POLITICAL instinct in England, particularly in the shaping of naval
policy, has always recognised the intimate relation which must exist
between an uninterrupted flow of food to these shores and the
preservation of national independence. An enemy in a position to stop
that flow would enjoy not merely an economic but a political power over
us—the power to starve us into ignominious submission to his will.
The fact has, of course, for generations been the main argument for
Britain’s right to maintain unquestioned command of the sea. In the
discussions before the War concerning the German challenge to our naval
power, it was again and again pointed out that Britain’s position was
very special: what is a matter of life and death for her had no
equivalent importance for other powers. And it was when the Kaiser
announced that Germany’s future was upon the sea that British fear
became acute! The instinct of self-preservation became aroused by the
thought of the possible possession in hostile hands of an instrument
that could sever vital arteries.
The fact shows how impossible it is to divide off into watertight
compartments the ‘economic’ from the political or moral. To preserve the
capacity to feed our people, to see that our children shall have milk,
is certainly an economic affair—a commercial one even. But it is an
indispensable condition also of the defence of our country, of the
preservation of our national freedom. The ultimate end behind the
determination to preserve a preponderant navy may be purely nationalist
or moral; the means is the maintenance of a certain economic situation.
Indeed the task of ensuring the daily bread of the people touches moral
and social issues nearer and more intimate even than the preservation of
our national independence. The inexorable rise in the cost of living,
the unemployment and loss and insecurity which accompany a rapid fall in
prices, are probably the predominating factors in a social unrest which
may end in transforming the whole texture of Western society. The worker
finds his increased wage continually nullified by increase of price. Out
of this situation arises an exasperation which, naturally enough, with
peoples habituated by five years of war to violence and emotional
mass-judgments, finds expression, not necessarily in organised
revolution—that implies, after all, a plan of programme, a hope of a
new order—but rather in sullen resentment; declining production, the
menace of general chaos. However restricted the resources of a country
may have become, there will always be some people under a régime of
private capital and individual enterprise who will have more than a mere
sufficiency, whose means will reach to luxury and even ostentation. They
may be few in number; the amount of waste their luxury represents may in
comparison with the total resources be unimportant. But their existence
will suffice to give colour to the charge of profiteering and
exploitation and to render still more acute the sullen discontent, and
finally perhaps the tendency to violence.
It is in such a situation that the price of a few prime
necessaries—bread, coal, milk, sugar, clothing—becomes a social,
political, and moral fact of the first importance. A two-shilling loaf
may well be a social and political portent.
In the week preceding the writing of these lines five cabinets have
fallen in Europe. The least common denominator in the cause is the
grinding poverty which is common to the peoples they ruled. In two cases
the governments fell avowedly over the question of bread, maintained by
subsidy at a fraction of its commercial cost. Everywhere the social
atmosphere, the temper of the workers, responds to stimulus of that
kind.
When we reach the stage at which mothers are forced to see their
children slowly die for lack of milk and bread, or the decencies of life
are lost in a sordid scramble for sheer physical existence, then the
economic problem becomes the gravest moral problem. The two are merged.
The obvious truth that, if economic preoccupations are not to dominate
the minds and absorb the energies of men to the exclusion of less
material things, then the fundamental economic needs must be satisfied;
the fact, that though the foundations are certainly not the whole
building, civilisation does rest upon foundations of food, shelter,
fuel, and that if it is to be stable they must be sound—these things
have been rendered commonplace by events since the Armistice. But before
the War they were not commonplaces. The suggestion that the economic
results of war were worth considering was quite commonly rejected as
‘offensive,’ implying that men went to war for ‘profit.’ Nations in
going to war, we were told, were lifted beyond the region of
‘economics.’ The conception that the neglect of the economics of war
might mean—as it has meant—the slow torture of tens of millions of
children and the disintegration of whole civilisations, and that if
those who professed to be the trustees of their fellows were not
considering these things they ought to be—this was, very curiously as
it now seems to us at this date, regarded as sordid and material. We now
see that the things of the spirit depend upon the solution of these
material problems.
The one fact which stood out clear above all others after the Armistice
was the actual shortage of goods at a time when millions were literally
dying of hunger. The decline of productivity was obvious. It was due in
part to diversion of energies to the task of war, to the destruction of
materials, failure in many cases to maintain plant (factories, railways,
roads, housing); to a varying degree of industrial and commercial
demoralisation arising out of the War and, later, out of the struggle
for political rearrangements both within States and as between States;
to the shortening of the hours of labour; to the dislocation, first of
mobilisation, and then of demobilisation; to relaxation of effort as
reaction from the special strain of war; to the demoralisation of credit
owing to war-time financial shifts. We had all these factors of reduced
productivity on the one side, and on the other a generally increased
habit and standard of expenditure, due in part to a stimulation of
spending power owing to the inflation of the currency and in part to the
recklessness which usually follows war; and above all an increasingly
insistent demand on the part of the worker everywhere in Europe for a
higher general standard of living, that is to say, not only a larger
share of the diminished product of his labour, but a larger absolute
amount drawn from a diminished total.
This created an economic impasse—the familiar ‘vicious circle.’ The
decline in the purchasing power of money and the rise in the rate of
interest set up demands for compensating increases both of wages and of
profits, which increases in turn added to the cost of production, to
prices. And so on da capo. As the first and last remedy for this
condition one thing was urged, to the exclusion of almost all
else—increased production. The King, the Cabinet, economists, Trades
Union leaders, the newspapers, the Churches, all agreed upon that one
solution. Until well into the autumn of 1920 all were enjoining upon the
workers their duty of an ever-increasing output.
By the end of that year, workers, who had on numberless occasions been
told that their one salvation was to increase their output, and who had
been upbraided in no mild terms because of their tendency to diminish
output, were being discharged in their hundreds of thousands because
there was a paralysing over-production and glut! Half a world was
famished and unclothed, but vast stores of British goods were rotting
and multitudes of workers unemployed. America revealed the same
phenomena. After stories of the fabulous wealth which had come to her as
the result of the War and the destruction of her commercial competitors,
we find, in the winter of 1920-21 that over great areas in the South and
West her farmers are near to bankruptcy because their cotton and wheat
are unsaleable at prices that are remunerative, and her industrial
unemployment problem as acute as it has been in a generation. So bad is
it, indeed, that the Labour Unions are unable to resist the Open Shop
campaign forced upon them by the employers, a campaign menacing the
gains in labour organisation that it has taken more than a generation to
make. America’s commercial competitors being now satisfactorily disposed
of by the War, and ‘the economic conquest of the world’ being now open
to that country, we find the agricultural interests (particularly cotton
and wheat) demanding government aid for the purpose of putting these
aforesaid competitors once more on their feet (by loan) in order that
they may buy American products. But the loans can only be repaid and the
products paid for in goods. This, of course, constitutes, in terms of
nationalist economics, a ‘menace.’ So the same Congress which receives
demands for government credits to European countries, also receives
demands for the enactment of Protectionist legislation, which will
effectually prevent the European creditors from repaying the loans or
paying for the purchases. The spectacle is a measure of the chaos in our
thinking on international economics.[1]
But the fact we are for the moment mainly concerned with is this: on the
one side millions perishing for lack of corn or cotton; on the other
corn and cotton in such abundance that they are burned, and their
producers face bankruptcy.
Obviously therefore it is not merely a question of production, but of
production adjusted to consumption, and vice versa; of proper
distribution of purchasing power, and a network of processes which must
be in increasing degree consciously controlled. We should never have
supposed that mere production would suffice, if there did not
perpetually slip from our minds the very elementary truth that in a
world where division of labour exists wealth is not a material but a
material plus a process—a process of exchange. Our minds are still
dominated by the mediæval aspect of wealth as a ‘possession’ of static
material such as land, not as part of a flow. It is that oversight which
probably produced the War; it certainly produced certain clauses of the
Treaty. The wealth of England is not coal, because if we could not
exchange it (or the manufactures and services based on it) for other
things—mainly food—it certainly would not even feed our population.
And the process by which coal becomes bread is only possible by virtue
of certain adjustments, which can only be made if there be present such
things as a measure of political security, stability of conditions
enabling us to know that crops can be gathered, transported and sold for
money of stable value; if there be in other words the indispensable
element of contract, confidence, rendering possible the indispensable
device of credit. And as the self-sufficing economic unit—quite
obviously in the case of England, less obviously but hardly less
certainly in other notable cases—cannot be the national unit, the field
of the contract—the necessary stability of credit, that is—must be, if
not international, then trans-national. All of which is extremely
elementary; and almost entirely overlooked by our statesmanship, as
reflected in the Settlement and in the conduct of policy since the
Armistice.
Britain’s dependence on the production by foreigners of a surplus
of food and raw materials beyond their own needs
The matter may be clarified if we summarise what precedes, and much of
what follows, in this proposition:—
The present conditions in Europe show that much of its dense
population (notably the population of these islands) can only live
at a standard necessary for civilisation (leisure, social peace,
individual freedom) by means of certain co-operative processes,
which must be carried on largely across frontiers. The mere
physical existence of much of the population of Britain is
dependent upon the production by foreigners of a surplus of food
and raw materials beyond their own needs.
The processes of production have become of the complex kind which
cannot be compelled by preponderant power, exacted by physical
coercion.
But the attempt at such coercion, the inevitable results of a
policy aimed at securing predominant power, provoking resistance
and friction, can and does paralyse the necessary processes, and by
so doing is undermining the economic foundations of British life.
What are the facts supporting the foregoing proposition?
Many whose instincts of national protection would become immediately
alert at the possibility of a naval blockade of these islands, remain
indifferent to the possibility of a blockade arising in another but
every bit as effective a fashion.
