[[4]] Milloud, op. cit., p. 110.
[[5]] Revue économique Internationale, 1914, II, p. 259, quoted from Hauser (H.) "Les méthodes allemandes d'expansion économique," p. 106.
[[6]] Hauser, H., op. cit., p. 128.
[[7]] The goods exported to foreign countries may show a profit if they are sold at a price less than the average cost of production but greater than the marginal cost. If it costs $100 a unit to produce a million units of a given product for the home market and only $70 a unit to produce an additional 100,000 units then there is a profit in permanently selling this extra amount at any price above $70. To break down a foreign competition it may pay temporarily to sell at 60 or even 30 dollars, in order to raise prices again after competition is destroyed.
[[8]] Prof. Milloud's argument based upon the relative growth of British and German exports is far from conclusive. He shows that in the period from 1890-1903 to 1904-08 the German export trade increased only 75 per cent while the British export trade increased 79 per cent. If we consider the statistics for the subsequent period, 1909 to 1913 (which figures were quite accessible to Prof. Milloud), we find that the German export industry increased much more rapidly than did that of Britain.
CHAPTER X
THE REVOLT AGAINST IMPERIALISM
What determines whether a backward country is to be exploited by its own people or by some beneficent imperialistic power is not any consideration of its own welfare, but the chance of profits held out to certain adventurous financiers in the capitals of Europe. These modern pioneers are a ruthless, dangerous group, with the bold, speculative imagination that has marked adventurers since the world began. They have a domestic and a foreign morality, an ethics for home consumption and a fine contempt for "greasers" and "niggers." They know the difference between five per cent. and twenty per cent., and their business consists in investing their money at high rates of profit (because the enterprise is hazardous) and then in taking out the hazard by making their home government compel the fulfilment of their impossible contracts.