[Editors Note: MEIN KAMPF's editorial preface warns,"... MEIN KAMPF is a propagandistic essay by a violent partisan. As such it often warps historical truth and sometimes ignores it completely. We have, therefore, felt it our duty to accompany the text with factual information which constitutes an extensive critique of the original. No American would like to assume responsibility for giving the public a text which, if not tested in the light of diligent inquiry, might convey the impression that Hitler was writing history rather than propaganda.. "

     Council on Foreign Relations William L. Langer (March 16, 1896-December 26, 1977) was an intelligence agent. In 1939, Langer and George Schuster, another intelligence agent and member of the Council on Foreign Relations would become editorial sponsors of the English version of MEIN KAMPF.

     Langer was as good at warping historical truth as Hitler.The following article appeared in the Council on Foreign Relations magazine Foreign Affairs. Langer explains, "The point I want to make... is it is easier to show that the military and official classes are a driving force behind the movement for [imperial] expansion than to show that a clique of nefarious bankers or industrialists is the determining factor."

Langer warps historical truth by understating the role played by the Rhodes' secret-society, a group of nefarious bankers and industrialists which were largely responsible for imperial expansion, and which would become the Council on Foreign Relations and Royal Institute of International Affairs. Langer, evidently didn't mind giving the public a text that might convey the impression that the author was writing history rather than propaganda, as long as the author was William L. Langer.

How could an eminent historian like Langer, who lived until 1977, fail to notice that the Council on Foreign Relations role in History is missing from the History books and University History courses? To learn more about:

          Langer, Schuster, and the Council on Foreign Relations role in bringing Hitler to power read the article 2X2L - Double Cross to Hell.

         The Rhodes secret society read Who's Running South Africa, and Milner's Kindergarten. ]



William L. Langer (1896 - ), while maintaining an eminent reputation as a historian at Harvard, has served with distinction in a variety of other capacities as well, including as Chief of Research and Analysis Branch, Office of Strategic Services, 1942-45; assistant director of the Central Intelligence Agency, 1950-52; end director of Harvard's Russian Research Center and the Center for Middle Eastern Studies, since 1954. Langer's international historical reputation was established in the early 1930's with two companion volumes on nineteenth-century diplomacy, European Alliances and Alignments, 1871-2890 and The Diplomacy of Imperialism, 1890-I902, of which the essay below is a widely read byproduct. A middle-of-the-roader In historical interpretation and a historian of vast erudition, Langer is well suited both by temperament and scholarship to evaluate the different theories of nineteenth-century European expansion.

From William L, Langer, "A Critique of Imperialism," Foreign Affairs, XIV (October, 1935), 102-115, October, 1935. Copyright by the Council on Foreign Relations, Inc., New York

It is now roughly fifty years since the beginning of that great outburst of expansive activity on the part of the Great Powers of Europe which we have come to call imperialism. And it is about a generation since I. A. Hobson published his "Imperialism: a Study," a book which has served as the starting point for most later discussions and which has proved a perennial inspiration for writers of the most diverse schools. A reappraisal of it is therefore decidedly in order. The wonder is that it has not been undertaken sooner.

Since before the outbreak of the World War the theoretical writing on imperialism has been very largely monopolized by the so-called Neo-Marxians, that is, by those who, following in the footsteps of the master, have carried on his historical analysis from the critique of capitalism to the study of this further phase, imperialism, the significance of which Marx himself did not appreciate and the very existence of which he barely adumbrated. The Neo-Marxians, beginning with Rudolf Hilferding and Rosa Luxemburg, have by this time elaborated a complete theory, which has recently been expounded in several ponderous German works. The theory hinges upon the idea of the accumulation of capital, its adherents holding that imperialism is nothing more nor less than the last stage in the development of capitalism the stage in which the surplus capital resulting from the system of production is obliged by ever diminishing returns at home to seek new fields for investment abroad. When this surplus capital has transformed the whole world and remade even the most backward areas in the image of capitalism, the whole economic-social system will inevitably die of congestion.

