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98 that social causes should be added to the economic causes of modern colonial policy.

"As a result of the increasing complexity of life, a complexity and a difficulty weighing not only on the working masses, but also on the middle classes, impatience, irritation and hatred are accumulating in all the countries of the old civilisation, and are a menace to public calm. Energy, rising out of the rut of a class, must be found employment and an outlet abroad, so as to prevent an explosion within."

Once we are speaking of colonial policy in the period of capitalist imperialism, it is indispensable to note that finance-capital and the international policy which is proper to it, and which resolves itself into the struggle of the great Powers for the and political division of the world, gives rise to a number of transitional forms of State dependence. And the division into two principal groups of countries—possessors of colonies and colonised areas—is not sufficient to characterise the period. It is necessary to take into account the various kinds of dependence of countries which are politically independent in form but are surrounded in reality with a fine network of financial and diplomatic bonds. We have already drawn attention to the semi-colonies; they give effect to one of these forms of dependence. Here is another of which Argentina provides us with an example.

"South America, and especially Argentina," writes Schulz-Gaevernitz in his work on British Imperialism, "is so dependent financially on London that it must almost be called a commercial colony of England." The capital invested by England in Argentina, was estimated by Schilder,