CHAPTER XIV

AN ANTIDOTE TO IMPERIALISM

A nation, though economically complete, in the sense that it could, if

it desired, maintain its population upon its own resources may yet be

lured into an imperialistic and warlike policy. Just as political

disintegration leads to internal conflicts, disorders and finally

foreign intervention, so an economic disequilibrium, by placing the

interests of certain classes within the arena of international friction

may evoke a struggle, which can have no other issue than war.

This is exactly the effect, for example, of a gross inequality of

wealth and income. Such an inequality means that multi-millionaires,

gaining far more than they can spend, are impelled to invest their

surplus funds in outside ventures. The capital that can be profitably

absorbed by industries manufacturing for home consumption depends upon

the ability of the population to purchase food, clothes, houses,

furniture, watches, and automobiles. If the population cannot or will

not increase purchases at a rate commensurate with the increase of

national savings, a vast capital must either be diverted to

manufacturing for the export trade or must itself be exported. Neither

of these deflections is in itself bad; in moderation, both are good.

There is, however, a certain degree of intensity of competition for

foreign trade and investment which means industrial war and the danger

of military war. The wider the interval between {187} national savings

and national consumption, the more powerful and dangerous is this

expulsive tendency of capital.

Such a tendency may arise in a country in which, despite an equality in

wealth, the national savings are excessive, but the greatest danger is

in countries in which the returns to capital, rent and business

enterprise are large and the returns to labour small. The big profits

come from the manufacture of articles of common use, and the home

demand for such articles is limited by the consuming capacity of poor

men. The surplus capital must therefore find a vent, and the larger

this surplus capital, the more venturesome it grows and the more

insistently it demands that the state back up its enterprises.

We may trace this development in the recent history of Great Britain.

Though British wages rose during the half century ending in 1900, the

consuming capacity of the masses was not sufficient to employ the

rapidly expanding capital. British capital went everywhere; among

other places to the Transvaal. There was more money in "Kaffirs" than

in making socks for the British artisan, and if international friction

resulted from this capital export, it was all the better, or at least

none the worse, for the financiers. The men who controlled the Rand

mines knew when shares were to rise and when they were to fall, and

profited by their knowledge. Nor were war preparations

disadvantageous. An extra Dreadnought helped British capital more than

would the expenditure of the cost of such a vessel in increasing the

wages of school teachers. Yet it was because school teachers and other

wage-earners in Britain, as in many other countries, were poorly paid,

that the accumulating capital of the nations was forced increasingly

into foreign lands and into imperialistic ventures. Morocco, Egypt,

Korea and Manchuria offered larger rewards than did the highly {188}

competitive businesses which depended on the custom of French, English

and Russian peasants or wage-earners. The inequality in the

distribution of wealth proved to be a stimulus to imperialistic

competition.

Those who are satisfied with things as they are never tire of speaking

of this distribution of wealth as an immutable thing, protected by

economic laws more potent than legislative enactments. They insist

that law cannot control the expansion of capital or the distribution of

wealth. But our whole system of distribution is based on law. If

England had not preserved entail and primogeniture, if France had not

decreed the equal inheritance by all children, if the United States had

not adopted a liberal land policy, the distribution of wealth in each

of these countries would have been far different. Within wide limits

the economic course of the nation can be controlled.

Such a peaceful programme for creating a better distribution of wealth,

a wider consumption and therefore a larger employment of capital in

industries for home consumption has the added advantage that it is a

policy in complete harmony with the interests of great sections of the

population. The average man desires peace feebly; he does not think of

it day and night and is not willing to fight for it. But he is willing

to fight for things which actually contribute more towards peace than

do arbitration treaties. The demand of the workman for higher wages,

shorter hours and better conditions is, whether the wage-earner knows

it or not, a demand for international peace. Progressive income and

inheritance taxes, the regulation of railroads and industrial

corporations, the conservation of natural resources are all opposed to

an imperialistic policy leading to war. In short the entire {189}

democratic struggle against the narrow concentration of wealth, by

increasing the demand for capital within the country, tends to preserve

us from a meddlesome, domineering, dangerous imperialism.

