which the European adventurers had scooped up by means of barter, deceit and robbery. The lion's share of this wealth fell to the tradesmen able to fit out ships with bold, unscrupulous crews.
At the same time there came into being the modern state, the centralized official and military state, at first an absolute monarchy. This state met the demands of the rising capitalist class and depended on it for support. The modern state, the state of developed commodity-production, draws its power, not from personal service, but from its financial income. The monarchs had, therefore, every reason to protect and favor the capitalists who brought money into the country. In return the capitalists lent money to the monarchs, made debtors of them and put them in the position of dependents. This enabled them more and more to force the political and military power into their service. The state was obliged to improve means of communication, take over colonies and carry on wars in the interest of capital.
Our text-books on economics tell us that the beginning of capital is to be found in thrift. But we have learned that its origin was an altogether different one. Colonial policies were the chief sources of wealth open to capitalist nations; i. e., capital was drawn from plundering of foreign lands, from piracy, smuggling, slave-trading and war. Even down into the nineteenth century history shows us plenty of examples of this "thrift." And "thrifty" trades-people found in the state itself a powerful ally in this sort of "saving."
