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 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 control of that machinery by the class of professional financiers.
The kind of way in which such conditions tend toward war might have been illustrated, if Mr. Hobson had been writing at a later date, by various more recent cases. A higher rate of interest is obtainable on enterprises in an undeveloped country than in a developed one, provided the risks connected with an unsettled government can be minimized. To minimize these risks the financiers call in the assistance of the military and naval forces of the country which they are momentarily asserting to be theirs. In order to have the support of public opinion in this demand they have recourse to the power of the Press.
The Press is the second great factor to which critics of capitalism point when they wish to prove that capitalism is the source of modern war. Since the running of a big newspaper requires a large capital, the proprietors of important organs necessarily belong to the capitalist class, and it will be a rare and exceptional event if they do not sympathize with their own class in opinion and outlook. They are able to decide what news the great mass of newspaper readers shall be allowed to have. They can actually falsify the news, or, without going so far as that, they can carefully select it, giving such items as will stimulate the passions which they desire to stimulate, and suppressing such items as would provide the antidote. In this way the picture of the world in the mind of the average newspaper reader is made to be not a true picture, but in the main that which suits the interests of capitalists. This is true in many directions, but above all in what concerns the relations between nations. The mass of the population of a country can be led to love or hate any other country at the will of the newspaper proprietors, which is often, directly or indirectly, influenced by the will of the great financiers. So long as enmity between England and Russia was desired, our newspapers were full of the cruel treatment meted out to Russian political prisoners, the oppression of Finland and Russian Poland, and other such topics. As soon as our foreign policy changed, these items disappeared from the more important newspapers, and we heard instead of the misdeeds of Germany. Most men are not sufficiently critical to be on their guard against such influences, and until they are, the power of the Press will remain.
Besides these two influences of capitalism in promoting war, there is another, much less emphasized by the critics of capitalism, but by no means less important: I mean the pugnacity which tends to be developed in men who have the habit of command. So long as capitalist society persists, an undue measure of power will be in the hands of those who have acquired wealth and influence through a great position in industry or finance. Such men are in the habit, in private life, of finding their will seldom questioned; they are surrounded by obsequious satellites and are not infrequently engaged in conflicts with Trade Unions. Among their friends and acquaintances are included those who hold high positions in government or administration, and these men equally are liable to become autocratic through the habit of giving orders. It used to be customary to speak of the “governing classes,” but nominal democracy has caused this phrase to go out of fashion. Nevertheless, it still retains much truth; there are still in any capitalist community those who command and those who as
