NATURAL RESOURCES AND PEACE

For the United States to attempt to secure an economic internationalism, which shall form the basis of an enduring peace, is to enter upon a task which bristles with difficulties. These difficulties fall into two classes, those which tend to deprive America of her freedom of action and disqualify her for leadership, and those which are found in deep antagonisms among the nations to be reconciled. America cannot succeed in her efforts to bring about an economic internationalism if she herself is economically or psychologically unstable or if her own foreign policy is grasping, aggressive and imperialistic. Nor can she succeed unless her efforts are wisely directed towards the solution of the real problems which now divide the world.

In all such discussions we are likely to take America’s pacific intentions in the future for granted. Such an assumption, however, is unwarranted. To-day the peace-maker is the organiser of the world and no nation can lead in the peace movement, nor even be assured of its own peace, unless it has reached a certain stage of economic stability and is organised on a reasonably satisfactory economic basis. Our danger of war lies partly within. If we launch out upon an imperialistic policy, placing our vital national interests within the area of keen international rivalry, we shall be in peril of a war, evoked by ourselves.

The time to prevent such a conflict is not immediately before its threatened outbreak but during the period in which the forces making for war are slowly maturing. These forces, in our case at least, take their rise in home conditions. Our chance of peace with England, Germany, Japan or Russia twenty or thirty years from now depends upon what we do with our own territory and our own resources to-day.

This may at first glance seem a paradox. Why should we fight Germany or Japan because our agriculture is inefficient or our fiscal policy inadequate or because our wealthy are too wealthy and our poor too poor? Yet the connection is close. Bellicosity is not spontaneous, a thing evolved out of nothing. Peoples do not fight when they have what they want, but only when they are frustrated and cramped and need air and elbow room. War is like emigration. The individual migrant leaves home for personal reasons, but the great movement of emigration is nothing but an escape from worse to better economic conditions. If the natural resources of a nation are too small or are badly utilised the resulting insecurity and poverty may lead to international conflicts. Or if the national economy though otherwise efficient and self-contained is so ordered that huge masses of the population are impoverished and destitute, there will always be a centrifugal force inciting to foreign adventures and wars. Where there is no place at home for “younger sons” they will seek a place outside.

Nowhere can one study this tremendous internal outward-driving pressure better than in Japan. That nation, though extremely poor, spends huge sums upon armies, navies and fortifications, and engages in a dangerous and perhaps eventually fatal conflict with other powers. But it is not pride of race or dynastic ambition which compels Japan to enter upon these imperialistic courses, but a sheer lack of economic reserves. Her area, not including Korea, Formosa, Sakhalin, etc., is 149,000 square miles, or less than that of California, while her population (1914) is 56,000,000. Moreover, Japan is so extraordinarily mountainous that the greater part of her area is unfitted for agriculture. Despite a very low standard of living, therefore, and a highly intensive culture, the land cannot feed the population, and foodstuffs must be imported. The population is growing with great rapidity, the excess of births over deaths amounting to over six hundred thousand a year.

Nor has Japan a sufficient outlet through emigration. The immigration of Japanese into Australia, British Columbia, the United States and South Africa is practically prohibited. Most parts of Eastern Asia are too crowded with men living still lower in the scale to permit any large infiltration of Japanese. To Japan, therefore, there are but two alternatives to an ultimate famine: the settlement of Korea and Manchuria, and industrialism. For industrialism, however, Japan is rather ill-fitted by tradition and lack of raw materials. Her best chance is to sell to China and to develop Manchuria and Korea, in both of which directions she runs counter to European ambitions. As a result, Japan becomes imperialistic and militaristic.

The American temptation to imperialism is far weaker than is that of Japan. There is for us no overwhelming necessity to enter upon a scramble for new territories or to fight wars to secure such territories. Our aggressiveness is latent, though with a capacity for growth. There are two ways to lessen this potential aggressiveness. The first is to weaken economic interests favouring imperialism and war and strengthen opposed interests; the second is to build up in the people a tough intellectual and emotional resistance to martial incitement. The remedy resolves itself into two factors, economic completeness and internal stability and equality.

Economic completeness depends in the first place upon a certain relation between natural resources and population. If the fields and mines of a country are too unproductive or its population excessive, there will be an inevitable leaning upon the resources of foreign countries and an intense competition for new territory, trade or investment facilities. A nation, however, may possess most of the elements of economic completeness and yet suffer through a bad geographical position. Its commerce, even its coast-wise commerce, may be at the mercy of a foreign country, or it may not control the mouths of its own rivers, or may be shut off completely from the sea. Switzerland, Hungary, Bohemia cannot secure their economic independence of Spain or France, but must depend upon the good will of other nations. Because of such geographical conditions an otherwise pacific nation may fail completely to build up a resistance to war.