That the classical writers of the socialistic school derived this basic idea from Hobson's book there can be no doubt. Lenin himself admitted, in his "Imperialism, the Last Stage of Capitalism," that Hobson gave a very good and accurate description of the fundamental economic and political traits of imperialism," and that Hobson and Hilferding had said the essentials on the subject. This, then, has been the most fruitful contribution of Hobson's essay. When we examine his ideas on this subject we refer indirectly to the larger part of the writing on imperialism since his day.

As a matter of pure economic theory it is most difficult to break down the logic of the accumulation theory. It is a fact that since the middle of the last century certain countries - first England, then France, Germany and the United States - have exported large amounts of capital, and that the financial returns from these investments in many instances came to overshadow completely the income derived by the lending countries from foreign trade. It is also indisputable that industry embarked upon the road to concentration and monopoly, that increased efficiency in production led to larger profits and to the amassing of ever greater surpluses of capital. We must recognize further that, as a general rule, the return from investments abroad was distinctly above the return on reinvestment in home industry. In other words, the postulates of the socialist theory undoubtedly existed. There is no mentionable reason why the development of the capitalist system should not have had the results attributed to it.

But, as it happens, the actual course of history refutes the thesis. The course of British investment abroad shows that there was a very considerable export of capital before 1875, that is, during the climax of anti-imperialism in England. Between 1875 and 1895, while the tide of imperialism was coming to the full, there was a marked falling off of foreign investment. Capital export was then resumed on a large scale in the years before the war, though England was, in this period, already somewhat disillusioned by the outcome of the South African adventure and rather inclined to be skeptical about imperialism. Similar observations hold true of the United States. If the promulgation of the Monroe Doctrine was an act of imperialism, where was the export of capital which ought to have been its condition? Let us concede that the war with Spain was an imperialist episode, At that time the United States was still a debtor nation, importing rather than exporting capital. In Russia, too, the heyday of imperialism coincided with a period of heavy borrowing rather than of lending.

There is this further objection to be raised against the view of Hobson and his Neo-Marxian followers, that the export of capital seems to have little direct connection with territorial expansion. France, before the war, had plenty of capital to export, and some of her earliest and most vigorous imperialists, like Jules Ferry, declared that she required colonies in order to have adequate fields for the placement of this capital. But when France had secured colonies, she did not send her capital to them. By far the larger part of her exported funds went to Russia, Rumania, Spain and Portugal, Egypt and the Ottoman Empire. In 1902 only two or two and a half billion francs out of a total foreign investment of some 30 or 35 billion francs was placed in the colonies. In 1913 Britain had more money invested in the United States than in any colony or other foreign country. Less than half of her total export of capital had been to other parts of the Empire. The United States put more capital into the development of Canada than did England; and when, after the war, the United States became a great creditor nation, 43 percent of her investment was in Latin America, 27 percent in Canada and Newfoundland, and 22 percent in European countries. What she sent to her colonies was insignificant. Or let us take Germany, which in 1914 had about 25 billion marks placed abroad. Of this total only three percent was invested in Asia and Africa, and of that three percent only a small part in her colonies. Prewar Russia was a great imperialist power, but Russia had to borrow from France the money invested in her Far Eastern projects. In our own day two of the most outspokenly imperialist powers, Japan and Italy, are both nations poor in capital. Whatever the urge that drives them to expansion, it cannot be the need for the export of capital.

At the height of the Imperialist tide, let us say from 1885 to 1914, there was much less talk among the advocates of expansion about the need for foreign investment fields than about the need for new markets and for the safeguarding of markets from the tariff restrictions of competitors. It is certain that in the opinion of contemporaries that was the mainspring of the whole movement. But this economic explanation, like the other, has not been borne out by the actual developments. Very few colonies have done even half of their trading with the mother country and many have done less. Taken in the large it can be proved statistically that the colonial trade has always played a relatively unimportant part in the total foreign commerce of the great industrial nations. These nations have always been each other's best customers and no amount of rivalry and competition has prevented their trade from following, not the flag, but the price-list. The position of Canada within the British Empire did not prevent her from levying tariffs against British goods, nor from developing exceedingly close economic relations with the United States. In the prewar period German commerce with the British possessions was expanding at a relatively higher rate than was Britain's.

