , short articles designed to awaken interest in th e great continent . Businesses are being estab lish ed or extended ; great firms with numerou s Ofli ces already constitute a network Of American C influence . The East European Trading o m ffi pany of New York has O ces at Vladivostok , I rko u tsk Krasno iarsk To m §k Kharbin , , , , Omsk ,

T S . Two S ashkent, amarkand eattle houses have foreign branch o fli ces at Kobe and Shang

. An re re hai importing and exporting agency, p senting several great Am erican firms dealing in electrical appliances , typewriters , rubber goods , automobiles, and wire, has been established at

- S 81 Hong Kong ( hewan , Tomes with ffi S branch O ces at New York, London, hanghai ,

Yu nnan fo u Tientsin , Canton , , and Kobe . The powerful Standard Oil Company has its ram ifica tions in the principal cities of Japan , China,

IndO - S S China, iam , the Philippines, the traits S ettlements, the Dutch East Indies, and India . American enterpris e neglects no country o f Asia ;

1 52 AMERICA AND WORLD DOMINION

o f the d o f o o o r fe tra e ther nati ns, of inter ring ” with rights already conceded by China . These are words that the events o f the future m o will interpret ore clearly . As a matter f wa fo r fact, American trade, which s a long time inexperienced in handling the far eastern

is - co nfi ence market, acquiring self d , gaining ro o f h g und, and taking a place by the side t e

Europeans and the Japanese . Through invest o f r ments capital , industrial ente prises, and S loans , the United tates has already a solid

- nucleus . The marine construction dockyards O f S S hanghai ( hanghai Dock 81 Engineering Co . ) work with the support o f American bankers ; 1 1 fo r Since 9 7 they have built , the United to States, cargo boats carry coal to the Philip pines ; in 1 9 1 8 other orders for steel boats cam e from America . The first cotton factories using American me thods and machines were con 1 1 structed at Tientsin in 9 7, the motors coming from New York, and the textile machines from M l Lowell and Worcester ( ass . ) Other factories

. 1 1 6 are being built at Shanghai In October, 9 , the Am erican International Corporation ac quired the privilege of constructing miles o f railway in China and the rights to repair th e

Great Canal . The Chicago Continental Com

‘ - Asia 1 1 . . 0 1 , 9 7 p 47 47 . S F 1 A O S. THE EXP N ION THE U . 53 m e rcial 1 1 Bank granted in November, 9 9 , a loan of 30 million dollars to the Chinese Govern

. 1 1 8 ment In July, 9 , American bankers agreed to 1 another Chinese loan . These American activities do not awaken among the Chinese the same mistrust that is stirred by Japanese a c tivities . The Chinese people receive the a Yankees sympathetically . Their phil nthropic Works do not yet appear like the preliminary m r easures fo an imperialistic advance . In Pekin a nd Shanghai the children o f good family go to S the American schools ; at oochow, Nankin , and Setch o u en in , the Americans have founded h ospitals and schools of medicine from which some o f the graduates go to finish their studies in the United States . The American influence pervades Chinese society, preparing the way for business . What America gains Europe will lose . Other countries of the Far East and the Pacific are cultivating close relations with the

United States, among them , European colonies .

The commercial current that, before the war, flowed between the Dutch East Indies and Europe is no w partly veering o ff toward the o United States . This tropical land , s rich and A so thickly populated, appears to the mericans as well as to the Japanese as a splendid field fo r

i Ka a i o c e . 1 6 wak v us . m Pre . . i ly it d p 5 1 54 AMERICA AND WORLD DOMINION

Th e Am erica s co n enterprise ; the magazine, , centrate a s all attention on it, regarding it as highly valuable opening for ventures in oil , mines, railways, and factories ; and emphasisingl

. o the mission of M . K F . van den Berg, direct r o f wh o of the Bank Java, visited the United States for the purpose of establishing business o f relations . Already the increase trade indi cates the importance of the intercourse .

COMMERCE o r THE DUTCH EAST INDIES WITH THE UNITE D STATES (in millio ns o f do llars) IMPO RTS FROM E! PORTS TO THE THE UNITED STATES UNITED STATES

A quarter of the exports of the Dutch East Indies goes to the United States ; they send ru ff tapioca, bber, tin , pepper, co ee, cocoa r Pe uvian bark, tea, hemp ; receiving, in return , iron and steel products, irrigating material , automobiles, electrical machinery and appliances, locomotives, furniture, and chemical products . The exports of the United States to Austral 1 1 asia have doubled from 1 9 1 3 to 9 8. In these

Anglo- Saxon markets the Americans are con stan tly improving their position as purveyors

‘ — The Am ericas . Se em er 1 1 . . 1 2. pt b , 9 9 p 7

1 56 AMERICA AND WORLD DOMINION are th e successors to th e Germ ans in th e Au s tra lasian m ar s are f m ket , and becom ing or idable compe tito rs o f th e English . This rivalry is an episo de o f the great economic evolution that is building th e fo rtun e o f the Pacific Ocean a t the expen se o f th e Atlantic . In the vas t schem e of ex pansion th at is spread ing American activity over foreign lands no th ing so k so as is stri ing, original , what may be termed

o f . s the invasion Europe We ee, rolln back from Ws to s o f the e t the Ea t, the current influence that fo r centuries flowed from East to West . o u r sa th e Formerly nourished by p, United States is now transfusing its energy to our o ld o r continent . F generations th e Americans had adopted a defensive economy in their dealings with Europe . It was for them, sheltered by ff m o f high protective tari s, to give an exa ple de velo ping native industries and producing more in order to buy less abroad . Behind this wall America had built up her manufactures to th e detriment of European manufactures ; sh e could fo r t produce, not only home consump ion, but N ff fo r sale . o w O ensive economy is succeeding defensive economy ; American capital and prod u cts are being offered to stripped and im po v erish ed Europe . Some time before its military intervention th e S 1 F S. THE EXPAN ION O THE U . 57

United States had begun to prepare fo r this f o f 1 1 pe ace O fensive . At the beginning 9 7 the Pittsburgh Foreign Trade Congress studied a v a st scheme of expansion in Europe ; it was a m atter of finding the European markets and e x o f amining their future, improving the methods o f o f export, and coordinating the national n i terest with a view to foreign commerce . The American diplomatic and consular services have investigated and reported . By means of lectures a nd tracts an attempt has been made to en l ighten financial circles . The study o f European l anguages is being encouraged . Even the a doption o f the clear and simple metric system h a s . been suggested Above all , the attempt has been made to bring about the co Opera tio n be

tween the industrial interests , the merchants , and the banks that did so much for German ff expansion . By an astonishing turn of a airs, E so urope, mother of many colonies , is becoming a field for American colonization . No European country, from the most backward to the most

a i . dvanced, s escaping this powerful movement

American business men , with their capital and their products, are establishing themselves o f among the Slavic populations eastern Europe, and among the people of British, Germanic, and

Latin west Europe . 1 58 AMERICA AND WORLD DOMINION

Grea t Britain is th e o nly grea t Eu ro pe a n po wer that h as not been shaken to the very war aff t t h e r foundatio ns by th e . Less ec ed han a a es en es sh e c ti es to continent l lli and emi , on nu draw fro m her foreign inves tments enormous rev h r i nues . rs s e With e ove eas dominions, she s till a s tro ng empire ; to restore herself after th e war is th e r a t , she showing tenacious ene gy th F f th e made her grea tness . rom the day a ter Armistice her ships and her travellers were in l h h er the o d markets . Nowhere as she loosened Bu h as u f o t . t grip, but act ally won new o holds sh e h as not been able to escape the American u drive, and this drive has at times str ck her in the most sensitive points o f her economic

organization . Did not American financiers . in 1 1 6 ff to i n 9 , o er capital reopen a coal mine Ireland ! In 1 9 1 9 an American house proposed to deliver to the English publishers printed 2 books at a cost 5 per cent . less than the normal

English cost . But there are graver reasons for

British economy to be uneasy . Working con ditio ns in the British mines have been so affected by the war that the extraction of coal is not enough for export needs and the net cost limits

the field of sale . At the same time American coal is arriving in European harbours and o f driving out the British coal , great cargoes it

1 60 AMERICA AND WORLD DOMINION

o f which consisted of dragging the Gironde, o f building kilometres quays, collecting quan

s . titie of stores, and constructing railways Will America continue to awake France from her administrative lethargy !” To receive from m o f o f A erica, through the favour large grants f e credit, the raw material and the manu actur d articles of which sh e is in need is what France

hopes and expects from the United States . But it is not to be wished that foreign capitalists should come to us to finance o u r industrial

production and control our economic life . The American expansion in France should be a

collaboration and not a colonization . American enterprise aims at the Germanic

countries . Since the time of the Armistice com missions have been V isiting Germany for the pur pose o f buying chemical products ; the American f Trading Co . is opening O fices in Berlin ; Ameri cans are buying factories in Austria and in the S Rhenish provinces . In witzerland an Ameri can association was planning a t the end of 1 9 1 9 to offer to the state railways the capital and

material for the electrification of the system .

