States has reached within the last few years, so far as the more developed industries are concerned. Her manufactures are saturated with capital and can absorb no more. One after another they are seeking refuge from the waste of competition in “combines” which secure a measure of profitable peace by restricting the quantity of operative capital. Industrial and financial princes in oil, steel, sugar, railroads, banking, &c., are faced with the dilemma of either spending more than they know how to spend, or forcing markets outside the home area. Two economic courses are open to them, both leading towards an abandonment of the political isolation of the past and the adoption of imperialist methods in the future. Instead of shutting down inferior mills and rigidly restricting output to correspond with profitable sales in the home markets, they may employ their full productive power, applying their savings to increase their business capital, and, while still regulating output and prices for the home market, may “hustle” for foreign markets, dumping down their surplus goods at prices which would not be possible save for the profitable nature of their home market. So likewise they may employ their savings in seeking investments outside their country, first repaying the capital borrowed from Great Britain and other countries for the early development of their railroads, mines and manufactures, and afterwards becoming themselves a creditor class to foreign countries.
It is this sudden demand for foreign markets for manufactures and for investments which is avowedly responsible for the adoption of Imperialism as a political policy and practice by the Republican party to which the great industrial and financial chiefs belong, and which belongs to them. The adventurous enthusiasm of President Roosevelt and his “manifest destiny” and “mission of civilisation” party must not deceive us. It is Messrs. Rockefeller, Pierpont Morgan, Hanna, Schwab, and their associates who need Imperialism and who are fastening it upon the shoulders of the great Republic of the West. They need Imperialism because they desire to use the public resources of their country to find profitable employment for the capital which otherwise would be superfluous.