If one must have an economic Interpretation of imperialism, one will probably find its historical evolution to have been something like this: In the days of England's industrial preeminence she was, by the very nature of the case, interested free trade. In the balmiest days of Cobdenism she exported manufactured goods to the four corners of the earth, but she exported also machinery and other producers' goods, thereby preparing the way for the industrialization of the continental nations and latter of other regions of the world. In order to protect then infant industries from British competition, these new industrial Powers threw over the teachings of the Manchester school and began to set up tariffs. The result was that the national markets were set aside, to a large extent, for home industry. British trade was driven to seek new markets, where the process was repeated. But the introduction of protective tariffs had this further effect, that it made possible the organization of cartels and trusts, that is, the concentration of industry, the increase of production and the lowering of costs. Surplus goods and low prices caused the other Industrial Powers likewise to look abroad for additional markets, and, while this development was taking place, technological improvements were making transportation and communication safer and more expeditious. The exploration of Africa at that time was probably a pure coincidence, but it contributed to the movement toward trade and expansion and the growth of a world market. Fear that the newly opened areas of the world might be taken over by others and then enclosed in tariff walls led directly to the scramble for territory in Asia and Africa.

The socialist writers would have us believe that concentration in industry made for monopoly and that the banks, undergoing the same process of evolution, were, through their connection with industry, enabled to take over control of the whole capitalist system. They were the repositories of the surplus capital accumulated by a monopolistic system and they were therefore the prime movers in the drive for imperial expansion, their problem being to find fields for the investment of capital. This is an argument which does violence to the faces as they appear historically. The socialist writers almost to a man argue chiefly from the example of Germany, where cartelization came early and where the concentration of banking and the control of industry by the banks went further than in most countries. But even in Germany the movement towards overseas expansion came before the growth of monopoly and the amalgamation of the banks. In England, the imperialist country par excellence, there was no obvious connection between the two phenomena. The trust movement came late and never went as far as in Germany. The same was true of the consolidation of the banking system. One of the perennial complaints m England was the lack of proper coordination between the banks and industry. To a certain extent the English exported capital because the machinery for foreign investment was better than the organization for home investment. In the United States, to be sure, there was already a pronounced concentration of industry when the great outburst of imperialism came in the last years of the past century, but in general the trust movement ran parallel to the movement for territorial expansion. In any event, it would be hard to disprove the contention that the growth of world trade and the world market brought on the tendency toward better organization and concentration in industry, rather than the reverse, It is obvious not only that one large unit can manufacture more cheaply than many small ones, but that it can act more efficiently in competition with others in the world market.

But this much is clear--that territorial control of extra-European territory solved neither the trade problem nor the question of surplus capital. The white colonies, which were the best customers, followed their own economic interests and not even tariff restrictions could prevent them from doing so. In the backward, colored, tropical colonies, which could be more easily controlled and exploited, it proved difficult to develop a market, because of the low purchasing power of the natives. The question of raw materials, of which so much has always been made, also remained open. The great industrial countries got but a fraction of their raw materials from the colonies, and the colonies themselves continued to show a tendency to sell their products in the best market. As for the export of capital, that continued to flow in an ever broader stream, not because the opportunities for investment at home were exhausted, but because the return from foreign investment was apt to be better and because, in many cases, foreign investment was the easier course. Capital owed from the great industrial countries of Europe, but It did not flow to their colonies. The United States and Canada, Latin America (especially the Argentine) and even old countries like Austria-Hungary and Russia, got the bulk of it. The export of capital necessarily took the form of the extension of credit, which in turn implied the transfer of goods. Not infrequently the granting of loans was made conditional on trade concessions by the borrowing country. So we come back to the question of trade and tariffs. In a sense the export of capital was nothing but a device to stimulate trade and to circumvent tariff barriers, which brings us back to the coincidence of the movement for protection and the movement toward imperialism.