Through Dantzig, American products, cotton goods, and machinery reach Poland . An investi l - gating commission is V isiting Cz ech o Slo va kia .

‘ Ex Ec m i e A —S 1 1 - ansion ono u u us e em er . . . p q , g t pt b , 9 9 p 93 94 THE S H 1 9 1 EXPAN ION OF T E U . S .

In the Scandinavian countries America is try ing to take Over the ri fle o f middleman that m ade the fortune of Hamburg ; repres entatives o f several American firms gathered at Copen 1 1 hagen in June, 9 9 , in order to establish a s ales centre ; they planned fo r agencies in the B altic ports, wishing to make Copenhagen the distributing centre for American goods destined fo r S Denmark, weden , Norway, Finland, and e ven Russia and Germany . Finally the Ford Company plans to build at Copenhagen a huge factory for the putting together of cars to be brought from America in parts . At Bergen there is being established an Institute of Busines s Science to instruct American merchants about the Scandinavian countries . In Spain the United States has made re 1 1 1 1 markable progress . From 9 3 to 9 7 sales o f 1 6 6 American goods increased from 7 to , 77 millions o f pesetas ; those o f Great Britain fell 2 1 from 244 to 1 00 ; those of France from 04 to 44 . During the year 1 9 1 8 the United States sent more merchandise to Spain than to any other neutral country in the world, with the exception S o f the Argentine . In many respects pain is still almost virgin territory, rich in neglected treasures to be opened up and developed . The

Americans clearly understand that, and we find 1 62 AMERICA AND WORLD DOMINION

them everywhere ; business men and specula

tors , prospecting the country and buying mines, lo w erecting factories, and turning to profit the u price of local labour, selling cotton , petrole m , and wood , machinery, automobiles, typewriters,

farming machinery, and studying the develop

- ment o f the waterfalls for hydro electric power. There are many Americans living at Barcelona ; in 1 9 1 7 they founded there a Chamber of Com n merce . O the shores o f the Atlantic there is the splendid natural harbour of Vigo that seems

to beckon to the West as a gateway to Europe . The American engineers dream of linking it to their country in the scheme of a projected great ocean trafli c ; they plan to supply it with all the o f equipment a modern port, establishing there

a great coal depot, and running a direct railway F 1 that will reach rance by way o f Irun .

In great Russia, the agents of American expansion are encountering those of western r Eu ope . As a guarantee of their credit, the Americans own concessions o f gold mines in S iberia, of copper mines in the Caucasus, and Of

iron mines in the Ural . Their experts are seek S ing petroleum and coal in the island o f akhalin . The Transs iberian Railway is being restored

with American material . Most of the Siberian

1 The Am eri cas . u 1 1 J ly, 9 9.

1 64 AMERICA AND WORLD DOMINION

the remote nations o f the Old continent are yielding . The American merchants know the importance o f Greek commerce and Greek shipping in the eastern Mediterranean and the

Le vant . The Greeks are the necessary middle be O f . men all business Therefore , since the o f 1 1 S ginning 9 9, the United tates has been maintaining a commercial representative in to Greece . From Abyssinia a commission went the United States in 1 9 1 9 to establish com

r ial . m e c relations That African country, rich and thickly populated, receives much American “ ” A m erica ni cotton goods . Under the name

these goods circulate as money . The same market has been opened to sewing machines , glassware , arms , and New England cutlery ; the Am erican consuls describe Abyssinia as a great S future outlet where the United tates, assured o f o f the sympathy the people, will have little

trouble in establishing their supremacy . On the other side of Africa, in the Congo basin , Ameri can business is also implanting itself; at the end o f 1 9 1 4 the Belgian merchants of the Congo were obliged to appeal to the United States for the supplies that had formerly been brought by f . o European ships This shifting trade, caused by conditions, seems to have become permanent, and America remains o ne of the great purveyors 1 6 S F S . THE EXPAN ION O THE U . 5

a . o f western Afric Thus we see , everywhere in

Europe and at the gates of Europe, the American merchant , bringing his capital and his goods , strong in the wealth that the war demonstrated

to the world .

I I U TE E A ND A M ERI I . TH E NI D STAT S L TIN A CA

IN I TS o wn hemisphere, in Latin America, the United States has developed a field of ex pansio n that Americans openly say belongs to

them ; for in their eyes the two Americas, linked

by ethical and physical ties , were made to live together much more than to associate with Eu th e o f rope . From beginning their existence the European colonies o f the two Americas have had with one another economic relations bred o f by the very diversity their resources . While the plantation colonies o f warm climates worked

to grow cotton , sugar, and tobacco , the colonies o f temperate zones were producing cereals and o f m eat . Very early, along the coasts America, there were currents o f trade that were the first

o f - foundations economic solidarity . TO day the difference in evolution between the various American nations works for additional links in S the chain . While the United tates of North

America has become a modern industrial power, th e nations of Latin Am erica remain alm ost in 1 66 AMERICA AND WORLD DOMINION

To ln the agricultural stage . the industrial teres ts o f the United States it is necessary to have foreign markets for their manufactu red

ff o n o f goods . Latin America o ers them e these S o f i n markets . ince three quarters ts populatio

al - no t is Indian , Negroes, and h f breeds , it is yet a great purchasing market, but it is a community of 50 million inhabitants that is growing and

o f be coming more civilized . The opening the Panama Canal has brought the Pacific coast O f South America much closer to the industrial S regions of the United tates . In consequence, the United States looks forward naturally to the

o f L - A conquest the atin merican market . The appetite fo r commercial victory in South America is whetted by the fact that there the United States finds Europe so firmly intrenched that a long struggle will be necessary to carry the European positions . Until the present,

Europe has, as financial agent, dominated

Latin America . It was European capital that gave life to these new lands . We Europeans were the advisers and masters o f their financial

o u r operations . Our bankers and merchants gave long credits to their South American clients , whereas the Yankees, lacking experience , were less accommodating . A great part of the trade of the United States with South Am erica

1 68 AMERICA AND WORLD DOMINION

an d fertile countries of South America, those — giving promise o f a gre at and early future the — Argentine, Uruguay, and southern Brazil are as easy of access from Europe as from the

S . o f United tates In fact , the organization the European steamship lines before the war 1 S o f gave Europe the advantage . ince the end the war Great Britain h as pushed vigorously

her ocean service to South Am erica . At the beginning o f 1 9 1 9 the American shippers were confronted with the situation that England was transporting goods from Liverpool to Rio de fo r 1 2 Janeiro $ 5 a ton , While it cost $ 5 a ton to

carry them from New York to Rio . The reason fo r this disparity, which also explains how close are the relations still existing between South i is America and Europe, s that there , between

the two lands , on account of their economic r ff o f st uctural di erence, a regular current ex

change in a double sense . Europe receives the crude and half- worked products O f South Amer

ica , and sends, in return , the manufactured arti

cle . The United Kingdom alone takes o ne third of the exports o f the Argentine . These conditions have led to a business relation , solidly estab lish o f ed, a growth the very nature of things, the foundations o f which the United States h as

l - t hi Ma az 1 1 0 . cot i sh Geo ra cal i ne . . S g p g , 9 7 p 54 543 S 1 S. 6 THE EXPAN ION OF THE U . 9

no t yet been able to shake . In South Amer S ica the United tates buys, above all , tropical ff products (co ee, rubber, and cocoa) , great in

value but small in bulk . On the other hand, it buys little of the heavy and bulky prod u cts as , such grains and meat, since it produces 1 1 ff these itself. In 9 3, while the co ee exported to by Brazil amounted only tons, the grains and flour exported by the Argentine

amounted to ten million tons . Grains and meat find a market in Europe ; they make the o f cargo the big steamers , that are thus enabled, o n to the return journey, charge moderate As S rates . to the United tates , they buy principally tropical goods in relatively small

volume . Also the transporting steamers are s u maller, the ret rn freights higher, and the

commercial relations less developed . Con

sequently, the freight rates from Hamburg,

London , and Liverpool for the Plata are less

than those from New York and Philadelphia, although the last- named cities are slightly fa o u r v ed in the matter o f actual distance . It should be added that there are other difliculties to be overcome in establishing on a firm basis the relations between the United S tates and South America . These are results

‘ Sc tt G r M ine 1 1 . 2 o ish eo a hical a az . . g p g , 9 7 p 74 1 70 AMERICA AND WORLD DOMINION

of the comparative inexperience of the Yanke e s

in handling foreign business . They posse s s o f no r neither the tradition business, the training , — nor the personal relations q u alifica tio ns which r o f ch are the f uit long practice , and Without whi the business man is incapable of adapting h im self to the customs of the country that he wishe s

to exploit . Before the war the United States found the South American market a stony field ; all it could do was to make a rough draft fo r

future operations ; thanks to the war, it has

achieved a certain progress . The flow of gold to the United States inspired American financiers to mobilize a great capital S to be directed toward outh American affairs . This was clearly to the interests of both North

