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+The Project Gutenberg EBook of The World in Chains, by John Mavrogordato
+
+This eBook is for the use of anyone anywhere at no cost and with
+almost no restrictions whatsoever.  You may copy it, give it away or
+re-use it under the terms of the Project Gutenberg License included
+with this eBook or online at www.gutenberg.org
+
+
+Title: The World in Chains
+       Some Aspects of War and Trade
+
+Author: John Mavrogordato
+
+Release Date: January 24, 2007 [EBook #20435]
+
+Language: English
+
+Character set encoding: ISO-8859-1
+
+*** START OF THIS PROJECT GUTENBERG EBOOK THE WORLD IN CHAINS ***
+
+
+
+
+Produced by Irma Špehar, Janet Blenkinship and the Online
+Distributed Proofreading Team at http://www.pgdp.net (This
+file was produced from images generously made available
+by The Internet Archive/Canadian Libraries)
+
+
+
+
+
+
+
+
+
+
+
+  THE WORLD IN CHAINS
+
+
+       *       *       *       *       *
+
+  But should we stay to speak, noontide would come,
+  And thwart Silenus find his goats undrawn,
+  And grudge to sing those wise and lovely songs
+  Of Fate, and Chance, and God, and Chaos old,
+  And Love, and the Chained Titan's woeful doom,
+  And how he shall be loosed, and make the earth
+  One brotherhood....
+
+       *       *       *       *       *
+
+
+  THE WORLD
+  IN CHAINS
+
+  SOME ASPECTS OF WAR AND TRADE
+
+  BY JOHN MAVROGORDATO
+  M.A.
+
+  LONDON: MARTIN SECKER
+  NUMBER FIVE JOHN STREET ADELPHI
+
+
+
+
+ _First Published 1917_
+
+
+       *       *       *       *       *
+
+  IN MEMORIAM AMICORUM
+  _R. F. C. GELDERD SOMERVELL
+  IVAR CAMPBELL: T. R. A. H.
+  NOYES: J. W. BAILEY_
+  QVI ANTE DIEM PERIERVNT
+
+       *       *       *       *       *
+
+
+Note
+
+
+_There may be some exaggeration in this book. I firmly believe that
+England and her Allies entered this War with the noblest intentions. If
+I have done less than justice to these, it is because my chief purpose
+in this essay has been to express my equally firm belief that all these
+fine emotions have been and are being exploited by the basest forms of
+Imperialism and Capitalism._
+
+  _J. M._
+
+  _January 1st, 1917._
+
+
+
+
+  Contents
+
+
+  CHAPTER I
+
+  THE MASSACRE OF COLLEAGUES,                                 3
+
+  THE WIDENING SPHERE OF MORALITY,                            4
+
+  THE RECEDING GOD,                                           6
+
+  THE PHILOSOPHER LOOKS AT SOCIETY,                           8
+
+  HOMO HOMINI LUPUS,                                          8
+
+  TRIBE AGAINST TRIBE,                                       10
+
+  THE CITY STATE,                                            12
+
+  THE NATIONS OF EUROPE "FERAE NATURAE,"                     14
+
+  THE CONVENIENCE OF DIPLOMACY,                              15
+
+  A NOTE ON DEMOCRACY,                                       18
+
+  DIPLOMACY NOT BAD IN ITSELF,                               19
+
+  MANNERS NO SUBSTITUTE FOR MORALS,                          21
+
+  WAR A MORAL ANACHRONISM,                                   21
+
+
+  CHAPTER II
+
+  THE ARMAMENT RING,                                         27
+
+  EUGENICS?                                                  29
+
+  PATRIOTISM,                                                31
+
+  THE MORAL TEST,                                            36
+
+  TRADE,                                                     39
+
+  TRADE IN TIME OF PEACE,                                    42
+
+  DUTIES OF COMMERCE TO THE STATE,                           44
+
+  RESTRICTED SPHERE OF GOVERNMENT CORRESPONDING TO
+  RESTRICTED SPHERE OF MORALITY,                                 51
+
+
+  CHAPTER III
+
+  TRADE DURING THE WAR,                                      57
+
+  TRADE LIVES ON INCREASING DEMAND,                          65
+
+  WAR A FORM OF DESTRUCTION,                                 66
+
+  WAR STANDS TO BENEFIT NEUTRAL AS WELL AS BELLIGERENT
+  NATIONS BUT NOT TO THE SAME EXTENT,                            69
+
+  THE GREATER THE CAPITAL, THE GREATER THE WAR
+  PROFIT,                                                        71
+
+  THE BLESSINGS OF INVASION,                                 72
+
+  THE LUXURY TRADES DON'T DO SO BADLY,                       74
+
+  TRADE PROFITS IN WAR NOT SHARED BY THE NATION
+  BUT CONFINED TO EMPLOYERS,                                     77
+
+  TRADE PROFIT AND NATIONAL LOSS,                            82
+
+  APPENDIX: SOME TYPICAL WAR PROFITS,                       125
+
+
+  CHAPTER IV
+
+  DIALECTICS ROUND THE DEATH-BED,                            89
+
+  GERMAN RESPONSIBILITY FOR THE WAR,                         90
+
+  THE VALUE OF GERMAN CULTURE,                               95
+
+  THE MANUFACTURE OF HATRED,                                102
+
+  IMPERIALISM THE ENEMY,                                    107
+
+  POSSIBLE OBJECTS OF WAR,                                  112
+
+  PHYSICAL FORCE IN A MORAL WORLD,                          118
+
+  IMPERIALISM AND CAPITALISM THROUGH WAR AND TRADE
+  THE ENEMIES: SOCIALISM TO THE RESCUE,                         122
+
+
+       *       *       *       *       *
+
+
+CHAPTER I
+
+  [Greek: môros de thnêtôn ostis ekporthôn poleis
+  naous de tumbous th, iera tôn kekmêktôn,
+  erêmiadous autos ôleth usteron.]
+
+  Euripides: Tro. 95.
+
+
+
+
+§1
+
+The Massacre of Colleagues
+
+
+The existence of war in the modern world is primarily a question for the
+moral philosopher. It may be of interest to the anthropologist to
+consider war as a gallant survival with an impressive ritual and a code
+of honour curiously detached from the social environment, like the Hindu
+suttee; or with a procedure euphemistically disguised, like some
+chthonic liturgy of ancient Athens. But it is a problem too broad for
+the anthropologist when we consider that we have reached a stage of
+civilisation which regards murder as the most detestable of crimes and
+deprives the murderer of all civil rights and often even of the natural
+right to live: while in the same community the organised massacre of our
+colleagues in civilisation is not only tolerated but assumed to be
+necessary by the principal expositors of law and religion, is the
+scientific occupation of the most honoured profession in the State, and
+constitutes the real sanction of all international intercourse.
+
+
+§2
+
+The Widening Sphere of Morality
+
+The existence of war stimulates the astonished watcher in the tower of
+ivory to examine the development, if any, of human morality; and to
+formulate some law of the process whereby political man has been
+differentiated from the savage.
+
+Morality being a relation between two or more contracting parties, he
+will notice that the history of mankind is marked by a consistent
+tendency to extend this relation, to include in the system of
+relationships more numerous and more distant objects, so that the moral
+agent is surrounded by a continually widening sphere of obligations.
+
+This system of relationship, which may be called the moral sphere, has
+grown up under a variety of influences, expediency, custom, religious
+emotion and political action; but the moral agents included in it at any
+given time are always bound to each other by a theoretical contract
+involving both rights and duties, and leading each to expect and to
+apply in all his dealings with the others a certain standard of conduct
+which is approximately fixed by the enlightened opinion of the majority
+for the benefit of the totality.
+
+The moral sphere then is a contractual unit of two or more persons who
+agree to moderate their individual conduct for their common good: and
+the State itself is only a stage in the growth of this moral unit from
+its emergence out of primitive savagery to its superannuation in
+ultimate anarchy, commonly called the Millennium. The State indeed is a
+moral sphere, a moral unit, which has long been outgrown by enlightened
+opinion; and the trouble is that we are now in a transition stage in
+which the boundaries of the State survive as a limitation instead of
+setting an ideal of moral conduct.[1]
+
+FOOTNOTES:
+
+[Footnote 1: This conception of the gradually extending and still to be
+extended sphere of morality, or from another aspect of law, was implied,
+I think, by Lord Haldane in his Address on Higher Nationality. (_The
+Conduct of Life, and Other Addresses_, p. 99.)
+
+In this address Lord Haldane distinguished in the State three sanctions
+of conduct.
+
+     1. Law.
+
+     2. The Moral Sanction, Kant's Categorical Imperative "that rules
+     the private and individual conscience, but that alone."
+
+     3. The force of social habit or _sittlichkeit_, "less than legal
+     and more than merely moral, and sufficient in the vast majority of
+     the events of daily life, to secure observance of general standards
+     of conduct without any question of resort to force." The Lord
+     Chancellor adds, "If this is so within a nation, can it be so as
+     between nations?"
+
+But although Lord Haldane distinguishes three sanctions of conduct, the
+resultant line of conduct is one. And it seems to me unimportant to
+analyse the sanctions if we can only estimate the sum of their
+obligations. It is this totality of obligations, the whole
+systematisation of conduct in human life, that in my adumbrated analysis
+I call the moral sphere.
+
+Curiously enough Lord Haldane was hounded from the Government on the
+paradoxical ground that he knew too much about the enemy against whom we
+are fighting. It is certainly true that he has a better understanding
+than any other statesman of the Prussian perversion of aristocracy and
+of the true function of science in the State. But it is too much to hope
+that philosophers should remain Ministers of a State in which
+journalists are become dictators.]
+
+
+§3
+
+The Receding God
+
+I don't know that it is necessary to drag God into the argument. But if
+you like to regard God as the sanction and source of morality, or if you
+like to call the moral drift in human affairs God, it is possible to
+consider this "Sphere of Morality" from His point of view. His "point of
+view" is precisely what, in an instructive fable, we may present as the
+determining factor in morality. When He walked in the garden or lurked
+hardly distinguishable among the sticks and stones of the forest,
+morality was just an understanding between a man and his neighbour, a
+temporary agreement entered on by any two hunting savages whom He might
+happen to espy between the tree-trunks. When He dwelt among the peaks of
+Sinai or Olympus, the sphere of morality had extended to the whole tribe
+that occupied the subjacent valley. It came to include the nation, all
+the subjects of each sovereign state, by the time He had receded to some
+heavenly throne above the dark blue sky. And it is to be hoped that He
+may yet take a broader view, so that His survey will embrace the whole
+of mankind, if only we can banish Him to a remoter altitude in the
+frozen depths of space, whence He can contemplate human affairs without
+being near enough to interfere.
+
+The moral of this little myth of the Receding God may be that the Sphere
+of Morality is extended in inverse proportion to the intensity of
+theological interference. Not that theology necessarily or always
+deliberately limits the domain of morality: but because the extension of
+moral relations and the relegation of anthropomorphic theology are
+co-ordinate steps in human advancement.
+
+
+§ 4
+
+The Philosopher looks at Society
+
+The philosopher is apt to explain the growth and interrelation of ideas
+by tabulating them in an historical form, which may not be narrowly,
+chronologically, or "historically" true. The notion of the Social
+Contract may be philosophically true, though we are not to imagine the
+citizens of Rousseau's State coming together on a certain day to vote by
+show of hands, like the members of the Bognor Urban District Council. So
+we may illustrate a theory of moral or social evolution by a sort of
+historical pageant, which will not be journalistically exact, but will
+give a true picture of an ideal development, every scene of which can be
+paralleled by some actually known or inferred form of human life.
+
+
+§ 5
+
+Homo Homini Lupus
+
+Our imagination, working subconsciously on a number of laboriously
+accumulated hints, a roomful of chipped or polished stones, the sifted
+debris of Swiss palafittes, a few pithecoid jawbones, some painted rocks
+from Salamanca, produces a fairly definite picture of the earliest
+essentially human being on earth: and we recognise a man not unlike one
+of ourselves; with a similar industry interrupted from time to time by
+the arbitrary stirrings of a similar artistic impulse; so close to us
+indeed that some of his habits still survive among us. Some of us at
+least have made a recreation of his necessity, and still go hunting wild
+or hypothetically wild animals for food. But when this primeval hunter
+emerged from his lair in the forest or his valley-cave, he was prepared
+to attack at sight any man he happened to meet: and he thought himself a
+fine fellow if he succeeded in cracking the skull of a possible rival in
+love or venery. This was the age of preventive aggression with a
+vengeance. We still feel a certain satisfaction in a prompt and crushing
+blow, and in the simplicity of violence. But we no longer attack our
+neighbour in the street, as dogs fight over a bone or over nothing at
+all: though some of us reserve the right to snarl.
