The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1928-05-19

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and diplomatic reasons have always
had their roots firmly gripping econ
onic soil although the fact has not
always been too apparent to the aver
age citizen.
THE owning class in the United
States has amassed surplus wealth
that it has greatly profited it to in
vest abroad. Whether our bankers
have been able to secure return on
their money greater than their fore
runners--the British finance capital
lists who are undoubtedly past masters
in the art of foreign Investments
of no great concern to the common
man. The fact is that they have
been able to make investments over
seas that yield somewhat higher than
those made in comparable enterprises
at home. Therefore the money has
gone abroad and will continue to go.
And the search for extra-territorial
business opportunities is bound to
continue not only in the form of in
vestments in government and cor
porate securities but also in enter
prises that are a part of the Amer
lean quest for certain raw materials.
1t should be noticed, incidentally,
that American dollars will go any
where they can discern prospect of
profit no matter what type of native
government may be involved so long
as the borrowing country is essenti-
ally capitalistic in its economic sys-
TEN. To be sure the Soviet Union,
which operates a system abhorrent to
the rulers of the United States, will
not be the recipient of long term
loans until she consents to mend her
ways to comply with the standards
of Mr.. Kellogg. But all other coun-
tries will be able to secure capital
from Wall Street no matter what
their political forms. Our bankers,
with the aid of the State Depart
ment, and the State Department, as
sisted by the bankers-the relation
ship is generally reciprocal-will con-
tinue to lend dollars to such dictator
ships as those now prevailing in
Italy, Hungary, Haiti, Chile, Vene-
zuela and Peru. Indeed it is now to
the advantage of the American in
vestors to see that these dictator
ships are maintained. Otherwise
American loans and investments
might be placed in jeopardy. United
States foreign policy will continue to
be shaped not by any reference to the
essential democracy or lack of dem
ocracy of the borrowing state but
J purely by the ability of the native
government and the native industry
to function along normal capitalistic
lines.
How does this export Of capital,
this financial penetration, effect
American foreign policy? In various
ways depending upon the strength
of the borrowing country, the form
in which the capital is invested, the
influence of the capital exporter and
a number of other factors. But basic
ally the policy of the United States
is, to use the words of President
Coolidge, that "the person and prop
erty Of citizen are a part of the
general domain of a nation, even
when abroad" It's policy is to use
whatever force is necessary to pro-
tect that person and that property.
This policy has already lead your
government into wars, interventions,
the extortions of treaties, the occupa-
ton of territory, the declaration of
neutral zones" embargoes on arms,
violations of rights of foreign peo-
Piles, seizures of customs houses, the
support f revolutions in one coun-
try at one period, and their sup
preston in another country or at an
other period in the same country de-
pending solely upon the extent to
which American economic interests
were advanced by the move This pol
icy is bound to lead to similar parti-
cipation in the white mans burden
in the future. More than that, the
American concessionaire abroad has
been able to use your State Depart
ment to assist him in securing his
original concession or economic claim
in the backward country. At other
times he has used it to prevent the
cancellation Of his concession through
a change in the native government.
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IN connection with loans made by
American financial interests to
these foreign governments of the
weaker sort we find your State De-
partment or the president of the
United States playing a rather i'm
portant role. For insuring the pay
ment of loans and to facilitate their
collection we find, for example, in
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