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means of groups which are jealous of their privileges and determined to
preserve their autonomy； even if this should involve resistance to laws
decreed by the State； when these laws interfere in the internal affairs of a
group in ways not warranted by the public interest。 The glorification of the
State； and the doctrine that it is every citizen's duty to serve the State； are
radically against progress and against liberty。 The State； though at present
a source of much evil； is also a means to certain good things； and will be
needed so long as violent and destructive impulses remain common。 But it
is MERELY a means； and a means which needs to be very carefully and
sparingly used if it is not to do more harm than good。 It is not the State；
but the community； the worldwide community of all human beings present
and future； that we ought to serve。 And a good community does not spring
from the glory of the State； but from the unfettered development of
individuals： from happiness in daily life； from congenial work giving
opportunity for whatever constructiveness each man or woman may
possess； from free personal relations embodying love and taking away the
roots of envy in thwarted capacity from affection； and above all from the
joy of life and its expression in the spontaneous creations of art and
science。 It is these things that make an age or a nation worthy of existence；
and these things are not to be secured by bowing down before the State。 It
is the individual in whom all that is good must be realized； and the free
growth of the individual must be the supreme end of a political system
which is to re…fashion the world。
CHAPTER VI
INTERNATIONAL RELATIONS
THE main objects which should be served by international relations
may be taken to be two： First； the avoidance of wars； and； second； the
prevention of the oppression of weak nations by strong ones。 These two
objects do not by any means necessarily lead in the same direction； since
one of the easiest ways of securing the world's peace would be by a
combination of the most powerful States for the exploitation and
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oppression of the remainder。 This method； however； is not one which the
lover of liberty can favor。 We must keep account of both aims and not be
content with either alone。
One of the commonplaces of both Socialism and Anarchism is that all
modern wars are due to capitalism； and would cease if capitalism were
abolished。 This view； to my mind； is only a half…truth； the half that is true
is important； but the half that is untrue is perhaps equally important when
a fundamental reconstruction of society is being considered。
Socialist and Anarchist critics of existing society point； with perfect
truth； to certain capitalistic factors which promote war。 The first of these is
the desire of finance to find new fields of investment in undeveloped
countries。 Mr。 J。 A。 Hobson； an author who is by no means extreme in his
views； has well stated this point in his book on ‘‘The Evolution of Modern
Capitalism。''＇55＇ He says：
＇55＇ Walter Scott Publishing Company； 1906； p。 262。
The economic tap…root； the chief directing motive of all the modern
imperialistic expansion； is the pressure of capitalist industries for markets；
primarily markets for investment； secondarily markets for surplus products
of home industry。 Where the concentration of capital has gone furthest；
and where a rigorous protective system prevails； this pressure is
necessarily strongest。 Not merely do the trusts and other manufacturing
trades that restrict their output for the home market more urgently require
foreign markets； but they are also more anxious to secure protected
markets； and this can only be achieved by extending the area of political
rule。 This is the essential significance of the recent change in American
foreign policy as illustrated by the Spanish War； the Philippine annexation；
the Panama policy； and the new application of the Monroe doctrine to the
South American States。 South America is needed as a preferential market
for investment of trust ‘‘profits'' and surplus trust products： if in time these
states can be brought within a Zollverein under the suzerainty of the
United States； the financial area of operations receives a notable accession。
China as a field of railway enterprise and general industrial development
already begins to loom large in the eyes of foresighted American business
men； the growing trade in American cotton and other goods in that country
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will be a subordinate consideration to the expansion of the area for
American investments。 Diplomatic pressure； armed force； and； where
desirable； seizure of territory for political control； will be engineered by
the financial magnates who control the political destiny of America。 The
strong and expensive American navy now beginning to be built
incidentally serves the purpose of affording profitable contracts to the
shipbuilding and metal industries： its real meaning and use is to forward
the aggressive political policy imposed upon the nation by the economic
needs of the financial capitalists。
It should be clearly understood that this constant pressure to extend the
area of markets is not a necessary implication of all forms of organized
industry。 If competition was displaced by combinations of a genuinely
cooperative character in which the whole gain of improved economies
passed； either to the workers in wages； or to large bodies of investors in
dividends； the expansion of demand in the home markets would be so
great as to give full employment to the productive powers of concentrated
capital； and there would be no self…accumulating masses of profit
expressing themselves in new credit and demanding external employment。
It is the ‘‘monopoly'' profits of trusts and combines； taken either in
construction； financial operation； or industrial working； that form a
gathering fund of self…accumulating credit whose possession by the
financial class implies a contracted demand for commodities and a
correspondingly restricted employment for capital in American industries。
Within certain limits relief can be found by stimulation of the export trade
under cover of a high protective tariff which forbids all interference with
monopoly of the home markets。 But it is extremely difficult for trusts
adapted to the requirements of a profitable tied market at home to adjust
their methods of free competition in the world markets upon a profitable
basis of steady trading。 Moreover； such a mode of expansion is only
appropriate to certain manufacturing trusts： the owners of railroad；
financial and other trusts must look always more to foreign investments
for their surplus profits。 This ever…growing need for fresh fields of
investment for their profits is the great crux of the financial system； and
threatens to dominate the future economics and the politics of the great
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Republic。
The financial economy of American capitalism exhibits in more
dramatic shape a tendency common to the finance of all developed
industrial nations。 The large； easy flow of capital from Great Britain；
Germany； Austria； France； etc。； into South African or Australian mines；
into Egyptian bonds； or the precarious securities of South American
republics； attests the same general pressure which increases with every
development of financial machinery and the more profitable