+
+
+§ 6
+
+Tribe against Tribe
+
+But this fighter's paradise was too exciting to last long; and indeed it
+is hard to visualise steadily the feral solitary man who lived without
+any social organisation at all.[2] Consideration like an angel came and
+did not indeed drive the offending devil out of him but taught him to
+guide it into more profitable channels, by co-operating with his
+neighbour. When a man first made peace with the hunter in the next cave
+in order to go out with him against the bear at the head of the valley,
+or even to have his assistance in carrying off a couple of women from
+the family down by the lake, on that day the social and moral unit was
+constituted, the sphere of morality, destined, who knows how soon, to
+include the whole of mankind in one beneficent alliance, began with what
+Professor McDougal has called "the replacement of individual by
+collective pugnacity." The first clear stage in this progress is the
+tribe or clan, the smallest organised community, sometimes no larger
+than the self-contained village or camp, which can still be found in the
+wild parts of the earth. Tribe against tribe is the formula of this
+order of civilisation. Within the limits of the community man inhibits
+his natural impulses and settles his personal disputes according to the
+rules laid down by the headman or chief. But once outside the stockade
+he can kill and plunder at will, though owing to the similarly strong
+organisation of the next village he will usually reserve his predatory
+exploits for the official and collective raids of village against
+village and tribe against tribe.
+
+Of course the family is a step leading up to the tribal stage of
+morality, and it may be that the idea of incest marks the social stage
+in which the moral sphere was conterminous with the family,
+corresponding to the institution of exogamy in the moral system of the
+tribe.
+
+It may be added that even in the modern family the feeling which unites
+the members often consists less, very much less, of affection than of a
+sort of obligation to hang together for mutual defence.
+
+FOOTNOTES:
+
+[Footnote 2: Cf. Plato's myth of Protagoras (_Prot_. 322 B ff.).]
+
+
+§ 7
+
+The City State
+
+The City State, self-contained, self-supporting, truly democratic, is
+marked by a similar pugnacity. Only full citizenship conferred full
+moral rights, and any ferocity could be justified in war against another
+city. Athens wore herself out in the long struggle with Sparta, and
+Greece was lured to destruction by the devil of Imperialism, whose stock
+argument is to suggest that a State can extend its rights without
+extending its obligations. But the limitation of the moral sphere by the
+boundaries of the city is less apparent in the Greek States, because in
+the historical period at least they were already in transition to a
+larger view, and enlightened opinion certainly believed in a moral
+system which should include all Greek States, to the exclusion of course
+of all "barbarians": but this larger view was even more definitely
+limited, and the demarcation of those within from those outside the
+moral sphere was never more sharply conceived, than in the difference
+commonly held to exist between Greeks and Barbarians. Yet even so Greece
+can maintain her pre-eminence in thought; for Plato and Euripides at
+least glimpsed the conception, by which we do not yet consent to be
+guided, of the moral equality of all mankind.[3]
+
+For all these reasons the City State as a limited moral sphere is better
+seen perhaps in Mediæval Italy, where, I imagine, a Florentine might
+kill a native of Pisa whenever he liked; whereas if he killed a fellow
+Florentine he risked at least the necessity of putting himself outside
+the moral sphere, of having that is to leave Florence and stay in Pisa
+till the incident was forgotten.[4]
+
+FOOTNOTES:
+
+[Footnote 3: Even Aristotle probably had some suspicion of it; so in his
+anxiety to justify the institution of slavery he had to make out that
+slaves were not men at all but only machines.]
+
+[Footnote 4: Duelling might be classified theoretically as a survival of
+the wolfish condition sketched in § 5. But the persistent institution of
+single combat should not be regarded as in itself a survival, but rather
+as an outlet for the surviving instinct, a concession justified by
+political or social considerations that vary from age to age. Even Plato
+in his _Republic_ (465 A) agreed that the citizen might in certain
+circumstances take the law into his own hands, probably regarding such
+action as a sort of equity, what Aristotle calls [Greek: epanorthôma
+nomou êlleipei dia ton katholou], a rectification of certain special
+cases not covered by law.
+
+In modern states again, e.g. in Austria and Germany, duelling is not so
+much a survival as a corollary of militarism, which involves a
+fetichistic veneration of the military uniform or of military "honour."]
+
+
+§ 8
+
+The Nations of Europe _ferae naturae_
+
+In the next and latest stage in the expansion of the moral system we
+find it again conterminous with the frontiers of the State. But it is
+now no longer the small city state of Ancient Greece and Mediæval Italy,
+but the large political unit, roughly and hypothetically national,[5]
+which constitutes the modern State, whether Kingdom, Republic, or
+Empire. I have called this the latest stage in the extension of the
+sphere of morality because it is the one which actually prevails and
+limits our national conduct. For the paradox of legal murder and
+massacre in the modern world is resolved as soon as we realise that war
+is a conflict between two or more isolated moral systems, each of which
+only regards violence as a crime to be suppressed within the limits of
+its own validity. International warfare in its crudest form is only a
+manifestation of the original wolfish state of man, the "state of
+nature" which exists between two moral agents who have no moral
+obligation to each other (but only to themselves). The fact that the
+primitive savage was an individual moral agent having no moral
+obligation to anyone but himself, while the modern fighting nation is a
+moral agent of who knows how many millions, does not alter the essential
+character of the conflict.
+
+FOOTNOTES:
+
+[Footnote 5: See below, Chapter IV, § 4. _Nationalism True and False_.]
+
+
+§ 9
+
+The Convenience of Diplomacy
+
+As a matter of fact this original wolfish attitude of nations is already
+obsolete, if it ever existed. The expansion and growth of political and
+moral relations is a gradual process, and the fact that for the sake of
+brevity and clearness we fix and describe certain arbitrary points in
+that process must not be taken to imply that it is discontinuous. Anyhow
+there is no doubt that the specifically wolfish attitude of one nation
+to another can hardly be found in its pure state, being already tempered
+and mitigated by the practice and custom of diplomacy: and this
+diplomatic mitigation, however superficial, does something to break down
+that windowless isolation which is the essential cause of violence
+between two independent moral entities. Pacificists of the democratic
+school sometimes present a fallacious view of international diplomacy,
+and almost imply that the present war was made inevitable by the fact
+that Viscount Grey was educated at Harrow, or that peace could have
+been preserved with Germany if only Sir Edward Goschen had begun life as
+a coal heaver, or had at least been elected by the National Union of
+Boilermakers. Their panacea they vaguely call the democratic control of
+Foreign Affairs, though it is not clear why we should expect twenty
+million still ignorant voters to be more enlightened than one educated
+representative who is, as a matter of fact, usually so much oppressed by
+a due sense of his responsibility that he is in danger of bungling only
+from excessive timidity. The experience of the Law Courts shows that
+twelve men, be they never so good and true, cannot _at present_ be
+trusted to weigh and discriminate as nicely as one[6]; and the fact that
+the _Daily Mail_ has the largest circulation of any morning paper is a
+sufficient mark of the present capacity and inclination of the majority
+to control public affairs more directly than they do. It is said that
+the secrecy of diplomatic affairs breeds an atmosphere of suspicion; and
+it might be said with equal truth that all secrecy of every kind is
+always and everywhere the most unnecessary thing in the world.[7] But
+the fundamental fallacy of all these arguments is that they treat
+diplomacy as an essential of international relations, whereas it is only
+an accident, a trapping, a convenience, or a common form. Its defects
+are the result and the reflection of national opinion. Diplomatists are
+no more responsible for the defects of international relationship than
+seconds are responsible for the practice of duelling: and we may note
+incidentally that duels are if anything more frequent when the place of
+the seconds in estimating their necessity is taken by a democratic court
+of honour.
+
+FOOTNOTES:
+
+[Footnote 6: The duties of a jury are, of course, very carefully limited
+by law. But even in this reduced sphere they are remarkable chiefly for
+their incompetence, prejudice, inattention, and stupidity. See
+particularly André Gide's _Souvenirs de la Cour d'Assises_, all the
+implied criticisms in which apply, _mutatis quibusdam mutandis_, with
+equal force to English and indeed to all juries.]
+
+[Footnote 7: It is possible to argue, though of course impossible to
+prove, that if every diplomatic document of recent years had been
+immediately made public, the relations between the Powers would have
+remained very much what they are with "secret diplomacy"; that "public
+diplomacy" would if anything have intensified the existing jealousy and
+distrust. As a matter of fact anyone who takes the trouble can
+approximately discover the diplomatic situation existing at a particular
+moment between any two Powers, even if he cannot know the verbal text of
+a particular treaty. And if the supporters of "public diplomacy"
+reasonably point out that "publicity" is desired only as a means to
+ensure the democratic control of Foreign policy, the answer is that the
+only way to ensure the democratic control of diplomats or any other
+public servants is to educate the people.]
+
+
+§ 10
+
+A Note on Democracy
+
+The outcry for "democratic" control demands, I think, a note, if not a
+volume,[8] on the limitations of democracy. We are all, I suppose,
+agreed nowadays that the government of the future must be democratic, in
+the sense that every adult has a _right_ to full citizenship, and every
+citizen can claim a vote. But it is obviously impossible for a modern
+State to be governed directly by the voices of say fifty or a hundred
+million citizens: there must always be a small legislative and a still
+smaller executive body; and these bodies should obviously be composed of
+the finest and most capable citizens. If then Aristocracy means, as it
+does mean, a government of the whole by the best elements, it follows
+that we are all equally agreed that the government of the future must be
+aristocratic. The solution of this antinomy is of course that democracy
+is not an end in itself, but only a means for the selection and sanction
+of aristocracy.[9] The best elements in the population can only come to
+the top if every man has an opportunity of using his voice and his
+intelligence. We may note in passing that a common objection, raised by
+writers like Emile Faguet, to the effect that democracy puts a premium
+on incompetence by choosing its officials almost fortuitously from the
+mob, is the exact opposite of the truth. It is our present regime that
+leaves the selection of our rulers to the chances of birth or wealth or
+forensic success. Real democracy will stimulate the selection of the
+best, just as trade union standardisation of wages encourages the
+employment of the better workmen.[10]
+
+FOOTNOTES:
+
+[Footnote 8: Such a volume or something very much like it has actually
+made its appearance, since these lines were written, in Professor Robert
+Michels' _Political Parties_ (Jarrold, 1916).]
+
+[Footnote 9: Cf. Bernard Shaw, in Pease, _History of the Fabian
+Society_, p. 268: "Sooner or later, unless democracy is to be discarded
+in a reaction of disgust such as killed it in ancient Athens, democracy
+itself will demand that only such men should be presented to its choice
+as have proved themselves qualified for more serious and disinterested
+work than 'stoking up' election meetings to momentary and foolish
+excitement. Without qualified rulers a Socialist State is impossible."]
+
+
+§ 11
+
+Diplomacy not bad in itself
+
+The real importance of diplomacy, as I have said, is in the fact that it
+is a mitigation of primary ferocity, a symptom of readiness to
+negotiate, a recognition of the fact that disputes need not be settled
+by immediate violence: and as such it points to a time when war may be
+superseded, as personal combat has been superseded by litigation. The
+man who puts a quarrel with his neighbour into the hands of a legal
+representative is a stage higher in social civilisation than the man who
+fights it out at sight. Diplomats are the legal representatives of
+nations--only there is no supernational court before which they can
+state their case.
+
+Of course, it is perfectly true that the ultimate sanction of diplomacy
+is always force, that international negotiations may always be resolved
+into a series of polite threats, and that the envoy of the small and
+weak nation rarely has any influence. Indeed there are few less enviable
+situations than that of the minister of a very small State at the court
+of a very large one. But the mere fact that force is their sanction does
+not _ipso facto_ dispose of diplomatic and arbitrational methods. We all
+know that the force at the disposal of the Sovereign is the ultimate
+sanction of Law. But that force never has to be fully exerted because
+there is a common consent to respect the Law and its officers.
+
+FOOTNOTES:
+
+[Footnote 10: Cf. Webb, _Industrial Democracy_, p. 718.]
+
+
+§ 12
+
+Manners no Substitute for Morals
+
+The real difference between legal methods and the methods of diplomacy
+(in which I here include international conversations of every sort) is
+that the latter take place, as it were, in a vacuum. There is no
+Sovereign, no common denominator, no unifying system in which both
+parties are related by their common obligations. They exist and act in
+two separate moral spheres, and no real intercourse is possible between
+them. For all their ambassadors and diplomatic conferences the nations
+of Europe are only wolves with good manners. And manners, as we all
+know, are no substitute for morals.