S - and outh America . In the Latin American h e markets, the war had paralyzed t activities of the European money- lenders ; fo r lands that were relying upon the circulation o f foreign capital for their economic development the remote cataclysm threatened to become a nat i n l t o a . catastrophe Brazil , Chile, and the Ar ’ en tine g , having been dependent upon Europe s

financial support, wished to free themselves tu from this dangerous guardianship, and rned

to the banks of North America . It was just as much to the interests o f the United States to

1 72 AMERICA AND WORLD DOMINION while the assurance was given that the Govern ment would undertake to protect adequately o f this kind American investment, wherever i t o f might be placed . Dozens books were pub lish ed on the subject o f South America ; ac o f counts travel , historical studies , geographical descriptions, economic estimates, and business guides . One of the most curious, written by

E . B . Filsinger, and published in New York in “ 1 1 L 9 7 , was entitled Exporting to atin A merica ; a Handbook for Merchants, Manu ” fact rer u s, and Exporters ; it explained , for the A instruction of mericans , the European methods used in business in Latin America ; it expounded o f the laws, the customs the land, the means of o f travel , the manner payments, the conditions h of credit, the custom ouses, the weights and measures, the trademarks, the wording of catalogues , and the employment of publicity ; it described the habits of life, the principal national festivals o f Latin Am erica ; it gave details about the organization of the United States consular S service in outh America, and advised young men wh o contemplated going into business on n to s the co tinent, explaining them what article were likely to sell in the various countries . In

the Appendix to the book were found, for every o f country Latin America, a geographic and H S H 1 S . T E EXPAN ION OF T E U . 73

c economi Sketch, a bibliography of works dealing f with the country, the list of publications o the Department of Commerce at Washington to o f relative Latin America, an enumeration o f the banking houses the principal cities, the lines of navigation , the courses of the American universities that made a specialty o f Latin ‘ American subjects ; it was almost a plan o f economic conquest . North American expansion in Latin America is being brought about above all by two groups o f operations ; first, by financial cooperation ; afterward, by economic enterprises . The two r a e more o r less linked . The enormous capital o f the United States is the first instrument in the economic conquest o f Latin America . In extending to these young and money- needing countries loans and financial advantages they 1 1 6 make debtors and customers . In 9 a com m ission undertook to transfer to the United States the fire insurance in the Argentine that S had formerly been placed in Germany . outh American securities are being listed on the S New York tock Exchange . North American bankers agree to loans to the governments o f the ac Argentine, Bolivia, Brazil , and Chile . On

I R B Filsin er Ex o r n to a n Am er ca New Yo r and o n o n . . . g , p ti g L ti i . k L d D A e o n an Co 1 1 . ppl t d . 9 7 . 1 74 AMERICA AND WORLD DOMINION count of the accumulation o f Stocks of coffee th e shipment of which had been prevented by th e 85 0 n war, the government Of Paulo issued a loa in Order to buy the coffee itself; New York r o i capitalists subscribed to the loan . T ue t ts o f a t policy foreign expansion , the Government Washington wishes to place the American banks on an equal footing with the European banks ; ” th e by the new American Bank Act, voted at time of the declaration of war by the United S n tates, they were authorized to establish foreig m agencies . From that moment a veritable swar o f financial agents descended upon South Amer ica . The First National Bank o f Boston founded ffi o r a branch o ce at Buenos Aires, and there ganiz ed an exhibition o f specimens for Ameri can export houses ; it installed other branch ffi 85 0 an o ces at Rio de Janeiro , at Paulo, d at Bahia in order to support agricultural enter prises . The New York Mercantile Bank O f America established agencies at Rio de Janeiro and at Bahia . A syndicate of United States banks is preparing to form a series o f agricultural

o banks in all the states o f Brazil . Chicag bankers are getting ready to give credits to S Mexico . It is in the United tates that Latin America has found the capital o f which im o v ri p e sh ed Europe has lost the monopoly .

1 76 AMERICA AND WORLD DOMINION

e Study o f the illnesses of warm countries . Und r

o f . . the direction Dr Lewis H Hackett, the strug “ gle against the hookworm is being pursued successfully ; in a single year the Foundation h a s created treatment stations in several places in O f the Federal District, as well as in the states Rio de Janeiro and $ 5 0 Paulo ; the most import at a ant is operating Campos, centre of the sug r th e cultivation . In the course o f visits about f n country, several thousands o persons have bee sci examined . In this tropical land American ence marches hand in hand with American busi 1 ness . Every industri al enterprise finds the support of Yankee capital and Yankee technique by th e is side of its cradle . The big meat industry established in the south of Brazil with the proc esses that made the fortunes o f the prairie d cities . Powerful refrigerating plants, destine for the exportation of frozen meat to Europe , have been built in Rio Grande do Sul with

S 81 Co . North American capital ( wift , and Ar S o 8c . mour Co Cold torage) . The same Chicag o n Rio firms are established the de la Plata , where pastoral activity is daily developing . A reason for this placing o f capital is that the consumption of frozen meat in the United

I The Am ericas u 1 1 8. . 0. , J ly, 9 p 3 TH S 1 E OF THE . S EXPAN ION U . 77

S tates requires nearly all the home production ; the companies wish to import in order to be able to supply the home demand and at the same f time to hold their foreign markets . Much o the meat that finds its way to Europe with the brand of Chicago firms actually comes from North American refrigerating plants situated on 1 the banks of the Rio de la Plata . There is the same restless and ingenious North American activity behind all the planning of means of transport . North Americans have supported the building Of the railway from Santiago to Valparaiso ; they are considering uniting Buenos Aires and Lima ; they wish to establish a line between Brazil and Peru ; and aim to equip in the most modern way the Amazonian port o f M anaos .

Naturally, all these relations between the United States and Latin America are reflected in an enormous increase of commercial transac 2 tions . Through a vast new domain the United S tates is moving with giant strides . Its com merce already far surpasses the British com as merce, the Simple comparison of figures clearly shows .

l Leweii do wslt L - y, a u ss ance financiére des Ea s Un s et so n ex ans o n m o n ” p i t t i p i a e Revue des Deux Mondes Feb 1 1 1 8 681 di l , , . , 9 . p. .

I - The Am ericas A r 1 1 8. . 1 20 . R. Sm t Previo us c ed , p il, 9 p 9 . J i h, ly it , 1 1 1 1 9 9 . p . 4. 1 78 AMERICA AND WORLD DOMINION

TRADE O F THE UNITED STATES A ND THE UNITED KINGDO M WITH LATIN AMERICA (in millions o f dollars) sA LES To TH E SALES To UNITED STATES UNITED RINGDO M 426

PURCHASES FROM PURCHASES FRO M THE UNITED STATES THE UNITED KINGDOM 31 6 274 688 1 83

n Flour, automobiles, cement, dyes, coal , cotto goods, glassware, steel rails , steel beams, meat , an butter, condensed milk, d many other products are finding their way in increasing quantities o f Am toward the various countries Latin erica . This advance seems at times to be almost a

conquest . It is certainly a monopoly . To realize the strength of the drive let us take u p certain individual countries . 1 1 1 1 8 From 9 4 to 9 , the exports of the United States to Cuba rose from 69 to 236 millions of dollars ; the exports from Cuba to the United

1 1 26 1 60 . S . 1 o f tates from 3 to 4 In 9 3, per cent ’ 1 1 Nicaragua s imports came from Europe ; in 9 7 , I 81 per cent . came from the United States . n

Mexico, the position of the United States , firmly 1 1 th established in 9 3, gathered strength during e war .

1 80 AMERICA AND WORLD DOMINION France per cen Everywhere in Brazil

th e United States trade leads .

TRADE O F THE UNITED STATES AND O F THE UNITED KINGDOM WITH BRAzI L (in millions o f dollars) SALES To THE SALES TO TH E UNITED STATES UNITED KINGDO M 48 48

PURCHASES FRO M THE P U RCHASES FRO M THE UNITED STATES U NITED HI N GDOM 63 35

’ From 1 9 1 3 to 1 9 1 7 the United States share in Brazilian importations increased from per cent . to per cent . ; its share in Bra z l an i i exportations from per cent . to S per cent . The United tates has taken Great ’ Britain s place as the coal purveyor to Brazil ; from 1 9 1 4 to 1 9 1 7 British coal deliveries fell from metric tons to metric tons ; United States deliveries increased from

to tons . ’ Every way, at Europe s expense, the United

States is taking a firmer foothold . The two continents o f the New World are being welded together by a group of comm on interests ; polit S OF S 1 81 THE EXPAN ION THE U . .

ical and economic . The m ovement has a watch m r word : Pan a e icanism .