To increase the consumption of the masses of our people is easier for

us than for Germany or England because of our wider economic base, our

bulk, territory and immense potential wealth. To increase wages, we

need not, like the crowded countries of western Europe, acquire new

resources beyond our borders. We already have a place in the sun, and

out of our waste can extract more than can Germany or France out of

colonies for which they must fight. It is easier for us to increase

industrial rewards because we now waste more in our unregulated

scramble for wealth than Germany gains in her scientific, economical

use of her smaller resources. Compared to industrial Germany we are a

spendthrift nation. Had Germany our resources and numbers, she would

be peaceful and rich; were we obliged to live on her narrow territory,

we should be bellicose and impoverished.

Not that Germany has solved the whole problem; all she has learned is

to be efficient. Her early poverty taught her to make a little go a

great way, to combine the peasant's industry and parsimony with the

far-flung plans of the business organiser. So capably has she done

this that living conditions have improved as her population has

increased. Where all nations have as yet failed, however, is in the

distribution of the industrial product. In the end a gross inequality

of wealth and income, as we find it in all developed countries, is

another form of waste. It means fewer economic satisfactions, less

true value. A few billion dollars added to the income of twenty

thousand families is of less utility than when distributed among {190}

twenty millions. Inequality of wealth, moreover, involves low wages,

over-work, child labour, insecurity, unemployment, preventable disease,

premature death, in short, a bad economy. It also involves an

inability on the part of the masses to consume the product of

industries in which the wealthy invest.

The economic inequality in the United States does not as yet present

the same imminent dangers as in certain European countries. Wealth, it

is true, is most unevenly distributed,[1] but while incomes are also

very unequal,[2] the rate of wages[3] and the returns to farmers and to

small business men are far greater than in the industrial countries of

Europe. Our statistics of consumption reveal an immense and constantly

increasing demand for all kinds of articles and services. As compared

with England or Germany the distribution of income in the United States

permits a high standard of living and creates a vast demand for the use

of capital in industries for home consumption.

There is, however, a danger that these conditions may grow worse. An

unrestricted growth of the population {191} either through natural

increase or immigration would tend to increase monopoly profits and

reduce real wages, thus accentuating the inequality of distribution and

forcing an enormous surplus capital to be devoted to foreign trade and

foreign investments. On the other hand there is an opportunity to

improve our conditions. There is still a wide margin for a real

increase in wages, for shorter hours, better labour conditions,

improved education, improved recreational facilities, and in general a

deflection of a large part of the national dividend to the improvement

of the conditions of life of the whole population.

For a long time Americans ignored the necessity of any such social

policy. We were almost as wasteful of our human as of our physical

resources. From birth to burial we regarded our men and women as human

accidents, who died or lived, languished or grew great, as

circumstances decreed. Though in recent decades we have approached to

a keener sense of collective national responsibility, we still suffer

not only from a high infantile death-rate but also from a disastrous

neglect of children who survive. Our educational system is still

rudimentary, conventional, and ill adapted to our economic needs.

There is little industrial education, less vocational guidance, and

almost no care at all for the adjustment of the educational system to

the later needs of the children. Millions of children, who in the next

generation are to decide questions of war or peace, are growing up,

anemic, underfed, intellectually sterile, and without morale, firmness

or strength. Our slums, our low wages, our evil conditions in mines

and sweat-shops unite to give us the tramp, the corner loafer, the

exploiter of vice, the criminal. Such conditions are in every sense

dangerous to our peace as also to our well-being. They mean a low

economic efficiency, a restricted consumption, a barrier to the proper

capitalisation of our country. {192} Apart from this, the corruption

arising out of such conditions menaces our national character. We hear

praise to-day of the iron discipline of the German army, but we hear

less of the discipline of the German school, factory system, social

legislation, trade-union. If millions of Americans are shiftless,

shuffling, undisciplined and only vaguely and crudely patriotic, the

cause is to be found in our neglect of the lessons of modern social

life.

To state these conditions of human waste and exploitation is to suggest

the remedies. All such remedies cost money, hundreds of millions.