An event in our own history will illustrate this point. From 1783 to 1803, our settlers in the Ohio Valley were entirely dependent for the sale of their products upon an outlet through the Mississippi River. Unless Spain and later France would permit the rude arks, laden with tobacco, flour and bacon, to unload at New Orleans, the West would be shut off from markets. Railroads had not yet been invented and there were no good roads over the mountains. Animosity towards the owner of New Orleans was therefore inevitable, since unless we could control the mouth of the Mississippi, we could not secure the allegiance of our own settlers west of the Alleghenies. The interests of our citizens lay beyond our borders; the key to our door was in the hands of a foreign power. But for the lucky accident that peacefully gave us Louisiana, we should sooner or later have been forced into war. The cession of this territory tended to establish for us an economic completeness.

An economic completeness for the United States does not of course mean that we should become a hermit nation, absolutely shut up within our tariff walls. It would be manifestly undesirable to prohibit foreign commerce or the foreign investment of American capital and no such sacrifice, even if possible, would be necessary to prevent a too violent friction with Europe. There is a more direct way in which to increase America’s economic reliance upon herself and diminish her dependence upon the accidents and hostilities of the world competition. It can be done by a better utilisation of our own resources. As yet we have merely skimmed the cream of one of the richest parts of the earth, and have exploited, rather than developed, our great continental territory. We have been superficial not thorough, hasty not scientific, in our utilisation of our resources. We have still a margin in which further to develop agriculture and other great extractive industries in order to lay at home the basis for a population which is bound to increase during the coming decades.

How great our friction with Europe is to be will depend on whether our economic development in the main is to consist of activities which impinge upon those of the great industrial countries or of activities which do not so impinge, whether for example, five per cent. or thirty per cent. of our people are to be engaged in industries which actively compete in foreign markets with the industries of Europe. Certain of our economic activities are for us pacific in tendency, inasmuch as they do not affect industrial Europe or actually benefit her. Of such a nature is agriculture. Every added bushel of wheat or bale of cotton raised in the United States improves the chances of European industry, lessens our competition with Europe and increases our market for European wares. The same is largely true of our production of copper, gold, silver, petroleum and other natural products. Upon these extractive enterprises, including coal and iron ore, is based a vast manufacturing industry which supplies our home population, and an immense transportation and commercial system which has its roots in our home resources. Our railroads do not appreciably compete with those of England and Germany; on the contrary the industrial progress of those countries is hastened by the development of our transportation system, which cheapens their food and raw materials. On the other hand a development of the American carrying trade, a growth of ship-building, shipping and export trade, however necessary or desirable, trenches immediately upon British and German shipbuilding, carrying and export trade, and leads directly and inevitably to economic conflict.

The dependence of our economic mutuality with Europe upon our agriculture may be illustrated by an hypothesis. Assume that our agricultural products were permanently cut in half while our population remained constant. We should have no food to export and would be obliged to import food. Millions of men would be forced out of agriculture into manufacturing industries, and as the home demand for these industries would be lessened a foreign market would be essential. Our railroad traffic would diminish, and railroad workers, thrown out of employment, would enter the export trade. We should be forced to secure foreign markets, and if political pressure were necessary, it would be forthcoming. Similarly, our chances for investment in agriculture and in railroad and industrial companies being lessened, capital would be forced to find an outlet in other countries, especially in semi-developed lands to which European capital flows. The rate of interest would fall, big risks would be taken, and if American investments were endangered by unrest or disorder in the backward country, our government would intervene. We should have no choice and could afford no scruples. Given such a fall in our agricultural product, the country would become imperialistic and bellicose, and there would be not the remotest possibility of our taking the lead in a policy to promote international peace.

The hypothesis is far-fetched, but exactly the same result would follow if instead of our agricultural product dwindling, it remained constant while our population grew. If our population increased 100 per cent. and our agricultural product remained stationary or increased only twenty or forty per cent., it would be impossible to maintain our present relation to the world. We must uphold a certain, not quite constant relation between our agricultural (and other extractive) industries and our population if we are to keep out of the thickest of the European complications.

A secure basis for a policy of non-aggression lies therefore in the development of home agriculture. It is not, however, to be expected that the proportion of farm workers will remain constant. In the United States this proportion has steadily fallen. Of every thousand males in all occupations 483 were engaged in agricultural pursuits in 1880 as compared with only 358 in 1910. But despite this relative decline agriculture did not become less productive. More horses and more agricultural machinery were used, and fewer persons were able to perform the same amount of work.