This may seem like an oversimplified explanation and it probably is. Some may argue that imperialism is more than a movement toward territorial expansion and that financial imperialism in particular lays the iron hand of control on many countries supposedly independent. But if you try to divorce imperialism from territorial control you will get nowhere. Practically all writers on the subject have been driven to the conclusion that the problem cannot be handled at all unless you restrict it in this way. When Hobson wrote on imperialism, he had reference to the great spectacle of a few Powers taking over tremendous areas in Africa and Asia. Imperialism is, in a sense, synonymous with the appropriation by the western nations of the largest part of the rest of the world. If you take It to be anything else, you will soon be lost in nebulous concepts and bloodless abstractions. If imperialism is to mean any vague interference of traders and bankers in the affairs of other countries, you may as well extend it to cover any form of influence. You will have to admit cultural imperialism, religious imperialism, and what not. Personally I prefer to stick by a measurable, manageable concept.

But even though Hobson's idea, that imperialism "is the endeavor of the great controllers of industry to broaden the channel for the flow of their surplus wealth by seeking foreign markets and foreign investments to take off the goods and capital they cannot sell or use at home," proved to be the most stimulating and fertile of his arguments, he had the very correct idea that imperialism was also a "medley of aims and feelings." He had many other contributory explanations of the phenomenon. For example, he was keenly aware of the relationship between democracy and imperialism. The enfranchisement of the working classes and the introduction of free education had brought the rank and file of the population into the political arena. One result of this epoch-making change was the rise of the so-called yellow press, which catered to the common man's love of excitement and sensationalism.

Northcliffe was one of the first to sense the value of imperialism as a "talking point." Colonial adventure and far-away conflict satisfied the craving for excitement of the industrial and white-collar classes which had to find some outlet for their "spectatorial lust." The upper crust of the working class, as Lenin admitted, was easily converted to the teaching of imperialism and took pride in the extension of empire.

No doubt this aspect of the problem is important. The mechanization of humanity in an industrial society is a phenomenon with which we have become all too familiar, and every thoughtful person now recognizes the tremendous dangers inherent in the powers which the demagogue can exercise through the press, the motion picture and the radio. In Hobson's day propaganda was still carried on primarily through the press, but later developments were foreshadowed in the activities of Northcliffe or a Hearst. Hobson himself was able to show how, during the war in South Africa, the English press took its information from the South African press, which had been brought very largely under the control of Rhodes and his associates. Even at that time Hobson and others were pointing out how imperialistic capital was influencing not only the press, but the pulpit and the universities. Indeed, Hobson went so far as to claim that the great inert mass of the population, who saw the tangled maze of world movements through dim and bewildered eyes, were the inevitable dupes of able, organized interests who could lure or scare or drive them into any convenient course.

Recognizing as we do that control of the public mind involves the most urgent political problems of the day, it is nevertheless important to point out that there is nothing inexorable about the connection of propaganda and imperialism. Even if you admit that a generation ago moneyed interests believed that imperialism was to their advantage, that these interests exercised a far reaching control over public opinion, and that they used this control to dupe the common man into support of imperial ventures, it is obvious that at some other time these same interests might have different ideas with regard to their own welfare, just as it is evident that public opinion may be controlled by some other agency the modern dictator, for example.

But the same thing is not true of another influence upon which Hobson laid great stress, namely the biological conception of politics and international relations. During the last years of the nineteen century the ideas of "social Darwinism, as it was called, carried everything before them. Darwin's catchwords -- the struggle for existence and the survival of the fittest -- which he himself always refused to apply to the social organism, were snapped up by others who were less scrupulous, and soon became an integral part of popular and even official thought on foreign affairs. It not only served to justify the ruthless treatment of the "backward" races and the carving up in spe of the Portuguese, Spanish, Ottoman and Chinese Empires and of other "dying nations," as Lord Salisbury called them, but it put the necessary imprimatur on the ideas of conflict between the great imperialistic Powers themselves, and supplied a divine sanction for expansion. It was currently believed, in the days of exuberant imperialism, that the world would soon be the preserve of the great states -- the British, the American and the Russian -- and it was deduced from this belief that survival in the struggle for existence was in itself adequate evidence of superiority and supernatural appointment. The British therefore looked upon their empire as a work of the divine will, while the Americans and Russians were filled with the idea of a manifest destiny. It will be at once apparent that glorification of war and joy in the conflict was intimately connected with the evolutionary mentality. Hobson, the most determined of anti-imperialists, was finally driven to define the whole movement as "a depraved choice of national life, imposed by self-seeking interests which appeal to the lusts of quantitative acquisitiveness and of forceful domination surviving in a nation from early centuries of animal struggle for existence."[1]