+
+
+§ 13
+
+War a Moral Anachronism
+
+Thus we come back to our thesis that war is not only possible but
+inevitable so long as the extent of the moral sphere is conterminous
+with the frontiers of the State. But merely to explain laboriously that
+all this organised killing is not really a paradox but the natural
+accompaniment of a certain stage of moral development, and to leave it
+at that, would be rather to exaggerate our philosophic detachment. The
+point is that we are long past the stage of regarding any but our
+fellow-subjects as moral outlaws. For some years, to say the least, it
+has been generally received that the sphere of morality is co-extensive
+with mankind. In spite of certain lingering exceptions, it is to-day a
+commonplace of thought that every human being on the earth is our
+colleague in civilisation; is a member that is of the human race, which
+finding itself on this earth has got somehow to make the best of it; is
+a shareholder in the human asset of self-consciousness which we are
+called upon to exploit. It would certainly be hard to find a man of what
+we have called enlightened opinions who would not profess, whatever his
+private feelings, that it is as great a crime to kill a Hottentot or a
+Jew as to kill an Englishman. With certain lingering exceptions then we
+already regard the foreigner as a member of our own moral system. The
+moral sphere has already extended or is at least in course of extension
+to its ultimate limits: and war is a survival from the penultimate stage
+of morality. War, to put it mildly, is a moral anachronism. War between
+European nations is civil war. Logically all war should be recognised at
+once, at any rate by enlightened opinion, as the crime, the disaster,
+the ultimate disgrace that it obviously is. Why then do we cling to the
+implications of a system that we have grown out of? Why do we affect the
+limitation of boundaries that have been already extended? Or is our
+prison so lovely that though the walls fall down we refuse to walk out
+into the air?
+
+
+
+
+CHAPTER II
+
+     A sociologist wrote to the Vali of Aleppo, asking: What are the
+     imports of Aleppo? What is the nature of the water-supply? What is
+     the birth-rate, and the death-rate?
+
+     The Vali replied: It is impossible for anyone to number the camels
+     that kneel in the markets of Aleppo. The water is sufficient; no
+     one ever dies of thirst in Aleppo. How many children shall be born
+     in this great city is known only to Allah the compassionate, the
+     merciful. And who would venture to inquire the tale of the dead?
+     For it is revealed only to the Angels of death who shall be taken
+     and who shall be left. O idle Frank, cease from your presumptuous
+     questioning, and know that these things are not revealed to the
+     children of men.
+
+  The _Bustan of Mahmud Aga el-Arnauty_.
+
+
+§ 1
+
+The Armament Ring
+
+What, in short, are the forces that make for the anachronistic survival
+of war--apart of course from the defect that it is always with us, the
+habit of inertia, sometimes called Conservatism?
+
+The obvious answer is not, I think, the correct one. At least it is
+correct as far as it goes, but leaves us very far from a complete
+explanation of this unpleasant survival. So scandalous is the
+interrelation of the armament firms[11] which has developed the world's
+trade in munitions and explosives into one obscene cartel; so cynical is
+the avidity with which their agents exchange their trade secrets, sell
+ships and guns, often by means of diplomatic blackmail, to friend or foe
+alike, and follow those pioneers of civilisation the missionary, the gin
+merchant and the procurer,[12] into the wildest part of the earth; so
+absurd on the face of it is the practice of allowing the manufacture of
+armaments to remain in the hands of private companies; that it is very
+tempting to see in the great Armament Firms the principal if not the
+only cause of modern war. Examiners of German militarism, most of them
+stupid enough to quote Nietzsche, may be pardoned for emphasising the
+political influence of Krupp; and since every great Power has a more or
+less efficiently organised Krupp of its own, it would be permissible to
+suggest that war would be already obsolete but for the intensive
+cultivation it receives for the benefit of Krupp, Creusot, Elswick and
+the rest. But it would be wrong; our syllogism would have a badly
+undistributed middle. It is true that Krupp in particular, who is the
+actual owner of more than one popular German newspaper, and other
+armament firms in a smaller degree, exercise an enormous influence on
+national opinion, create their own markets by the threat of war, and
+would go bankrupt if wars should cease. You may also say that their
+shareholders live by prostituting the patriotism of their
+fellow-citizens: in short, you may denounce them with the most expensive
+rhetoric to be had without doing them any injustice. But the fact
+remains that their position with regard to war is exactly analogous to
+that of the great breweries with regard to drunkenness. They live by
+taking advantage of human weakness. It is quite accurate, therefore, to
+describe their earnings as immoral, but they are no more the cause of
+the immorality they exploit and undoubtedly encourage, than makers of
+seismological instruments are responsible for the occurrence of
+earthquakes. The interests of one trade alone, however powerful in
+itself, would never be strong enough to plunge a nation into war. They
+are, of course, accessories to the crime; but the militarism they are
+guilty of fostering has other primary explanations.
+
+FOOTNOTES:
+
+[Footnote 11: Several books have been published giving details of the
+Armament Ring and international "Kruppism." I don't think that the
+language here used does any injustice to the facts.]
+
+[Footnote 12: See below, § 7.]
+
+
+§ 2
+
+Eugenics?
+
+In this brief investigation of the possible causes of war, it must be
+understood that what we want to find is what is called a "sufficient
+reason" for its continued existence. The armament trades may supply the
+means, the occasion, the stimulant, but their relation to it is not
+essentially causal. Many writers of another school have attempted to
+prove that the sufficient reason of war is a beneficent function of
+which they believe it to be capable. This imaginary function is none
+other than that of improving the race, and we may admit at once that, if
+there were the slightest scientific basis for such a belief, the
+bloodiest war would be morally justified, and it would be the religious
+duty of every individual to kill as many as possible of his fellows for
+the benefit of their descendants. But of course modern warfare so far
+from improving the race must sensibly exhaust it. In ancient Sparta, and
+generally whenever the conditions of warfare approximated to those of
+personal combat, courage and the allied characteristics of mental as
+well as of physical nobility must have had a survival value; whereas in
+modern warfare which makes for the indiscriminate extermination of all
+combatants, the result is exactly reversed. Our semi-scientific
+militarists forget that the "survival of the fittest"[13] is in nature
+essentially a process of selective elimination; and modern war is a
+process of inverted selection which eliminates the brave, the
+adventurous and the healthy; precisely those members of the community
+who are best fitted to survive, that is to propagate their kind, in the
+ordinary environment of political life. Conscription, indeed, spreading
+a wider net than the voluntary system, may be described as an
+institution for exposing the best citizens of a state to abnormal risks
+of annihilation. As a matter of historic fact we are told, though I
+don't know on what authority, that the Napoleonic wars, how much less
+deadly than our own, reduced by an inch the average height of the French
+nation.
+
+So much, in brief, for the "scientific" justification of war. It is
+evident that by the eugenic argument war could be defended only if we
+agreed to send into battle precisely those men whom our recruiting
+officers disqualify. A good deal might be said, from the sociologist's
+point of view, in favour of a system of cathartic conscription which
+would rejuvenate England with a watchword of "The Unfit to the
+Trenches."
+
+FOOTNOTES:
+
+[Footnote 13: They usually add to their mental confusion the elementary
+blunder of using the word "fittest" in a moral instead of in its
+biological sense.]
+
+
+§ 3
+
+Patriotism
+
+If again there were any evidence to show that war and war alone kept
+alive the spirit of true patriotism, it would be less easy to denounce
+its manifold wickedness. For true patriotism, although like all
+passionate emotion it involves a certain mental distortion, a slight
+disturbance of the rational orbit, is yet one of those happy diseases
+which relieve the colourlessness of strict normality. It is a magic, a
+glamour, of the nature of personal affection, which only great poetry
+can fully express, and volumes of bad poetry cannot quite destroy. It
+has besides a real political value, binding the State together, and
+giving it a stronger moral coherence than can be attained by any legal
+or constitutional authority; a fact that is illustrated by those
+distressful countries in which its limits are not conterminous with the
+political boundaries of the State. I am inclined to think that just
+because true patriotism is of the nature of a personal affection, it is
+an emotion that cannot be inspired by an empire, any more than personal
+affection can be inspired by a corporation or a joint-stock company.[14]
+Certainly Imperialism more often gives rise to a sentimental worship of
+force and a certain promiscuous lust for mere extension of territory
+which are quite alien to the steady devotion of the patriot to the land
+he knows.[15]
+
+Unless one be a poet, it is difficult, as may perhaps be gathered from
+the preceding paragraph, sufficiently to praise genuine patriotism
+without falling into vague rhetoric. But I submit that there is nothing
+to show that this political emotion is created, stimulated, or even
+discovered by war. Actually it seems that the reverse is the case, if
+one may judge by the fact that war is invariably accompanied by an
+overwhelming outbreak of every spurious form of patriotism that was ever
+invented by the devil to make an honest man ashamed of his country. True
+patriotism is a calm and lovely orientation of the spirit towards the
+vital beauty of England. It has no noisy manifestations and consequently
+one may not be able to find it among the crowds who shout most loudly
+for war.
+
+One finds instead a sort of violent fever and calenture which not merely
+deflects, as any emotion may, but totally inhibits the rational
+operations of the mind. The newspapers supply a legion of witnesses.
+
+Thus the _Evening Standard_ perorates against some pacificist lecturer
+(who had attempted to clear his views from all sorts of
+misrepresentations) with the magnificent comment that he had not
+"repudiated his remarks as to the pleasure which the tune of the
+Austrian National Anthem gave him."[16] But I should weary you were I
+to transcribe a tithe of the stupid remarks made by persons in authority
+under the influence of war. The record, I believe, in England is held at
+present by Mr. Bodkin, K.C.
+
+It may be said of course that men, and newspapers, are equally stupid in
+time of peace; and I fear that fundamentally this is true. War does not
+change their nature, but only brings to the bubbling surface the dregs
+and vileness and scum. War does not change any one's nature; and that is
+why it is vain to expect that under its influence those crowds will love
+their country who never loved anything before. But if war cannot create
+it may at least be supposed to discover and test the existent patriotism
+of the nation. And this supposition is corroborated at first sight by
+the realisation that hundreds of thousands, that actually millions of
+previously ordinary young men have implied by enlisting their
+willingness to die for England. One might, of course, reason that no
+individual recruit really believes he is going to be killed, that each
+boy thinks he will be one of the lucky ones who escape all the bullets
+unhurt to enjoy an honoured return, that recruiting would have failed
+entirely if the barracks were explicitly a grave and enlistment the
+certainty of violent death or mutilation. But somehow I don't think that
+would be a fair argument. It is more pertinent if less easy to remember
+that a readiness to die for one's country is not the highest form of
+political virtue. If it be, as it is, a solemn and wonderful thing to be
+willing to die for the salvation (_ex hypothesi_) of England, it must be
+much more wonderful and solemn to be willing to die in order slightly to
+increase the income of one's family. And every schoolboy knows that the
+Chinaman of the old regime was willing to have his head cut off for the
+payment of a few dollars to his next of kin. Let no one ever deny our
+soldiers the honour of their courage and nobility; but the fact remains
+that the readiness to die for England is a less adequate test of
+patriotism than a readiness to live for England; and if the readiness to
+live for the State rather than for private interests had been for a
+hundred years a social virtue whose votaries could be numbered by the
+million, then indeed England would be to-day a nation worth dying for.
+
+FOOTNOTES:
+
+[Footnote 14: If anyone were to suggest that this is disproved by the
+unparalleled nobility of Australians, New Zealanders, Canadians and
+Indians in the present campaign, I should reply that they are actuated
+by devotion not to the Empire but to England, not to the Company but to
+the Chairman of the Company. This may be a quibble, but I think the
+distinction is real. Anyhow, I leave it at that, as the point has no
+primary relevance.]
+
+[Footnote 15: See below, Chapter IV, § 5.]
+
+[Footnote 16: The paragraph is worth preserving in its entirety: "Mr. W.
+N. Ewer, who lectured at Finchley for the Union of Democratic Control,
+has explained that the report which we published of his speech is
+unfair, and that he is really in substantial agreement with Mr. Asquith.
+This is disingenuous, and Mr. Ewer knows it is. He has not repudiated
+the correctness of the report, which stated that he dilated on the
+danger of British navalism, and declared that we must give up singing
+'Rule Britannia!' nor has he repudiated his remarks as to the pleasure
+which the tune of the Austrian National Anthem gave him. Does he think
+that Mr. Asquith would substantially agree with that? Or the
+country?"--_The Evening Standard_, July 26, 1915.]
+
+
+§ 4
+
+The "Moral Test"
+
+The theory that war is beneficial as a moral test, a furnace in which
+character is proved--_ut fulvum spectatur in ignibus aurum_--is that
+generally adopted by the Christian Churches, who may be said without
+disrespect to have taken every advantage of their founder's unique
+reference to the sword. I cannot help thinking that there is something
+fundamental in this ecclesiastical advocacy of war; that some
+psychological theory could be outlined to correlate this almost uniform
+advocacy with the facts that such religious men as Tennyson and Ruskin
+were among the loudest in their support of the Crimean War, that such a
+militarist as Rudyard Kipling in his best work (in _Kim_, in _Puck of
+Pook's Hill_ and the intercalated poems, in the most successful of his
+short stories) shows himself to be at heart a deeply religious mystic;
+and that in France the very active Clerical party, one consequence of a
+disestablished Church, is always closely supported by the Chauvinists.
