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THE ECONOMICS OF THE CASE

century? There were newly-discovered foreign lands containing, as he believed, precious metals and stones and spices, and inhabited by savages or semi-savages. If other traders got those stones, it was quite evident that he could not. His colonial policy, therefore, had to be directed to two ends: first, such effective political occupation of the country that he could keep the savage or semi-savage population in check, and could exploit the territory for its wealth; and, secondly, such arrangements as would prevent other nations from searching for this wealth in precious metals, spices, etc., since, if they obtained it, he could not.

That is the story of the French and Dutch in India, and of the Spanish in South America. But as soon as there grew up in those countries an organized community living in the country itself, the whole problem changed. The Colonies, in this later stage of development, have a value to the Mother Country mainly as a market and a source of food and raw material, and if their value in those respects is to be developed to the full, they inevitably become self-governing communities in greater or less degree, and the Mother Country exploits them exactly as she exploits any other community with which she may be trading. Germany might acquire Canada, but it could no longer be a question of her

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