I V . PA NAMERI CA NI SM

PA NAMERI CA NI SM is a doctrine of material

interests and of sentimental affi liations . It means that there is an American civilization henceforth independent of European civiliza tion ; an American society free from the pre o f n judices, the castes, and the hatreds Europea society ; an American policy that should be liberated from the ambitions and the traditions o f European policy ; and an American economy rich and pliant enough to be no longer the slave

o f . European economy This doctrine, adopted o f m by the young nations A erica, urges them to unite from o ne end of the continent to the other in order to co Ordinate their interests and

cultivate mutual esteem . It works for the build ing Of an American federation that will bring

about practical , political , and material unity . Panam ericanism is no longer merely a doc

trine, a symbol . The foundations have already

been laid for a systematic organization . Def in itc direction h as been given it not only by the Information Bureau that existed at Wash in to n g before the war, but also by the Pan american Financial Conference held at Wash 1 82 AMERICA AND WORLD DOMINION

ingto n in 1 9 1 5 ; by the Panamerican Congress o f Buenos Aires in 1 9 1 6 ; by the Panamerican Labour Federation established at Baltimore in 1 9 1 6 fo r ’ the purpose of bringing about a workmen s agreement and avoiding international struggles ; by the Panamerican Commercial Congress held 1 1 in June, 9 9, at Washington ; and by the Pan 1 20 american Financial Congress called for 9 . Something has been done and a programme

. b adopted First of all , financial ties must e b drawn closer, a monetary agreement reached y

making exchange easier and organizing banks .

Then business relations must be encouraged . To that end the taxes that in South America weigh so heavily o n North American travellers must be abolished ; the harbour duties imposed upon An United States shipping must be suppressed . Am erican merchant fleet that will do the carrying between the two Americas and take the place of In the European fleet must be put in operation .

S 1 1 - eptember, 9 7, a Latin American Commercial Exposition was held in New York ; another was

San 1 1 8. held in Antonio, Texas, in 9 Treaties A for commercial arbitration were signed . t tempts were made to establish a common code o f business methods for the republics of both continents ; to reach an international agreemen t o f an for the protection patents, trademarks, d

1 84 AMERICA AND WORLD DOMINION

ar an S s t to ac u i r e th e C ibbe ea, When it ough q a a en ea e d a t a naval base in Nic r gua, wh it cr t th e ex pense o f Colombia th e Republic o f Pa n am a in order to hold th e m as tery o f the g re a t c na th e s ed th e c o n s a l , United State stirr suspi i

o f a a a . T h e Mexico, Cost Ric , and Colombi control of northern financiers over the min e s o f Mex ico h as aro used a feeling o f nation al re se n t m en t ; th e Mexican s consider that while th e y h a o c th o f Eu ro e ve bl ked e preda tory ambitions p , it h as be en o nly to leave th e field free to th e n U ited Sta tes . Am er a P a ricanism h as In South ica, lso, an m e foun d adversaries that fe ar the hegemony of th e

t . ra n Nor h While B zil welcomes i t, the Argenti e, o n th e n a u an at co tr ry, shows herself rel ctan t, d,

es e . h ess tim , op nly hostile Economically, s e is l d en t t an z il a e ep den h Bra upon th e United St t s, fo r sh e h as in kept close tou ch with Europe. n e B azi h U lik r l , s e h as no vas t s tre tches of tro pical territo ry ; no r is sh e o f Po rtuguese r o igin . Sh e holds h erself as representing the Span ish n a tio ns o f So uth Am erica ; sh e con cei ves a reat a in - Am er an o a on g L t ic uni n , b sed up r ace, rel io n and an ua e o ig , l g g , f which sh e will be th e h ea d . Sh e is no t o ne o f tho se wh o turn to ward th e United Sta tes as th e needle turns to ward th e m agnetic north ; sh e obj e cted to H F TH . s 1 T E EXPANSION O E U . 85 the acquisition of the railways in Chaco and Formosa by a North- American syndicate ; she would not join the United States in declaring war against Germany, remaining neutral despite the step of her neighbour, Brazil . Finally, in n early all the South- American countries there are ticklish complications— memories of wars and o f conquests , of contested land claims, opposing interests . There will be no unanimous accep tance of the Panamerican idea, which will mean f o f o f orgiveness the past, the pooling forces, and the combining o f interests under the Shield o f the republic o f the North .

o u Moreover, when the war thinned t ocean tonnage and deprived Latin America of its means Of regular communication with the o u t side world, the idea naturally developed among the South- American nations that they could do without foreigners if they forced them selves to produce at home and combined their resources . Economic necessity advised the dev e lo pm ent o f national specialities ; and after ward bringing these specialities together for

S - general outh American use . Each country counted o n becoming a hearth O f autonomous production , and when the home market was supplied, in exporting the surplus . Thus the Argentine extended in her tropical provinces 1 86 AMERICA AND WORLD DOMINION th e cul tivation of oleaginous plants and of co t to n with a V iew to home consumption ; while fo r her mo re abundant products she sought an outle t in So uth Africa . The scheme involved an exchange o f commodities between the two c n a o tinents, cere ls and meat from the Argentine , coal from South Africa . It was even thought that the wines o f the Cape might take the F al place o f the rench brands . A certain nation pride accompanied the establishment of this relation : it was bitterly remarked that the

Falkland Islands did not belong to the Argentine . In Chile attention is directed toward the great lands to the south and particularly to the prov o f ince Llanquihue, which irrigation renders o e amazingly fertile, and which should pr duc wealth fo r export . Chile is organizing to central ize the sale o f the nitrates that Chilean companies are extracting in order to fight upon equal foot

- ing the European companies . The sugar cane and cotton plantations of Peru have already

f . a oreign market In Brazil , rice and cotton , h tobacco and maize, are gaining ground ; t e r cotton goods factories a e prospering . Every where th e war has stimulated South American

c . t production . Pea e will bring a crisis All tha buds in the awakening moment does not ripen .

But something will survive .

1 88 AMERICA AND WORLD DOMINION

h e from the Argentine is being exported to C il , and Chile is sending her fruits to the Argentinian ff are markets . Between Chile and Peru e orts being made to free the two countries from th e tribute they pay to other countries and especially ru s to Europe . From Chile to Pe go wine , r wheat, and cheeses ; from Peru to Chile, suga ,

ff . co ee, and wool fabrics Also elsewhere in rough draft are seen the movements of mer ch andise that promise o r assure economic union ; from Ecuador to Peru, fruits, cocoa r and building timber ; from Pe u to Ecuador, fabrics and boots ; from Chile to Mexico , nitrates and wheat . Latin America wishes to be free from foreign guardianship, and aims at a South

American nationality . This spirit of emancipation appears to be more S dangerous to Europe than to the United tates . Despite everything these countries are not yet equipped for economic independence, and for a long time they will continue to call upon other lands . These foreign relations are turning more S and more toward the United tates, through the very force of conditions . The centre of economic gravity makes Latin America bend toward North America ; as a result of the war, this tendency has become stronger . In inter nin ve g in the European conflict, the United S OF S. 1 8 THE EXPAN ION THE U . 9 S States raised its prestige in outh America .

I t showed that its policy was inspired , not b y a consciousness of its own strength , but b y a belief in the rights of nations, and therefore wo uld not threaten the political independence o f oth er peoples . The war also quickened

Panamerican sentiment . In the Argentine as

in Brazil , in Chile as in Peru , many minds rallied to the idea of a continental union and

o f a league of American nations . This new

world unity, this Panamerican union , has

gathered strength during the war . It may be defined as the free development of all America

under the economic control of the United States ,

and o n an equal footing with Europe . The

thought that suggests itself, and with reasonable o f foundation , is that it will mean the exclusion r i n Europe . With the co Ope at o of the two

Americas the hold of Europe will be loosened . They will protect each other against her com al petition . Even in the Argentine, they are

ready imposing high rents on foreign agents and, o f in most the large cities, taxing samples and catalogues ; but they are making an exception o S in favour f United tates agents . The same thing applies to Uruguay and Panama ; and

other states are preparing for it . It is the

beginning o f Panamerican protection . Morally 1 99 AMERICA AND WORLD DOMINION

o f . At also, the position Europe has weakened th e Congress Of Versailles the Monroe Doctrine Al was recognized . ready this doctrine had put an end to European expansion in America ; it h ad protected the New World against foreign n do mination . To recognize it o wis to recognize the right of Am erica to settle in its own way and according to its o wn laws the problems of its i sa existence ; that s to y that, in all American o ne questions, all America is sovereign person ality . Before, Europe had never explicitly rec

o nized t . r g his principle Now, for the fi st time, t Europe concedes it, after a terrible war hat has a d struck European supremacy to the heart, n sanctioned the progress of the United States toward the economic and ethical hegemony of

Latin America .