That is through the failure of the food and raw material, upon which our
populations and our industries depend, to be produced at all owing to
the progressive social disintegration which seems to be going on over
the greater part of the world. To the degree to which it is true to say
that Britain’s life is dependent upon her fleet, it is true to say that
it is dependent upon the production by foreigners of a surplus above
their own needs of food and raw material. This is the most fundamental
fact in the economic situation of Britain: a large portion of her
population are fed by the exchange of coal, or services and manufactures
based on coal, for the surplus production, mainly food and raw material,
of peoples living overseas.[2] Whether the failure of food to reach us
were due to the sinking of our ships at sea or the failure of those
ships to obtain cargoes at the port of embarkation the result in the end
would be the same. Indeed, the latter method, if complete, would be the
more serious as an armistice or surrender would not bring relief.
The hypothesis has been put in an extreme form in order to depict the
situation as vividly as possible. But such a condition as the complete
failure of the foreigner’s surplus does not seem to-day so preposterous
as it might have done five years ago. For that surplus has shrunk
enormously and great areas that once contributed to feeding us can do so
no longer. Those areas already include Russia, Siberia, the Balkans, and
a large part of the Near and Far East. What we are practically concerned
with, of course, is not the immediate disappearance of that surplus on
which our industries depend, but the degree to which its reduction
increases for us the cost of food, and so intensifies all the social
problems that arise out of an increasing cost of living. Let the
standard alike of consumption and production of our overseas white
customers decline to the standard of India and China, and our foreign
trade would correspondingly decrease; the decline in the world’s
production of food would mean that much less for us; it would reduce the
volume of our trade, or in terms of our own products, cost that much
more; this in turn would increase the cost of our manufactures, create
an economic situation which one could describe with infinite technical
complexity, but which, however technical and complex that description
were made, would finally come to this—that our own toil would become
less productive.
That is a relatively new situation. In the youth of men now living,
these islands with their twenty-five or thirty million population were,
so far as vital needs are concerned, self-sufficing. What will be the
situation when the children now growing up in our homes become members
of a British population which may number fifty, sixty, or seventy
millions? (Germany’s population, which, at the outbreak of war, was
nearly seventy millions, was in 1870 a good deal less than the present
population of Great Britain.)
Moreover, the problem is affected by what is perhaps the most important
economic change in the world since the industrial revolution, namely the
alteration in the ratio of the exchange value of manufactures and
food—the shift over of advantage in exchange from the side of the
industrialist and manufacturer to the side of the producer of food.
Until the last years of the nineteenth century the world was a place in
which it was relatively easy to produce food, and nearly the whole of
its population was doing it. In North and South America, in Russia,
Siberia, China, India, the universal occupation was agriculture, carried
on largely (save in the case of China and India) upon new soil, its
first fertility as yet unexhausted. A tiny minority of the world’s
population only was engaged in industry in the modern sense: in
producing things in factories by machinery, in making iron and steel.
Only in Great Britain, in Northern Germany, in a few districts in the
United States, had large-scale industry been systematically developed.
It is easy to see, therefore, what immense advantage in exchange the
industrialist had. What he had for sale was relatively scarce; what the
agriculturist had for sale was produced the world over and was, in
terms of manufactures, extremely cheap. It was the economic paradox of
the time that in countries like America, South and North, the
farmer—the producer of food—was naturally visualised as a
poverty-stricken individual—a ‘hayseed’ dressed in cotton jeans,
without the conveniences and amenities of civilisation, while it was in
the few industrial centres that the vast wealth was being piled up. But
as the new land in North America and Argentina and Siberia became
occupied and its first fertility exhausted, as the migration from the
land to the towns set in, it became possible with the spread of
technical training throughout the world, with the wider distribution of
mechanical power and the development of transport, for every country in
some measure to engage in manufacture, and the older industrial centres
lost some of their monopoly advantage in dealing with the food producer.
In Cobden’s day it was almost true to say that England spun cotton for
the world. To-day cotton is spun where cotton is grown; in India, in the
Southern States of America, in China.
This is a condition which (as the pages which follow reveal in greater
detail) the intensification of nationalism and its hostility to
international arrangement will render very much more acute. The
patriotism of the future China or Argentina—or India and Australia, for
that matter—may demand the home production of goods now bought in (say)
England. It may not in economic terms benefit the populations who thus
insist upon a complete national economy. But ‘defence is more than
opulence.’ The very insecurity which the absence of a definitely
organised international order involves will be invoked as justifying the
attempt at economic self-sufficiency. Nationalism creates the situation
to which it points as justification for its policy: it makes the very
real dangers that it fears. And as Nationalism thus breaks up the
efficient transnational division of labour and diminishes total
productivity, the resultant pressure of population or diminished means
of subsistence will push to keener rivalry for the conquest of
territory. The circle can become exceedingly vicious—so vicious,
indeed, that we may finally go back to the self-sufficing village
community; a Europe sparsely populated if the resultant clerical
influence is unable to check prudence in the matter of the birth-rate,
densely populated to a Chinese or Indian degree if the birth-rate is
uncontrolled.
The economic chaos and social disintegration which have stricken so
much of the world have brought a sharp reminder of the primary, the
elemental place of food in the catalogue of man’s needs, and the
relative ease and rapidity with which most else can be jettisoned in our
complex civilisation, provided only that the stomach can be filled.
Before the War the towns of Europe were the luxurious and opulent
centres; the rural districts were comparatively poor. To-day it is the
cities of the Continent that are half-starved or famine-stricken, while
the farms are well-fed and relatively opulent. In Russia, Poland,
Hungary, Germany, Austria, the cities perish, but the peasants for the
most part have a sufficiency. The cities are finding that with the
breakdown of the old stability—of the transport and credit systems
particularly—they cannot obtain food from the farmers. This process
which we now see at work on the Continent is in fact the reversal of our
historical development.
As money acquired a stable value and transport and communication became
easy and cheap, the manor ceased to be self-contained, to weave its own
clothes and make its own implements. But the Russian peasants are
proving to-day that if the railroads break down, and the paper money
loses its value, the farm can become once more self-sufficing. Better to
thresh the wheat with a flail, to weave clothes from the wool, than to
exchange wheat and wool for a money that will buy neither cloth nor
threshing machinery. But a country-side that weaves its own cloth and
threshes its grain by hand is one that has little surplus of food for
great cities—as Vienna, Buda-Pest, Moscow, and Petrograd have already
discovered.
If England is destined in truth to remain the workshop of that world
which produces the food and raw material, then she has indeed a very
direct interest in the maintenance of all those processes upon which the
pre-war exchange between farm and factory, city and country,
depended.[3]
The ‘farm’ upon which the ‘factory’ of Great Britain depends is the
food-producing world as a whole. It does not suffice that the overseas
world should merely support itself as it did, say, in the tenth century,
but it must be induced by hope of advantage to exchange a surplus for
those things which we can deliver to it more economically than it can
make them for itself. Because the necessary social and political
stability, with its material super-structure of transport and credit,
operating trans-nationally, has broken down, much of Europe is returning
to its earlier simple life of unco-ordinated production, and its total
fertility is being very greatly reduced. The consequent reaction of a
diminished food supply for ourselves is already being felt.
It will be said: Does not the unquestioned rise in the standard of
wages, despite all the talk of debt, expenditure, unbalanced budgets,
public bankruptcy, disprove any theory of a vital connection between a
stable Europe and our own prosperity? Indeed, has not the experience of
the War discredited much of the theory of the interdependence of
nations?
The first few years of the War did, indeed, seem to discredit it, to
show that this interdependence was not so vital as had been supposed.
Germany seemed for a long time really to be self-supporting, to manage
without contact with other peoples. It seemed possible to re-direct the
channels of trade with relative ease. It really appeared for a time that
the powers of the Governments could modify fundamentally the normal
process of credit almost at will, which would have been about equivalent
to the discovery of perpetual motion! Not only was private credit
maintained by governmental assistance, but exchanges were successfully
‘pegged’; collapse could be prevented apparently with ease. Industry
itself showed a similar elasticity. In this country it seemed possible
to withdraw five or six million men from actual production, and so
organise the remainder as to enable them to produce enough not only to
maintain themselves, but the country at large and the army, in food,
clothing and other necessaries. And this was accomplished at a standard
of living above rather than below that which obtained when the country
was at peace, and when the six or seven or eight millions engaged in war
or its maintenance were engaged in the production of consumable wealth.
It seemed an economic miracle that with these millions withdrawn from
production, though remaining consumers, the total industrial output
should be very little less than it was before the War.
But we are beginning to see how this miracle was performed, and also
what is the truth as to the self-sufficiency of the great nations. As
late as the early summer of 1918, when, even after four years of the
exhausting drain of war, well-fed German armies were still advancing and
gaining victories, and German guns were bombarding Paris (for the first
time in the War), the edifice of German self-sufficiency seemed to be
sound. But this apparently stalwart economic structure crumbled in a few
months into utter ruins and the German population was starving and
freezing, without adequate food, fuel, clothing. England has in large
measure escaped this result just because her contacts with the rest of
the world have been maintained while Germany’s have not. These latter
were not even re-established at the Armistice; in many respects her
economic isolation was more complete after the War than during it.
Moreover, because our contacts with the rest of the world are
maintained by shipping, a very great flexibility is given to our
extra-national economic relationships. Our lines of communication can be
switched from one side of the world to the other instantly, whereas a
country whose approaches are by railroads may find its communications
embarrassed for a generation if new frontiers render the old lines
inapplicable to the new political conditions.
In the first year or so following the Armistice there was a curious
contradiction in the prevailing attitude towards the economic situation
at home. The newspapers were full of headlines about the Road to Ruin
and National Bankruptcy; the Government plainly was unable to make both
ends meet; the financial world was immensely relieved when America
postponed the payments of debts to her; we were pathetically appealing
to her to come and save us; the British sovereign, which for generations
has been a standard of value for the world and the symbol of security,
dropped to a discount of 20 per cent, in terms of the dollar; our
Continental creditors were even worse off; the French could only pay us
in a depreciated paper currency, the value of which in terms of the
dollar varied between a third and a fourth of what it was before the
War; the lira was cheaper still. Yet side by side with this we had
stories of a trade boom (especially in textiles and cotton), so great
that merchants and manufacturers refused to go to their offices, in
order to dodge the flood of orders so vastly in excess of what they
could fulfil. Side by side with depreciated paper currency, with public
debts so crippling that the Government could only balance its budget by
loans which were not successful when floated, the amusement trades
flourished as never before. Theatre, music hall, and cinematograph
receipts beat all records. There was a greater demand for motor-cars
than the trade could supply. The Riviera was fuller than it had ever
been before. The working class itself was competing with others for the
purchase of luxuries which in the past that class never knew. And while
the financial situation made it impossible, apparently, to find capital
for building houses to live in, ample capital was forthcoming wherewith
to build cinema palaces. We heard and read of famine almost at our
doors, and saw great prosperity around us; read daily of impending
bankruptcy—and of high profits and lavish spending; of world-wide
unrest and revolution—and higher wages than the workers had ever known.
