The success of this plan of German penetration was most clearly and disagreeably brought home to the British mind, as well as to the French and the American perception, by the war, and during the war England took under government control her mineral industries more definitely and systematically than did we. Moreover, perceiving the success of the German system as a means of penetration and as a method against competitors, she has adopted it, there being a striking tendency to put her key industries under syndicates, unions, cartels, or trusts controlled directly by the state.
A system of state socialism thus takes the place of the freedom of individual competition. As regards the mineral industries, much the same action has been taken by France. But in America, dropping all the problems and half-learned lessons of the war, we return to the status quo ante. If this difference continues, it is certain that British control of the earth—whereby we mean its minerals—will eventually preponderate. As far as we are concerned, we should perhaps rather see it in the hands of Great Britain than of any other power, but must we not decide upon our own course as a rich and populous nation of an increasingly close-packed but seething and yet unorganized globe?
Our statesmen, newspapers, and financiers proclaim to the world that we intend to take the lion’s share of the world’s shipping and commerce. England says nothing, but puts her government directly behind her own industries, while the American Government still holds aloof from them. Nationalism has been revived in Europe, and especially in England and France, as the result of the struggle to prevail against the intense German nationalistic spirit, which all but subjugated a world drifting comfortably into internationalism. It is conceivably a step backward, a reversion, but what attitude shall America take? The British and French nationalism need not disquiet us so much as that of the Japanese, still more intense and purposeful, and working with the same German tools (not invented in Germany, but in America, but, like most German arts, successfully copied and utilized), now adopted by England and France in self-defense. America also has had a rebirth of nationalism, quite necessary in the existing state of affairs.
As the case now stands, the United States largely predominates in the petroleum industry, with 71 per cent. of the world’s production in 1917; England, far behind, is in a way to overtake us with giant strides under her new system. In the basic necessities of coal and iron, the United States also leads. The second place in the steel industry, held by Germany, was presumably lost as a result of the war, and probably passes to England, already second in coal and with her iron industries in charge of a government-controlled syndicate for purposes of protection and expansion.
In copper, the United States is far away in the lead, with England a long second, and in lead, also, with half the world’s production, with England second. Before the war England and Germany were about tied for second place, and the latter was rapidly drawing ahead through her state-controlled commercial methods; but the war will set her back greatly. In zinc, the United States had the greatest production (32 per cent.) before the war, slightly more than Germany (28 per cent.), but German methods gave it the preponderance of actual commercial control. The result of the war will restore the commercial supremacy to the United States, and the importance of England will increase. In silver, the United States now leads in production and in both territorial and commercial control, and, by her commercial control over Mexican production, controls one-half of the world’s output, with Great Britain a strong commercial second, having nearly 40 per cent. of it.
In the production of the important mineral, sulphur, the United States is far in advance of the world, with 65 per cent. of the world’s production in 1916. Italy is second, Japan third, and England is practically unrepresented. Phosphate rock is dominated, both territorially and commercially, by the United States, but there are other supplies for England, and France has abundance in her own territory. Vanadium is commercially controlled by the United States, although territorially by Peru. Molybdenum has very lately come to be controlled by the United States, with Great Britain, formerly first, now second. In uranium and radium the United States also has first place, with Austria a long second. The aluminum industry is strongest in the United States, although very important also in France.
In the following, however, Great Britain has control: the important “key industry” of tin, where her territorial control is one-half and her commercial control absolute, whereas the United States is not represented; in the important nickel industry, by territorial control of 80 per cent., and by a commercial control that is now probably predominant over the strong American interests, as a result of an active government policy; in tungsten, where she controls territorially the greatest production (34 per cent.), and where she has commercial supremacy, controlling 54 per cent. (1917), the United States being second, with a commercial control of 35 per cent. (although its territorial control is only 17 per cent., about equal to that of Bolivia).
In manganese, Russia nominally leads, with 36 per cent. commercial control (55 per cent. of the world’s production in 1913); but under present conditions the effect is to give England the lead, with the United States in a position of minor importance. In chromium, Great Britain and France control through a syndicate, in which the British interest is in the majority, and the United States occupies a subordinate position with regard to both these countries. In gold production the British Empire controls 63 per cent.; the United States 23 per cent. In graphite in 1913 the British Empire was second to Austria-Hungary. It will now take the first place, and the United States will be a competitor. In asbestos, the British Empire produces 87 per cent. and controls commercially 63 per cent. of the world’s total, the United States being negligible in production, but second in commercial control (of Canadian asbestos). Mercury, territorially, is mainly in the hands of Spain, but the industry is actually dominated by England, under selling arrangements. Antimony has long been controlled by England, but control may revert to China, which means the possibility of its becoming Japanese. Mica, essential for electrical work, is controlled by Great Britain.
Only a few minerals remain in which most of the industry is not in the hands of either the United States or England: potash, formerly a German monopoly, and now divided between Germany and France, with Germany likely predominant; and mineral nitrates, in Chilean territory, with no marked national commercial control other than that of Chile.
Both America and England are strong in their grip on the world’s mineral industries—England much stronger than before the war and with a freshly set purpose to expand. A combination of these two countries would amount to a practical world control of minerals, and, with France, a little stronger control. This much for the present, but uncertain quantities loom shadowy, in the destiny of Russia, the future of Asia, and the progress of Japan. Japan is intently embarking on a course toward the domination of Asia, politically and commercially. Her present position is not so significant as the consideration of her rapid progress, the knowledge of the rich field in which she is to work, and a study of her militaristic methods, which remind one of those of Germany. Japan holds to no ally that will not (temporarily) aid her in her forward march, and in the weakness of Russia, China, and Korea she sees her opportunity. The war to her was an unmixed blessing. She took no chances, and seized enormous advantages.