1 92 AMERICA AND WORLD DOMINION white race being decimated and ruined by a r frat icidal struggle, the downtrodden coloured races became more clearly conscious of their rights . Europe sees rising unavoidably a prob lem o f which there was hardly a foreboding ; a problem far vaster in extent than the problem o f nationalities that was one of the causes o f the war . It is the problem of race, involving the wholequestion o fEuropean domination . Theword “ race, obscurein itself, doesnot adequately define

the scope of the conflict ; for, accepting it in its most simple interpretation , it implies only a question of colour : it does no t take into consideration th e differences to settle between o ne the whites on the hand, and the yellow, the

o n . black, and the red peoples the other But there exist men of the same primitive stock as

the Europeans, such as the Berbers, the Arabs,

the Sart, and the Hindoos, who feel them selves very different from us because their

' civilization difl ers profoundly from ours . The problem is therefore o ne of a settlement between the European civilization and the native civiliz a tions that Europe holds in bondage .

U O O O O S I . E R PE B EF RE THE THER PE PLE

Ho w did the European meet the other peoples of the earth ! He went to them with the am AWAKENING OF THE NATIVE RACES 1 93 bitio n to find land to exploit, concessions to c o arve, and workmen t recruit . He has Often s ought to detach the natives from their tradi tio nal h economy in order to annex them to is own .

He did not aim to develop the well- being of these subject peoples, nor to raise their level o f life . He wished to transform them into co n sumers of the articles that he wanted to sell to them , and the producers of the goods that he wanted to buy . Sometimes he carried to them peace and order ; he taught them the care o f

. was a human dignity But he , above all , merchant ; fo r him it was a matter of acquiring goods and piling up wealth . In certain countries where the European has established himself, there are no more natives because he has exterminated them ; in Austral o f asia and North America, regions temperate u h a climate where he co ld live and take root, he s cleared the place ; he is the only inhabitant ; the

no . native races longer exist On the other hand , in the warm countries, he could work only ac with their collaboration , because they are customed to the climate and alone are capable of physical toil ; he has planted himself there directing production and guiding exploitation ; that is the rOle that he is still found filling every where in the world in his relations to the native . 1 94 AMERICA AND WORLD DOMINION

In a - Americ , to cultivate the sugar cane, to bacco and co o t o s o es on , tt n plan ati n , he imp s the natives o f the West Indies a fo rced labo ur r that c ushes them . The Indians having dis e s th n app ared, he brought as laves e Africa negroes that no w swarm over their adopted country ; without them these islands would be no uncultivated ; without them , cotton would t have enriched the United States and Lancashire

. o r would not have made a fortune In Asia, f centuries the Javanese have been working fo r — the Dutch . In Indi a which furnishes British so o f O f trade with many cargoes cotton , wheat , o f o f of jute, of oleaginous grains , tea, and opium— the Englishman appears not to know the native ; he confers with the village mer chants , the banyas ; through them he directs the production o f the peasant according to th e needs of the market ; he himself merely buys,

. h exports , and resells On the plantations o f t e

Hawaiian Islands, the coolies of China and o f Japan work for the benefit the Americans .

In Africa, European exploitation , more recent, no t o so does g deeply into native economy, but already under o u r control the negro peasant cultivates the earth nuts of Senegal , the o cocoa Of the Gold Coast, and the cotton f the

. flir Soudan In the Transvaal, the Ka s supply

1 96 AMERICA AND WORLD DOMINION

There are several zones o f lively friction

- between Europeans and non Europeans . They are found in the advanced countries ; those that draw their civilization from European influence, or those who possess an o ld and original civiliza tion of their own . One such zone is in America, where whites and blacks clash . The earliest Th revolts go back more than a century . e o f h negroes became masters Haiti , from whic they drove all white supremacy . The French West Indies are peopled with negroes and mulattos to whom the French have given citizen a was ship . In the United States civil war born of the negro question ; yet the problem still o f do exists, for, as a matter fact, the negroes not enjoy all the rights that are theirs legally ; race hatred smoulders and sometimes flames s as forth . As there is a negro upper cla s just is fo r th e there a white upper class, it claims all race the rights o f citizenship . These demands have become more insistent Since the war . In British India we find an ancient civilization its with its religious beliefs, its social customs, manner o f life in every way differing from th e British civilization ; a group o f the hum an r family that follows its own path . Its uppe a classes desire ardently to see it free . In Asi a and Africa, an entire civilization moulded by AWAKENING OF THE NATIVE RACES 1 97

re ligion clashes against the civilization of Europe . Th e various Mohammedan countries are drawn to gether by a creed that h as far- reaching mental a nd material effects ; in the bosom of Islam n — orth Africa, western Asia, and India the hope o f liberty and resentment o f the European o yoke periodically fan the flame f revolt . Of all these centres of hostility, the one last formed,

but the most conscious and powerful , is in

the Far East : Japan . By reason of a material strength based upon the adoption of the eco o f nomic arms Europe, Japan stands as champion o f the equality o f race ; as spokesman of the

oppressed against an alien domination . Her attitu de is no t uninspired by personal interest ; She dreams o f a Japanese hegemony fo r the — “ yellow world ; but her doctrines Asia fo r the ” “ Asiatics and God- given happiness is not a — matter of the colour o f skin stir the Far East

like bugle calls . Japan asks for a wider applica tion o f professed European and American prin

l Sh - r cip es . e demands self determination fo all ; n o more subject nations ; no more oppressed

races ; all nations, all races, on the same equal i footing . That s the new doctrine o f Right that Japan wished to have recognized at the Peace Conference as a principle of the League of

Nations . 1 98 AMERICA AND WORLD DOMINION

n But it seems that the time is o t yet ripe .

The ground must be prepared . In the United States there are many who wax bitter and indignant at the suggestion o f a possible realiza

tion o f such a doctrine . According to these persons the majority of the nations th at would compose such a league do not belong to the white race ; this League would be a league of l mixed races in which the black, yel ow, and

red elements would overrule the white element . sit Liberia and Haiti would at the world council, and illiterate semi- barbarians would decide the

o f . fate civilization However that may be , ideas of emancipation are spreading among the inflam in races subject to Europe, g racial passions

at Cairo and at Delhi , at Chicago and at Bat avia ; it is part o f a world movement that is shaking the fortune o f Europe and the supremacy

o f the white race . There is no European colony that is no t being o stirred by this spirit f unrest . Every white power possesses some centre of native dis A bance . tu r In north frica, where France found during the war a reservoir o f soldiers and work men , the collaboration of these natives in the task of national defence awakened them to a N sense of their dignity and value . O longer will they consent to be treated as subjects ; they must

200 AMERICA AND WORLD DOMINI ON

r o u . a cu i s anomaly Leg lly, he is free ; the law guarantees him equality ; he receives educatio n ; l he may acquire wea th ; he plays, everywhere , S t and especially in the outh , an importan part in furnishing the hand labour for the farms and the industrial plants ; he may enter

the liberal professions, and become a minister, a

teacher, a physician , or a lawyer . But , in

reality, he faces extremely hostile conditions ; in many parts of the Union he is despised and

even ill treated . In troubled times, he is

lynched . In normal times , he is forced to keep

apart from the whites . All who travel in the United States see that the coloured people have their o wn hotels and restaurants ; that they are given separate compartments in waiting rooms and railway stations and tram cars ; and — that they are forbidden , to enter except as servants— establishments frequented by the whites . Fo r a long time the negroes were resigned to

this condition . Since the war their attitude has changed . From indifference and weariness

they have passed to discontent and irritation . They were recruited fo r the war ; to the American army they furnished more than soldiers in uniform ; face to face with the enemy, they brought honour to the Star - Spangled Banner ; AWAKENING OF THE NATIVE RACES 20 1 they fought in Europe for Democracy ; they h oped that on their return , this Democracy w h i ould be waiting for them , but t ey were hardly received as citizens . When th ey went back from Europe to certain cities o f the South no a ttention was paid to them , whereas the s treets were gaily decorated to receive their white comrades . They have seen in France h o w the French treat their coloured soldiers ; they have seen them allowed to mingle freely in o é the national life, allowed to g into the caf s and restaurants without being treated with the slightest hostility, and they have seen how this e asy equality h as wiped out all prejudices and A hatreds . The m erican negroes are no longer passive ; they wish to put an end to the injustice that they feel is being done them . Added to such sentimental reasons there is an economic reason o f great force . The negroes no w count as an essential element in the material o f life o f the Union . On account the war many European immigrants wh o had been furnishing the hand labour needed by the nation were recalled to their o wn lands . To replace them in the mines and the factories, a migratory movement of blacks from South to

