The formation of the Six Power Group in China meant that the financial
strength of England and France had to be shared, for political reasons,
with powers which had, on purely financial grounds, no claim whatever to
participate in the business of furnishing capital to China. The
introduction to the 1898 edition of "Fenn on the Funds," expresses the
view that our Government is ready to protect our traders abroad, but
only helps investors when it suits it to do so. "If," it says, "a
barbarian potentate's subjects rob a British trader we never hesitate to
insist upon the payment of liberal compensation, which we enforce if
necessary by a 'punitive expedition,' but if a civilized Government robs
a large number of British investors, the Government does not even, so
far as we know, enlist the help of its diplomatic service. Only when,
as in the case of Egypt, there are important political objects in view,
does the State protect those citizens who are creditors of foreign
nations. One or two other countries, notably Germany, set us a good
example, with the best results as far as their investors are concerned."
Germany is often thus taken as the example of the State which gives its
financiers the most efficient backing abroad; but even in Germany
finance is, like everything else, the obedient servant of the military
and political authorities. For several years before the present war, the
financiers of Berlin were forbidden to engage in moneylending operations
abroad. No doubt the Government saw that the present war was coming, and
so it preferred to keep German money at home. It is true that Germany
once shook its mailed fist with some vigour on behalf of its financial
interest when it made, with us, a demonstration against Venezuela. But
it is at least possible that it did so chiefly with a view to the
promotion of the popularity of its navy at home, and to making it easier
to get the money for its upkeep and increase from the taxpayers,
already oppressed by their military burden. In Morocco questions of
trade and finance were at the back of the quarrel, but it would not have