meaning of the fact that to-day the capitalists of the United States own hundreds and hundreds of millions of dollars of Mexican bonds, Russian bonds, Italian bonds, Grecian bonds? The meaning is that those hundreds and hundreds of millions were part of capital’s share which capital did not consume. Furthermore, from the very beginning of the capitalist system, capital has never consumed all of its share.
“And now we come to the point. Four billion dollars of wealth is produced in one year in the United States. Labor buys back and consumes two billions. Capital does not consume the remaining two billions. There is a large balance left over unconsumed. What is done with this balance? What can be done with it? Labor cannot consume any of it, for labor has already spent all its wages. Capital will not consume this balance, because, already, according to its nature, it has consumed all it can. And still remains the balance. What can be done with it? What is done with it?”
“It is sold abroad,” Mr. Kowalt volunteered.
“The very thing,” Ernest agreed. “Because of this balance arises our need for a foreign market. This is sold abroad. It has to be sold abroad. There is no other way of getting rid of it. And that unconsumed surplus, sold abroad, becomes what we call our favorable balance of trade. Are we all agreed so far?”
“Surely it is a waste of time to elaborate these A B C’s of commerce,” Mr. Calvin said tartly. “We all understand them.”
“And it is by these A B C’s I have so carefully elaborated that I shall confound you,” Ernest retorted. “There’s the beauty of it. And I’m going to confound you with them right now. Here goes.
“The United States is a capitalist country that has developed its resources. According to its capitalist system of industry, it has an