There is no progress without higher taxes, better spent, and we shall

not advance except by the path of a vast increase in collective

expenditure for common purposes. In the end, of course, such

improvements will pay for themselves. If we spent fifty millions a

year upon agricultural education, we could easily reimburse ourselves

out of our increased production. We spend over five hundred million

dollars annually upon public elementary and secondary education, a sum

much greater than that spent in any other country. If, however, we

could efficiently organise our school system, we could more profitably

spend three times as much. There are many other chances for the

ultimately profitable investment of our capital upon agencies which

make for a more intelligent, active, industrious and self-disciplined

population.

There is an added use to which such higher taxation may be put. By

means of a larger collective expenditure, a more equal distribution of

income and a wider consumption by the masses may be secured. What can

be attained by industrial action, such as strikes, can be effected in

even greater measure through fiscal action. Taxes, to redress

inequality, should be sharply graduated. By taxes on unearned

increment and monopoly profits, by the {193} regulation of the wages,

prices, dividends and profits of great corporations, we could

increasingly divert large sums to wage-earners, consumers, stockholders

and to the nation as a whole. By increasing the consumption both of

individuals and of the national unit, such taxation would give an

impetus to home industrial development. If this deflection of wealth

from the rich caused a temporary lack of capital, the resulting rise in

interest rates would stimulate saving and repair the evil.

Such a progress would mean not only an advance towards a fuller, freer

and more active life for the population but also a diminution of the

impulse to imperialistic adventure and war. An increased income for

the men at the bottom creates a broader economic base, a less top-heavy

structure, with smaller necessity for support from without. It

increases our home market, widens the home investment field and reduces

the intense sharpness of competition for the profits of the backward

countries. It affords the opportunity to be disinterested in foreign

policy and to work for the promotion of international peace. Equally

important is its effect upon the national psychology. It gives the

people a stake at home. A device, familiar to certain statesmen, is to

divert the people's minds from domestic affairs by arousing animosity

against the foreigner. Is it impossible to allay hatred of the

foreigner by concentrating interest on home concerns?

Psychologically this process is nothing but immunisation. A disease

may be resisted by the absence in the blood and tissues of substances

needed by the bacteria for their growth and increase. As we may

immunise the body, so we may immunise the mind of individual or nation.

We protect our children from error, not by forbidding the publication

of false doctrine but by creating in the child's mind a true knowledge

and a faculty of {194} criticism. Similarly to guard against the

infection of the war spirit a public opinion can be created in which

war bacteria will find no nutriment.

To immunise society is not, however, a mere juggler's trick; we cannot

ask Washington to legislate us into immunity. What is needed is a

potent social change, arousing enthusiasms and antagonisms, and

involving a new attitude towards business and politics, freedom and

discipline; a new efficiency; a new balance of power within society; a

new attitude towards the state; a new value placed upon the life of

each individual. Such a change involves a patriotism so exigent that

the nation will resent poverty in Fall River or Bethlehem as it resents

murder in Mexico. Many Americans would find such a revolution in our

conditions and attitudes uninteresting or worse; some, with vast

material interests at stake, would prefer a dozen wars. Against this

indifference and opposition, the change, if it comes, must make its way.

Such a progress would not, of course, create perpetual peace within the

community. We read much to-day of satiated nations, unwilling to fight

for more, but considered from within, there is no satiated society.

Everywhere groups fight for economic, political or social advancement.

In a democratic community the mass of the people, and especially the

manual workers, though in a more favourable economic situation, would

still be unsatisfied. Conflict would endure. It is well that it

should be so, for a society in which all were contented in a

buttressed, routine life would go to war through sheer boredom.

The economic antidote to imperialism thus resolves itself into a very

necessary intellectual and emotional antidote. The lure of war

persists even to-day, when soldiers dig themselves into burrows and

individual courage is lost in the vast magnitude of the contest. Nor

can you {195} counteract the temptation to fight (or have others fight)

