he time of the
Spanish-American War were negligible. By 1910 American business men had
two billions invested abroad--$700,000,000 in Mexico; $500,000,000 in
Canada; $350,000,000 in Europe, and smaller sums in the West Indies, the
Philippines, China, Central and South America. In 1913 there was a
billion invested in Mexico and an equal amount in Canada. ("Commercial
Policy," W. S. Culbertson, New York, Appleton, 1919, p. 315.)

Capital flowed out of the United States in two directions:

1. Toward the resources which were so abundant in certain foreign
countries.

2. Toward foreign markets.

7. _Building on Foreign Resources_

The Bethlehem Steel Corporation is a typical industry that has built up
foreign connections as a means of exploiting foreign resources. The
Corporation has a huge organization in the United States which includes
10 manufacturing plants, a coke producing company, 11 ship building
plants, six mines and quarries, and extensive coal deposits in
Pennsylvania and West Virginia. The Bethlehem Steel Corporation also
controls ore properties near Santiago, Cuba, near Nipe Bay, Cuba, and
extensive deposits along the northern coast of Cuba; large ore
properties at Tofo, Chile, and the Ore Steamship Corporation, a carrying
line for Chilean and Cuban ore.

The American Smelting and Refining Company is another illustration of
expansion into a foreign country for the purpose of utilizing foreign
resources. According to the record of the Company's properties, the
Company was operating six refining plants, one located in New Jersey;
one in Nebraska; one in California; one in Illinois; one in Maryland,
and one in Washington. The Company owned 14 lead smelters and 11 copper
smelters, located as follows: Colorado, 4; Utah, 2; Texas, 2; Arizona,
2; New Jersey, 2; Montana, 1; Washington, 1; Nebraska, 1; California, 1;
Illinois, 1; Chile, 2; Mexico, 6. Among these 25 plants a third is
located outside of the United States.

These are but two examples. The rubber, oil, tobacco and sugar interests
have pursued a similar policy--extending their organization in such a
way as to utilize foreign resources as a source for the raw materials
that are destined to be manufactured in the United States.

8. _Manufacturing and Marketing Abroad_

The Bethlehem Steel Corporation and the American Smelting and Refining
Company go outside of the United States for the resources upon which
their industries depend