Complex and contradictory as the facts seemed, the difficulty of a true
estimate was rendered greater by the position in which European
Governments found themselves placed. These Governments were faced by the
necessity of maintaining credit and confidence at almost any cost. They
must not, therefore, throw too great an emphasis upon the dark features.
Yet the need for economy and production was declared to be as great as
it was during the war. To create a mood of seriousness and sober
resolution adequate to the situation would involve stressing facts
which, in their efforts to obtain loans, internal or external, and to
maintain credit, governments were compelled to minimise.
Then, of course, the facts were obscured mainly by the purchasing power
created by the manufacture of credit and paper money. Some light is
thrown upon this ambiguous situation by a fact which is now so
manifest—that this juxtaposition of growing indebtedness and lavish
spending, high wages, high profits, active trade, and a rising standard
of living, were all things that marked the condition of Germany in the
first few years of the War. Industrial concerns showed profits such as
they had never shown before; wages steadily rose; and money was
plentiful. But the profits were made and the wages were paid in a money
that continually declined in value—as ours is declining. The higher
consumption drew upon sources that were steadily being depleted—as ours
are being depleted. The production was in certain cases maintained by
very uneconomic methods: as by working only the best seams in the coal
mines, by devoting no effort to the proper upkeep of plant (locomotives
on the railway which ordinarily would go into the repair shop every six
weeks were kept running somehow during the whole course of the War). In
this sense the people were ‘living upon capital’—devoting, that is, to
the needs of current consumption energy which should have been devoted
to ensuring future production. In another way, they were converting into
income what is normally a source of capital. An increase in profits or
wages, which ordinarily would have provided a margin, over and above
current expenditure, out of which capital for new plant, etc., could
have been drawn, was rapidly nullified by a corresponding increase in
prices. Loans for the purpose even of capital expenditure involved an
inflation of currency which still further increased prices, thus
diminishing the value of the capital so provided, necessitating the
issue of further loans which had the same effect. And so the vicious
circle was narrowed. Even after four years of this kind of thing the
edifice had in many respects the outward appearances of prosperity. As
late as April, 1918, the German organisation, as we have noted, was
still capable of maintaining a military machine which could not only
hold its own but compel the retirement of the combined forces of France,
Britain, America, and minor Allies. But once the underlying process of
disintegration became apparent, the whole structure went to pieces.
It is that unnoticed process of disintegration, preceding the final
collapse, which should interest us. For the general method employed by
Germany for meeting the consumption of war and disguising the growing
scarcity is in many respects the method her neighbours adopted for
meeting the consumption of a new standard of life on the basis of less
total wealth—a standard which, on the part of the workers, means both
shorter hours and a larger share of their produce, and on the part of
other classes a larger share of the more expensive luxuries. Like the
Germans of 1914-18, we are drawing for current consumption upon the fund
which, in a more healthy situation, would go to provide for renewal of
plant and provision of new capital. To ‘eat the seed corn’ may give an
appearance of present plenty at the cost of starvation later.
It is extremely unlikely that there will ever be in England the sudden
catastrophic economic collapse which we have witnessed in Russia,
Germany, Austria, and Central Europe generally. But we shall none the
less be concerned. As the increased wages gained by strikes lose with
increasing rapidity their value in purchasing power, thus wiping out the
effect of the industrial ‘victory,’ irritation among the workers will
grow. On minds so prepared the Continental experiments in social
reconstruction—prompted by conditions immeasurably more acute—will act
with the force of hypnotic suggestion. Our Government may attempt to
cope with these movements by repression or political devices. Tempers
will be too bad and patience too short to give the sound solutions a
real chance. And an economic situation, not in itself inherently
desperate, may get steadily worse because of the loss of social
discipline and of political insight, the failure to realise past
expectations, the continuance of military burdens created by external
political chaos.
What has actually happened in so much of Europe around us ought
certainly to prevent any too complacent sense of security. In the midst
of this old civilisation are (in Mr. Hoover’s calculation) some hundred
million folk, who before the War managed to support themselves in fair
comfort but are now unable to be truly self-supporting. Yet they live
upon the same soil and in the presence of the same natural resources as
before the War. Their inability to use that soil and those materials is
not due to the mere physical destruction of war, for the famine is worst
where there has been no physical destruction at all. It is not a lack
of labour, for millions are unemployed, seeking work. Nor is it lack of
technical or scientific knowledge, upon which (very erroneously) we are
apt to look as the one sufficient factor of civilisation; for our
technical knowledge in the management of matter is greater even than
before the War.
What then is the reason why these millions starve in the midst of
potential plenty? It is that they have lost, from certain moral causes
examined later in these pages, the capacity to co-ordinate their labour
sufficiently to carry on the processes by which alone labour and
knowledge can be applied to an exploitation of nature sufficiently
complete to support our dense modern populations.
The fact that wealth is not to-day a material which can be taken, but a
process which can only be maintained by virtue of certain moral factors,
marks a change in human relationship, the significance of which still
seems to escape us.
The manor, or even the eighteenth century village, was roughly a
self-sufficing unit. It mattered little to that unit what became of the
outside world. The manor or village was independent; its people could be
cut off from the outside world, could ravage the near parts of it and
remain unaffected. But when the development of communication and the
discovery of steam turns the agricultural community into coal miners,
these are no longer indifferent to the condition of the outside world.
Cut them off from the agriculturalists who take their coal or
manufactures, or let these latter be unable to carry on their calling,
and the miner starves. He cannot eat his coal. He is no longed
independent. His life hangs upon certain activities of others. Where his
forebears could have raided and ravaged with no particular hurt to
themselves, the miner cannot. He is dependent upon those others and has
given them hostages. He is no longer ‘independent,’ however clamorously
in his Nationalist oratory he may use that word. He has been forced into
a relation of partnership. And how very small is the effectiveness of
any physical coercion he can apply, in order to exact the services by
which he lives, we shall see presently.
This situation of interdependence is of course felt much more acutely by
some countries than others—much more by England, for instance, than by
France. France in the matter of essential foodstuffs can be nearly
self-supporting, England cannot. For England, an outside world of fairly
high production is a matter of life and death; the economic
consideration must in this sense take precedence of others. In the case
of France considerations of political security are apt to take
precedence of economic considerations. France can weaken her neighbours
vitally without being brought to starvation. She can purchase security
at the cost of mere loss of profits on foreign trade by the economic
destruction of, say, Central Europe. The same policy would for Britain
in the long run spell starvation. And it is this fundamental difference
of economic situation which is at the bottom of much of the divergence
of policy between Britain and France which has recently become so acute.
This is the more evident when we examine recent changes of detail in
this general situation special to England. Before the War a very large
proportion of our food and raw material was supplied by the United
States. But our economic relationship with that country has been changed
as the result of the War. Previous to 1914 we were the creditor and
America the debtor nation. She was obliged to transmit to us large sums
in interest on investments of British capital. These annual payments
were in fact made in the form of food and raw materials, for which, in a
national sense, we did not have to give goods or services in return. We
are now less in the position of creditor, more in that of debtor.
America does not have to transmit to us. Whereas, originally, we did an
immense proportion of America’s carrying trade, because she had no
ocean-going mercantile marine, she has begun to do her own carrying.
Further, the pressure of her population upon her food resources is
rapidly growing. The law diminishing returns is in some instances
beginning to apply to the production of food, which in the past has been
plentiful without fertilisers and under a very wasteful and simple
system. And in America, as elsewhere, the standard of consumption, owing
to a great increase of the wage standard, has grown, while the standard
of production has not always correspondingly increased.
The practical effect of this is to throw England into greater dependence
upon certain new sources of food—or trade, which in the end is the same
thing. The position becomes clearer if we reflect that our dependence
becomes more acute with every increase of our population. Our children
now at school may be faced by the problem of finding food for a
population of sixty or seventy millions on these islands. A high
agricultural productivity on the part of countries like Russia and
Siberia and the Balkans might well be then a life and death matter.
Now the European famine has taught us a good deal about the necessary
conditions of high agricultural productivity. The co-operation of
manufactures—of railways for taking crops out and fertilisers in, of
machinery, tools, wagons, clothing—is one of them. That manufacturing
itself must be done by division of labour is another: the country or
area that is fitted to supply textiles or cream separators is not
necessarily fitted to supply steel rails: yet until the latter are
supplied the former cannot be obtained. Often productivity is paralysed
simply because transport has broken down owing to lack of rolling stock,
or coal, or lubricants, or spare parts for locomotives; or because a
debased currency makes it impossible to secure food from peasants, who
will not surrender it in return for paper that has no value—the
manufactures which might ultimately give it value being paralysed. The
lack of confidence in the maintenance of the value of paper money, for
instance, is rapidly diminishing the food productivity of the soil;
peasants will not toil to produce food which they cannot exchange,
through the medium of money, for the things which they need—clothing,
implements, and so on. This diminishing productivity is further
aggravated by the impossibility of obtaining fertilisers (some of which
are industrial products, and all of which require transport), machines,
tools, etc. The food producing capacity of Europe cannot be maintained
without the full co-operation of the non-agricultural
industries—transport, manufactures, coal mining, sound banking—and the
maintenance of political order. Nothing but the restoration of all the
economic processes of Europe as a whole can prevent a declining
productivity that must intensify social and political disorder, of which
we may merely have seen the beginning.