North began ; a spontaneous movement, with

‘ o u t a leader o r propaganda ; born o f the need 202 AMERICA AND WORLD DOMINION o f workmen . The movement was an important event in the evolution o f the Negro question . S wh o In the outh, the white employers saw r their black laboure s leaving them realized that, to to keep them , it would be necessary pay them and treat them like whites . At Memphis and elsewhere there were conferences between whites and blacks at which the latter presented their claims, demanding to be judged by men of o wn their race, and insisting on being taken into the labour unions . In other places, in the great o cities of the North , at New Y rk, Baltimore ,

Philadelphia, Washington , and Chicago , the black population grew to an unexpected degree . To Chicago flocked the ne groes by tens o f ’ 1 1 o ula thousands . By 9 9 , Chicago s negro p p tion had increased For them were co O erative established five banks, three p stores, in five newspapers, seven pharmacies, a life surance company, a building society, churches , o f clubs, syndicates . The slaughter houses Chicago that employed foreign labour before the war were now filled with negro workmen . This multitude o f newcomers complicated the problem o f habitation to the point where the whites complained of being driven from their habitual o f at quarters . Out this situation , and the s tendant hostility to the black , came the street

29 4 AMERICA AND WORLD DOMINION

u age ; and they are so welded into one type tha t it is impossible now to recognize the infusions o f new blood that marked the long centuries o f o f th e Egyptian history . Province or vassal r Turkish Empire, Egypt in the nineteenth centu y

became conscious of her nationality . With her Meh em e t Ali native prince, , she had developed into a land of advanced civilization before 2 England established herself there in 1 88 . Under ru Meh em et Ali the le of , the population had m ulti le six doubled, the trade p d times ; the

Egyptians had organized public education ,

planned for irrigation , constructed the Mah m o u ieh l t o f d Cana , par ly developed the port l Alexandria, and started the extensive cu tiva

tion of cotton and sugarcane . Later, but still 1 882 Al S before , Cairo, exandria, and Port aid

had become modern cities . The Ibrahimieh o f Canal, for the irrigation Upper Egypt, and tw S the Ismailieh Canal , be een the Nile and uez, had been built . These works and this progress make it diffi cult to regard Egypt as an infant

a o f - country, s incapable self government and economic effort as certain lands in central Africa . sh e 1 882 When occupied Egypt in , Great Britain wished above all to assure herself o f th e control of the Suez Canal which meant the road to India . From the beginning she proclaimed AWAKENING OF THE NATIVE RACES 29 5

o f the provisional nature the occupation . How a ever, every time there was question Of the

expiration of her mandate, She found an excuse o f to prolong it . The Egyptians had no means checking her administration ; but the patriots hoped that the day would come when such a

means would be found . They believed that it h a d come when Turkey declared war o n the Entente ; it was the moment fo r Egypt to break th e last ties binding her to the Ottoman Empire ; o n then , by ranging herself in the war the side of o f England, winning from her the recognition

Egyptian independence . But instead o f bring th e ing occupation to an end, England estab lish e n d a protectorate, thereby tighte ing the reins o f control ; the Allies Oflicially recognized s this protectorate, but the Egyptian refused to sanction it . ul Occupation or protectorate, the British r e in Egypt is distasteful to the natives not only because it leaves them no political rights, but also because it directs the economic life Of the country in accordance with British interests . Two questions are paramount in the hearts o f the Egyptians : the question of the Soudan and the question of cotton . The Egyptians believe that these questions are being settled in a manner inimical to the interests of their country, 206 AMERICA AND WORLD DOMINION fo r they feel that their coun try is ripe fo r n atio n al

fe. In o f s S u a is li the eyes the Egyptian , the o d n

” a n atural dependency of Egypt ; their interests are linked with it ; the two lands co mplem ent each other. The power that dominates the Upper Nile controls the waters o f the great ’ river ; for Egypt s life it is essential that this power should be Egyptian . Besides material o f reasons there are racial ones . The Arabs higher class in the Soudan are from th e same stock as those of Egypt . But it is England that S r holds the oudan . Over that vast ter itory that belonged to Egypt sh e placed in 1 899 a joint Anglo- Egyptian control that gave England e free sway . In order to assure for Lancashir a cotton supply and make her independent of the American planters she is extending th e

Soudanese lands capable of growing cotton . This extension of irrigated soil may imperil th e to irrigation o f Egypt . It is of first importance recognize this danger . Only the union o f th e Soudan to a free Egypt will fully guard against

it . Moreover, this union is justified by the very ties that the English have established between the two lands ; fo r it was with money from th e Egyptian budget that the English paid for th e c military operations, the railways, and the publi S works that they carried out in the oudan .

208 AMERICA AND WORLD DOMINION

not be expected that a representative o f the Queen will support an enterprise the success of

which would benefit Egyptian consumers, but ” would injure English manufacturers . So long as they were confined to the realm o f

politics , the national claims of Egypt stirred up

only the cultivated classes . It made very little difference to the fellah if the high o flices fo r which he was not destined were almost all held

by Englishmen . But in an agricultural country

like Egypt that draws its life from the earth, and where the soil is alm ost entirely exploited to by the natives, it is dangerous disturb the

interests of the peasants . The land class begins to perceive the ties that link daily life to political control . For the first time after many years,

the two classes unite in the same ambitions . A group o f notables having demanded permission to leave Egypt for the purpose o f presenting the national claims at the Peace Conference at S a Paris, the British authorities refused it . ever l members of the delegation were arrested and 1 1 ul exiled to Malta in March, 9 9 . The res t was demonstrations that became revolts . They were repressed with a hard hand . But the

Egyptian question has not been suppressed . Other bloody riots broke o u t in Alexandria in 1 1 o n October, 9 9, the occasion of a manifestation AWAKENING OF THE NATIVE RACES 29 9

against the Milner Mission that the British o f Government had sent, at the request the to Egyptians , enquire into the causes of the NO trouble . one can doubt that the question

o f nationality is a serious one in Egypt . It does not seem possible to neglect a sweep O f

opinion that takes root in the soul of a people .

Egypt, which lives from the Nile, is but a thin furrow of humanity in the middle o f the

. i African deserts On the other hand, India s an entire world . An Indian revolt driving out the English would shake the foundations of the Bri tish Empire ; it would change the map o f the world . India is the typical colony for exploita

tion . Immense, rich, and thickly populated, she represents for her masters at once a fortune and

a defence . It is through India that the British

Empire assures its destiny . India is the halting B place of ritish commerce to the Far East . In dia gives the fleet places of support for the sea routes . India recruits for the army legions of high- spirited soldiers ; native contingents fight So for Great Britain in China and uth Africa .

During the great war, India supplied more than o f a million men , whom more than were killed . It may be said that sh e conquered

Mesopotamia and vanquished Turkey . India is for Great Britain an enormous market ; two 2 1 0 AMERICA AND WORLD DOMINION

thirds o f her importations come from English

sh e 1 o f sources ; furnishes 5 per cent . the wheat 8 production of the Empire ; 5 per cent . o f th e

tea ; 73 per cent . of the coffee ; almost all th e

cotton . An immense British capital is invested

in the mines , the factories , the plantations, the railways, and the irrigation works Of India ; India pays the interest on probably more than 0 35 million pounds sterling . India keeps busy an army o f British o flicials whose salaries sh e pays and whose savings go every year to Great Sh Britain . e pours into the British coffers the

o n o l interest her public debt, the pensions of d o fli cials , the governmental expenses of her ad M 0 ministration . ore than 3 million pounds ster ling a year is the estimate o f the sums that India pays in the United Kingdom to her creditors,

ffi . her stockholders, and her O cials At that we do no t know how much she brings to the mer chants who trade with her and the shippers wh o transport her goods . Never has the term ex plo ita tio n been better applied . That is what India represents to the United

Kingdom . What does the United Kingdom represent to India ! There is no doubt that the British domination has brought benefits to

India . What is worth more, England has m eant to do good . She has fought against

2 1 2 AMERICA AND WORLD DOMINION

Despite an association already venerable, the m th e n a tive English an is to almostastranger . The life and mind of each are to o different fro m the life and mind of the other to perm it them ever

to mingle . Sir Charles Dilke was astonished that a handful of Spaniards could have su c ceeded in implanting their language in America over a country twice as large as Europe ; where as in India there exist many villages where an

Englishman has never been seen , while mos t ! o f the native peasants know the English ad ministration only through the medium o f cruel

ru . and cor pt native police Certainly, the Brit ish domination, distant and supercilious, holds ’ the natives at arms length, and therefore is less liable to clash with petty sensibilities . But, in fact, there are really two separate civilizations

