ods. Some capital goods
are imported and, moreover, many consumers' goods are passed over to
the group called _HH'''_ in our table,--the one that makes active
instruments of production,--and in this indirect way the earnings of
capital invested abroad add to the amount of capital at home. In the
long run the exportation of funds for permanent investment may, by its
other and more indirect effects, increase the supply of them at home.
The literal fact in each year is that what is exported is itself a
reduction of the amount that would otherwise be added to the home
supply, but that the income accruing from what has been exported in
earlier years makes an addition to what is in this year accumulated at
home. Primarily, the exportation of capital is to be treated as
causing a modification of the rate of accumulation of capital and, in
a long term of years, an increase of the rate.

_Movements of Labor._--Laborers cross the boundary in both directions,
but inducements favor the inward movement. In the absence of positive
obstacles the denser populations of Asia could overflow into America
with a startling rapidity. Such a movement, on whatever scale it
occurs, is to be treated as causing an acceleration of the rate of
increase of the population within the center. Whatever results arise
from growth of population within are emphasized by immigration.

_The Assimilation of Economic Methods and Forms of
Organization._--People without the center are borrowing from it the
newer and more efficient methods of production. Already Asiatics are
making some things by machinery, and when they shall do it more
generally there will take place changes that will be very
revolutionary in their own economic life and will react on the life of
the center itself. Learning to use a thousand and one machines will
rend China and disturb Europe and America. In general, better
appliances and a more efficient organization will make it possible for
Asia to create for herself, and ultimately export much that she now
imports, and this will react on the character of the industries of
America and Europe. We shall somewhat modify our industries in order
to get the benefit of new openings for commerce, and some of the
things which we now directly produce we may find it more profitable to
get by exchange, which is indirect production. On the other hand, some
foreign products which we now get with great economy of labor,
because the goods we exchange for the