+In many cases, however, I have no doubt that the pious Christian,
+finding himself confronted with war, and not having the moral courage or
+the political detachment to condemn it, only applies automatically to
+its justification the arguments which he habitually uses to explain the
+existence of evil and pain. It is certain at least that the theories of
+war as a Moral Test or a School of Character bear a strong resemblance
+to the commonplaces of religious consolation which almost any good
+Christian will offer to the bereaved and afflicted. Any one who has seen
+an innocent friend slowly tortured to death by some vile disease will
+know the futility of the Christian defence (for these religious
+consolations amount theologically to a defence) that pain ennobles the
+character and "proves" the moral courage of the sufferer.[17] The
+leading fallacy of the defence that war, or pain, is valuable as a
+moral test is akin to the common misunderstanding of the word "prove" in
+the saying that "the exception proves the rule"; the truth being that a
+strong and noble character, one of whose corollary qualities is a
+capacity to bear pain, is not less strong and noble if it is never
+called upon to exercise that capacity. The San Francisco earthquake was
+not a blessing in disguise because it happened to "test" and "prove" the
+strength and flexibility of modern American architecture.
+
+FOOTNOTES:
+
+[Footnote 17: I cannot help reproducing here a letter which originally
+appeared in the _Manchester Guardian_ at the time of the Boer War, and
+is quoted by Mr. Norman Angell in _The Great Illusion_, p. 281.
+
+"SIR,--I see that 'The Church's Duty in Regard to War' is to be
+discussed at the Church Congress. This is right. For a year the heads of
+our Church have been telling us what war is and does--that it is a
+school of character; that it sobers men, cleans them, strengthens them,
+knits their hearts; makes them brave, patient, humble, tender, prone to
+self-sacrifice. Watered by 'war's red rain,' one Bishop tells us, virtue
+grows; a cannonade, he points out, is an 'oratorio'--almost a form of
+worship. True; and to the Church men look for help to save their souls
+from starving for lack of this good school, this kindly rain, this
+sacred music. Congresses are apt to lose themselves in wastes of words.
+This one must not, surely cannot, so straight is the way to the goal. It
+has simply to draft and submit a new Collect for war in our time, and to
+call for the reverent but firm emendation, in the spirit of the best
+modern thought, of those passages in Bible and Prayer Book by which even
+the truest of Christians and the best of men have at times been blinded
+to the duty of seeking war and ensuing it. Still, man's moral nature
+cannot, I admit, live by war alone; nor do I say with some that peace is
+wholly bad. Even amid the horrors of peace you will find little shoots
+of character fed by the gentle and timely rains of plague and famine,
+tempest and fire; simple lessons of patience and courage conned in the
+schools of typhus, gout, and stone; not oratorios, perhaps, but homely
+anthems and rude hymns played on knife and probe in the long winter
+nights. Far from me to 'sin our mercies,' or to call mere twilight dark.
+Yet dark it may become; for remember that even these poor makeshift
+schools of character, these second-bests, these halting substitutes for
+war--remember that the efficiency of every one of them, be it hunger,
+accident, ignorance, sickness, or pain, is menaced by the intolerable
+strain of its struggles with secular doctors, plumbers, inventors,
+schoolmasters, and policemen. Every year thousands who would once have
+been braced and steeled by manly tussles with small-pox or diphtheria
+are robbed of that blessing by the great changes made in our drains.
+Every year thousands of women and children must go their way bereft of
+the rich spiritual experience of the widow and the orphan."]
+
+
+§ 5
+
+Trade
+
+I shall never forget the tones of hoarse satisfaction with which a
+vendor of the _Evening News_ disturbed the twilight of a May evening in
+London, triumphantly proclaiming a "Great Troop Train Disaster." I had
+often noticed with what apparent joy the newspapers announced the
+sinking of a British cruiser; with what entirely neutral delight they
+welcomed or invented the report of Terrible Slaughter on either side.
+But somehow that hoarse and rufous man with the loose lip remained in my
+memory and became for me a type of one element in the population to
+which war was not unwelcome; the journalistic element that lives by
+exploiting the sadistic curiosity, the craving for mean excitements, and
+all the gladiatorial instinct of the modern world.[18] It soon became
+clear that the newspapers were not alone in the commercial exploitation
+of war. They were not even the worst offenders. The publishers were
+hurriedly producing volume after volume of faked memoirs badly written
+by imaginary governesses. The production of spurious memoirs and
+"autobiographies," even if they are skilfully composed, is always
+grossly immoral; and of the specimens occasioned by this war one may say
+that if they had been genuine it would have been possible to attribute
+the low morality of some Germanic princes to the literary style of the
+English governesses who had had a share in their education. The
+catchpenny manoeuvres of publishers are really only a branch of
+journalism,[19] and such trivial offences were not, after all,
+unexpected, because the very profession of journalism is to take
+advantage. But the journalist is a man of straw who shows which way the
+wind blows, and his raucous exultation over disaster was the manifest
+symbol of a commercial exploitation of war by tradesmen and speculators
+which soon became sensible from one end of belligerent Europe to the
+other. Like the Vali of Aleppo, I am not good at statistics. It is well
+known however without the assistance of a mathematician that in England
+during the winter of 1915, when the cost of living had already risen by
+nearly 50 per cent, wholesale dealers often kept provisions of all sorts
+rotting in their stores rather than break the artificial scarcity they
+had created; farmers would not sell fresh eggs when the price was
+twopence-halfpenny, because they knew that in a week or two the price
+for the same eggs would have risen to threepence. Here is a cartoon from
+a Hungarian paper[20] showing the bloated profiteer of The Sugar Trust
+laughing at the women who feebly attack his barricade of sugar loaves. I
+mention it here because it is sufficiently remote from English affairs,
+and because it happens to come to hand, and because it is a good
+fragment of evidence, there being no reason why sugar should be scarce
+in Hungary as an immediate result of the war. And from every country
+between England and Hungary, from every country in Europe, can be heard
+the same complaint, unmistakable but how much too feeble, the cry of the
+people who discover that one of the horrors of war is Trade.[21]
+
+FOOTNOTES:
+
+[Footnote 18: Cf. the present writer's introduction to Whyte-Melville's
+_Gladiators_ in _Everyman's Library_, 1911.]
+
+[Footnote 19: It was certainly, for example, the Headline Instinct which
+caused Mr. John Lane, a publisher of some repute, to impose on Mr. Ford
+Madox Hueffer's novel _The Saddest Story_, one of the most remarkable
+novels of the century, such an absurdly irrelevant title as _The Good
+Soldier_. _The Good Soldier_ was published in April, 1915. The evidence
+that the publisher must have changed the title just before publication
+is that an instalment of it had appeared serially as _The Saddest Story_
+in the summer of 1914, and that as _The Saddest Story_ it actually
+figured in Mr. John Lane's catalogue at the end of the book.]
+
+[Footnote 20: _Matyas Diak_ of Budapest.]
+
+
+§ 6
+
+Trade in Time of Peace
+
+It would not however be correct to infer that the sacrifice of national
+welfare to commercial manoeuvres is a condition peculiar to war.
+Modern commerce is essentially an art; the art of making people pay more
+than they are worth for things which they do not require. And it is with
+all the selfishness of the artist that it performs its usual operations.
+Among all the unpublished detail of modern life hardly any class of
+facts is more disquieting than that of commercial procedure and
+achievement. The subject is too large to be reviewed in less than a
+volume; and I can do no more here than suggest a few instances that
+might be acquired by anyone who devotes his time to not reading the
+daily papers.
+
+The distribution and exchange of commodities are necessary to the
+existence of the State; so necessary that it might be supposed that
+their regulation would be one of the primary functions of government.
+Proper systems of distribution and exchange correspond to the digestive
+processes of the body, on which depend the proper nutrition of all the
+parts and the real prosperity of the State as a whole; yet any
+comprehensive plan for their control is still regarded as the most
+unattainable dream of Utopia, and they are left to carry on as best they
+can in the interstices of private acquisitiveness. National well-being
+is not to be measured by mere volume of trade, which is the means and
+not the essence of prosperity;[22] and prosperity can certainly never
+exist when equitable distribution is hindered by a sort of fatty
+degeneration of capitalism. But trade in itself is a necessary aliment
+of the State, and its abuses ought not to be beyond remedy.
+
+A few of these abuses are fairly obvious without a full inquiry, and
+may be illustrated here because their existence in time of peace may
+throw light on the operations of trade in belligerent states, and
+indirectly, by suggesting a few of the results of war, may lead us to
+some of its motives and occasions. Such abuses may be most easily
+identified in opposition to the national rights which they infringe.
+
+FOOTNOTES:
+
+[Footnote 21: So in Germany the fixing of maximum prices for pigs and
+potatoes was immediately followed by an almost complete withdrawal from
+the market of potatoes and pigs--the German farmers refused to sell
+except at their own inflated prices. Cf. quotations from the German
+Press in _The New Statesman_ of January 29, 1916.]
+
+[Footnote 22: "Ces choses sont plutôt des moyens que l'on emploie pour
+travailler à faire prospérer l'Etat qu'ils ne sont l'essence de sa
+prospérité."--Rousseau, _Political Writings_, I, 345 (C. E. Vaughan's
+edition).]
+
+
+§ 7
+
+Duties of Commerce to the State
+
+The State has a primary right to be fairly served. Prices should not be
+arbitrarily raised by any wholesale merchant who happens to be in a
+position to do so, or by any cartel of dealers in league for that
+purpose. Prices should be regulated by the cost of production, and
+should not be an indication of demand; they should rise beyond the cost
+of production augmented by a fair profit only when the supply is
+insufficient (production not being artificially restrained) to meet some
+abnormal demand, and only as a means of checking and regulating the
+excessive demand. We find instead that any dealer or group of dealers
+will raise their prices almost absent-mindedly as soon as they are in a
+position to meet a demand which cannot be postponed. Thus it is that
+governments are habitually overcharged in all their contracts and
+purchases; because governments have neither the time nor the opportunity
+for casual dealings, and because they do not undertake such transactions
+at all unless their absolute necessity has already been decided.[23] So
+at the beginning of the war English warehouses were full of all sorts of
+commodities required by the governments of the Allies; but the urgency
+of war prevented any sort of bargaining; and the private merchants took
+advantage of the situation to the amount of about two hundred per cent.
+At present however I am dealing with trade in time of peace and I must
+not flavour the ordinary facts with any consideration of War Office
+contracts. It is enough to state the fact that in ordinary times the
+private tradesman regards a special demand as an opportunity for raising
+prices rather than as the stimulus of supply; a rule which is most
+easily detected in the experience of Government departments.
+
+The State, through its individual citizens, has a primary right to
+obtain the particular commodity which it happens to prefer, without
+restrictions imposed for the benefit of any particular tradesman. We
+find instead that the ordinary purchaser no longer has any effective, or
+selective, demand. He has to buy what he is given. The informal
+organisation of the Trust system, primarily a financial operation,[24]
+has involved the whole market in a network of interdependent industries.
+The sale of the finished product is controlled and restricted by the
+vendors of the raw material. Corn is imported by shipbuilders; ships are
+built by iron merchants; iron furnaces are controlled by coal owners,
+and coal mines are secured by money-lenders.
+
+The system of the tied house, originally an indigenous corruption of the
+liquor trade, is being extended to every industry in the land. We can no
+longer buy the bread we like, but have to eat whatever by-product least
+interferes with the miller's profits.
+
+The consumer's loss of any power of effective demand would not
+necessarily be of national importance, if at least there were any
+guarantee that the unique commodity offered by the average trust system
+were genuine and of good quality. One of the State's most elementary
+rights is that of ensuring to its citizens a pure supply of elementary
+commodities. Yet Commerce has taken no steps, even in its own
+interests, to suppress the horrid arts of adulteration, in which the
+motives of the thief usurp the methods of the poisoner, with results
+which may be inferred from the meagre chronicles of the analyst.[25]
+
+Education is the life of the State.[26] It is therefore of the gravest
+importance that Commerce should in no circumstances whatever be allowed
+to interfere with the education of the future citizens. Yet, before the
+war, in spite of the legislation of the last fifty years,[27] no less
+than a quarter of a million children of school age were exempted from
+school attendance for employment in various occupations.[28] Even apart
+from such improper exemptions the "School Age" fixed by law in itself
+gives quite insufficient protection. The brain of a girl hardly begins
+to wake up, or take any natural interest in the acquisition of general
+ideas, before she comes to puberty. But all over London girls of
+thirteen or fourteen leave school and are sent by their mothers to earn
+half a crown a week matching patterns or sewing on sequins.
+
+More generally, the State is entitled to demand from Commerce that it
+should co-operate sincerely with the other elements in the State in
+pursuing the real objects of civilisation, inspired by an altruistic
+regard for the whole of which it is a part, that is by what is really
+"enlightened self-interest"; by what Plato has called Temperance[29] and
+Mr. H. G. Wells "a sense of the State."[30] We find instead that the
+trader has "day and night held on indignantly" in his disastrous hunt
+for markets, destroying by accident or design whatever amenity in the
+world does not contribute to his "one aim, one business, one desire."