Side by side . It needs only a few men, con o f t scious this incompatibility, to pit hem against each other ; it will be enough if they know th e strength o f th eir people and their people have confidence in them . see What these men in their country is that, despite the appearance o f a powerful material civilization , poverty rules everywhere among the masses ; that the peasants are always in debt ; that India pays every year an enormous tribute to th e ruling nation ; that the crops do not ripen AWAKENING OF THE NATIVE RACES 2 1 3

o f every year, and that many die famine ; that India exports annually food to the value o f 45 million pounds sterling while tens o f millions of

its inhabitants are still , in the twentieth cen

b . tury, threatened y want What these native patriots demand, a demand born of the western

idea derived from their British education , is that they be made associates in the governments o f their country in order that they themselves ff may manage its a airs and guard its interests . 1 86 1 Several times, since , little reforms have

created a shadow of native representation , but without practical authority o r responsibility ; the natives were not permitted to hold high ffi ffi . o ces, nor to be over British o cials This exclusion left the same bitterness among the Hindoos as among the Mussulmans ; little by little it brought about the union of all the enlightened natives against the British

rule . It is since 1 905 that the nationalistic move ment in India h as become strong enough to

. to disturb Great Britain Strange say, the spirit of revolt seized first upon the provinces that had been regarded as most reconciled to

English dominion . In the month of October, 1 0 9 5 , all Bengal, the historic province, protested against the decision to divide it in two in spite o f 2 1 4 AMERICA AND WORLD DOMINION

its old unity ; the Bengalese boycotted British f r goods, they asked o the foundation of a o f national university of Bengal , independent

British control , where the first place would be

given to native languages, and the second to English ; the nationalistic newspapers stirred up a the spirit of resistance, and ex lted the mem o ry o f the heroes o f European n ationalism

Cavour, Mazzini, Kossuth, Parnell . The Gov ernm ent of India thought to bar the path of the new spirit by forbidding the teaching of modern

European history in the Indian universities . But the movement spread from place to place ; r revolts broke out, followed by rigorous e pressions that did not succeed in discouraging

the patriots . The success of Japan against

Russia was vigorously applauded . The patriots studied the conduct o f Europe everywhere sh e had been in contact with the native races ; the wars o f the Christian nations of the Mediter ranean against the Turk offended the religious o f sentiments the Mussulmans , a decisive point, fo r it won over to the nationalistic idea the Mussulman minority in which the Government o f India placed all its hope ; until then that min o rit s wadeshi re y had resisted the movement, ceive fo r d subsidies its schools, and accepted titles and honours ; since then the spirit has

2 1 6 AMERICA AND WORLD DOMINION

. DecEm ber 1 1 o f for India In , 9 9 , the House Commons voted at the third reading to reform

the Indian Government, the most radical change that has taken place since the suppression o f the

East India Company . This reform does not

touch the Central Government, which remains in the hands of the Vigero y and the Imperial

Parliamen t . But it concedes practical autonomy

to the nine provinces that possess assemblies . Certain questions will be kept o u t o f the hands o f the provincial assemblies for the reason that m these asse blies are still lacking in experience . But other and highly important matters are : a n confided to them local taxation , town d r r ural administration , public inst uction , hygiene, — public works o f a secondary order these affairs will be within the province o f a ministry com posed of men chosen by the members of th e

assembly and holding its confidence . If this experiment proves a success it is likely to lead

- th e to complete self government . In this way

solution of an autonomous India is ripening . While Great Britain was planning to ex peri ment by the application to the provincial life o f India o f a system that she considered extend to o f ing in the future the national life the land , everywhere there were manifestations that in

TO - dicated the growing spirit o f revolt . day all AWAKENING OF THE NATIVE RACES 2 1 7 t h e u natives, Hindoos and M ssulmans , are united .

I n o f 1 1 8 Mus u l the month December, 9 , the s m an Leagu e o f India protested against the o c cu atio n o f r p Je usalem by the British army, demanding that the city be restored to a Mu ssul 1 1 man power . In March, 9 9, violent rebellion

broke o u t in the Punjab . The farmers objected to the government requirement that they buy r their water fo irrigating purposes . At Amritsar

and Lahore the rioters burned banks, railway

Stations, and the food Stocks that had been c ollected as a precaution against famine . At o f 1 1 8 the beginning 9 , in the Presidency of

Bombay, the educated natives encouraged the

peasants to refuse to pay their taxes . On o f o f account the deficit the autumn crop, the British authorities had decided to suspend the raising o f taxes wherever a crop was smaller by o ne quarter than in normal years . Therefore, the Home Rule League contested everywhere the administrative estimates and advised the villagers to declare all their crops one quarter

- s . smaller than u ual On well prepared soil, revolt o u t 1 1 broke in March, 9 9, in connection with the troubles in the Punj ab and with other dis n orders i Calcutta . Slowly but surely through India marches the movement to establish nationalism in place o f 2 1 8 AMERICA AND WORLD DOMINION

. s s m a European domination Briti h wi do , r rely blind to facts, has no delusions in the matter . England knows that it is time to act ; but she so sh e m a wishes to act without haste, that y build in an orderly manner . The chief charact eristic of native society is the contrast between an aristocracy of scholarly, ardent intellectuals still lacking in experience, and a benumbed mass o f more than two hundred millions o f s illiterate peasantry . It is a condition analogou to that o f Russia . Before entrusting the reins o f government to the upper class and calling upon the lower class to keep check o n this be government, a pause is necessary ; there must no a stage o f patience and development . But matter h o w much time must elapse before full autonomy comes into being, the principles that inspire the demand for it threaten the future o f European domination ; in directing their own ff th e o f a airs, the native will work in interests their o wn country and not in the interests o f

Great Britain .

220 AMERICA AND WORLD DOMINION l most powerfu in the world . We cannot help it if the Japanese Archipelago happens to b e nearer than we are to the coasts of the Far Eas t an t d the peoples of the yellow race . We mus resign ourselves to be no longer everywhere th e an u richest d the strongest . We can live witho t r so world sup emacy, long as this new situation no n To is t a indication o f dwindling vitality . slip from the first rank is no t necessarily to be n o o f weak a d p or . To share the exploitation the world with newcomers is no t necessarily so o u r forced bankruptcy, long as we retain will o o u r o t work and strength t produce . Therefore o u r great duty is to intensify our to e work in order produce more and better . Ev ry country o f Europe must undertake its own redemption along the lines to which it is best adapted under the new conditions . Let us leave to other people the problem of what suits their individual countries best . But let us see what France can do to remain prosperous . In what direction must she turn her material and living strength in order to continue to be a powerful and rich member o f the European comm unity ! The conditions are simply the conditions that are needed to assure the material progress o f modern society ; to have a suffi ciency o f to man power, to make the soil yield the AND FRANCE! 22 1 u to in tmost, to manufacture by machinery, s an crea e ocean commerce, d to enlist our colonies ff in the national e ort .

The greatest wealth o f a nation lies in its no t man power. We shall continue to be a rich o r nation if we do not increase u human capital . Fo r a long time France has suffered from a lack

o f . 1 1 1 6 children In 9 , in 5 departments, the number o f deaths exceeded the number of

births . There is, in the southwest of France, a

Lo - e t- group of rural departments, t Garonne,

-e t- - Gironde, Gers, Tarn Garonne, Haute Gar o f onne, where the average number children to 1 00 families varies from 1 68 to 1 87 ; that is to a s y, hardly more than three children for two

. is . families In Normandy, it very little better

It is through her rural classes that France, f a o i u . nation peasants, s depop lating herself So long as France was a populous nation she

produced much ; and, from her overproduction , fed a large trade beyond the seas ; to - day her

rivals are far outstripping her . Lacking strong

arms, the fields and factories yield less in comparison with the fields and factories of fo r

eigners . France h as had to call on foreigners to recruit 222 AMERICA AND WORLD DOMINION

1 1 1 her hand labour . In 9 , there were in France

Italians, Belgians, Span iar s an d , d Germans ; without foreign la bour we could no t have filled o u r factories of th e o u r north, developed iron mines of Lorraine, n o Al r o r cultivated ur vines of the south . l o u frontier departments were little by little invaded by foreigners . Spaniards came as far as Gers

- - and Lot et Garonne . Every year a wave of Flemish workmen o verflo wed into northern France to cultivate the fields ; they were found

o f - - DOm e even in the departments Cher, Puy de , n a d Isere . When these labourers settled among o f k th us, as in the case the Belgian wor men in e it north and the Belgian farmers in Normandy, could be said that they increased o ur human r s wealth ; but, as a ule, their tasks fini hed, o ur they returned home, taking with them gold . th In reducing the number of their children , e peasants o f France have limited their resources in hand labour . The peasant should consider

h i no t . s children , as burdens , but as assets If it be tru e that the decreasing birth rate is due to the reluctance of the peasant to splitting up his u property among several children , there sho ld be no hesitation in bringing down the axe on the law o f succession that grew out of the Revo lu

224 AMERICA AND WORLD DOMINION

needed . Where find such arms willing and ! a remunerative, if not in a big family It is

n e it . simple calculation, a d the peasant will mak

s s To make the fields produce more, it is nece ary to develop the part played by machinery in th e o f to th e cultivation the soil, and concentrate land in compact farms instead o f in scattered h po rtions . These are two revolutions for whic n we must prepare our rural life . The productio o f agricul tural wealth is largely a matter o f th e means employed . Machinery should be used o no t only to economize in hand labour, but als to intensify labour and multiply the yield . Delaisi h e F . expressed this idea adroitly when “ : made Teddy, the American soldier, say We, in Kansas, have much more land and in propor

o u . we tion , fewer men than y have Therefore hitch up four ploughs to an automobile tractor .