What is more significant than the number of persons employed is the amount of land available for agriculture. Until 1900 we were in the extensive period of American farming, during which an increase in the population was met by an increased farm acreage. From 1850 to 1900 our population increased from 23 to 76 millions, but our farm area increased almost as fast and the improved farm area even faster. During the decade ending 1910, however, a strong pressure of population upon American agriculture became obvious. In these ten years the countrys population increased 21 per cent. while the total farm area increased only 4.8 per cent. While 16,000,000 people were added to the population the increase in farm area was equal only to what would accommodate an additional three and a half million people. It is no longer easy to stretch the farm area and to a large extent our farms must grow by the increase of the improved at the expense of the unimproved acres.

Actually the per capita agricultural production in 1909 (the year covered by the census of 1910) was less than that of a decade before. Though the crops in the latter year were far higher in value, the increase in the quantity of product was only 10 per cent., as compared with an increase in population of 21 per cent. Had the American people consumed all the American product in both years, they would have been obliged to cut down their ration by about one-tenth; instead there was a vast diminution of exports. The growing population began to consume the agricultural products formerly exported. The question is therefore pertinent whether it will be possible for us indefinitely to feed from our own fields our increasing millions or whether we shall be forced to depend increasingly for food on outside sources and to secure this food by a development of our export trade in manufactured products. To many this question will seem to answer itself. It is commonly assumed that there are almost no limits to our possible agricultural production and therefore to our desirable increase of population. France is almost self-sufficing with a population of 189.5 to the square mile; when the United States (continental area) has an equally dense population we may maintain a population of five or six hundred millions. We need merely take up new lands and cultivate more intensively.

The opportunities for the further development of American agriculture, however, while undoubtedly great, are not immeasurable. At present we have some 879,000,000 acres in farms, of which 478,000,000 (or 25.1 per cent. of our total land area) are improved. But of the rest of our area much is not useful. Some 465,000,000 acres in the western part of the country have an annual precipitation of fifteen inches or less, and of these acres, not over 30,000,000 could be profitably irrigated at present prices of farm products, labour, land and capital. This addition of 30,000,000 acres would increase our present improved area by less than seven per cent. Besides the permanently arid acres, moreover, there is other unusable land in national forests, roads, cities and in swamps and over-flow lands difficult to reclaim. With these deductions made, we have only 1,252,000,000 acres as the maximum farm area of the future. This is 31.1 per cent. greater than the present farm area.

It is true that a larger part of the farm area can be cultivated. From 1900 to 1910 the area of improved lands increased 15.4 per cent. If this rate of increase could continue there would be about one billion acres improved by 1960, and this seems to be the absolutely outside upper limit. But this does not mean that a billion acres could be improved and cultivated at the same cost per acre as at present. The improved lands would require a constantly increasing amount of capital and labour to secure returns equal to those which the farmer now obtains.

Similarly there are limits to the extent to which we can afford to divide up our land into smaller farms in order to secure a larger production per acre. Intensive cultivation is an alluring phrase but in the production of many staple crops intensive cultivation is dear cultivation. The movement in progressive agricultural communities is towards a moderately large farm. It is the smaller farms (of from 20 to 99 acres) that the boys and girls leave most rapidly. “The farm management studies,” writes Mr. Eugene Merritt of the U. S. Department of Agriculture “indicate that on these small-sized farms, man labour, horse labour, and agricultural machinery cannot be used efficiently. In other words, economic competition is eliminating the unprofitable sized farms."

The pressure of agricultural population upon a given farm area results either in the growth of an inefficient small scale production or of a large rural proletariat. Both are undesirable and neither will permit farming on as cheap a scale as at present. The actual trend to-day in districts where cereals are raised is towards larger farms (of 150 to 300 acres), and this tendency is likely to be increased by the introduction of cheap tractor engines, which now seems to impend. There is doubtless a considerable opportunity in the United States for an improvement in the average product per acre even though the increase in the area of cultivation constantly brings in land of decreasing fertility. If in the course of forty or fifty years we can increase the area under cultivation by fifty per cent. and the product per acre by 20 per cent. we shall have an increase in product of 80 per cent., which would provide for an increase in the population of 80,000,000 without any greater leaning upon foreign resources than to-day.

We are likely, however, to lean upon certain foreign resources, and more especially upon Canada and the Caribbean countries. Whatever its political allegiance Canada is and will probably remain economically a part of the United States. The Iowa farmers, who sold out their home farms to buy cheaper land in Canada, unconsciously illustrated the closeness of this economic bond. We may draw upon Canadian wheat, fish, lumber and iron ore almost exactly as though the territory were our own. It is Canada’s interest to sell to us and buy from us, and even preferential duties cannot entirely overcome our immense geographical advantage over Europe. Similarly we shall draw upon the Caribbean countries, whether or not we have a political union, for vast quantities of tropical food stuffs.

