England was without a rival.Her navies controlled the sea.Her armies and her insular position gave her peace at home.The world was hers to exploit.For nearly fifty years she dominated the European, American, and Indian trade, while the great wars then convulsing society were destroying possible competitive capital and straining consumption to its utmost.The pioneer of the industrial nations, she thus received such a start in the new race for wealth that it is only today the other nations have succeeded in overtaking her.In 1820 the volume of her trade (imports and exports) was 68,000,000 pounds.In 1899 it had increased to 815,000,000 pounds,--an increase of 1200 per cent in the volume of trade.
For nearly one hundred years England has been producing surplus value.She has been producing far more than she consumes, and this excess has swelled the volume of her capital.This capital has been invested in her enterprises at home and abroad, and in her shipping.
In 1898 the Stock Exchange estimated British capital invested abroad at 1,900,000,000 pounds.But hand in hand with her foreign investments have grown her adverse balances of trade.For the ten years ending with 1868, her average yearly adverse balance was 52,000,000 pounds; ending with 1878, 81,000,000 pounds; ending with 1888, 101,000,000 pounds; and ending with 1898, 133,000,000 pounds.
In the single year of 1897 it reached the portentous sum of 157,000,000 pounds.
But England's adverse balances of trade in themselves are nothing at which to be frightened.Hitherto they have been paid from out the earnings of her shipping and the interest on her foreign investments.But what does cause anxiety, however, is that, relative to the trade development of other countries, her export trade is falling off, without a corresponding diminution of her imports, and that her securities and foreign holdings do not seem able to stand the added strain.These she is being forced to sell in order to pull even.As the London Times gloomily remarks, "We are entering the twentieth century on the down grade, after a prolonged period of business activity, high wages, high profits, and overflowing revenue." In other words, the mighty grasp England held over the resources and capital of the world is being relaxed.The control of its commerce and banking is slipping through her fingers.
The sale of her foreign holdings advertises the fact that other nations are capable of buying them, and, further, that these other nations are busily producing surplus value.
The movement has become general.Today, passing from country to country, an ever-increasing tide of capital is welling up.
Production is doubling and quadrupling upon itself.It used to be that the impoverished or undeveloped nations turned to England when it came to borrowing, but now Germany is competing keenly with her in this matter.France is not averse to lending great sums to Russia, and Austria-Hungary has capital and to spare for foreign holdings.
Nor has the United States failed to pass from the side of the debtor to that of the creditor nations.She, too, has become wise in the way of producing surplus value.She has been successful in her efforts to secure economic emancipation.Possessing but 5 per cent of the world's population and producing 32 per cent of the world's food supply, she has been looked upon as the world's farmer; but now, amidst general consternation, she comes forward as the world's manufacturer.In 1888 her manufactured exports amounted to $130,300,087; in 1896, to $253,681,541; in 1897, to $279,652,721; in 1898, to $307,924,994; in 1899, to $338,667,794; and in 1900, to $432,000,000.Regarding her growing favorable balances of trade, it may be noted that not only are her imports not increasing, but they are actually falling off, while her exports in the last decade have increased 72.4 per cent.In ten years her imports from Europe have been reduced from $474,000,000 to $439,000,000; while in the same time her exports have increased from $682,000,000 to $1,111,000,000.
Her balance of trade in her favor in 1895 was $75,000,000; in 1896, over $100,000,000; in 1897, nearly $300,000,000; in 1898, $615,000,000; in 1899, $530,000,000; and in 1900, $648,000,000.