We replace real horses by steam horses . They cost less to feed and they go faster . A farmer does i n a day six times as much as is done by a Do ! farmer here . you understand Human I o labour s precious . Never make a man d what be no r a ast can do, a beast do what a machine ” can do . These ideas have already made their way with the British farmer . With us, progress AND FRANCE ! 225

- Still lags ; but happily, motor cultivation seems 1 in the way o f being accepted .

In the industrial realm , we must deliberately direct the evolution of work toward natural forces ; hand labour is condemned ; it must give o place to the machine . It is hard t admit that the restoration o f little industries can have a great economic reach . One may regret their decline fo r that decline has been a powerful cause of rural exodus . But the rural workshops cannot claim to turn o u t articles as the factories ff turn them o u t . These workshops are snu ed o u t as industrial progress advances ; in many regions the war dealt the final blow ; seriously e disa threatened in France, they long Sinc p peared from Great Britain . The future belongs to mechanical production ;

Am . in factories, in the erican fashion It is

to . necessary produce in bulk, in series The method is not new ; it made the fortune of the M Am cotton industry at anchester . But the ericans have further developed it . They divide the manufacture into the various operations .

1 French Here M. Dem angeo n takes up certain pro blem s o f farm ing and farm and rent n co ndi o ns h ch are ure oca des ned o n fo r his French l i g ti w i p ly l l, ig ly readers and h av n co m ara ve e n ere s fo r Am er cans. T ese ara , i g p ti ly littl i t t i h p — ra hs are in co nse u ence o m i e . TRANS LATO R. g p , q , tt d 226 AMERICA AND WORLD DOMINION

They entrust each operation to the sam e work men wh o never undertake anything but that . o f Thus they obtain a hand labour, incapable doing anything else, but extremely clever in its

an . specialty, d highly productive The work man knows and directs his machine so well that it might be considered part of himself; on the o ne o n hand, the brute strength ; the other, the i . s d intelligent will One astonishe , in visiting m certain A erican factories, to see hardly any workmen . One sees above all , machines, frames, tools ; it is the obedient material that works here ; man is here merely to guide it . We are already applying the principles o f this method ; o f the changes due to the war, all have not been o r to u disadvantage . In equipping ourselves to A produce munitions, we adopted the merican “ method : standardization interchangeable n parts ; productio in bulk . And in doing that we have grasped a chance o f rapid progress in o u r manufac ture . Our factories will be far better equipped when we learn how to make use of o u r natural forces . S Everyone knows that France is, after can inavia d , the richest country in Europe in f o r hydraulic power . The strength o u waters

- o f is about ten million horse power, which o i in hardly ne tenth is employed . This s an

228 AMERICA AND WORLD DOMINION

ro e es th e n . tral Eu p , li shortest road to the ocea

It is a Situ ation that we should tu rn to use . Th e firs t thing to be done is to devote th e capital that we formerly wasted in building foreign po rts to the improving and deepening of o ur o wn harbours in order to make them acces o n sible to ships f the greatest tonnage . The we should extend o u r ocean relations by esta b li hin s g new steamship lines that, in undertaking h c o f to t e arrying merchandise, will transport it o t its destination on the day agreed up n , withou o r use less calls . Finally we should extend u continental relations by the improvement of o u r rivers and canals ; always remembering that the direct route between America and central o o f s Europe lies through France . The p rt Pari is still only the port of a very large city ; it could o f a be made international importance . By closer connection with the Channel it would share in that ocean circulation of which th e province is to link local connections to world

connections . The war, in shifting the com m ercial currents, has even increased the value of ’ France s geographical position ; for, when the great European ports of the North Sea see the traffic o f the Atlantic Ocean threatened by the development o f the trafli c o f the Pacific Ocean and the advantage of shorter distances pass to AND FRANCE ! 229

the American ports, they will realize that

Marseilles, for trade with the Far East, holds

a great advantage over London , Antwerp, or o u r Hamburg . If great Mediterranean port is endowed with a navigable waterway to the north it should become a centre fo r the distribution o f merchandise in the west o f central Europe ; it will thus regain its rOle of storehouse that o f it was formerly a great element s fortune .

o f Our colonial empire is a part our patrimony . To hold it and enrich it the o ld methods will no

longer do . We must not hide from ourselves the fact that new ideas are fermenting in the f minds o the natives . In almost all the count ries Where the European dominates other races

— - Egypt, India, Indo China, Java, northern Africa— there is a kind of national conscience o f awakening, and calling for the rights the as natives opposed to the rights of the colonists . At times this awakening of conscience manifests o u r itself in revolt . In northern Africa, that during the war sent us such legions of soldiers o f w as well as an army workmen, e see the dawn o f an ambition fo r a more equal division of the

burden . Our national policy is planning a more liberal rule for the native population 239 AMERICA AND WORLD DOMINION

We are com ing to understand that the ex plo itation o f a country should no longer be

e o n f e o n us . bas d orc , but j tice It is our duty, in lands where they form the bulk o f th e po pula o tion , t treat the natives fairly, for they are the o f o u r in real producers wealth . It is not to terests to keep them in a state o f economic ln

ferio rit . y First, it will be a great deal better to emancipate them with good grace than to be

o so . obliged to d Afterwards, it will be better to d evelop their effi ciency by educating them to their work and raising their standards o f life in order that they may produce more com m o dities to sell to us and use more of the articles o that we wish to sell t them . The bonds be tween the colonies and the national life must be

drawn more closely by elevating the natives , even in the matter o f their moral and social

surroundings, to a point of economic civilization that will make them collaborators and com no patriots and longer subjects . S is uch the economic undertaking that, after the urgent and sacred task o f restoring o u r o o u devastated regions, is a solemn duty f r

country . If we succeed, we shall have shown for France that not all in this decay of Europe is

fatal , and that in the face of destiny we still

retain some liberty .

232 AMERICA AND WORLD DOMINION everywhere o n the globe the people s wh o once received the currents of life from Europe are turning to other centres of civilization . The unity o f the earth was realized upon a

European plan . New plans are roughly in th e o f making . Certain parts the earth will unite upo n an American plan ; others upon a Japanese no a plan . There will be longer unity, but plurality of influences . It is the dismembering o f t was the European Empire, of that empire hat founded upon exploitation . This economic evolution had become inevit able well before the war . What Europe gave to other countries o f her o wn mind and her n I n o w flesh was no longer completely hers . was fact, everything upon which her superiority

o f based, the means of exploiting human capital , producing wealth, and of transporting it from

o f land to land, became the common property all the world . The science that enabled m an kind to conquer nature is no longer exclusively ’ sh e Europe s, for has spread it broadcast . “ ” This commodity !knowledge!, says M . P . Val “ er ‘l y, was prepared in forms more palatable and easily handled ; it was distributed to a clien téle more and more numerous ; it became a co m

’ ” P . Va er . La cr se de l es rit La Nouvelle Revue Fra n a ise Au us t l y i p , c , g 1 1 1 , 9 9. p. 335. CONCLUSION 233 m o dity o f trade ; then it began to be imitated and ” produced everywhere . s o f cv Material civilization , method work, n o f eryth i g spreads . In this way a division labour is brought about ; a division between

Europe, North America, and the Japanese

Archipelago, between two groups of the white race and a group of the yellow race . There exist now several centres of human progress

o ne . instead of After the great discoveries, the world became Europeanized ; under the influence of younger peoples and continents progressing, l it tends to become regionalized . A new c assifi o f cation the earth, with Europe no longer leading

. is e u ilib alone, is in the making It a shift of q ’ o rium w rking to Europe s disadvantage . ’ IS ! Europe s reign at an end Must it be said, o f according to the original expression M . P . “ h Valery, that She will become what s e is in o f reality ; that is to say, a little cape the conti ” nent of Asia ! Fo r that it would be necessary for her to deteriorate to the point where sh e

to . counted only in proportion her area But, ’ o f space is not the measure a people s greatness . This greatness is based also o n the number of o n z men , their state of civili ation , on their mental progress, on their ability to dominate nature ; it is a m atter m ore of q uality than o f 234 AMERICA AND WORLD DOMINION

a wh quantity . Th t is y it may be said that if Europe no longer holds the sam e rank in th e a o f sh e sc le greatness, owes it to the genius of her soul to preserve an individual place in th e scale o f values .