But if this interdependence of factory and farm in the production of
food is indisputable, though generally ignored, it involves a further
fact just as indisputable, and even more completely ignored. And the
further fact is that the manufacturing and the farming, neither of which
can go on without the other, may well be situated in different States.
Vienna starves largely because the coal needed for its factories is now
situated in a foreign State—Czecho-Slovakia—which, partly from
political motives perhaps, fails to deliver it. Great food producing
areas in the Balkans and Russia are dependent for their tools and
machinery, for the stability of the money without which the food will
not be produced, upon the industries of Germany. Those industries are
destroyed, the markets have disappeared, and with them the incentive to
production. The railroads of what ought to be food producing States are
disorganized from lack of rolling stock, due to the same paralysis of
German industry; and so the food production is diminished. Tens of
millions of acres outside Germany, whose food the world sorely needs,
have been rendered barren by the industrial paralysis of the Central
Empires which the economic terms of the Treaty render inevitable.
Speaking of the need of Russian agriculture for German industry, Mr.
Maynard Keynes, who has worked out the statistics revealing the relative
position of Germany to the rest of Europe, writes:—
‘It is impossible geographically and for many other reasons for
Englishmen, Frenchmen, or Americans to undertake it—we have neither the
incentive nor the means for doing the work on a sufficient scale.
Germany, on the other hand, has the experience, the incentive, and to a
large extent, the materials for furnishing the Russian peasant with the
goods of which he has been starved for the past five years, for
reorganising the business of transport and collection, and so for
bringing into the world’s pool, for the common advantage, the supplies
from which we are now disastrously cut off.... If we oppose in detail
every means by which Germany or Russia can recover their material
well-being, because we feel a national, racial, or political hatred for
their populations or their governments, we must be prepared to face the
consequences of such feelings. Even if there is no moral solidarity
between the newly-related races of Europe, there is an economic
solidarity which we cannot disregard. Even now, the world markets are
one. If we do not allow Germany to exchange products with Russia and so
feed herself, she must inevitably compete with us for the produce of the
New World. The more successful we are in snapping economic relations
between Germany and Russia, the more we shall depress the level of our
own economic standards and increase the gravity of our own domestic
problems.’[4]
It is not merely the productivity of Russia which is involved. Round
Germany as a central support the rest of the European economic system
grouped itself, and upon the prosperity and enterprise of Germany the
prosperity of the rest of the Continent mainly depended. Germany was the
best customer of Russia, Norway, Poland, Belgium, Switzerland, Italy,
and Austria-Hungary; she was the second best customer of Great Britain,
Sweden, and Denmark; and the third best customer of France. She was the
largest source of supply to Russia, Norway, Sweden, Denmark, Poland,
Switzerland, Italy, Austria-Hungary, Rumania, and Bulgaria; and the
second largest source of supply to Great Britain, Belgium, and France.
Britain sent more experts to Germany than to any other country in the
world except India, and bought more from her than any other country in
the world except the United States. There was no European country except
those west of Germany which did not do more than a quarter of their
total trade with her; and in the case of Russia, Austria-Hungary, and
Poland, the proportion was far greater. To retard or prevent the
economic restoration of Germany means retarding the economic
reconstruction of Europe.
This gives us a hint of the deep causes underlying the present
divergence of French and British policy with reference to the economic
reconstruction of Russia and Central Europe. A Britain of sixty or
seventy millions faced by the situation with reference to America that
has just been touched upon, might well find that the development of the
resources of Russia, Siberia, and the Near East—even at the cost of
dividing the profits thereof in terms of industrial development with
Germany, each supplying that for which it was best suited—was the
essential condition of food and social peace. France has no such
pre-occupation. Her concern is political: the maintenance of a military
predominance on which she believes her political security to depend, an
object that might well be facilitated by the political disintegration of
Europe even though it involved its economic disintegration.
That brings us to the political factor in the decline in productivity.
From it we may learn something of the moral factor, which is the
ultimate condition of any co-operation whatsoever.
The relationship of the political to the economic situation is
illustrated most vividly, perhaps, in the case of Austria. Mr. Hoover,
in testimony given to a United States Senate Committee, has declared
bluntly that it is no use talking of loans to Austria which imply future
security, if the present political status is to be maintained, because
that status has rendered the old economic activities impossible.
Speaking before the Committee, he said:—
‘The political situation in Austria I hesitate to discuss, but it
is the cause of the trouble. Austria has now no hope of being
anything more than a perpetual poorhouse, because all her lands
that produce food have been taken from her. This, I will say, was
done without American inspiration. If this political situation
continues, and Austria is made a perpetual mendicant, the United
States should not provide the charity. We should make the loan
suggested with full notice that those who undertake to continue
Austria’s present status must pay the bill. Present Austria faces
three alternatives—death, migration, or a complete industrial
diversion and re-organization. Her economic rehabilitation seems
impossible after the way she was broken up at the Peace Conference.
Her present territory will produce only enough food for three
months, and she has now no factories which might produce products
to be exchanged for food.’[5]
To realise what can really be accomplished by statesmanship that has a
soul above such trifles as food and fuel, when it sets its hand to
map-drawing, one should attempt to visualise the state of Vienna to-day.
Mr A. G. Gardiner, the English journalist, has sketched it thus:—
‘To conceive its situation one must imagine London suddenly cut off
from all the sources of its life, no access to the sea, frontiers
of hostile Powers all round it, every coalfield of Yorkshire or
South Wales or Scotland in foreign hands, no citizen able to travel
to Birmingham or Manchester without a passport, the mills it had
financed in Lancashire taken from it, no coal to burn, no food to
eat, and—with its shilling down in value to a farthing—no money
to buy raw materials for its labour, industry at a standstill,
hundreds of thousands living (or dying) on charity, nothing
prospering except the vile exploiters of misery, the traffickers in
food, the traffickers in vice. That is the Vienna which the peace
criminals have made.
‘Vienna was the financial and administrative centre of fifty
million of people. It financed textile factories, paper
manufacturing, machine works, beet growing, and scores of other
industries in German Bohemia. It owned coal mines at Teschen. It
drew its food from Hungary. From every quarter of the Empire there
came to Vienna the half-manufactured products of the provinces for
the finishing processes, tailoring, dyeing, glass-working, in which
a vast population found employment.
‘Suddenly all this elaborate structure of economic life was swept
away. Vienna, instead of being the vital centre of fifty millions
of people, finds itself a derelict city with a province of six
millions. It is cut off from its coal supplies, from its food
supplies, from its factories, from everything that means existence.
It is enveloped by tariff walls.’
The writer goes on to explain that the evils are not limited to Austria.
In this unhappy Balkanised Society that the peace has created at the
heart of Europe, every State is at issue with its neighbours: the Czechs
with the Poles, the Hungarians with the Czechs, the Rumanians with the
Hungarians, and all with Austria. The whole Empire is parcelled out into
quarrelling factions, with their rival tariffs, their passports and
their animosities. All free intercourse has stopped, all free
interchange of commodities has ceased. Each starves the other and is
starved by the other. ‘I met a banker travelling from Buda-Pest to
Berlin by Vienna and Bavaria. I asked him why he went so far out of his
way to get to his goal, and he replied that it was easier to do that
than to get through the barbed-wire entanglements of Czecho-Slovakia.
There is great hunger in Bohemia, and it is due largely to the same
all-embracing cause. Formerly the Czech peasants used to go to Hungary
to gather the harvest and returned with corn as part payment. Now
intercourse has stopped, the Hungarian cornfields are without the
necessary labour, and the Czech peasant starves at home, or is fed by
the American Relief Fund. “One year of peace,” said Herr Renner, the
Chancellor, to me, “has wrought more ruin than five years of war.”’
Mr Gardiner’s final verdict[6] does not in essence differ from that of
Mr Hoover:—
‘It is the levity of mind which has plunged this great city into
ruin that is inexplicable. The political dismemberment of Austria
might be forgiven. That was repeatedly declared by the Allies not
to be an object of the War; but the policy of the French, backed by
the industrious propaganda of a mischievous newspaper group in this
country, triumphed and the promise was dishonoured. Austria-Hungary
was broken into political fragments. That might be defended as a
political necessity. But the economic dismemberment was as
gratuitous as it was deadly. It could have been provided against if
ordinary foresight had been employed. Austria-Hungary was an
economic unit, a single texture of the commercial, industrial, and
financial interests.’[7]
We have talked readily enough in the past of this or that being a
‘menace to civilisation.’ The phrase has been applied indifferently to a
host of things from Prussian Militarism to the tango. No particular
meaning was attached to the phrase, and we did not believe that the
material security of our civilisation—the delivery of the letters and
the milk in the morning, and the regular running of the ‘Tubes’—would
ever be endangered in our times.
But this is what has happened in a few months. We have seen one of the
greatest and most brilliant capitals of Europe, a city completely
untouched by the physical devastation of war, endowed beyond most with
the equipment of modern technical learning and industry, with some of
the greatest factories, medical schools and hospitals of our times,
unable to save its children from death by simple starvation—unable,
with all that equipment, to provide them each with a little milk and a
few ounces of flour every day.
It is sometimes suggested that as political factors (particularly the
drawing of frontiers) entered to some extent at least into the present
distribution of population, political forces can re-distribute that
population. But re-distribution would mean in fact killing.
So to re-direct the vast currents of European industry as to involve a
great re-distribution of the population would demand a period of time
so great that during the necessary stoppage of the economic process most
of the population concerned would be dead—even if we could imagine
sufficient stability to permit of these vast changes taking place
according to the naïve and what we now know to be fantastic, programme
of our Treaties. And since the political forces—as we shall see—are
extremely unstable, the new distribution would presumably again one day
undergo a similarly murderous modification.
That brings us to the question suggested in the proposition set out some
pages back, how far preponderant political power can ensure or compel
those processes by which a population in the position of that of these
islands lives.
For, as against much of the foregoing, it is sometimes urged that
Britain’s concern in the Continental chaos is not really vital, because
while the British Isles cannot be self-sufficing, the British Empire can
be.
