But now competitive imperialism makes way for imperialism by combination.
If this theory had been true it would have followed that the interests of capital would make for war and the interests of labor would make for peace. The day laborer, with no money in the bank, would not be interested in capital investments in Morocco, Manchuria, or Asia Minor. He would have no national interests whatever. But, as we may read in the admirable book on “Socialists and the War,” by William English Walling, a few Socialists have for some time begun to recognize that wage-earners do have special national interests and that these interests may be directly opposed to the interests of wage-earners in an adjoining country. If Serbia is completely shut off from the sea, her wage-earners suffer as acutely as do her peasants. If Switzerland is surrounded by a wall of hostile tariffs, if Holland and England are deprived of their colonies, the loss is felt not only by great capitalists but by the man who works with a trowel or a lathe. The ultimate interests of German and British wage-earners are identical, but if their immediate interests conflict, there will grow up a spirit of nationalism in both countries, and wage-earners will clamor for a national policy which may lead to war.
This seems to shut a door that leads to peace. But in shutting this door the newer Socialist thought has opened another. It assumes that the capitalists themselves are increasingly likely to profit by peace, to desire peace, and to achieve peace. According to the German Socialist, Karl Kautsky, we are approaching a new stage in the industrial development of the world. At first capitalists exploited the resources of their own country. Then they competed nationally for the exploitation of colonies and dependencies, and this policy led to imperialism and war. Now they are beginning to unite for the joint exploitation of all backward lands. Competitive imperialism is making way for imperialism by combination, just as competitive industry gave way to the trust. English, French, German, and Belgian capitalists will unite to exploit dependencies, will have joint spheres of influence, and the result will be peace with profits. Imperialism in the old sense will die out, and its place will be taken by a pacific super-imperialism, a higher imperialism.
This higher imperialism fraught with dangers.
What this theory actually means is that the normal development of industry and finance will automatically bring about international peace, and that socialism and even democracy are quite unessential to that end. Socialists may cry for peace, but they might as well cry for free air. But the theory concedes too much and goes too far. It is tainted with the same ultra-rationalistic spirit as is the earlier socialist theory, from which it is a reaction. War is not fought for economic motives alone, although these are important. Serbia would have been less vindictive had Austria conceded her an outlet for her trade, but in any case Serbia would not willingly be ruled by Austria, nor Bulgaria by Greece. Racial pride, religious prejudice, ancient traditions of all sorts still divide nations irrespective of economic interest. You cannot reduce a nation to a single unit thinking only in economic terms.
Moreover, even on the purely economic side there are infinite chances for war in the distribution of the profits of joint enterprises among the capitalists of the various nations. We all know how “gentlemen’s agreements” are broken as soon as it is profitable for the gentlemen to break them, and we cannot wholly trust irresponsible magnates, whether industrial or political, to be even intelligently selfish. Moreover, in the present state of the world the higher imperialism is a policy fraught with the very dangers and difficulties which it seeks to evade. If the capitalists of Europe were determined to exploit South America under a joint European control, the decision might directly lead to war. There are too many vested national interests in colonies, dependencies and spheres of influence to make internationalization of investment an immediate specific against war.
Internationalization of investment is only one step towards peace.
But in this matter of the higher imperialism we are less concerned to know how false than how true it is. It is a thing to be desired if it circumscribes war, even though it does not end war, if it tends towards peace, even though it does not by itself alone assure peace. We believe that this present war is not unlikely to end in a combination of great nations with enormous capital, willing to enter upon foreign investments jointly. The great capitalists, who influence if they do not rule our modern industrial nations, will often discover that it is cheaper to divide than to fight. It will be better to have twenty per cent. of a Chinese loan without going to war than thirty per cent.—or nothing at all—after a war. They will strive for the peace of “understanding”—the peace of give and take.
If the big speculators can thus merge their interests and deal across national boundaries, the little investors who have less to gain and more to lose by war will be even more pacific. Farmers and wage-earners have a still more attenuated interest in war, and a still more obvious interest in peace. Once great liens of peace are established, moreover, many of the incitements to war will of themselves disappear....