But it was in South America and Mexico that the most active colonization proceeded. There is not an American diplomat in South America who does not know this and who has not reported it--reported it with one finger on both lips and then has seen his report discreetly smothered in departmental pigeon-holes. Up to a few years ago Mexico and South America were enjoying marvelous prosperity. Coffee had not collapsed in Brazil. Banks had not blown up from self-inflation in Argentina. Revolution at home and war abroad had not closed mines in Mexico. All hands were stretched out for colonists. Japan launched vast trans-Pacific colonization schemes. Ships were sent scouting commercial possibilities in South America. To colonists in Chile and Peru, fare was in many cases prepaid. Money was loaned to help the colonists establish themselves, and an American representative to one of these countries told me that free passage was given colonists on furlough home if they would go back to the colony. There is no known record outside Japan of the numbers of these colonists. And Japan asks--why not? Does not England colonize; does not Germany colonize; does not France colonize? We are taking our place at the world board of trade. If we fail to make good, throw us out. If we make good, we do not ask "by your leave." IV When a shipping investigation was on in Washington a year ago, many members of the committee were amazed to learn that Japan already controls seventy-two per cent. of the shipping on the Pacific. Ask a Chilean or Peruvian whether he prefers to travel on an American or a Japanese ship. He laughs and answers that American ships to the western coast of South America would be as tubs are to titanics--only until the new registry bill passed there were hardly any ships under the United States flag on the Southern Pacific. Each of these Japanese ships is so heavily subsidized it could run without a passenger or a cargo; high as one hundred thousand dollars a voyage for many ships. Its crews are paid eight to ten dollars a month, where American and Canadian crews demand and get forty to fifty dollars. In cheapness of labor, in efficiency of service, in government aid and style of building no American nor Canadian ships can stand up against them. And again Japan asks--why not? Atlantic commerce is a prize worth four billions a year. When the Orient fully awakens, will Pacific commerce total four billions a year? Who rules the sea rules the world. Japan's ships dominate seventy-two per cent. of the Pacific's commerce now.