During the War a very bold attempt was made to devise a scheme by which
political power should be used to force the economic development of the
world into certain national channels, a scheme whereby the military
power of the dominant group should be so used as to ensure it a
permanent preponderance of economic resources. The plan is supposed to
have emanated from Mr Hughes, the Prime Minister of Australia, and the
Allies (during Mr Asquith’s Premiership incidentally) met in Paris for
its consideration. Mr Hughes’s idea seems to have been to organise the
world into economic categories: the British Empire first in order of
mutual preference, the Allies next, the neutrals next, and the enemy
States last of all. Russia was, of course, included among the Allies,
America among the neutrals, the States then Austria-Hungary among the
enemies.
One has only to imagine some such scheme having been voted and put into
operation, and the modifications which political changes would to-day
compel, to get an idea of merely the first of the difficulties of using
political and military power, with a basis of separate and competing
nationalisms, for economic purposes. The very nature of military
nationalism makes surrender of competition in favour of long continued
co-operation for common purposes, a moral impossibility. The foundations
of the power are unstable, the wills which determine its use
contradictory.
Yet military power must rest upon Alliance. Even the British Empire
found that its defence needed Allies. And if the British Empire is to be
self-sufficing, its trade canalised into channels drawn along certain
political lines, the preferences and prohibitions will create many
animosities. Are we to sacrifice our self-sufficiency for the sake of
American and French friendship, or risk losing the friendship by
preferences designed to ensure self-sufficiency? Yet to the extent that
our trade is with countries like North and South America we cannot
exercise on its behalf even the shadow of military coercion.
But that is only the beginning of the difficulty.
A suggestive fact is that ever since the population of these islands
became dependent upon overseas trade, that trade has been not mainly
with the Empire but with foreigners. It is to-day.[8] And if one
reflects for a moment upon the present political relationship of the
Imperial Government to Ireland, Egypt, India, South Africa, and the
tariff and immigration legislation that has marked the economic history
of Australia and Canada during the last twenty years, one will get some
idea of the difficulty which surrounds the employment of political power
for the shaping of an economic policy to subserve any large and
long-continued political end.
The difficulties of an imperial policy in this respect do not differ
much in character from the difficulties encountered in Paris. The
British Empire, too, has its problems of ‘Balkanisation,’ problems that
have arisen also from the anti-social element of ‘absolute’ nationalism.
The present Nationalist fermentation within the Empire reveals very
practical limits to the use of political power. We cannot compel the
purchase of British goods by Egyptian, Indian, or Irish Nationalists.
Moreover, an Indian or Egyptian boycott or Irish agitation, may well
deprive political domination of any possibility of economic advantage.
The readiness with which British opinion has accepted very large steps
towards the independence and evacuation of Egypt after having fiercely
resisted such a policy for a generation, would seem to suggest that some
part of the truth in this matter is receiving general recognition. It is
hardly less noteworthy that popular newspapers—that one could not have
imagined taking such a view at the time, say, of the Boer war—now
strenuously oppose further commitments in Mesopotamia and Persia—and do
so on financial grounds. And even where the relations of the Imperial
Government with States like Canada or Australia are of the most cordial
kind, the impotence of political power for exacting economic advantage
has become an axiom of imperial statecraft. The day that the Government
in London proposed to set in motion its army or navy for the purpose of
compelling Canada or Australia to cease the manufacture of cotton or
steel in order to give England a market, would be the day, as we are all
aware, of another Declaration of Independence. Any preference would be
the result of consent, agreement, debate, contract: not of coercion.
But the most striking demonstration yet afforded in history of the
limits placed by modern industrial conditions upon the economic
effectiveness of political power is afforded by the story of the attempt
to secure reparations, indemnity, and even coal from Germany, and the
attempt of the victors, like France, to repair the disastrous financial
situation which has followed war by the military seizure of the wealth
of a beaten enemy. That story is instructive both by reason of the light
which it throws upon the facts as to the economic value of military
power, and upon the attitude of public and statesmen towards these
facts.
When, some fifteen years ago, it was suggested that, given the
conditions of modern trade and industry, a victor would not in practice
be able to turn his military preponderance to economic account even in
such a relatively simple matter as the payment of an indemnity, the
suggestion was met with all but universal derision. European economists
of international reputation implied that an author who could make a
suggestion of that kind was just playing with paradox for the purpose of
notoriety. And as for newspaper criticism—it revealed the fact that in
the minds of the critics it was as simple a matter for an army to ‘take’
a nation’s wealth once military victory had been achieved, as it would
be for a big schoolboy to take an apple from a little one.
Incidentally, the history of the indemnity negotiations illuminates
extraordinarily the truth upon which the present writer happens so often
to have insisted, namely, that in dealing with the economics of
nationalism, one cannot dissociate from the problem the moral facts
which make the nationalism—without which there would be no
nationalisms, and therefore no ‘international’ economics.
A book by the present author published some fifteen years ago has a
chapter entitled ‘The Indemnity Futility.’ In the first edition the main
emphasis of the chapter was thrown on this suggestion: on the morrow of
a great war the victor would be in no temper to see the foreign trade of
his beaten enemy expand by leaps and bounds, yet by no other means than
by an immense foreign trade could a nation pay an indemnity commensurate
with the vast expenditure of modern war. The idea that it would be paid
in ‘money,’ which by some economic witchcraft should not involve the
export of goods, was declared to be a gross and ignorant fallacy. The
traders of the victorious nation would have to face a greatly sharpened
competition from the beaten nation; or the victor would have to go
without any very considerable indemnity. The chapter takes the ground
that an indemnity is not in terms of theoretical economics an
impossibility: it merely indicates the indispensable condition of
securing it—the revival of the enemy’s economic strength—and suggests
that this would present for the victorious nation, not only a practical
difficulty of internal politics (the pressure of Protectionist groups)
but a grave political difficulty arising out of the theory upon which
defence by preponderant isolated national power is based. A country
possessing the economic strength to pay a vast indemnity is of potential
military strength. And this is a risk your nationalists will not accept.
Even friendly Free Trade critics shook their heads at this and implied
that the argument was a reversion to Protectionist illusions for the
purpose of making a case. That misunderstanding (for the argument does
not involve acceptance of Protectionist premises) seemed so general that
in subsequent editions of the book this particular passage was
deleted.[9]
It is not necessary now to labour the point, in view of all that has
happened in Paris. The dilemma suggested fifteen years ago is precisely
the dilemma which confronted the makers of the Peace Treaty; it is,
indeed, precisely the dilemma which confronts us to-day.
It applies not only to the Indemnity, Reparations, but to our entire
policy, to larger aspects of our relations with the enemy. Hence the
paralysis which results from the two mutually exclusive aims of the
Treaty of Versailles: the desire on the one hand to reduce the enemy’s
strength by checking his economic vitality—and on the other to restore
the general productivity of Europe, to which the economic life of the
enemy is indispensable.
France found herself, at the end of the War, in a desperate financial
position and in dire need of all the help which could come from the
enemy towards the restoration of her devastated districts. She presented
demands for reparation running to vast, unprecedented sums. So be it.
Germany then was to be permitted to return to active and productive
work, to be permitted to have the iron and the other raw materials
necessary for the production of the agricultural machinery, the building
material and other sorts of goods France needed. Not the least in the
world! Germany was to produce this great mass of wealth, but her
factories were to remain closed, her rolling stock was to be taken from
her, she was to have neither food nor raw materials. This is not some
malicious travesty of the attitude which prevailed at the time that the
Treaty was made. It was, and to a large extent still is, the position
taken by many French publicists as well as by some in England. Mr.
Vanderlip, the American banker, describes in his book[10] the attitude
which he found in Paris during the Conference in these words: ‘The
French burn to milk the cow but insist first that its throat must be
cut.’
Despite the lessons of the year which followed the signing of the
Treaty, one may doubt whether even now the nature of wealth and ‘money’
has come home to the Chauvinists of the Entente countries. The demand
that we should at one and the same time forbid Germany to sell so much
as a pen-knife in the markets of the world and yet compel her to pay us
a tribute which could only be paid by virtue of a foreign trade greater
than any which she has been able to maintain in the past—these mutually
exclusive demands are still made in our own Parliament and Press.
How powerfully the Nationalist fears operate to obscure the plain
alternatives is revealed in a letter of M. André Tardieu, written more
than eighteen months after the Armistice.
M. Tardieu, who was M. Clemenceau’s political lieutenant in the framing
of the Treaty, and one of the principal inspirers of the French policy,
writing in July, 1920, long after the condition of Europe and the
Continent’s economic dependence on Germany had become visible, ‘warns’
us of the ‘danger’ that Germany may recover unless the Treaty is applied
in all its rigour! He says:—
‘Remember your own history and remember what the rat de terre de
cousin which Great Britain regarded with such disdain after the
Treaty of Frankfurt became in less than forty years. We shall see
Germany recover economically, profiting by the ruins she has made
in other countries, with a rapidity which will astonish the world.
When that day arrives, if we have given way at Spa to the madness
of letting her off part of the debt that was born of her crime, no
courses will be too strong for the Governments which allowed
themselves to be duped. M. Clemenceau always said to British and
American statesmen: “We of France understand Germany better than
you.” M. Clemenceau was right, and in bringing his colleagues round
to his point of view he did good work for the welfare of humanity.
If the work of last year is to be undone, the world will be
delivered up to the economic hegemony of Germany before twenty-five
years have passed. There could be no better proof than the recent
despatches of The Times correspondent in Germany, which bear
witness to the fever of production which consumes Herr Stinnes and
his like. Such evidence is stronger than the biased statistics of
Mr Keynes. Those who refuse to take it into account will be the
criminals in the eyes of their respective countries.’[11]
Note M. Tardieu’s argument. He fears the restoration of Germany
industry, unless we make her pay the whole indemnity. That is to say,
in other words, if we compel Germany to produce during the next
twenty-five years something like ten thousand millions worth of wealth
over and above her own needs, involving as it must a far greater
output from her factories, mines, shipyards, laboratories, a far greater
development of her railways, ports, canals, a far greater efficiency and
capacity in her workers than has ever been known in the past, if that
takes place as it must if we are to get an indemnity on the French
scale, why, in that case, there will be no risk of Germany’s making too
great an economic recovery!
