Newark leader. ([Newark, Ohio]) 1917-1946, 1919-07-18
Twenty Billions

British capitalists in 1913 had
twenty billions of dollars invested
outside of the British Isles. This in
vestment yielded an annual income
of about one billion dollars. The
capitalists of Great Britain, at the
out break of the war, were the great
est investors on earth.
British investments were scattered
North, East, South and Weston
every continent; in every important
country. Two and a half billions
were invested in Canada; billion
and a half was invested respectively
in Australia, South Africa and in
India and Ceylon. Nearly four bill
lions were invested in the United
States. There were also large invest
ments in Argentine, Brazil, Mexico,
Cuba, Chile, Uruguay, Peru, etc.
Great Britain also had investments
in Europe-a third of a billion in
Russia; forty millions of dollars in
France, and in Germany thirty mil
lions of dollars.
British investments, like all other
investments, went in to the unex-
plotted countries. Germany, with her
teaming population and her great
wealth.; and France, one of the rich
est nations in Europe, received prac-
ticallly no British capital. The in
vestments of Britain in Brazil were
nearly twenty times her investments
in France. This was not because
Britain cared more for Brazil than
she did for France, but because the
Brazilian rate of interest was higher.
France, like Britain, was an invest
ing nation. French capital, like
British capital, went into the home
market while the home marke paid
well. The time came, however, when
the home market ceased to pay.
Then French capital, like British
capital, went abroad. Britain had
practically nothing invested in France
and Germany. Germany and France
had practically nothing invested in
Great Britain. No developed capi-
talist country is a good investment
market, because capitalist countries
are glutted with capital and the rates
of return on investments are low
Capital seeks paying investment
opportunities. If pounds sterling
will bring 10 per cent in Brazil as
against 5 per cent in France, as
matter of course, they go to Brazil.
Modern industrial society is built
on the proposition that wealth goes,
not where it is most needed, but
where it will yield the highest inter-
est rate. While such a theory under
lies social organization, women will
continue to overwork in Lancashire,
children will starve in Glasgow, and
the workers of Great Britain will de-
mand in vain living wage out of the
products created by their own labor.
Meanwhile, the British capitalists
will continue to invest abroad vast
sums of the wealth which has been
created by British labor in order
that the British owning class may
reap an additional harvest from the
exploited toll of foreigners.
Great Britain, with her twenty bill
lions in foreign investments, stood at
the pinnacle of economic power in
1918. France, her nearest rival, had
only about ten billions invested
abroad. Germany had two billions
less. The whole world was paying
tribute to Great Britain, because
Great Britain owned so large share
of the productive capital and useful
resources of the earth. Workers, in
every quarter of the globe were send
ing a part of their product to the
British capitalists who owned the re-
sources and machinery with which
they must work in order to live.
Twenty billions! The seal of Brit
ish power.
Twenty billions in foreign invest
ments! The bonds of British domin-
ion.
Twenty billions worth of resources
and machinery owned by capitalists
in one country; served by workers
on foreign soil-slaves to the absen-
tee landlords who reap where they
have not sowed While these twenty
billions and other billions like them
remain, the world cannot be free!