by preaching sermons against war, for the sermon and the bugle-call

seem to appeal to different cells in the brain. All you can do is to

polarise a man's thoughts and inspire him with other interests,

ambitions and ideals. A full, varied, intense life is a better

antidote than a mere vacuity of existence, without toil, pleasure, pain

or excitement. In his search for an antidote to war, William James

points out how utterly the ordinary pacifist ignores the stubborn

instincts that impel men to battle. "We inherit," he says, "the

war-like type.... Our ancestors have bred pugnacity into our bone and

marrow, and thousands of years won't breed it out of us. The popular

imagination fairly fattens on the thoughts of war." The men at the

bottom of society, James assures us, "are as tough as nails and

physically and morally almost as insensitive," and if not to these then

to all "who still keep a sense for life's more bitter flavours ... the

whole atmosphere of present-day Utopian literature tastes mawkish and

dishwatery." For the discipline of war, William James wishes to

substitute another and more strenuous discipline, "a conscription of

the whole youthful population to form for a certain number of years a

part of the army enlisted against _Nature_." "The military ideals of

hardihood and discipline would be wrought into the growing fibre of the

people; no one would remain blind as the luxurious classes now are

blind, to man's relations to the globe he lives on, and to the

permanently sour and hard foundations of his higher life. To coal and

iron mines, to freight trains, to fishing fleets in December, to

dish-washing, clothes-washing and window-washing, to road-building and

tunnel-making, to foundries and stokeholes, and to the frames of

sky-scrapers, would our gilded youths be drafted off, according to

their choice, to get the {196} childishness knocked out of them, and to

come back into society with healthier sympathies and soberer ideals."[4]

Even in a society which would permit an industrial conscription both of

rich and poor, a certain latent bellicosity, making for war, would

undoubtedly persist. There seems to be an irreducible minimum of

jingoism, just as whatever your precautions, you cannot quite do away

with rats or noxious germs. No nation is free from this cheapest

intoxicant. You may find it with the expensive American on his travels

or on the cracker-barrels in the country store and you cannot help

stumbling over it in the yellow journals and in many dull and

respectable newspapers which do not know that they are yellow. Even

the self-depreciating type of American may turn out to be a jingo if

you will trouble to take off his peel.

Such jingoism, however, though unpleasant may be quite innocuous. We

all have a trace of it as we all are supposed to have a trace of

tuberculosis. So long as our jingoes confine themselves to merely

trumpeting national virtues, actual and imputed, we may rest content.

Such men will scarcely be capable of stirring a whole population to

war, if men are living under decent conditions, struggling for still

better conditions, and competing on a high plane. If we can secure

prosperity, efficiency and equality and can make life fuller, more

intense, varied and romantic, the ravages of jingoism will be

circumscribed.

It will be argued, however, that though we make our conditions what we

will we shall still be anxious to fight at the first opportunity. "It

is evident," says Prof. Sumner,[5] {197} "that men love war; when two

hundred thousand men in the United States volunteer in a month for a

war with Spain which appeals to no sense of wrong against their country

and to no other strong sentiment of human nature, when their lives are

by no means monotonous or destitute of interest, and where life offers

chances of wealth and prosperity, the pure love of adventure and war

must be strong in our population." If two hundred thousand volunteer

for a war when we are not obviously attacked, will not the whole

country go to war for the sake of "honour"?

It would be foolish to answer this question categorically; no one can

predict what a nation will do when wounded in its self-esteem. The

heir of thousands of centuries of fighting, man is to-day, as always, a

fragile container of dynamite, not guaranteed against explosion, and

there are experts in the touching off of dynamite. When Bismarck

falsified the Ems despatch he knew exactly what its effect would be

upon the French sense of honour. But "honour" is an ambiguous word,

meaning everything, from a scrupulous regard to national obligations

freely entered upon to a mere truculent bellicosity. The honour of

nations, in the sense that nations usually fight for honour, is mere

prestige, and prestige is not much more than an acknowledgment of

formidableness. The Danes and the Dutch are honourable, but, in the

sense in which the word is ordinarily used, neither Denmark nor Holland

can afford honour. The claims of national honour, moreover, are

strangely shadowy and transitory. What seems imperatively demanded by

honour at the moment becomes insignificant later. For a number of

years the United States paid tribute to the Barbary pirates; our

citizens were sold into slavery and his Serene Majesty, the Dey of

Algiers, treated our representative in a manner which a great power

to-day would hardly adopt in an ultimatum to {198} Paraguay or San

Marino.[6] But it was not then convenient to fight and so we pocketed

our honour until a more convenient occasion. The Dey of Algiers has

long since gone to the scrap-pile of history, while the United States

remains, a respected and honourable nation.