The English Press is not much better. It was in December, 1918, that
Professor Starling presented to the British Government his report
showing that unless Germany had more food she would be utterly unable to
pay any large indemnity to aid in reparations to France. Fully eighteen
months later we find the Daily Mail (June 18, 1920) rampaging and
shouting itself hoarse at the monstrous discovery that the Government
have permitted Germans to purchase wheat! Yet the Mail has been
foremost in insisting upon France’s dire need for a German indemnity in
order to restore devastated districts. If the Mail is really
representative of John Bull, then that person is at present in the
position of a farmer who at seed-time is made violently angry at the
suggestion that grain should be taken for the purpose of sowing the
land, and shouts that it is a wicked proposal to take food from the
mouths of his children. Although the Northcliffe Press has itself
published page advertisements (from the Save the Children Fund)
describing the incredible and appalling conditions in Europe, the Daily
Mail shouts in its leading article: ‘Is British Food to go to the
Boches?’ The thing is in the best war style. ‘Is there any reason why
the Briton should be starved to feed the German?’ asks the Mail. And
there follows, of course, the usual invective about the submarines, war
criminals, the sinking of hospital ships, and the approval by the whole
German people of all these crimes.
We get here, as at every turn and twist of our policy, not any
recognition of interdependence, but a complete repudiation of that idea,
and an assumption, instead, of a conflict of interest. If the children
of Vienna or Berlin are to be fed, then it is assumed that it must be at
the expense of the children of Paris and London. The wealth of the world
is conceived as a fixed quantity, unaffected by any process of
co-operation between the peoples sharing the world. The idea is, of
course, an utter fallacy. French or Belgian children will have more, not
less, if we take measures to avoid European conditions in which the
children of Vienna are left to die. If, during the winter of 1919-1920,
French children died from sickness due to lack of fuel, it was because
the German coal was not delivered, and the German coal was not delivered
because, among other things, of general disorganization of transport, of
lack of rolling stock, of underfeeding of the miners, of collapse of the
currency, political unrest, uncertainty of the future.
It is one of the contradictions of the whole situation that France
herself gives intermittent recognition to the fact of this
interdependence. When, at Spa, it became evident that coal simply could
not be delivered in the quantities demanded unless Germany had some
means of buying imported food, France consented to what was in fact a
loan to Germany (to the immense mystification of certain journalistic
critics in Paris). One is prompted to ask what those who, before the War
so scornfully treated the present writer for throwing doubts upon the
feasibility of a post-war indemnity, would have said had he predicted
that on the morrow of victory, the victor, instead of collecting a vast
indemnity would from the simplest motives of self-protection, out of his
own direly depleted store of capital, be advancing money to the
vanquished.[12]
The same inconsistency runs through much of our post-war behaviour. The
famine in Central Europe has become so appalling that very great sums
are collected in Britain and America for its relief. Yet the reduced
productivity out of which the famine has arisen was quite obviously
deliberately designed, and most elaborately planned by the economic
provisions of the Treaty and by the blockades prolonged after the
Armistice, for months in the case of Germany and years in the case of
Russia. And at the very time that advertisements were appearing in the
Daily Mail for ‘Help to Starving Europe,’ and only a few weeks before
France consented to advance money for the purpose of feeding Germany,
that paper was working up ‘anti-Hun stunts’ for the purpose of using
our power to prevent any food whatsoever going to Boches. It is also a
duplication of the American phenomenon already touched upon: One Bill
before Congress for the loaning of American money to Europe in order
that cotton and wheat may find a market: another Bill before the same
Congress designed, by a stiffly increased tariff, to keep out European
goods so that the loans can never be repaid.[13]
The experience of France in the attempt to exact coal by the use of
military pressure throws a good deal of light upon what is really
annexed when a victor takes over territory containing, say, coal; as
also upon the question of getting the coal when it has been annexed. ‘If
we need coal,’ wrote a Paris journalist plaintively during the Spa
Conference, ‘why in heaven’s name don’t we go and take it.’ The
implication being that it could be ‘taken’ without payment, for nothing.
But even if France were to occupy the Ruhr and to administer the mines,
the plant would have to be put in order, rolling stock provided,
railroads restored, and, as France has already learned, miners fed and
clothed and housed. But that costs money—to be paid as part of the cost
of the coal. If Germany is compelled to provide those things—mining
machinery, rolling stock, rails, miners’ houses and clothing and
food—we are confronted with pretty much the same dilemma as we
encounter in compelling the payment of an indemnity. A Germany that can
buy foreign food is a Germany of restored credit; a Germany that can
furnish rolling stock, rails, mining machinery, clothing and housing for
miners, is a Germany restored to general economic health—and
potentially powerful. That Germany France fears to create. And even
though we resort to a military occupation, using forced labour
militarily controlled, we are faced by the need of all the things that
must still enter in the getting of the coal, from miners’ food and
houses to plant and steel rails. Their cost must be charged against the
coal obtained. And the amount of coal obtained in return for a given
outlay will depend very largely, as we know in England to our cost, upon
the willingness of the miner himself. Even the measure of resistance
provoked in British miners by disputes about workers’ control and
Nationalisation, has meant a great falling off in output. But at least
they are working for their own countrymen. What would be their output if
they felt they were working for an enemy, and that every ton they mined
might merely result in increasing the ultimate demands which that enemy
would make upon their country? Should we get even eighty per cent, of
the pre-war output or anything like it?[14] Yet that diminished output
would have to stand the cost of all the permanent charges aforesaid.
Would the cost of the coal to France, under some scheme of forced
labour, be in the end less than if she were to buy it in the ordinary
commercial way from German mines, as she did before the War? This latter
method would almost certainly be in economic terms more advantageous.
Where is the economic advantage of the military method? This, of course,
is only the re-discovery of the old truth that forced or slave labour is
more costly than paid labour.
The ultimate explanation of the higher cost of slave labour is the
ultimate explanation of the difficulty of using political power for
economic ends, of basing our economic security upon military
predominance. Here is France, with her old enemy helpless and prostrate.
She needs his work for reparations, for indemnities, for coal. To
perform that work the prostrate enemy must get upon his feet. If he
does, France fears that he will knock her down. From that fear arise
contradictory policies, self-stultifying courses. If she overcomes her
fear sufficiently to allow the enemy to produce a certain amount of
wealth for her, it is extremely likely that more than the amount of that
wealth will have to be spent in protecting herself against the danger of
the enemy’s recovered vitality. Even when wars were less expensive than
they are, indemnities were soon absorbed in the increase of armament
necessitated by the Treaties which exacted the indemnities.
Again, this is a very ancient story. The victor on the Egyptian vase has
his captured enemy on the end of a rope. We say that one is free, the
other bond. But as Spencer has shown us, both are bond. The victor is
tied to the vanquished: if he should let go the prisoner would escape.
The victor spends his time seeing that the prisoner does not escape; the
prisoner his time and energy trying to escape. The combined efforts in
consequence are not turned to the production of wealth; they are
‘cancelled out’ by being turned one against another. Both may come near
to starvation in that condition if much labour is needed to produce
food. Only if they strike a bargain and co-operate will they be in the
position each to turn his energy to the best economic account.
But though the story is ancient, men have not yet read it. These pages
are an attempt to show why it has not been read.
Let us summarise the conclusions so far reached, namely:—
That predominant political and military power is important to exact
wealth is shown by the inability of the Allies to turn their power
to really profitable account; notably by the failure of France to
alleviate her financial distress by adequate reparations—even
adequate quantities of coal—from Germany; and by the failure of
the Allied statesmen as a whole, wielding a concentration of power
greater perhaps than any known in history to arrest an economic
disintegration, which is not only the cause of famine and vast
suffering, but is a menace to Allied interest, particularly to the
economic security of Britain.
The causes of this impotence are both mechanical and moral. If
another is to render active service in the production of wealth for
us—particularly services of any technical complexity in industry,
finance, commerce—he must have strength for that activity,
knowledge, and the instruments. But all those things can be turned
against us as means of resistance to our coercion. To the degree
to which we make him strong for our service we make him strong for
resistance to our will. As resistance increases we are compelled to
use an increasing proportion of what we obtain from him in
protecting ourselves against him. Energies cancel each other,
indemnities must be used in preparation for the next war. Only
voluntary co-operation can save this waste and create an effective
combination for the production of wealth that can be utilised for
the preservation of life.
The problem is not merely one of foreign politics or international
relationship. The passions which obscure the real nature of the process
by which men live are present in the industrial struggle also,
and—especially in the case of communities situated as is the
British—make of the national and international order one problem.
It is here suggested that:—
Into the processes which maintain life within the nation an
increasing measure of consent and acquiescence by all parties must
enter: physical coercion becomes increasingly impotent to ensure
them. The problem of declining production by (inter alios)
miners, cannot be solved by increasing the army or police. The
dictatorship of the proletariat fails before the problem of
exacting big crops by the coercion of the peasant or countryman. It
would fail still more disastrously before the problem of obtaining
food or raw materials from foreigners (without which the British
could not live) in the absence of a money of stable value.
One of the most suggestive facts of the post-war situation is that
European civilization almost breaks down before one of the simplest of
its mechanical problems: that of ‘moving some stones from where they
are not needed to the places where they are needed,’ in other words
before the problem of mining and distributing coal. Millions of children
have died in agony in France during this last year or two because there
was no coal to transport the food, to warm the buildings. Coal is the
first need of our massed populations. Its absence means collapse of
everything—of transport, of the getting of food to the towns, of
furnishing the machinery and fertilisers by which food can be produced
in sufficient quantity. It is warmth, it is clothing, it is light, it is
the daily newspaper, it is water, it is communication. All our
elaboration of knowledge and science fails in the presence of this
problem of ‘taking some stones from one heap and putting them on
another.’ The coal famine is a microcosm of the world’s present failure.