+
+After all, in our present pre-occupation with the horrors of war, we
+must not exaggerate their extent. War at its maddest rivals but cannot,
+at present, surpass the mortality caused by tuberculosis, alcoholism and
+syphilis, which peaceful Commerce, hand in hand with Christianity,
+carries into the remotest parts of the earth. Some reader may have
+noticed by this time that I am not a collector of statistics, but gather
+my illustrations as I go from any scrap of paper that comes to hand. It
+is a lazy trick; but at any rate one escapes the fallacy of
+over-elaborated evidence, by calling as witness the man who happens to
+be in the street at the moment. So at this point I happen to notice in
+the _Manchester Guardian_ an extract from the report of the Resident
+Commissioner in the Gilbert and Ellice Islands Protectorate. This is
+what it says of the natives:--
+
+     The cotton smock for women and the cotton trousers and shirts for
+     men, which in the mind of the people seem now so indispensable to
+     professed Christianity, while reducing the endurance of the skin,
+     render it the more susceptible to the chills which wet clothing
+     engenders. The result is colds, pneumonia, influenza--eventually
+     tuberculosis.
+
+We may notice a not unexpected coincidence which the Resident
+Commissioner apparently omits to mention. It is that "professed
+Christianity," by insisting on the propriety of cotton garments for the
+islanders hitherto well clad in a film of coco-nut oil and a "_riri_ or
+kilt of finely worked leaves," is conferring a very appreciable benefit
+on the Manchester trade in "cotton goods." "Our colonial markets have
+steadily grown," says the Encyclopædia, "and will yearly become of
+greater value." ...
+
+On the same day as the issue of the _Manchester Guardian_ just quoted
+there appeared in the _Times Literary Supplement_ a review of Canon C.
+H. Robinson's _History of Christian Missions_, "a very sound
+introduction to a vast and fascinating study." From this I gather that
+
+     there are few stories more romantic than the founding of the Uganda
+     Christian Church in British East Africa. At first progress was very
+     slow, and ... in 1890 there were scarcely 200 baptized Christians
+     in the country; yet by 1913 those associated with the Christian
+     Churches were little short of half a million.
+
+So before Europe has shown many signs of convalescence, Africa is
+already virulently infected. And "our markets will yearly become of
+greater value."
+
+FOOTNOTES:
+
+[Footnote 23: See, for instance, the Report of the Committee of Public
+Accounts (commenting on the extravagance of Admiralty and War
+Contracts), summarised in _The Times_ of August 19, 1916.]
+
+[Footnote 24: See Orage, _National Guilds_, p. 170 ff.]
+
+[Footnote 25: Unfortunately I can find no authority for the amusing
+report that the annual export of "wine" from Paris is _greater_ than the
+annual import.]
+
+[Footnote 26: That is, of course, of the modern or democratic state.
+Democracy and education are interdependent.]
+
+[Footnote 27: As a matter of fact, no serious attempt to protect
+children was made before the Factory and Workshops Act of 1878.]
+
+[Footnote 28: Since the war there have been the most determined attempts
+to destroy all the social legislation so painfully acquired. See G. D.
+H. Cole, _Labour in War Time_, pp. 254-274.]
+
+[Footnote 29: _Republic_; 432 A. [Greek: armouia tiui ê sôphrosunê
+ômiôtai, k.t.l.]]
+
+[Footnote 30: See _The Future in America_, and _New Worlds for Old,
+passim_.]
+
+
+§ 8
+
+Restricted Sphere of Government corresponding to Restricted Sphere of
+Morality
+
+But to return to our sheep, or rather to those who fleece them,--there
+is one cardinal proof that trade, in so far as it depends on private
+enterprise, is a danger to the State, and is recognised as such. It is
+that as soon as war comes, the nation in danger instinctively adopts
+whatever measure of Socialism can be introduced during the temporary
+inhibition of capitalistic methods. The actual coming of war induces a
+brief panic in the marketplace, and during this momentary paralysis of
+private acquisitors the State makes a desperate attempt to subdue their
+activities to its own needs. By the mere instinct of self-preservation
+it clutches at some rudiment of Socialism, and makes a diffident gesture
+in the direction of nationalisation--(of the railways, for instance).
+But the capitalists of England can point with pride to the fact that
+they very soon pulled themselves together. I hope to show in the
+following chapter that by the time the war was in full swing they had
+made it their own, and had banished every trace of socialism, with the
+relics of sanity and truth, to the confines of the Labour press.[31]
+
+But still the danger was for the moment realised, and the attempt was
+made, the desperate and unsuccessful attempt to pull and squeeze and
+bind the institutions of capitalism into an organised system of
+political obligations. It failed because the very abuses and
+intemperances of our commercial system are a sign that the sphere of
+government has not expanded with the growing complications of the modern
+community. Nevertheless the attempt was made: but no corresponding
+effort is being made to extend the system of moral obligations in which
+we live.
+
+For it is just as the sphere of morality is unduly restricted and fails
+to correspond to the needs of humanity, that, on the political plane,
+the unduly restricted sphere of government has never been extended to
+include all the interrelations of industrial citizenship. Capitalism is
+a survival of the penultimate stage of political development, as war is
+a survival of the penultimate stage of morality.
+
+The attempts both spasmodic and continuous to extend the sphere of
+government, which now begin to affect nearly all serious legislation,
+must remain incomplete without an analogous and indeed corollary
+expansion of the moral system which will involve the obsolescence of
+war.
+
+FOOTNOTES:
+
+[Footnote 31: This seems to apply to all belligerent states. Certainly
+very little sanity finds its way into Germany except through the pages
+of _Vorwaerts_. It is therefore humiliating to be told that _Vorwaerts_
+has a much larger circulation than any socialist paper in England.]
+
+
+
+
+CHAPTER III
+
+     Hinc usura uorax auidumque in tempora fenus et concussa fides et
+     MULTIS UTILE BELLUM.
+
+     Lucan, I, 181.
+
+     Individuals are constantly trying to decrease supply for their own
+     advantage.--_Fabian Essays_, 1889, p. 17.
+
+
+§ 1
+
+Trade during the War
+
+Trade during the war seems to have had a remarkably good time. In the
+first year of warfare I began to collect a few facts in support of what
+then seemed the paradoxical view that war was, in essence if not in
+origin, a very profitable capitalistic manoeuvre; a view deduced from
+the opinion I had formed _a priori_ of the nature of all modern
+warfare.[32] Instead of a few corroborating voices I found testimony
+abundant in every paper I picked up, besides the live evidence received
+in private letters and conversations. This pamphlet being rather
+philosophic than statistical, I have taken the easy course of printing a
+selection of these testimonies, crude and undigested, in an appendix--a
+cold storage of facts and figures that allows me to repeat with a quiet
+conscience that trade is booming. The greater the war, apparently, the
+greater the profits. In the words of the _Manchester Guardian_:--
+
+     The first full calendar year of war has been a period of
+     unparalleled industrial activity and, generally speaking,
+     prosperity in this country. Heavy losses and bad times have been
+     encountered in a few important industries, but these are balanced
+     by unprecedented profits made by a large variety of industries,
+     whether directly or indirectly affected by the war.[33] ... But it
+     would be a mistake to suppose that, while war manufactures
+     prospered, all other
+
+FOOTNOTES:
+
+[Footnote 32: See, for instance, my article "A Footnote to the Balkan
+War," published in the _Asiatic Review_ for July 1, 1914. This opinion
+is there expressed in the following words which I still think
+substantially true, though one or two phrases are rhetorically
+exaggerated.
+
+"England and the rest of Western Europe have outgrown by about three
+hundred years the time in the development of nations when fighting is
+natural and even necessary. England, of course, continues to contemplate
+war, and to be bluffed by the threat of war in the circumlocutions of
+diplomacy. But her national welfare no longer requires war; and, if she
+ever undertakes it, it will be at the bidding of merchants and usurers,
+who do not represent even the baser instincts of the specifically
+national spirit, but are wholly foreign and parasitic. On that occasion
+the _Daily Mail_ and the Foreign Office will no doubt assure the British
+people that the war in question involves the whole honour and welfare of
+the State; and the people will believe it. But it will not be true. For
+England is happily not, or not yet, a nation of shopkeepers; and it will
+be only the shopkeepers whose welfare is concerned."]
+
+     industry languished and decayed. To prove the contrary and show
+     that only here and there were there heavy losses, we may quote some
+     figures compiled by the _Economist_....
+
+And so forth.[34]
+
+To this I will add only two typical paragraphs as a text for my
+subsequent remarks, as I believe they suggest the general economic
+process which enriches the particular industries to which they refer.
+The first is taken from _the Sunday Pictorial_, of all papers.[35]
+
+     Immense increases in the profits of two shipping companies are, as
+     a result of the ceaseless rise in freights, disclosed in the
+     reports of two Newcastle lines published yesterday. The high cost
+     of freights is largely responsible for the dearness of food, coal,
+     and other necessities of life. The gross profits of the Cairn Line
+     of Steamships, Ltd., amounted to £292,108, and the net profits,
+     after deducting the special war taxation and other items, were
+     £162,689. A dividend of 10 per cent, with bonus of 4s. per share,
+     is recommended. This makes a total of 30 per cent, free of income
+     tax, as against 10 per cent last year, when the total profits
+     amounted to £97,335. Less than half of this company's capital is
+     paid up, the total authorised being £600,000; there are also
+     debentures of about £150,000.
+
+The next quotation is from the _New Statesman_:--[36]
+
+     Glasgow is exceedingly prosperous, and iron and steel manufacturers
+     tell me that the next three or four years, peace or war, must mean
+     a period of prosperity for them. Government orders now absorb so
+     large a proportion of output that outside requirements are simply
+     not being met. Owing to the scarcity of shipping this deficiency is
+     not being filled by imports from America (the only other possible
+     source of supply), so that unfilled orders are accumulating. A
+     waggon manufacturer told me he had sufficient work in sight to keep
+     him going for five years. It must be remembered that part of the
+     cost of the war is being met temporarily by depreciation--railway
+     tracks, rolling stock, locomotives, etc., _to mention only one
+     industry_,[37] not being replaced as they wear out, or being
+     maintained to the minimum degree necessary. This means that,
+     although less obvious than the reconstruction of ruined parts of
+     Belgium, France, Poland, and Eastern Prussia, repairs and
+     replacements aggregating many millions sterling in cost will have
+     to be carried out after the war in countries that have not been
+     invaded. A peace boom in the iron and steel and shipbuilding trades
+     appears certain.
+
+Here, before passing on to more general considerations, we may notice
+incidentally--it is brought out in the first quotation--that the
+taxation of war profits reduces them proportionately but can never annul
+or quite overtake them. That is sufficiently obvious; but the fact must
+be preliminarily emphasised because it is quite commonly assumed that
+the mere imposition of a tax of 50 or 60 or 75 per cent automatically
+solves the problem of war profits. As a matter of fact, taxation so far
+from solving the problem leaves it essentially unchanged, and really
+connives at and recognises the practice. The problem remains, in spite
+of taxation, that one section of the nation is enriched by a process
+which necessitates the misery and death of other sections. We may
+therefore in a broad discussion of the problem leave out of account the
+proposed and adopted palliatives of taxation.
+
+Secondly, we may notice--this is brought out in the second
+quotation--that profits directly produced by the war are not limited to
+the period of the war. This again is really axiomatic, being only
+another form of the platitude that it takes longer to construct than to
+destroy: but it means that even a short war of sufficient intensity will
+ensure a long period of profits, and therefore it noticeably aggravates
+the conclusions to which I hope to lead.
+
+A fundamental point is that the profit on freights, excused immediately
+by the destruction of shipping,[38] leads indirectly to profits on such
+other commodities as food and coal, not only on account of the actual
+scarcity resulting, but also because any reason for increasing prices is
+made a pretext for increasing profits.
+
+But the scarcity of all general commodities is caused not only
+indirectly by the primary scarcity of ships, but also directly by the
+same conditions of warfare as those which affect shipping. That is to
+say, just as the intensified activity of the nation at war creates a
+livelier demand for ships, so it also creates a greater demand for all
+the ordinary commodities of living: and just as war by destroying ships
+reduces the available supply, so by its general destructiveness it
+reduces the supply of other commodities: and just as war by destroying
+ships makes extraordinary profits for shipowners, so by destroying
+tables and teacups it makes unusual profits for the makers of tables and
+teacups. In short, destruction creates demand, and demand gives occasion
+for profit.
+
+This is a disquieting statement; because though one might hesitate to
+deduce from it that any particular merchant must be in his commercial
+capacity a conscious advocate of war for the sake of gain, it certainly
+suggests that the body of trade must automatically and by a sort of
+instinct of self-preservation be an element in the nation that makes for
+war.
