Answer:
It seems that James was arguing that political virtue, or the idea of doing what is morally right in politics, should not be limited by geographical boundaries. He believed that the United States, by its actions in the Philippine Question, had become no better than the other imperialist powers of the time, and had abandoned any claims to moral superiority. Overall, James seems to be making a critique of American imperialism and suggesting that the country should strive for a more ethical and principled approach to foreign affairs.