The last phrases of this quotation will serve to lead us to the consideration of what has proved to be another fruitful thought of Hobson. He speaks, in one place, of imperialism as a sociological atavism, a remnant of the roving instinct, just as hunting and sport are leftovers of the physical struggle for existence. This idea of the roving instinct has made but little appeal to later writers, but the basic interpretation of imperialism as an atavism underlies the ingenious and highly intelligent essay of Joseph Schumpeter, "Zur Soziologie der Imperialismen," the only work from the bourgeois side which has had anything like the influence exerted by the writers of the socialist school. Schumpeter, who is an eminent economist, worked out a most convincing argument to prove that imperialism has nothing to do with capitalism, and that it is certainly not a development of capitalism. Capitalism, he holds, is by nature opposed to expansion, war, armaments and professional militarism, and imperialism is nothing but an atavism, of those elements of the social structure which cannot be explained from existing conditions, but only from the conditions of the past. It is, in other words, a hang-over from a preceding economic order. Imperialism antedates capitalism, going back at least to the time of the Assurance and Egyptians. It is according to Schumpeter, the disposition of a state to forceful expansion without any special object and without a definable limit. Conquests desired not so much because of the advantages, which are often questionable, but merely for the sake of conquest, success and activity.

Schumpeter's theory is in some ways extravagant, but it has served as the starting point for some very interesting speculation, especially among German scholars of the liberal persuasion. It is now fairly clear, I think, that the Neo-Marxian critics paid far too little attention to the imponderable, psychological ingredients of imperialism. The movement may, with much exaggeration, be interpreted not as an atavism, as a remnant of the days of absolute monarchy and mercantilism, it was to the interest of the prince to increase his territory and the number subjects, but also as an aberration, to be classed with the extravagances of nationalism. Just as nationalism can drive individuals to the point of sacrificing their lives for the purposes, of the state, so imperialism has driven them to the exertions and the extreme sacrifice, though the stake might be only some little known and at bottom valueless part of Africa or Asia. In the days when communication and economic interdependence made the world one in so many ways men still interpret international relations in terms of the old cabinet policies, they are still swayed by outmoded, feudalistic ideas of honor and prestige.

In a sense, then, you can say that there is, in every people, a certain indefinable national energy, which may find expression in a variety of ways. As a general rule great domestic crises and outbursts of expansion follow each other in the history of the world. In many of the continental countries of Europe, and for that matter in our own country, great internal problems were fought out in the period before 1870. The energies which, In Germany and Italy, went into the victor of the national cause, soon began to protect themselves beyond the frontiers.

While the continental nations were settling great issues between them, England sat a like a bloated Quaker, rubbing his hands at the roaring trade" he was carrying on. In those days the British cared very little for their empire. Many of them would have felt relieved if the colonies had broken away without a fuss. But, says Egerton, the best-known historian of British colonial policy, when the Germans and the French began to show an interest in colonial expansion, then the British began to think that there must be some value as yet un discovered in the colonies. They not only started a movement to bind the colonies and the mother country more closely together, but they stretched out their hands for more. In the end they, who had the largest empire to begin with, got easily the lion's share of the yet unappropriated parts of the world. Some thought they were engaged in the fulfillment of a divine mission to abolish slavery, to spread the gospel, to clothe and educate the heathen. Others thought they were protecting the new markets from dangerous competitors, securing their supply of raw materials, or finding new fields for investment. But underlying the whole imperial outlook there was certainly more than a little misapprehension of economics, much self-delusion and self righteousness, much misapplication of evolutionary teaching and above all much of the hoary tradition of honor, prestige, power and even plain combativeness. Imperialism always carries with it the connotation of the Imperator and of the tradition of the rule. It is bound up with conscious or subconscious ideas of force, of brutality, of ruthlessness. It was these traits and tendencies that were so vividly expressed in he poetry and stories of Kipling, and it was his almost uncanny ability to sense the emotions of his time and people that made him the greatest apostle of Imperialism.