+
+That is the kernel of my thesis;[39] and it is certainly a happy
+coincidence that the possibility of its truth seems at last to be
+dawning on another writer, and one more expert than myself in the
+handling of commercial theory. On the very morning after the last few
+sentences were written the following paragraph occurred in Mr. Emil
+Davies' "City" article in the _New Statesman_:--[40]
+
+     It is only as the reports and accounts for 1915 come out that a
+     correct idea can be formed of the benefit this catastrophic war has
+     been to the majority of our large industrial concerns. The
+     following is a list of companies whose reports and accounts have
+     appeared during the past few days. The difference between the
+     profits for the two years shown is even greater than appears, for
+     in practically every case the 1915 profit is stated after allowing
+     for the excess profits tax, additional depreciation or extra
+     reserves, most companies now adopting these and other devices to
+     render less conspicuous their war-time prosperity.
+
+                                            1914            1915
+                                              £               £
+  Smithfield and Argentine Meat Co.        25,732          142,055
+  Waring and Gillow                        35,217          100,885
+  Projectile Co.                           30,739          194,136
+  Lanarkshire Steel                        28,144           45,985
+  Frederick Leyland Steamship             337,188        1,196,683
+  Sutherland Steamship                     94,600          295,200
+
+     Waring and Gillow's sudden prosperity is not due to any better
+     business in the ordinary furniture trade, but to war contracts. The
+     Projectile Company figures are astonishing even for an armament
+     company; after applying £47,500 in satisfying the balance of the
+     prior claims of the Debentures, the Ordinary Shares receive their
+     first dividend--one of 50 per cent. No sane man would accuse
+     leaders of these great industrial concerns of doing anything to
+     bring about an outbreak of war; many of them have, indeed, paid a
+     heavy price for their prosperity in the shape of the loss of sons
+     or near relatives; but when all is said and done, the fact that a
+     war should put many half-bankrupt concerns on their legs, and make
+     fairly prosperous companies three or four times more prosperous
+     than before the war, is an influence in an undesirable direction.
+
+FOOTNOTES:
+
+[Footnote 33: Moreover, as I hope to suggest later, even these losses to
+a few individual _industries_ do not necessarily imply losses to the
+_capital_ involved, which in some cases has been diverted or adapted to
+other industries more appropriate to the times. For a review of Trade
+profits in 1916 see the _Manchester Guardian_, January 1, 1917.]
+
+[Footnote 34: See Appendix I.]
+
+[Footnote 35: Quoted in the _New Age_, March 16, 1916.]
+
+[Footnote 36: April 8, 1916, from the "City" article by Emil Davies.]
+
+[Footnote 37: My italics.]
+
+[Footnote 38: The rise in freights is a good example of the way in which
+abnormal profits are extorted from the public as soon as any scarcity
+puts them at the mercy of the trader. (See above, p. 45.) The rise in
+freights is unalloyed profit, for the shipping companies have no
+increased risk, since the Insurance Companies are guaranteed by the
+State.]
+
+[Footnote 39: Which was first drafted in a letter to _The Garton
+Foundation_ more than a year ago.]
+
+[Footnote 40: April 29, 1916. One might also mention for its
+verisimilitude the situation described at the end of Mr. F. Brett
+Young's novel _The Iron Age_ (Secker, 1916), in which the insolvent
+ironworks of Mawne are saved in the nick of time by the declaration of
+war.]
+
+
+§ 2
+
+Trade lives on Increasing Demand
+
+All war, whatever temporary dislocation of business it may involve, must
+ultimately, as a principal form of destruction, assist the intensive
+cultivation of demand which constitutes nearly the whole of modern
+trade. The industrial revolution of the nineteenth century with all its
+labour-saving machines was originally an economy of necessary
+production; by the middle of the century it overshot its mark, and
+hastened the world to the brink of the opposite disaster of
+over-production. In the present commercial era we are still suspended
+over that dreadful brink. Nothing can stop the accelerated flux of
+mechanical production; and we are saved from falling into the abyss only
+by the unnatural increase of ordinary consumption. The consumption of
+the ordinary markets, even when stimulated by the most violent tonics of
+advertisement, is strictly limited, and the limits have long been
+overtaken. The accelerated consumption could only be maintained by the
+discovery of new markets, which was undertaken by means of the political
+catch-words of Imperialism and Colonial Expansion;[41] or else by the
+wholesale destruction of existing supplies. As the number of new markets
+and their capacity for consuming things they don't want is ultimately
+just as limited as the number and capacity of home markets (for
+obviously the time must come when all the Chinamen and Koutso-Vlachs and
+South Sea Islanders have already been supplied with ready-made brown
+boots and tinned salmon), only one method remained by which Commerce and
+Industry might escape, or at least postpone, the penalty of half a
+century of over-production. This was by the partial destruction of the
+world's existing supplies. If this could be arranged, there might be a
+genuine demand for them to be replaced.
+
+
+§ 3
+
+War a form of Destruction
+
+Now as a form of destruction war is easily first. Quite apart from the
+obvious destruction of commodities that takes place when a country is
+ravaged and invaded, as in the case of Belgium and Northern France, it
+should be remembered that the methods of supplying an army in the field
+involve the sheer waste or destruction of very nearly half the food and
+equipment provided.[42] This is not necessarily the result, as might be
+expected, of official incompetence. It may on the contrary be the result
+of official foresight, which must allow in warfare for all the changes
+and chances of communication, and knows that it is better to waste a
+million tons of beef than to risk the starvation of a single regiment.
+Such waste, in other words, is a condition of warfare. Add to this the
+preventive destruction of stores and baggage which takes place whenever
+troops are compelled to retreat: in this way about a million pounds'
+worth of stores were carefully burned before the evacuation of
+Gallipoli; and not a hundred yards of trench is ever abandoned without
+the jettison of about a hundred pounds' worth of equipment. Add to this
+the fact that every shot fired, from the mere rifle bullet to the
+largest shell, does a proportionate amount of material damage when it
+finds its billet: the bursting of a six-inch shell will do, I suppose,
+on an average, as much damage in half a second as an ordinary fire can
+do in twenty-four hours. Add to this again the fact that the very force
+which propels every bullet and every shell is released by destroying by
+instantaneous combustion a certain amount of valuable chemical products.
+Then, besides all this direct destruction of commodities which must
+ultimately be replaced, or which at least some kind contractor may
+plausibly offer to replace, consider for a moment the increased wear and
+tear of every sort of equipment both civil and military, from
+steam-rollers and rolling-stock to boots and bandages and
+walking-sticks, which a state of war must involve. Or consider again
+that the mere mobilisation of an army implies that several hundred
+thousand men, whose annual income before was less than £100 a year, are
+now living at the rate of £400 a year.[43]
+
+Anyone who cares to examine in detail all these forms of waste and
+destruction, and all these forms of unnatural and feverish consumption,
+will begin to understand to what an extent war stimulates the demand by
+which alone Trade can survive.
+
+FOOTNOTES:
+
+[Footnote 41: Also, of course, by the campaign for Preferential Tariffs,
+which, it was hoped, would have increased consumption by excluding a few
+foreign competitors from colonial markets.]
+
+[Footnote 42: Cf. the many stories of beef and other rations being
+supplied to troops in such quantities that the units responsible for
+their consumption were obliged to bury them. These stories come mostly
+from Flanders. At home the same superabundance may have been the undoing
+of many a Quartermaster-Sergeant, who, not knowing what to do with such
+a plethora of beef, and having a proper superstition against throwing
+away good food, was tempted to sell it for about a penny a pound to the
+local butcher.]
+
+[Footnote 43: And the fact that they are doing so at the public expense
+is, of course, only an additional advantage to the traders who supply
+their needs; as they do not risk losing any of their money through bad
+debts.]
+
+
+§ 4
+
+War stands to benefit Neutral as well as Belligerent Nations but not to
+the same extent
+
+In Western Europe at least all markets are practically open markets. No
+tariff however scientifically graduated will really divert the natural
+flow of trade to any considerable extent.[44] Consequently it might
+appear that all nations stand to benefit in the same way, but in varying
+degrees, from the intense local demand set up in the nation at war. Thus
+British Trade was exhorted in a sincerely rapacious article by Captain
+Dixon-Johnson[45] to snatch the opportunity presented by the Balkan War;
+and the unparalleled boom in American trade during the present war is
+another obvious example. This suggests at once that the benefit
+occasioned by war is not a national benefit, diffused vertically through
+every class of the belligerent nation; but a class benefit diffused as
+it were horizontally through the commercial strata of all nations within
+supplying distance of the centre of disturbance. On the other hand, of
+course, the immediate local demand is stronger than the demand
+communicated to remoter markets and more easily supplied; in other words
+the commercial class of the belligerent nation are more immediately and
+more intensely benefited by the state of war than the same classes of
+neighbouring nations, although in war as in peace the commercial classes
+of every nation are one.[46] Also the outbreak of war, even if it does
+not entirely sever a country from foreign sources of supply, is bound to
+cause a certain dislocation; if communications are not altogether
+interrupted they are more difficult and uncertain than in normal times;
+so that the trade of the belligerent country is always given a greater
+impetus than that of its neutral neighbours, and in such cases a
+particular industry which has been threatened by the competition of
+foreign imports may be actually rescued from extinction. Even the
+temporary dislocation of trade is a benefit to trade in the nation at
+war; for it enables existing stocks to be sold at exaggerated
+prices.[47]
+
+FOOTNOTES:
+
+[Footnote 44: From this it follows incidentally that a high tariff is of
+no advantage to the community as a whole, but only to a particular
+section of the community. For the idea that it will benefit the whole
+community is based on the assumption that it is possible to divert a
+particular sort of foreign import; actually the tariff will not exclude
+the import if there is a natural demand for it, but it will provide an
+excuse for every dealer wholesale or retail to increase his profit on
+the article taxed by about double the amount of the tax; i.e. if an
+imported article pays a duty of sixpence, the price to the consumer of
+all such articles whether imported or home-made will be raised a
+shilling.]
+
+[Footnote 45: In the July, 1914, issue of the _Asiatic Review_, to which
+I have already referred.]
+
+[Footnote 46: I need hardly say that in speaking of the commercial class
+I do not include its instrument the workers. The international Socialist
+movement has not yet succeeded in uniting _them_; but the exhortation
+addressed to them by Marx has been obeyed instead by the capitalists.]
+
+
+§ 5
+
+The greater the Capital, the greater the War Profit?
+
+The over-production in modern industrial states, from which Trade can
+only be saved by some such catastrophic remedy as war, may be attributed
+not only to the tyranny of machines, but also to the financial jugglery
+known as over-capitalisation. If it could be shown that
+over-capitalisation were a consequence of national wealth it would
+follow that the richer nations would enjoy a greater benefit from war
+than their poorer neighbours. But this will only be true if we do not
+measure national wealth by the average wealth of every citizen; if we
+speak in this case of national wealth quite apart from any question of
+its equitable distribution, and are careful to distinguish it from
+national welfare; a wealthy nation in this case would have to mean a
+nation blessed with a class of wealthy capitalists, or supporting a
+large parasitic colony of the persons described as financiers; and such
+a nation would have as a corollary to be blessed with a class of workers
+disproportionately large and disproportionately poor. For if industrial
+conditions are fair over-production is impossible.
+
+FOOTNOTES:
+
+[Footnote 47: Here, for instance, is an illuminating sentence from a
+private report on Greek trade during the Balkan Wars: "I commercianti
+Greci hanno guadagnato molto durante la guerra, perchè hanno venduto
+tutte le merci che avevano in deposito a prezzi molto piu alti, che la
+gente era obbligata di comperare a cagione che non potevano importare
+merci straniere."]
+
+
+§ 6
+
+The Blessings of Invasion
+
+If war is regarded primarily as a commercial stimulant, we might carry
+the argument farther and conclude that invasion and even ravage are
+actually beneficial to the trade of a country that suffers them; for
+ultimately they must make way for a direct demand on the spot for the
+primary commodities of life. Houses, fences, roads, factories will all
+have to be replaced. It is obvious that the war will have to be followed
+by a time of rebuilding.[48] It might be urged that such a phase of
+convalescence would be retarded or altogether prevented by the lack of
+private capital for such an enormous enterprise. But private capital,
+thanks to the credit system, is practically inexhaustible so long as it
+is required for a genuinely productive purpose: and even if it failed in
+this case to come forward, the money required would certainly be
+advanced out of the indemnity which will have to be provided for the
+invaded provinces, or would be guaranteed in some other way by the
+Government concerned. In which case Trade, even after the conclusion of
+peace, would rejoice in another period of Government contracts. If it be
+admitted, however, that we have not sufficient data to make this
+suggestion more than probable, we can at any rate be certain of the
+effect produced by the mere numbers of an invading army or a defensive
+garrison. The Jewish traders of Salonica enjoyed a time of unexampled
+prosperity in 1912 and 1913, owing to the mere presence of the Turkish,
+the Greek and the Bulgarian armies, to whom they sold out at their own
+prices.[49] They are now repeating the process with the English and
+French armies; and in the interval they were kept busy restocking the
+Macedonian villages depleted or destroyed during the campaign of 1912.
+As for the small shopkeepers of Flanders any member of the British
+Expeditionary Force will tell you that they are at present so prosperous
+that even a German bombardment will hardly drive them from their
+counters.
