roads or bridges cap be made, or mines and oil fields developed, capital, more sensitive to risk than the tender dove, requires guarantees. When a group of capitalists resolves that a railway in an economically backward country would be an excellent business proposition, steps are taken to secure a concession. The native authority gives the guarantees against loss. Those guarantees may take the form of a gift or lease of lands or mines to be owned and exploited by the railroad concessionaires; or a grant of monopoly rights to trade in certain articles, a share in the taxes levied, or a direct money subsidy from the native government. As a matter of fact, most concessions comprise all these guarantees. It is not unusual for native authorities to decline the offer to become the victims of concessionaires. Then bayonets and machine guns are used as instruments of persuasion. The development of French and Italian capital in Africa, Japanese capital in China, British and American capital 1n Mexico, are examples o.f the direct association of Governments and armaments with private capitalist enterprise.
The same forces are in operation driving capitalist governments to acquire colonies as exclusive preserves for their own larger capitalism. The economic policy of equal rights for all nations—the open door—was profitable when trade was merely the exchange of goods mutually required. But British and German capital cannot both make aqueducts, lay railways, work mines, build bridges, from the Cape to Cairo. Vast capitalist enterprise demands that before risks are taken, the government's colonial policy shall preserve the profitable undertakings for exploitation by the financiers and manufacturers at home. Hence, France made her colonies an exclusive field for French capital, and Britain "pegged out claims for posterity."
THE CAUSE OF WAR.
Jere is the cause of war. This is the meaning of capitalist Imperialism, the definite union of finance and government. The imperative necessity of disposing of the surplus product, the need for trade and mastery 9f the trade routes, demands armies to sustain capitalist rights against competitors. The supreme requirement of money capital that it be afforded complete protection for its operations in economically backward countries, entails perpetual readiness for war and un-
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