bson, C. K.,
"Export of Capital" (p. 153 and following), together with sources there
cited.

[13] "The adoption of the Federal reserve system has ... released and
made available for other forms of financing great sums which were
formerly tied up in scattered reserves. We have only to look at the
monetary history of the German Empire during the last forty years to
see how powerful an influence on industry, trade, and investment is
exerted by the centralisation and control of bank reserves. The London
_Statist_ has calculated the ultimate increased lending power of
American banks, under the Federal reserve system, at
$3,000,000,000."--Lough, _op. cit._, p. 8.

{75}

PART II

THE ROOT OF IMPERIALISM

CHAPTER VI

THE INTEGRATION OF THE WORLD

For decades, the foreign and domestic policies of the United States
were determined by our ambition to subdue and people a wilderness. Our
immediate profit, our ultimate destiny, our ideals of liberty,
democracy and world influence, were all involved in this one effort.
To us the problem was one of national growth. To-day we are beginning
to realise that this Western movement of ours affected all industrial
nations, and was only a part of a vaster world movement--an economic
revolution, which has been developing for more than a century. That
revolution is the opening up of distant agricultural lands and the
binding of agricultural and industrial nations into one great economic
union. It is a world integration.

To this world development the crude physical hunger of the Western
populations has contributed. The urbane Chinese official, who voices
the sentiments of Mr. Lowes Dickinson, attributes Europe's solicitous
interference in China to the fact that the Western World cannot live
alone. "Economically," he says, "your (Western) society is so
constituted that it is constantly on the verge of starvation. You
cannot produce what you need to consume, nor consume what you need to
produce. It is matter of life and death to you to find markets in
which you may dispose of your manufactures, and from which you may
derive your food and raw material. Such a {76} market China is, or
might be; and the opening of this market is in fact the motive, thinly
disguised, of all your dealings with us in recent years. The justice
and morality of such a policy I do not propose to discuss. It is, in
fact, the product of sheer material necessity, and upon such a ground
it is i