We shall not go far wrong, then, if we stress the psychological and political factors in imperialism as well as its economic and intellectual elements. It was, of course, connected closely with the great changes in the social structure of the western world, but it was also a projection of nationalism beyond the boundaries of Europe, a projection on a world scale of the time-honored struggle for power and for a balance of power as it had existed on the Continent for centuries. The most casual perusal of the literature of imperialism will reveal the continued potency of these atavistic motives. In a recent number of this very journal a leading Italian diplomat, explaining the policy of the Duce, recurred again and again to the failure of the other countries to appreciate the fact that Italy is a young and active country "animated by new spiritual values." By the much-decried Corfu episode of 1923, Mussolini, to give a concrete example, "called Europe's attention to the respect due to the new Italy and to the reawakened energies of the Italian people." In the present Ethiopian crisis there is not very much suggestion of economic or civilizing motives on the part of the Italians; rather the Duce holds before his followers the prospect of revenge for the defeat at Adua (reminiscent of Britain's thirst to avenge Gordon) and promises them a glorious future. Not long ago he spoke to a group of veterans among the ruins of ancient Rome and told them that every stone surrounding them should remind them that Rome once dominated the world by the wisdom of her rule and the might of her arms and that "nothing forbids us to believe that what was our destiny yesterday may again become our destiny tomorrow." In much the same spirit an eminent Japanese statesman expressed himself recently in FOREIGN AFFAIRS: "As soon as Meiji Restoration lifted the ban on foreign intercourse, the long-pent-up energy of our race was released, and with fresh outlook and enthusiasm the nation has made swift progress. When you know this historical background and understand this overflowing vitality of our race, you will see the impossibility of compelling us to stay still within the confines of our little island home. We are destined to grow and expand overseas." It is the same emphasis given by the Italian diplomat to the need for an outlet for surplus energies.

It is, of course, true that both Italy and Japan have a serious population problem and that Japan, at any rate, has an economic argument to back her imperialistic enterprises in Manchuria and China. But it has been shown long ago that the acquisition of new territory has no direct bearing on the population problem and that emigrants go where their interest calls them, not where their governments would like to have them go. As for Japan's economic needs, it may at least be questioned whether she would not be better off if she avoided political and military commitments in China. Her cheap goods have made very extensive inroads in all the markets of the world, and her eventual conquest of the whole Chinese market is perhaps inevitable. Far from having gained much from her recent policy, she has had to face boycotts and other forms of hostility. In this case, certainly, one might debate whether the game is worth the candle.

Baron Wakatsuki [2],whose statement is quoted above, was careful to avoid mention of a factor in Japanese imperialism which, as every well-informed person knows, is probably the real explanation of Japanese policy. After the Meiji Restoration it was more the exuberance and bellicosity of the military caste in Japan than the enthusiasm of the country at large which determined the policy of the government. If one reads modern Japanese history aright one will find that from 1870 onward the military classes were constantly pressing upon the government for action in Korea. Only with the greatest difficulty did the civil authorities stave off this pressure. In 1894 the Tokyo government more or less rushed into the war with China in order to avoid a dangerous domestic crisis. In other words, the ideas of honor and patriotism were appealed to in order to divert attention from the parliamentary conflict which was then raging. After the Japanese victory it was the military men who, against the better judgment of men like Count Ito and Baron Mutsu, insisted on the cession of the Liaotung Peninsula, which netted Japan nothing but the intervention of Russia, Germany, and France. We need not pursue this subject in all its minute details. The point I want to make is that in the case of Japan, as in the case of many other countries, it is easier to show that the military and official classes are a driving force behind the movement for expansion than to show that a clique of nefarious bankers or industrialists is the determining factor. Business interests may have an interest in the acquisition of territory, or they may not. But military and official classes almost always have. War is, for the soldiers, a profession, and it is no mere chance that war and imperialism are so commonly lumped together. For officials, expansion means new territories to govern and new jobs to be filled.