But if all those things—and spiritual things also are involved because
the absence of material well-being means widespread moral evils—depend
upon coal, the getting of the coal itself is dependent upon them. We
have touched upon the importance of the one element of sheer goodwill on
the part of the miners as a factor in the production of coal; upon the
hopelessness of making good its absence by physical coercion. But we
have also seen that just as the attempted use of coercion in the
international field, though ineffective to exact necessary service or
exchange, can and does produce paralysis of the indispensable processes,
so the ‘power’ which the position of the miner gives him is a power of
paralysis only.
A later chapter shows that the instinct of industrial groups to solve
their difficulties by simple coercion, the sheer assertion of power, is
very closely related to the psychology of nationalism, so disruptive in
the international field. Bolshevism, in the sense of belief in the
effectiveness of coercion, represents the transfer of jingoism to the
industrial struggle. It involves the same fallacies. A mining strike can
bring the industrial machine to a full stop; to set that machine to work
for the feeding of the population—which involves the co-ordination of
a vast number of industries, the purchase of food and raw material from
foreigners, who will only surrender it in return for promises to pay
which they believe will be fulfilled—means not only technical
knowledge, it means also the presence of a certain predisposition to
co-operation. This Balkanised Europe which cannot feed itself has all
the technical knowledge that it ever had. But its natural units are
dominated by a certain temper which make impossible the co-operations by
which alone the knowledge can be applied to the available natural
resources.
It is also suggestive that the virtual abandonment of the gold standard
is playing much the same rôle (rendering visible the inefficiency of
coercion) in the struggle between the industrial that it is between the
national groups. A union strikes for higher wages and is successful. The
increase is granted—and is paid in paper money.
When wages were paid in gold an advance in wages, gained as the result
of strike or agitation, represented, temporarily at least, a real
victory for the workers. Prices might ultimately rise and wipe out the
advantage, but with a gold currency price movements have nothing like
the rapidity and range which is the case when unlimited paper money can
be printed. An advance in wages paid in paper may mean nothing more than
a mere readjustment of symbols. The advance, in other words, can be
cancelled by ‘a morning’s work of the inflationist’ as a currency expert
has put it. The workers in these conditions can never know whether that
which they are granted with the right hand of increased wages will not
be taken away by the left hand of inflation.
In order to be certain that they are not simply tricked, the workers
must be in a position to control the conditions which determine the
value of currency. But again, that means the co-ordination of the most
complex economic processes, processes which can only be ensured by
bargaining with other groups and with foreign countries.
This problem would still present itself as acutely on the morrow of the
establishment of a British Soviet Republic as it presents itself to-day.
If the British Soviets could not buy food and raw materials in twenty
different centres throughout the world they could not feed the people.
We should be blockaded, not by ships, but by the worthlessness of our
money. Russia, which needs only an infinitesimal proportion relatively
of foreign imports has gold and the thing of absolutely universal need,
food. We have no gold—only things which a world fast disintegrating
into isolated peasantries is learning somehow to do without.
Before blaming the lack of ‘social sense’ on the part of striking miners
or railwaymen let us recall the fact that the temper and attitude to
life and the social difficulties which lie at the bottom of the
Syndicalist philosophy have been deliberately cultivated by Government,
Press, and Church, during five years for the purposes of war; and that
the selected ruling order have shown the same limitation of vision in
not one whit less degree.
Think what Versailles actually did and what it might have done.
Here when the Conference met, was a Europe on the edge of famine—some
of it over the edge. Every country in the world, including the
wealthiest and most powerful, like America, was faced with social
maladjustment in one form or another. In America it was an
inconvenience, but in the cities of a whole continent—in Russia,
Poland, Germany, Austria—it was shortly to mean ill-health, hunger,
misery, and agony to millions of children and their mothers. Terms of
the study like ‘the interruption of economic processes’ were to be
translated into such human terms as infantile cholera, tuberculosis,
typhus, hunger-œdema. These, as events proved, were to undermine the
social sanity of half a world.
The acutest statesmen that Europe can produce, endowed with the most
autocratic power, proceed to grapple with the situation. In what way do
they apply that power to the problem of production and distribution, of
adding to the world’s total stock of goods, which nearly every
government in the world was in a few weeks to be proclaiming as
humanity’s first need, the first condition of reconstruction and
regeneration?
The Treaty and the policy pursued since the Armistice towards Russia
tell us plainly enough. Not only do the political arrangements of the
Treaty, as we have seen, ignore the needs of maintaining the machinery
of production in Europe[15] but they positively discourage and in many
cases are obviously framed to prevent, production over very large areas.
The Treaty, as some one has said, deprived Germany of both the means and
the motive of production. No adequate provision was made for enabling
the import of food and raw materials, without which Germany could not
get to work on the scale demanded by the indemnity claims; and the
motive for industry was undermined by leaving the indemnity claims
indeterminate.
The victor’s passion, as we have seen, blinded him to the indispensable
condition of the very demands which he was making. Europe was unable
temperamentally to reconcile itself to the conditions of that increased
productivity, by which alone it was to be saved. It is this element in
the situation—its domination, that is, by an uncalculating popular
passion poured out lavishly in support of self-destructive
policies—which prompts one to doubt whether these disruptive forces
find their roots merely in the capitalist organization of society: still
less whether they are due to the conscious machinations of a small group
of capitalists. No considerable section of capitalism any where has any
interest in the degree of paralysis that has been produced. Capitalism
may have overreached itself by stimulating nationalist hostilities until
they have got beyond control. Even so, it is the unseeing popular
passion that furnishes the capitalist with his arm, and is the factor of
greatest danger.
Examine for a moment the economic manifestation of international
hostilities. There has just begun in the United States a clamorous
campaign for the denunciation of the Panama Treaty which places British
ships on an equality with American. American ships must be exempt from
the tolls. ‘Don’t we own the Canal?’ ask the leaders of this campaign.
There is widespread response to it. But of the millions of Americans who
will become perhaps passionately angry over that matter and extremely
anti-British, how many have any shares in any ships that can possibly
benefit by the denunciation of the Treaty? Not one in a thousand. It is
not an economic motive operating at all.
Capitalism—the management of modern industry by a small economic
autocracy of owners of private capital—has certainly a part in the
conflicts that produce war. But that part does not arise from the direct
interest that the capitalists of one nation as a whole have in the
destruction of the trade or industry of another. Such a conclusion
ignores the most elementary facts in the modern organisation of
industry. And it is certainly not true to say that British capitalists,
as a distinct group, were more disposed than the public as a whole to
insist upon the Carthaginian features of the Treaty. Everything points
rather to the exact contrary. Public opinion as reflected, for instance,
by the December, 1918, election, was more ferociously anti-German than
capitalists are likely to have been. It is certainly not too much to say
that if the Treaty had been made by a group of British—or
French—bankers, merchants, shipowners, insurance men, and
industrialists, liberated from all fear of popular resentment, the
economic life of Central Europe would not have been crushed as it has
been.
Assuredly, such a gathering of capitalists would have included groups
having direct interest in the destruction of German competition. But it
would also have included others having an interest in the restoration of
the German market and German credit, and one influence would in some
measure have cancelled the other.
As a simple fact we know that not all British capitalists, still less
British financiers, are interested in the destruction of German
prosperity. Central Europe was one of the very greatest markets
available for British industry, and the recovery of that market may
constitute for a very large number of manufacturers, merchants,
shippers, insurance companies, and bankers, a source of immense
potential profit. It is a perfectly arguable proposition, to put it at
the very lowest, that British ‘capitalism’ has, as a whole, more to gain
from a productive and stable Europe than from a starving and unstable
one. There is no reason whatever to doubt the genuineness of the
internationalism that we associate with the Manchester School of
Capitalist Economics.
But in political nationalism as a force there are no such cross currents
cancelling out the hostility of one nation to another. Economically,
Britain is not one entity and Germany another. But as a sentimental
concept, each may perfectly well be an entity; and in the imagination of
John Citizen, in his political capacity, voting on the eve of the Peace
Conference, Britain is a triumphant and heroic ‘person,’ while Germany
is an evil and cruel ‘person,’ who must be punished, and whose pockets
must be searched. John has neither the time nor has he felt the need,
for a scientific attitude in politics. But when it is no longer a
question of giving his vote, but of earning his income, of succeeding as
a merchant or shipowner in an uncertain future, he will be thoroughly
scientific. When it comes to carrying cargoes or selling cotton goods,
he can face facts. And, in the past at least, he knows that he has not
sold those materials to a wicked person called ‘Germany,’ but to a
quite decent and human trader called Schmidt.
What I am suggesting here is that for an explanation of the passions
which have given us the Treaty of Versailles we must look much more to
rival nationalisms than to rival capitalisms; not to hatreds that are
the outgrowth of a real conflict of interests, but to certain
nationalist conceptions, ‘myths,’ as Sorel has it. To these conceptions
economic hostilities may assuredly attach themselves. At the height of
the war-hatred of things German, a shopkeeper who had the temerity to
expose German post cards or prints for sale would have risked the
sacking of his shop. The sackers would not have been persons engaged in
the post card producing trade. Their motive would have been patriotic.
If their feelings lasted over the war, they would vote against the
admission of German post cards. They would not be moved by economic,
still less by capitalistic motives. These motives do enter, as we shall
see presently, into the problems raised by the present condition of
Europe. But it is important to see at what point and in what way. The
point for the moment—and it has immense practical importance—is that
the Treaty of Versailles and its economic consequences should be
attributed less to capitalism (bad as that has come to be in its total
results) than to the pressure of a public opinion that had crystallised
round nationalist conceptions.[16]
Here, at the end of 1920, is the British Press still clamouring for the
exclusion of German toys. Such an agitation presumably pleases the
millions of readers. They are certainly not toymakers or sellers; they
have no commercial interest in the matter save that ‘their toys will
cost them more’ if the agitation succeeds. They are actuated by
nationalist hostility.