+
+FOOTNOTES:
+
+[Footnote 48: Since this chapter was written I have seen a pamphlet with
+the following title: "The Chance for British Firms in the Rebuilding of
+Belgium, by a Belgian Contractor. London, Technical Journals, Limited,
+27-29 Tothill Street, Westminster."]
+
+
+§ 7
+
+The Luxury Trades don't do so badly
+
+The most obvious if not the only exception to our tale of war profits is
+to be found in the case of the parasitic industries which specialise in
+the production of the unnecessary. It is not easy rigidly to define the
+luxury trade, for the luxury of one generation is the necessity of the
+next; but it is enough to suggest a broad idea of the industries that
+fall under this heading. "The income-tax assessments show," says _The
+Times_,[50] speaking of Berlin after nine months of war, "that among the
+trades which have suffered most are fruiterers, breweries,
+public-houses, bars, cafés, chemists and perfumers, goldsmiths and
+silversmiths, jewellers, milliners, furniture and piano dealers, and
+music and booksellers. Landowners, land speculators, builders and the
+carrying trade have also suffered." We may also notice that in the early
+months of the war Florence, the great market of the shoddy "souvenir"
+and the "tourist's delight," suffered a good deal more than London,
+although Italy still remained neutral. In London itself a good example
+of the parasitic industry are the firms which make ingeniously useless
+silver toys for rich people to give each other at Christmas.[51]
+
+Many such industries may indeed have suffered in England, although many
+of the trades mentioned in the Berlin list have not been affected in
+London, and at least two of them have made conspicuous profits. But in
+any case it is probable that they suffered if at all only during the
+first period of the war, when the general feeling of strangeness and
+insecurity was strong enough to inhibit the shopping instinct of the
+wealthier classes. As soon as these became accustomed to the state of
+war they reverted with even greater energy to their old pastime of
+spending money: and meanwhile the luxury trades had acquired an entirely
+new set of customers, for a large part of the profits accumulated in
+other trades were now being spent by a newly enriched class who were
+unaccustomed to save, for the simple reason that they had never before
+been in a position to do so. Consequently the luxury trades after a year
+of war had not only recouped their temporary losses but were doing a
+bigger business than ever. The natural adaptability of the trades which
+pander to fashion must also be taken into account. A number of them
+after the first panic recaptured the failing demand by advertising very
+simple modifications of their ordinary supply. Some, for instance,
+turned to the manufacture of equally plausible superfluities of military
+equipment--such as silver and gold identity disks and watches with
+luminous dials and queer little hieroglyphs in place of the ordinary
+figures. Trades already so well organised for exploitation could easily
+defeat any general attempt at social economy. Thus for women of the
+upper middle class the most obvious form of war economy was to carry on
+with only a slight alteration of last year's dresses; and such was their
+declared intention when their hands were forced by the Dressmakers'
+revolutionary change in the fashion which substituted the full skirt for
+the tight skirt of 1913-14. The extraordinary ingenuity of this move
+was, not only that it thwarted any good intention of not buying a new
+dress this year, it being manifestly impossible to "alter" a tight skirt
+into a crinoline, but also that the extra cloth required for the
+unusually full skirts more than compensated the trade for the continued
+abstention of a few unfashionable obstinates, as well as for the extra
+cost of labour.[52]
+
+FOOTNOTES:
+
+[Footnote 49: One Jewish contractor supplied corn and fodder to all
+three armies. As soon as his Turkish customers had capitulated, he
+tendered for the supply of the victorious Greeks, and he still had
+enough to spare for the Bulgarians when they entered the town.]
+
+[Footnote 50: May 17, 1915.]
+
+[Footnote 51: Such "labour-saving devices," for instance, as "poached
+egg servers."]
+
+
+§ 8
+
+Trade Profits in war not shared by the Nation but confined to Employers
+
+The trade profits which are thus directly stimulated by the conditions
+of war, do not imply the prosperity of the Trade as a whole, if a Trade
+is understood to mean a certain section of the nation including in a
+sort of guild or hierarchy representatives of every class engaged in a
+particular Trade. They do imply the prosperity of a particular class,
+for they are all employers' profits, profits on the capital involved.
+Unfortunately the profits of the Capitalists do not involve the profits
+of the Labourers, and cannot therefore be tested by statistics of
+unemployment. But of course the fluctuations of unemployment do very
+materially affect the opportunities of Trade, and it might reasonably be
+argued that the apparent profits created by War are really modified by
+the conditions of the Labour market or otherwise equitably distributed
+among the general population. Unfortunately it is quite easy to show
+that the one policy of employers during the present war has been to
+maintain their profits without any concern for the general population,
+and that the effect of war has been to increase the profits of Capital
+not only by increasing the demand but also by making the Employers
+increasingly independent of the labourers' claims.
+
+At the beginning of War the Employer, on the grounds of general
+insecurity and "not knowing what was going to happen next," cut down
+wages and raised the cry of "Business as Usual"; which meant that
+business was so much better than usual that he was afraid it could not
+possibly last. So he cut down wages, laughed at buyers who offered him
+the usual prices, and charged £48 a ton for hides and 6s. 10d. for a
+yard of cloth that usually cost half a crown. If the private buyer would
+not pay his prices the Government would. It was indeed too good to last,
+for such prosperity became impossible to conceal:[53] it also reduced
+the margin of unemployment on which he had always depended, and he soon
+found himself obliged to return to the normal rate of wages which he had
+paid before the war. He was disappointed to find that "Business as
+Usual" meant wages as usual, but he struggled on, imploring the
+assistance of the Government in order to "capture Germany's Trade."
+Worse was to follow: after nine months of war recruiting for the army
+had begun in earnest, and "there was on the whole less unemployment in
+Great Britain than at any previous moment in the present century."[54]
+But he was determined to "carry on," and for the sake of the Government
+introduced child labour into his workshops.[55] Meanwhile, however, the
+cost of living was steadily rising, and after a year of war, and of
+profits, the labourers' demand for an increase of wages could not be
+altogether ignored. The employer decided to carry the war into the
+enemy's country. The nation must hang together, he said, and all work
+was practically national work. So he boldly accused his workmen of lack
+of patriotism, and roundly declared that "but for the trade unions the
+war would probably have been over by this time, with a victory for the
+Allies.... Organised labour is the rotten limb of the body politic,
+which must be cut off if health is to be restored to the system."[56] It
+was hard work, but in spite of the shortage of labour and in spite of
+the rise in the cost of living, he managed to hold wages down by
+repeating that any demand for a rise in wages was unpatriotic.[57] One
+by one, on the plea of urgent Government work, he obtained the
+suspension of all Trade Union rules and thus deprived his workmen of
+even the natural rights of negotiation; and when after fifteen months of
+war they again ventured to raise their voices on the Clyde, he openly
+accused them of being paid by German agitators.[58] On the whole
+therefore he has been extraordinarily successful in keeping his profits
+to himself, and as the present demand is likely to continue for some
+time after the war, his chief anxiety at present is to maintain after
+the war the compulsory relaxation of Trade Union rules which nothing
+less than war could accomplish. The slight danger that a prolonged war
+may kill off a considerable part of his margin of unemployment is more
+than balanced by his successful introduction of women's labour: and he
+means that War, in addition to the actual profits of his Trade, shall
+give him the enormous potential advantage of having broken the Trade
+Unions.[59]
+
+FOOTNOTES:
+
+[Footnote 52: As a matter of fact, nearly all the luxury trades cut down
+their scale of wages during the first year of the war; and many of these
+ostentatiously gave to some War Charity a fraction of the sum thus
+extracted from their employees. I suppose it would be libellous to give
+examples.]
+
+[Footnote 53: Though frantic attempts to conceal it have been made since
+the Tax on War Profits was introduced.]
+
+[Footnote 54: The _New Statesman_, May 22, 1915.]
+
+[Footnote 55: See above, p. 47, note 4. Some illuminating details are
+given in the _Nation_, May 22, 1915, concerning the unscrupulous plea of
+Government work in order to excuse the employment of children.]
+
+[Footnote 56: The _Saturday Review_, September 18, 1915.]
+
+[Footnote 57: "The shortage" too was a permanent excuse just as good for
+holding prices up as for holding wages down. Cf. a correspondent in _The
+Times_, May 17, 1916: "This position of affairs makes one doubt if the
+shortage in these articles (bottles, jars, tins, boxes, etc.) is as
+stated, or that the shortage pays better and the various trades do not
+wish the tension to be in any way relieved."]
+
+[Footnote 58: I hope it will not soon be forgotten that _Punch_ was not
+ashamed to endorse this charge.]
+
+[Footnote 59: Cf. Mr. Emil Davies in the _New Statesman_, April 8, 1916:
+"My impression is that the annoyance of Clyde manufacturers at the
+present labour troubles is not wholly free from a certain grim
+satisfaction. They are not anxious to see carried out the pledge that
+shop conditions should go back to the pre-war basis, and, they argue, if
+the men are discredited with the public, it will be all to the good of
+the employers in the big industrial struggle they look upon as
+inevitable after the war. They regard this struggle without anxiety and
+are accumulating funds; some of them talk of special funds being created
+for the purpose by the employers in association. These are the
+impressions gained from conversations with prominent members of the
+Glasgow business world."]
+
+
+§ 9
+
+Trade Profit and National Loss
+
+It need not therefore be supposed that the War Profits, of which there
+is such abundant evidence, conflict at all with Mr. Norman Angell's
+contention[60] that all modern war, even if the military operations end
+in a military success, is futile and unprofitable from the national
+point of view. The general truth seems to be that War, whether it be
+apparently victorious or apparently unsuccessful, is always profitable
+for a small commercial class in each belligerent nation.[61]
+Unfortunately the profits thus earned by the economic effects of war are
+not diffused vertically throughout the whole nation from top to bottom,
+but rather horizontally along a shallow commercial stratum in every
+nation. In every nation war diminishes the national wealth, but
+concentrates the residue with greater inequality in one particular
+class. The representative of this class, commonly called the Capitalist,
+is the real cosmopolitan, because his interests in each belligerent
+nation are identical, and the war, successful or not, contributes to his
+financial advantage. It is an illuminating coincidence that the classes
+in every nation which most enthusiastically demand the violent
+prosecution of the war seem to be proportionately anxious to annul the
+hardly-won privileges of democracy. Thus the _Saturday Review_, in a
+passage already quoted, solemnly, openly and unforgettably declares the
+secret wishes of the militarists; and we may be surprised to consider
+how many safeguards of democracy, how many rights of free thought and
+free speech, how many of the precarious limitations of sweating and
+child-labour and wage-slavery have been quietly suppressed since the
+beginning of the war. But if war is ultimately unprofitable for the
+nation as a whole, it might be argued that Trade itself must ultimately
+be involved in the national loss. The answer is that even if the
+Trader's interests were identical with those of the nation and were
+ultimately bound to suffer with the nation as a whole, he would
+undoubtedly ignore the possibility of a loss so much remoter than his
+immediate and obvious profits; especially as he is certainly ignorant of
+the economic fact that in modern times military victory and military
+defeat are equally unprofitable, and if he ever did pause to consider
+the results for the whole nation he would certainly, perhaps in good
+faith, identify the national interest with his own, and assume, for
+psychological rather than economic reasons, that his own interests
+demanded a military victory; real ignorance and emotional excitement
+sufficing to explain his apparently hypocritical professions of
+patriotism. As a matter of fact however his private interests are not
+dependent on those of the whole nation; for commercial wealth is not the
+same as national wealth, and prosperous Trade is quite consistent with
+national unhappiness. The average citizen of Switzerland is more
+contented than the average citizen of any of the great commercial powers
+of the world; and some of the causes that make for commercial
+prosperity, causes of which War is not the least effective, actually
+decrease the civic efficiency of the greater number of the population,
+and reduce their chances of happiness. "If an expanding trade," writes
+Mr. R. B. Cunninghame Graham,[62] "is the sure sign of national
+happiness clearly the four countries, the figures of whose trade are
+tabulated (Chile, Peru, Brazil and Argentine) should be amongst the
+happiest in the world. Yet still a doubt creeps in whether expanding
+Trade is the sure test of happiness; for recently I have revisited some
+of the countries of the River Plate that I knew thirty years ago, and it
+appears to me that they were happier then. True, they were not so
+rich.... Wealth has increased, but so has poverty...."
+
+War is an artificial process for accelerating that concentration of
+wealth in the hands of a small class which distinguishes the present
+unholy stage of political development.[63]
+
+FOOTNOTES:
+
+[Footnote 60: _The Great Illusion, passim_.]
+
+[Footnote 61: This is not necessarily inconsistent with H. N.
+Brailsford's similar remark (_The War of Steel and Gold_, p. 163): "War
+is a folly from the standpoint of national self-interest; it may none
+the less be perfectly rational from the standpoint of a small but
+powerful governing class."]
+
+[Footnote 62: Reviewing a work on South America in _The Nation_,
+November 6, 1915.]