Nations which are sure of themselves, like men who respect themselves,

are somewhat slower to resent affronts than nations which are insecure

and fearsome. In 1914 Austria was solicitous of her honour, which, she

believed, was assailed by Servia, and Russia was solicitous of hers,

for these two powers were engaged in a contest over the fears and

prepossessions of the Balkan States, and "honour" meant adherents. But

when in the same year, a Mexican government offered what was believed

to be an affront to the United States, our people were in no mood to

feel insulted. We did not need prestige. After all, questions of

honour are usually questions of interest. In the _Lusitania_

controversy, we did not receive the apologies which we believed were

due to us. But as we had no interest in fighting Germany, and as

Germany gained less from her submarine campaign than she would have

lost in a war with us, the matter was amicably, though not logically,

settled or at least postponed. Had we, however, been in a different

economic position, had a few million unemployed men been striking,

rioting and threatening to revolt, or, on the other hand had we had

plans for our aggrandisement at the expense of Germany, acts of war

would have followed within twenty-four hours of the massacre. We

should have been far more "jealous in honour." But we were otherwise

engaged. The headlines were full of the events {199} in Europe and the

horror of that tragedy in the Atlantic, but the gaze of America was

inward. We were interested day by day in the ambitions of peace.

Thus our hope of remaining at peace ourselves and of contributing to

the peace and economic reorganisation of the world depends not only

upon the conservation and development of our natural resources but also

upon a distribution of wealth and income which will widen the

consumption by the masses and will give to the whole population the

opportunity of a full, varied and purposeful life. All these things,

as well as the moral discipline which is so urgently needed, can be

secured only as we learn to apply a national policy to our own nation.

It is our own slackness, our own "state-blindness," our lack of a

complete democracy, which increases our chances of imperialism and war.

It is, on the other hand, our increasing willingness to take a national

view of internal affairs, our increasing desire to base American

prosperity upon American resources and to make life fuller and more

valuable, that acts as a deterrent to war and fits us for the difficult

task of contributing to a world peace.

Finally such a contribution to the peace of the world implies the

condition that our own foreign policy shall not be in conflict with the

international ideals which we are seeking to promote. If we ourselves

are interested in the parcelling out of backward countries, we shall

not be able to exert a restraining influence upon nations whose

necessities are greater than ours. By this is not meant that we are to

stay at home completely and enjoy no rights beyond our borders. Such

an effacement would mean a monastic seclusion for the United States.

But while in the world beyond there is a fair field for peaceful

competition, in which we also may take our part, our hope of promoting

economic internationalism depends upon our not playing {200} a lone

hand, upon our abstention from a selfish and short-sighted policy of

national aggression and upon our free co-operation with other nations

seeking the goal of international peace.

[1] According to estimates based on studies of estates probated in

Massachusetts and Wisconsin, it appears that 2 per cent. of the

population owned almost 60 per cent. of the wealth while the poorest 65

per cent. of the population died in possession of only about 5 per

cent. of the wealth. See King (W. I.), "The Wealth and Income of the

People of the United States," New York, 1915; also cited sources.

[2] Twenty per cent. of the population receive 47.2 per cent. of

national income and the remaining eighty per cent. of the population

52.8 per cent. of the national income.--King, _op. cit._, p. 235.

[3] From 1880 to 1910 the total wages (and salaries) paid in the United

States increased from 3.8 to 14.3 thousands of millions of dollars; the

average wage increased from $323 to $507; the increase in the annual

wages, taking into account differences in the cost of living, was 64

per cent. For basis of these calculations see King.

[4] William James. The Moral Equivalent of War. In "Memories and

Studies." New York. Longmans, Green & Co. 1912.

[5] Sumner (William Graham). "War and Other Essays," New Haven (Yale

University Press), 1913, p. 29.

[6] "In 1800 Captain Bainbridge, arriving at Algiers with the usual

tribute, was ordered to carry dispatches to Constantinople. 'You pay

me tribute,' explained the Dey, 'by which you become my slaves, and

therefore I have a right to order you as I think proper.'"--Fish.

(Carl Russell.) "American Diplomacy," New York (1915), p. 141.

{201}

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