Hobson, with his pronouncedly economic approach to the problem, held that "the struggle for markets, the greater eagerness of producers to sell than of consumers to buy, is the crowning proof of a false economy of distribution, of which imperialism is the fruit. The remedy, he thought, lay in "social reform." "There is no necessity to open up new foreign markets," he maintained; "the home markets are capable of indefinite expansion." These contentions sound familiar enough in this day of world depression. Whether the home markets are capable of indefinite expansion is a question on which the economic internationalists and the advocates of autarchy hold different opinions. The interesting thing for us to consider, however, is the fact that movements towards autarchy should have developed at all and that so much stress should now be laid upon the problems of the distribution of wealth, of building up purchasing power, and, in general, of domestic social reform. The current of activity has shifted distinctly from expansion to revolution, peaceful or violent. Perhaps it may be argued from this that the socialist thesis regarding imperialism is now being proved; that capitalism has already transformed the backward areas to such an extent that the markets are ruined, and that the capitalist system is rapidly choking. This view might be acceptable if it were not for the fact that the colonies and backward areas are still very far from developed and if it were not for the further fact that before the depression the colonial trade with the older countries was steadily increasing. In the last five years, to be sure, international commerce has sunk to an unbelievably low point, but the difficulty has been chiefly with the trade between the great industrial Powers themselves. It is quite conceivable that the crisis is primarily due to the special situation arising from the World War and that the root of the trouble lies in the impossibility of fitting tremendous international payments into the existing framework of trade relations, The fantastic tariff barriers which have been set up on all sides have simply aggravated a situation which has been developing since the teachings of Cobdenism first began to fall into disrepute.

But whatever the true explanation of our present difficulties, very few voices are raised in favor of a solution by the methods of imperialism. Indeed, the movement toward autarchy is in a way a negation of imperialism. Economically we have been disillusioned about Imperialism. We have learned that colonies do not pay. Britain's expenditure for the defense of the empire alone is enormous, yet she has never yet devised a method by which anything like a commensurate return could be secured, The French military outlay on the colonies in 1913 was more than five hundred million francs, at a time when the entire trade of France with her colonies came to hardly three times that figure. Similar statistics could be quoted for Germany, and it is a well-known fact that the colonies of both Spain and Portugal were much more of a liability than an asset.

In the same way it has turned out that foreign investments of capital are not all that they were expected to be. The higher returns from colonial investments have often been counterbalanced by the greater insecurity that went with them. European countries had more than one opportunity to learn the lesson even before the war. We need only recall the Argentine fiasco of 1890 and the wildcat Kaffir Boom in South African securities in 1895 as classical examples of what might happen. But of course all these instances are completely dwarfed by the experiences of the postwar-or perhaps better, the pre-depression decade. Foreign investments have caused acute international tensions and have resulted in phenomena like American dollar diplomacy In Latin America. The expenditure has been immense and what has been salvaged has been unimpressive enough. The nations of the world are still on the lookout for markets, as they have been for centuries, but the peoples of the world have become more or less convinced that the markets, if they can be got at all, can be got only by the offering of better and cheaper goods and not by occupation, political control or forceful exploitation. As for foreign investments, no one has any stomach for them and most of those fortunate enough to have money to invest would be glad to learn of a Safe investment at home. The assurance of needed sources for raw materials is as much if not more of a problem today than it was a generation ago, but there is little sense in taking over the expensive administration of tropical or other territory to guarantee a source of raw materials, because somehow or other it usually turns out that the other fellow has the materials that you want, and it has long since become obvious that the idea of controlling sources of all the materials you may need is a snare and a delusion...

[1]In the last paragraph of his Imperialism. A Study  <return>

[2]Baron Wakatsuki was premier of Japan, 1926 <return>