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Thus, in a few swift years, has the United States drawn up to the van where the great industrial nations are fighting for commercial and financial empire. The figures of the race, in which she passed England, are interesting:

Year_____United_States_Exports____United_Kingdom_Exports
1875_______$497,263,737____________$1,087,497,000
1885_______673,593,506______________1,037,124,000
1895_______807,742,415______________1,100,452,000
1896_______986,830,080______________1,168,671,000
1897_____1,079,834,296______________1,139,882,000
1898_____1,233,564,828______________1,135,642,000
1899_____1,253,466,000______________1,287,971,000
1900_____1,453,013,659______________1,418,348,000

As Mr. Henry Demarest Lloyd has noted, “When the news reached Germany of the new steel trust in America, the stocks of the iron and steel mills listed on the Berlin Bourse fell.” While Europe has been talking and dreaming of the greatness which was, the United States has been thinking and planning and doing for the greatness to be. Her captains of industry and kings of finance have toiled and sweated at organizing and consolidating production and transportation. But this has been merely the developmental stage, the tuning-up of the orchestra. With the twentieth century rises the curtain on the play,–a play which shall have much in it of comedy and a vast deal of tragedy, and which has been well named The Capitalistic Conquest of Europe by America. Nations do not die easily, and one of the first moves of Europe will be the erection of tariff walls. America, however, will fittingly reply, for already her manufacturers are establishing works in France and Germany. And when the German trade journals refused to accept American advertisements, they found their country flamingly bill-boarded in buccaneer American fashion.

M. Leroy-Beaulieu, the French economist, is passionately preaching a commercial combination of the whole Continent against the United States,–a commercial alliance which, he boldly declares, should become a political alliance. And in this he is not alone, finding ready sympathy and ardent support in Austria, Italy, and Germany. Lord Rosebery said, in a recent speech before the Wolverhampton Chamber of Commerce: “The Americans, with their vast and almost incalculable resources, their acuteness and enterprise, and their huge population, which will probably be 100,000,000 in twenty years, together with the plan they have adopted for putting accumulated wealth into great cooperative syndicates or trusts for the purpose of carrying on this great commercial warfare, are the most formidable . . . rivals to be feared.”

The London Times says: “It is useless to disguise the fact that Great Britain is being outdistanced. The competition does not come from the glut caused by miscalculation as to the home demand. Our own steel-makers know better and are alarmed. The threatened competition in markets hitherto our own comes from efficiency in production such as never before has been seen.” Even the British naval supremacy is in danger, continues the same paper, “for, if we lose our engineering supremacy, our naval supremacy will follow, unless held on sufferance by our successful rivals.”

And the Edinburgh Evening News says, with editorial gloom: “The iron and steel trades have gone from us. When the fictitious prosperity caused by the expenditure of our own Government and that of European nations on armaments ceases, half of the men employed in these industries will be turned into the streets. The outlook is appalling. What suffering will have to be endured before the workers realize that there is nothing left for them but emigration!”

That there must be a limit to the accumulation of capital is obvious. The downward course of the rate of interest, notwithstanding that many new employments have been made possible for capital, indicates how large is the increase of surplus value. This decline of the interest rate is in accord with Bohm-Bawerk’s law of “diminishing returns.” That is, when capital, like anything else, has become over-plentiful, less lucrative use can only be found for the excess. This excess, not being able to earn so much as when capital was less plentiful, competes for safe investments and forces down the interest rate on all capital. Mr. Charles A. Conant has well described the keenness of the scramble for safe investments, even at the prevailing low rates of interest. At the close of the war with Turkey, the Greek loan, guaranteed by Great Britain, France, and Russia, was floated with striking ease. Regardless of the small return, the amount offered at Paris, (41,000,000 francs), was subscribed for twenty-three times over. Great Britain, France, Germany, Holland, and the Scandinavian States, of recent years, have all engaged in converting their securities from 5 per cents to 4 per cents, from 4.5 per cents to 3.5 per cents, and the 3.5 per cents into 3 per cents.