If Germany is not to be allowed to sell even toys, there will be very
few things indeed that she can sell. We are to go on with the policy of
throttling Europe in order that a nation whose industrial activity is
indispensable to Europe shall not become strong. We do not see, it is
true, the relation between the economic revival of Europe and the
industrial recuperation of Germany; we do not see it because we can be
made to feel anger at the idea of German toys for British children so
much more readily than we can be made to see the causes which deprive
French children of warmth in their schoolrooms. European society seems
to be in the position of an ill-disciplined child that cannot bring
itself to swallow the medicine that would relieve it of its pain. The
passions which have been cultivated in five years of war must be
indulged, whatever the ultimate cost to ourselves. The judgment of such
a society is swamped in those passions.
The restoration of much of Europe will involve many vast and complex
problems of reconstruction. But here, in the alternatives presented by
the payment of a German indemnity, for instance, is a very simple issue:
if Germany is to pay, she must produce goods, that is, she must be
economically restored; if we fear her economic restoration, then we
cannot obtain the execution of the reparation clauses of the Treaty. But
that simple issue one of the greatest figures of the Conference cannot
face. He has not, eighteen months after the Treaty, emerged from the
most elementary confusion concerning it. If the psychology of
Nationalism renders so simple a problem insoluble, what will be its
effect upon the problem of Europe as a whole?
Again, it may be that shipowners are behind the American agitation and
toy manufacturers behind the British. A Coffin Trust might intrigue
against measures to prevent a repetition of the influenza epidemic. But
what should we say of the fitness for self-government of a people that
should lend itself by millions to such an intrigue of Coffin-makers,
showing as the result of its propaganda a fierce hostility to
sanitation? We should conclude that it deserved to die. If Europe went
to war as the result of the intrigues of a dozen capitalists, its
civilisation is not worth saving; it cannot be saved, for as soon as the
capitalists were removed, its inherent helplessness would place it at
the mercy of some other form of exploitation.
Its only hope lies in a capacity for self-management, self-rule, which
means self-control. But a few financial intriguers, we are told, have
only to pronounce certain words, ‘fatherland above all,’ ‘national
honour,’ put about a few stories of atrocities, clamour for revenge, for
the millions to lose all self-control, to become completely blind as to
where they are going, what they are doing, to lose all sense of the
ultimate consequences of their acts.
The gravest fact in the history of the last ten years is not the fact of
war; it is the temper of mind, the blindness of conduct on the part of
the millions, which alone, ultimately, explains our policies. The
suffering and cost of war may well be the best choice of evils, like the
suffering and cost of surgery, or the burdens we assume for a clearly
conceived moral end. But what we have seen in recent history is not a
deliberate choice of ends with a consciousness of moral and material
cost. We see a whole nation demanding fiercely in one breath certain
things, and in the next just as angrily demanding other things which
make compliance with the first impossible; a whole nation or a whole
continent given over to an orgy of hate, retaliation, the indulgence of
self-destructive passions. And this collapse of the human mind does but
become the more appalling if we accept the explanation that ‘wars are
caused by capitalism’ or ‘Junkerthum’; if we believe that six Jew
financiers sitting in a room can thus turn millions into something
resembling madmen. No indictment of human reason could be more severe.
To assume that millions will, without any real knowledge of why they do
it or of the purpose behind the behests they obey, not only take the
lives of others and give their own, but turn first in one direction and
then in another the flood of their deepest passions of hate and
vengeance, just as a little group of mean little men, manipulating mean
little interests, may direct, is to argue a moral helplessness and
shameful docility on the part of those millions which would deprive the
future of all hope of self-government. And to assume that they are not
unknowing as to the alleged cause—that would bring us to moral
phantasmagoria.
We shall get nearer to the heart of our problem if, instead of asking
perpetually ‘Who caused the War?’ and indicting ‘Capitalists’ or
‘Junkers,’ we ask the question: ‘What is the cause of that state of mind
and temper in the millions which made them on the one side welcome war
(as we allege of the German millions), or on the other side makes them
acclaim, or impose, blockades, famines,’ ‘punitive’ ‘Treaties of
Peace?’
Obviously ‘selfishness’ is not operating so far as the mass is
concerned, except of course in the sense that a yielding to the passion
of hate is self-indulgence. Selfishness, in the sense of care for social
security and well-being, might save the structure of European society.
It would bring the famine to an end. But we have what a French writer
has called a ‘holy and unselfish hate.’ Balkan peasants prefer to burn
their wheat rather than send it to the famished city across the river.
Popular English newspapers agitate against a German trade which is the
only hope of necessitous Allies obtaining any considerable reparation
from Germany. A society in which each member is more desirous of hurting
his neighbour than of promoting his own welfare, is one in which the
aggregate will to destruction is more powerful than the will to
preservation.
The history of these last years shows with painful clarity that as
between groups of men hostilities and hates are aroused very much more
easily than any emotion of comradeship. And the hate is a hungrier and
more persistent emotion than the comradeship. The much proclaimed
fellowship of the Allies, ‘cemented by the blood shed on the field,’
vanished rapidly. But hate remained and found expression in the social
struggle, in fierce repressions, in bickerings, fears, and rancours
between those who yesterday fought side by side. Yet the price of
survival is, as we have seen, an ever closer cohesion and social
co-operation.
And while it is undoubtedly true that the ‘hunger of hate’—the actual
desire to have something to hate—may so warp our judgment as to make us
see a conflict of interest where none exists, it is also true that a
sense of conflict of vital interest is a great feeder of hate. And that
sense of conflict may well become keener as the problem of man’s
struggle for sustenance on the earth becomes more acute, as his numbers
increase and the pressure upon that sustenance becomes greater.
Once more, as millions of children are born at our very doors into a
world that cannot feed them, condemned, if they live at all, to form a
race that will be defective, stunted, unhealthy, abnormal, this question
which Malthus very rightly taught our grandfathers to regard as the
final and ultimate question of their Political Economy, comes
dramatically into the foreground. How can the earth, which is limited,
find food for an increase of population which is unlimited?
The haunting anxieties which lie behind the failure to find a conclusive
answer to that question, probably affect political decisions and deepen
hostilities and animosities even where the reason is ill-formulated or
unconscious. Some of us, perhaps, fear to face the question lest we be
confronted with morally terrifying alternatives. Let posterity decide
its own problems. But such fears, and the motives prompted by them, do
not disappear by our refusal to face them. Though hidden, they still
live, and under various moral disguises influence our conduct.
Certainly the fears inspired by the Malthusian theory and the facts upon
which it is based, have affected our attitude to war; affected the
feeling of very many for whom war is not avowedly, as it is openly and
avowedly to some of its students, ‘the Struggle for Bread.’[17]
The Great Illusion was an attempt frankly to face this ultimate
question of the bearing of war upon man’s struggle for survival. It took
the ground that the victory of one nation over another, however
complete, does not solve the problem; it makes it worse in that the
conditions and instincts which war accentuates express themselves in
nationalist and racial rivalries, create divisions that embarrass and
sometimes make impossible the widespread co-operation by which alone man
can effectively exploit nature.
That demonstration as a whole belongs to the pages that follow. But
bearing upon the narrower question of war in relation to the world’s
good, this much is certain:—
If the object of the combatants in the War was to make sure of their
food, then indeed is the result in striking contrast with that
intention, for food is assuredly more insecure than ever alike for
victor and vanquished. They differ only in the degree of insecurity. The
War, the passions which it has nurtured, the political arrangements
which those passions have dictated, have given us a Europe immeasurably
less able to meet its sustenance problem than it was before. So much
less able that millions, who before the War could well support
themselves by their own labour, are now unable so to do and have to be
fed by drawing upon the slender stocks of their conquerors—stocks very
much less than when some at least of those conquerors were in the
position of defeated peoples.
This is not the effect of the material destruction of war, of the mere
battering down of houses and bridges and factories by the soldier.
The physical devastation, heart-breaking as the spectacle of it is, is
not the difficult part of the problem, nor quantitatively the most
important.[18] It is not the devastated districts that are suffering
from famine, nor their losses which appreciably diminish the world
supply of food. It is in cities in which not a house has been destroyed,
in which, indeed, every wheel in every factory is still intact, that the
population dies of hunger, and the children have to be fed by our
charity. It is the fields over which not a single soldier has tramped
that are condemned to sterility because those factories are idle, while
the factories are condemned to idleness because the fields are sterile.
The real ‘economic argument’ against war does not consist in the
presentation of a balance sheet showing so much cost and destruction and
so much gain. The real argument consists in the fact that war, and still
more the ideas out of which it arises, produce ultimately an unworkable
society. The physical destruction and perhaps the cost are greatly
exaggerated. It is perhaps true that in the material foundations of
wealth Britain is as well off to-day as before the War. It is not from
lack of technical knowledge that the economic machine works with such
friction: that has been considerably increased by the War. It is not
from lack of idealism and unselfishness. There has been during the last
five years such an outpouring of devoted unselfishness—the very hates
have been unselfish—as history cannot equal. Millions have given their
lives for the contrary ideals in which they believed. It is sometimes
the ideals for which men die that make impossible their life and work
together.
The real ‘economic argument,’ supported by the experience of our
victory, is that the ideas which produce war—the fears out of which it
grows and the passions which it feeds—produce a state of mind that
ultimately renders impossible the co-operation by which alone wealth can
be produced and life maintained. The use of our power or our knowledge
for the purpose of subduing Nature to our service depends upon the
prevalence of certain ideas, ideas which underlie the ‘art of living
together.’ They are something apart from mere technical knowledge which
war, as in Germany, may increase, but which can never be a substitute
for this ‘art of living together.’ (The arms, indeed, may be the
instruments of anarchy, as in so much of Europe to-day).
The War has left us a defective or perverted social sense, with a group
of instincts and moralities that are disintegrating Western society, and
will, unless checked, destroy it.
These forces, like the ‘ultimate art’ which they have so nearly
destroyed, are part of the problem of economics. For they render a
production of wealth adequate to welfare impossible. How have they
arisen? How can they be corrected? These questions will form an integral
part of the problems here dealt with.