Part II, Chapter VII: The Outcome, I (8)

If Imperialism may no longer be regarded as a blind inevitable destiny, is it certain that imperial expansion as a deliberately chosen line of public policy can be stopped?

We have seen that it is motived, not by the interests of the nation as a whole, but by those of certain classes, who impose the policy upon the nation for their own advantage. The amalgam of economic and political forces which exercises this pressure has been submitted to close analysis. But will the detection of this confederacy of vicious forces destroy or any wise abate their operative power? For this power is a natural outcome of an unsound theory in our foreign policy. Put into plain language, the theory is this, that any British subject choosing, for his own private pleasure or profit, to venture his person or his property in the territory of a foreign State can call upon this nation to protect or avenge him in case he or his property is injured either by the Government or by any inhabitant of this foreign State. Now this is a perilous doctrine: It places the entire military, political, and financial resources of this nation at the beck and call of any missionary society which considers it has a peculiar duty to attack the religious sentiments or observances of some savage people, or of some reckless explorer who chooses just those spots of earth known to be inhabited by hostile peoples ignorant of British power; the speculative trader or the mining prospector gravitates naturally towards dangerous and unexplored countries, where the gains of a successful venture will be quick and large. All these men, missionaries, travellers, sportsmen, scientists, traders, in no proper sense the accredited representatives of this country, but actuated by private personal motives, are at liberty to call upon the British nation to spend millions of money and thousands of lives to defend them against risks which the nation has not sanctioned. It is only right to add that unscrupulous statesmen have deliberately utilised these insidious methods of encroachment, seizing upon every alleged outrage inflicted on these private adventurers or marauders as a pretext for a punitive expedition which results in the British flag waving over some new tract of territory. Thus the most reckless and irresponsible individual members of our nation are permitted to direct our foreign policy. Now that we have some four hundred million British subjects, any one of whom in theory or in practice may call upon the British arms to extricate him from the results of his private folly, the prospects of a genuine pax Britannica are not particularly bright.

But those sporadic risks, grave though they have sometimes proved, are insignificant when compared with the dangers associated with modern methods of international capitalism and finance. It is not long since industry was virtually restricted by political boundaries, the economic intercourse of nations being almost wholly confined to commercial exchanges of goods. The recent habit of investing capital in a foreign country has now grown to such an extent that the well-to-do and politically powerful classes in Great Britain to-day derive a large and ever larger proportion of their incomes from capital invested outside the British Empire. This growing stake of our wealthy classes in countries over which they have no political control is a revolutionary force in modern politics; it means a constantly growing tendency to use their political power as citizens of this State to interfere with the political condition of those States where they have an industrial stake.

The essentially illicit nature of this use of the public resources of the nation to safeguard and improve private investments should be clearly recognised. If I put my savings in a home investment, I take into consideration all the chances and changes to which the business is liable, including the possibilities of political changes of tariff, taxation, or industrial legislation which may affect its profits. In the case of such investment, I am quite aware that I have no right to call upon the public to protect me from loss or depreciation of my capital due to any of these causes. The political conditions of my country are taken into calculation at the time of my investment. If I invest in consols, I fully recognise that no right of political interference with foreign policy affecting my investment is accorded to me in virtue of my interest as a fund-holder. But, if I invest either in the public funds or in some private industrial venture in a foreign country for the benefit of my private purse, getting specially favourable terms to cover risks arising from the political insecurity of the country or the deficiencies of its Government, I am entitled to call upon my Government to use its political and military force to secure me against those very risks which I have already discounted in the terms of my investment. Can anything be more palpably unfair?

It may be said that no such claim of the individual investor upon State aid is admitted. But while the theory may not have been openly avowed, recent history shows a growth of consistent practice based upon its tacit acceptance. I need not retrace the clear chain of evidence, consisting chiefly of the admissions of the mining capitalists, by which this claim to use public resources for their private profit has been enforced by the financiers who seduced our Government and people into our latest and most costly exploit. This is but the clearest and most dramatic instance of the operation of the world-wide forces of international finance: These forces are commonly described as capitalistic, but the gravest danger arises not from genuine industrial investments in foreign lands, but from the handling of stocks and shares based upon these investments by financiers. Those who own a genuine stake in the natural resources or the industry of a foreign land have at least some substantial interest in the peace and good government of that land; but the stock speculator has no such stake: his interest lies in the oscillations of paper values, which require fluctuation and insecurity of political conditions as their instrument.

As these forms of international investment and finance are wider spread and better organised for economic and political purposes, these demands for political and military interference with foreign countries, on the ground of protecting the property of British subjects, will be more frequent and more effective; the demands of investors will commonly be backed by personal grievances of British outlanders, and we shall be drawn into a series of interferences with foreign Governments, which, if we can conduct them successfully, will lead to annexation of territory as the only security for the lives and property of our subjects.

That this policy marks a straight road to ruin there can be no doubt. But how to stop it. What principle of safety can we lay down? Only one—an absolute repudiation of the right of British subjects to call upon their Government to protect their persons or property from injuries or dangers incurred on their private initiative. This principle is just and expedient. If we send an emissary on a public mission into a foreign country, let us support and protect him by our public purse and arms; if a private person, or a company of private persons, place their lives or property in a foreign land, seeking their own ends, let them clearly understand that they do so at their own risk, and that the State will not act for their protection.

If so complete a reversal of our consistent policy be regarded as a counsel of perfection involving a definite abandonment of domiciliary, trading, and other rights secured by existing treaties or conventions with foreign States, upon the observance of which we are entitled to insist, let us at any rate lay down two plain rules of policy. First, never to sanction any interference on the part of our foreign representatives on general grounds of foreign misgovernment outside the strict limits of our treaty rights, submitting interpretation of such treaty rights to arbitration. Secondly, if in any case armed force is applied to secure the observance of these treaty rights, to confine such force to the attainment of the -specific object which justifies its use.