Whatever our importation of food an increase in agricultural efficiency is also probable. We have already improved and cheapened our farm machinery and have disseminated agricultural education and information. But much progress remains to be made. We can use better seeds, raise better crops and cattle, and work more co-operatively instead of individualistically. Our transportation system can be better co-ordinated with our agriculture, so that food, now wasted because it will not pay the freight, can be brought to market. A better knowledge of the science of farming would greatly increase our agricultural production. If our country roads were improved, if we varied our crops more intelligently, if we refrained from impoverishing our soils, if we drained some tracts and irrigated others, we should speedily discover a vast increase in our agricultural productiveness, a larger return to the farmers, a greater home demand for manufactured products, and a better opportunity for capital at home. If by putting more capital and intelligence upon our farms, we were to add several billions to the value of their output, we should broaden the base of our whole economic life, enlarge the volume of our non-competitive exports, and in the end approximate conditions that would make for a peaceful foreign policy and for the promotion of an economic internationalism.

But though we widen our agricultural base, our population unless its rate of progress is checked, will eventually, and perhaps soon, overtake any extension. Though we increase agricultural knowledge and substitute mechanical for animal power and gasoline for hay, the law of diminishing returns will remain. Ten men cannot secure as large a per capita product from a given area as five, or twenty as large as ten. But if our population were to maintain its present geometrical increase we should have 200,000,000 inhabitants in 1953 and, to assume the almost impossible, 400,000,000 in 1990. Long before the latter figure could be reached there would be positive and preventive checks to further growth, but if these checks were late in being applied, there would come increased inequality, misery and economic uncertainty, and an enhanced liability to war.

For us as for other nations a too rapid increase in population spells this constant danger of war. Our farms cannot absorb more than a certain proportion of our population without causing lowered wages and increasing poverty, and we cannot expand our export trade without entering into the range of international conflict. While therefore an improved agriculture with high food prices will permit of an increase in our population, it is advantageous that that increase does not proceed too rapidly. If we grow to two hundred millions in seventy-five or one hundred years instead of in thirty-seven, we shall still be strong enough to protect our present territories and shall have less occasion to fight for new.

Fortunately our rate of population increase, despite immigration, is steadily decreasing. In the decade ending 1860 our population increased 35.6 per cent., in the period 1860 to 1879 at an average decennial rate of 26.3 per cent., and in the three following decades 25.5 per cent., 20.7 per cent. and 21.1 per cent respectively. The fall in our natural increase was even greater. While the death rate has declined the birth rate has fallen off even more rapidly. Our birth statistics are inadequate, but we can gain some idea of this decline by comparing the number of children under 5 years of age living at each census year with the number of women between the ages of 16 to 44 inclusive. In 1800 there were 976 children per 1,000 women in these ages; in 1830, 877; in 1860, 714; in 1890, 554; in 1910, 508.

For a number of decades a continuation in this falling off in the birth rate is probable. It is rendered necessary by the fall in the death rate and possible by the fact that birth has ceased to be a mere physiological accident and is coming under human control. “The most important factor in the change,” says Dr. John Shaw Billings, “is the deliberate and voluntary avoidance or prevention of child-bearing on the part of a steadily increasing number of married people who prefer to have but few children." The spreading of the knowledge of birth control and the increasing financial burden of children in an urbanised society composed of economically ambitious people will probably prevent our population from ever again increasing as rapidly as it did half a century ago.

In the meanwhile our immigration (until the outbreak of the present war) continued to increase. In the ten years ending June 30, 1914, over ten million immigrant aliens arrived in the United States, of whom approximately seven millions remained. Nor has the high point in immigration been surely attained. The European population increases so rapidly that the excess of births over deaths is between three and four times the entire emigration. Immigration tends to flow from countries where the pressure of population is greater to countries like the United States, where the pressure is less. Unless there is restriction we may witness within the next decades a new vast increase in immigration, which will result in a rapid growth of our population and a resulting pressure upon our agricultural (and other natural) resources, that will vastly increase the intensity and bitterness of our competition for the world’s markets and the world’s investment opportunities.

By thus increasing our agricultural product, and developing our home market and our less directly competitive industries and by slackening an increase in our population, which would otherwise force us into foreign adventures, we tend to approach a balanced economic system and a parallel growth of extractive and manufacturing industries. Such a dependence in the main on home resources for the nation’s primal needs is in the circumstances the best preventive of an imperialistic policy that might lead to war. But there is an even closer-lying incentive to imperialism and war. A nation may have a sufficiently wide base and an efficient industrial development but because of internal economic mal-adjustments may be driven into imperialistic courses. A policy not dictated by national needs may be forced upon the nation by the necessities and ambitions of its dominating class.