nada possesses certain important resources which are highly essential
to the United States. Chief among them are agricultural land and timber.
There are two methods by which the industrial interests of the United
States might normally proceed with relations to the Canadian resources.
One is to attack the situation politically, the other is to absorb it
economically. The latter method is being pursued at the present time. To
be sure there is a large annual emigration from the United States into
Canada (approximately 50,000 in 1919) but capital is migrating faster
than human beings.

The Canadian Bureau of Statistics reports (letter of May 20, 1920) on
"Stocks, Bonds and other Securities held by incorporated and joint stock
Companies engaged in manufacturing industries in Canada, 1918," as owned
by 8,130,368 individual holders, distributed geographically as follows:
Canada, $945,444,000; Great Britain, $153,758,000; United States,
$555,943,000, and other countries, $17,221,322. Thus one-third of this
form of Canadian investment is held in the United States.

4. _American Protectorates_

The close economic inter-relations that are developing in the Americas,
naturally have their counter-part in the political field. As the
business interests reach southward for oil, iron, sugar, and tobacco
they are accompanied or followed by the protecting arm of the State
Department in Washington. Few citizens of the United States realize how
thoroughly the conduct of the government, particularly in the Caribbean,
reflects the conduct of the bankers and the traders.

Professor Hart in his "New American History" (American Book Co., 1917,
p. 634) writes, "In addition the United States between 1906 and 1916
obtained a protectorate over the neighboring Latin American States of
Cuba, Hayti, Panama, Santo Domingo and Nicaragua. All together these
five states include 157,000 square miles and 6,000,000 people."
Professor Hart makes this statement under the general topic, "What
America Has Done for the World."

The Monroe Doctrine, logically applied to Latin America, can have but
one possible outcome. Professor Chester Lloyd Jones characterizes that
outcome in the following words, "Steadily, quietly, almost unconsciously
the extension of international responsibility southward has become
practically a fixed policy with the State Department. It is a policy
which the record of the last sixteen years shows is followed, not
without protest from