CAPITAL SENT ABROAD 53 



buys a foreign security, there is very seldom 

 any movement of national capital, yet, when the 

 foreign security is purchased out of savings, there 

 is a movement of capital, national as well as that 

 of an individual — a movement from the home 

 country to that foreign country in which is 

 situated some one of the links in the chain of 

 buyings and sellings. 



Lastly, in order to avoid the protective duties 

 levied by foreign States, or for some other reason, 

 capital is sometimes sent abroad to start manu- 

 facturing or other works. There is no return of 

 this capital as principal, and it is therefore so far 

 a loss of national capital : but in this case, as in 

 all cases where the owners of foreign capital 

 reside at home, there is a partial return in the 

 form of interest or dividend. 



Can Great Britain at present afford to send 

 capital abroad in this manner ? As a result of 

 capital sent abroad in former years, she now 

 receives annually food and raw material to the 

 value of ;^ 1 5 5,000,000, for which she is not obliged 

 to send out exports in payment. Ought she to 

 be now sending out more capital, in order to 

 increase the annual receipts of food and raw 

 material ? This is a problem she has to solve. 

 In the meantime she has much labour-capital 

 standing idle, which points to a deficiency of 

 that form of capital which sets labour to work ; 

 and it is this latter form of capital which is being 

 sent abroad in the ways just pointed out. 



Capital is also misemployed, and the result is 

 waste, which is indeed a very serious matter. 



4* 