+
+[Footnote 63: This process is further accelerated by the fact that the
+War is being paid for very largely by means of Loans, subscribed
+naturally by the richer classes; in future the richer classes will be
+receiving the interest on these loans. But in order to pay this interest
+the State will have to resort to taxation, some part of which will fall
+presumably on the poor. See Professor Pigou's _Economy and Finance of
+the War_.]
+
+
+
+
+CHAPTER IV
+
+     Candide était étendu dans la rue et couvert de débris. Il disait à
+     Pangloss: Hélas! procure-moi un pen de vin et d'huile; je me meurs.
+     Ce tremblement de terre n'est pas une chose nouvelle, répondit
+     Pangloss; la ville de Lima éprouva les mêmes secousses en Amérique
+     l'année passée; mêmes causes, mêmes effets: il y a certainement une
+     traînée de souphre sous terre depuis Lima jusqu'à Lisbonne. Rien
+     n'est plus probable, dit Candide; mais, pour Dieu, un peu d'huile
+     et de vin. Comment, probable? répliqua le philosophe; je soutiens
+     que la chose est démontrée.
+
+     Candide perdit connaissance, ... et Pangloss lui apporta un peu
+     d'eau d'une fontaine voisine.
+
+     VOLTAIRE, _Candide_.
+
+
+§ 1
+
+Dialectics round the Death-bed
+
+Philosophical aloofness is all very well in its way, but while we argue
+about economic causes and attempt to induce a philosophy of earthquakes,
+our bright young democracy lies bleeding under the ruins. The urgent
+necessity is a little first aid, a little cessation of the killing. I
+don't know how many young men in different parts of the world have been
+deliberately and scientifically murdered during the writing of this
+protest. England alone, who has been criticised for her delay in
+exposing her youth to the slaughter, is having about half a million of
+her best citizens stabbed or pierced or crushed or mutilated or poisoned
+or torn to pieces in one year[64] of modern warfare. And life is not the
+only instrument of vital progress that is being thrown away. Britannia
+has beaten her trident into a shovel, and with it is shovelling gold;
+and not only gold, but youth and love and happiness into the deep sea.
+The belligerent nations are frantically engaged in destroying two
+thousand years of education and all the accumulated capital of humanity.
+Only the enemies of civilisation, the sellers of arms and the sowers of
+hatred, are growing rich on its ruins. It is impossible to deny that the
+longer the war continues the greater will be the subsequent sufferings,
+spiritual and material, of every nation engaged. It is impossible to
+maintain that any nation or class or individual will be any better in
+any respect for the Great War, with the single exception of that
+parasitic class who, as a class, and therefore perhaps not consciously,
+are chiefly responsible for its inception. We must have Peace first and
+congresses afterwards. The survivors of civilisation cannot discuss a
+lasting settlement while they are still under fire.
+
+FOOTNOTES:
+
+[Footnote 64: The total British casualties from the beginning of the war
+till July 18, 1915, were given as 321,889, of whom 61,384 were killed.]
+
+
+§ 2
+
+German Responsibility for the War
+
+Nor is it necessary to continue the slaughter while we argue about which
+belligerent must bear the chief responsibility for the outbreak. The
+dialectical exercises of the German Chancellor and Mr. Asquith are so
+futile that they remind us only of two naughty children who drag out
+their squabble with stubborn outcries of "He began it." The first
+consideration is to stop fighting. Such academic discussions are
+necessarily endless, for the simple reason that every nation has its
+faults, to which criminal motives can always be attached: every nation
+has its fools, whom its enemies can describe as typical representatives.
+The question of responsibility for the Great War must be left to the
+historians of the future. I am quite confident (though even Viscount
+Grey or Professor Gilbert Murray cannot prove) that they will hold
+Germany responsible: but I am equally confident that the blame they
+throw on the nation responsible for the war will be less pronounced than
+the praise they will reserve for the nation which first has the courage
+to speak of peace. My belief in Germany's responsibility is based
+largely on German apologetics and strengthened by the evidence of
+commercial conditions in Germany before the outbreak. Professor
+Millioud, for instance, has shown that "German industry was built up on
+a top-heavy system of credit, unable to keep solvent without expansion,
+and unable to expand sufficiently without war."[65] Or if a good
+working test of German responsibility were needed it would be sufficient
+to point out that no nation innocent of aggressive intentions would have
+drafted such an ultimatum as that which Austria, with German connivance,
+sent to Serbia; and that no nation anxious for war would have drafted
+such a conciliatory reply as that which Serbia returned to Austria by
+Russia's instructions. It is in fact clear that as long ago as 1913
+Austria had determined to crush Serbia, and that in 1913 that
+determination was only postponed; and postponed not, as we thought at
+the time, by the tact of Lord Grey at the Conference of London, but only
+by Italy's refusal to join in the adventure, as we now know from the
+revelations of San Giuliano and Salandra. Similarly, knowing as we do
+that England is no exception to the rule that no imperial nation can be
+wholly compact of righteousness, we might hesitate to accept _The
+Times'_ version of British innocence, and we might hesitate to accept
+Lord Bryce's report on the German atrocities in Belgium, knowing as we
+do that it is based almost entirely on the hearsay evidence of refugees
+who would be anxious to distinguish themselves as witnesses from the
+general ruck of destitution; but it happens that the general charges of
+German aggressiveness and German brutality are fully corroborated by
+German literature.[66] Unfortunately these distinctions between brutal
+and chevaleresque methods of warfare remain only questions of method;
+they concern manners rather than morals, and are as irrelevant to our
+hopes for the abolition of war as the questions of diplomatic method
+already mentioned.[67] Equally irrelevant, in any discussion of the
+possibility of substituting "compulsory arbitration" for war, is the
+attempt to distinguish between aggressive and defensive war, or to
+throw all the blame of aggression on either of the two belligerents; for
+the simple reason that each belligerent will perhaps never believe and
+will quite certainly never admit that his own intentions were anything
+but defensive or altruistic.[68] The _locus classicus_ for such
+protestations of innocence occurs in the Italian Green Book, where
+Austrian diplomats may be found declaring, _with every appearance of
+sincerity_, that the invasion of Serbia was a purely defensive measure.
+And in a sense, in such a well-armed continent, every aggression is
+indeed a fore-arming against the future. It might also be suggested that
+the crime of aggression is an offence not against an individual but
+against the peace of the community: and until the European community is
+constituted the guilt of such a crime cannot be brought home to either
+of the belligerents.
+
+FOOTNOTES:
+
+[Footnote 65: _The Ruling Caste and Frenzied Trade in Germany_, by
+Maurice Millioud, Professor of Sociology in the University of Lausanne.
+(1915.) Reviewed in the _Manchester Guardian_ by R. C. K. E.]
+
+[Footnote 66: All that we need know, for instance, of German military
+conduct in Belgium is contained in the following communication made to
+the _Kölnische Zeitung_ by Captain Walter Brum, adjutant to the
+Governor-General of Belgium, who may be presumed to know the inner
+history of these appalling transactions:--
+
+"The principle according to which the whole community must be punished
+for the fault of a single individual is justified by the theory of
+_terrorisation_. The innocent must suffer with the guilty; if the latter
+are unknown the innocent must even be punished in their place, and note
+that the punishment is applied not _because_ a misdeed has been
+committed, but _in order that_ no more shall be committed. To burn a
+neighbourhood, shoot hostages, decimate a population which has taken up
+arms against the army--all this is far less a reprisal than the sounding
+of a _note of warning_ for the territory not yet occupied. Do not doubt
+it; it was as a note of warning that Baltin, Herve, Louvain, and Dinant
+were burned. The burnings and bloodshed at the opening of the war showed
+the great cities of Belgium how perilous it was for them ..." etc.]
+
+[Footnote 67: Chapter I, §§ 9-11.]
+
+[Footnote 68: See below, note on p. 113; and compare Brailsford, _The
+War of Steel and Gold_, p. 22, on "preparations which are always
+supposed to be defensive," and p. 264, on the methods used to support
+the plea that large navies are purely "defensive."]
+
+
+§ 3
+
+The Value of German Culture
+
+The question whether Germany is actually attempting or would be
+justified in attempting to impose her culture on the rest of Europe; or
+whether England has good reasons for the limitation or suppression of
+German culture, is another side-issue. German culture (in Matthew
+Arnold's correct use of the word, meaning, that is, the average of
+intellectual and social civilisation), has not on a general inspection
+much to be proud of. The modern literature of Germany is largely a
+transcription of Russian, French and English authors, and it is
+significant that among foreign authors the widest success is reserved
+for purveyors of _le faux bon_, writers whose work is distinguished by
+its spirited failure quite to attain the first-class.[69] The most
+promising of modern authors writing in the German language, Schnitzler,
+is an Austrian Jew. Hauptmann, the most distinguished and original of
+German dramatists, has for thirty years been writing plays which would
+pass for imitations of Mr. John Galsworthy's failures. Sudermann's style
+reminds one of a snail crawling over the Indian lilies which he
+describes.... Germany, it is true, has reason to be proud of her
+theatres, but that is a matter of State enterprise, rather than an
+indication of national culture. The German State has been efficient
+enough to perceive that good theatres are a fundamental necessity of
+national education, and that good theatres, owing to the excessive rents
+they have to pay, can never be kept going without a State subsidy. But
+these admirable theatres can hardly be called the vehicles of a high
+native culture. Their famous Reinhardts are more efficient only because
+more acquisitive than our own Jewish impresarios. The ideas they have
+acquired are chiefly Russian or English: and they have profited by the
+ideas of Granville Barker and Gordon Craig in order to produce the plays
+of Shakespeare and Shaw--(just as industrial Germany profited by the
+ideas of Bessemer[70] and Perkins). Germany's claim to artistic
+vitality, to genuinely original culture, can be supported only by a
+certain distinct excellence in sculpture and caricature, two arts which
+often seem to go hand in hand, perhaps because both are based on a
+precise simplification of form. But for the activity of a small band of
+sculptors and caricaturists centred for the most part in Munich,[71] we
+might be content to regard Germany not as a fount of culture but rather
+as one of the world's workshops, a well-organised _ergastulum_ for
+dealing with the drudgery of modern civilisation, for manipulating
+secondary products and extracting derivatives, a large factory for the
+production of dictionaries, drugs and electrical machinery.[72]
+
+The extraordinary efficiency of Germany, _as a workshop_, is not due to
+any intellectual pre-eminence of the nation as a whole. It is most
+clearly and emphatically due to the fact that the German autocracy,
+whatever its political iniquity, has had the intelligence and the
+national solidarity to choose its business men from among the brains of
+the community. In Germany any man of conspicuous intellectual capacity
+may be picked out, roughly speaking, and assigned to the direction of a
+particular industry. In England we achieve inefficiency by the contrary
+process, and are only willing to regard a man as capable and revere him
+as an "expert" if he happens to have been occupied exclusively for a
+certain number of years in the narrow routine of a particular subject.
+This pernicious fallacy of the "Expert" is actually preached in England
+as a means to the very Efficiency which in fact it almost invariably
+excludes. It is commonly assumed that no man can write a good play
+unless he has been a bad actor, or that a retired admiral, quite
+incapable of grasping any general idea that was not popular in the Navy
+twenty years ago or in the smoking-room of his club, would be better
+able to direct the affairs of the Navy than Mr. Winston Churchill or Mr.
+Balfour.[73] There is a similar outcry for a government of "Business
+Men," although anyone who happens to have heard a couple of average
+business men discuss a problem of their own business in one of their own
+offices will hardly be able to deny that a capable poet and a capable
+painter would have settled the question in a quarter of the time.
+Instead of superstitiously believing that only "Business Men" can be
+efficient, Germany picks out her business men (and her bureaucrats) for
+their general efficiency. She has attained efficiency by abandoning the
+fallacy of the Expert in favour of the maxim of Confucius--"the Higher
+type of man is not like a vessel which is designed for some special
+use."[74]
+
+But from the fact that German industry and German theatres are better
+managed than our own it does not follow that there is any natural or
+national antagonism between England and Germany. The real hatred of
+Germany if it exists in England at all should be found among what it is
+becoming the fashion to call "the intelligentsia." Such a purely
+intellectual hatred of the sentimental melodrama of _Faust_ and of the
+semitic luxuriance of Wagner and Reinhardt is not likely to become a
+democratic motive in England. Here brains are always unpopular, and Park
+Lane will never be stormed by the mob until it is inhabited by the
+Bernard Shaws, the Lowes Dickinsons and the Bertrand Russells, instead
+of by German financiers.
+
+There is no national hatred between England and Germany. The two peoples
+are natural friends. Even the men in the trenches (or perhaps I should
+say particularly the men in the trenches), fraternise with their
+opponents whenever they get the chance.[75] Even now a press campaign of
+a few months would suffice to make Germany popular in England; and if
+that were ever to happen, which is not improbable, only the
+"intellectuals," who are most strongly opposed to this war, would still
+find much to dislike, but not to fight about, in the national culture
+produced by the German character.
+
+FOOTNOTES:
+
+[Footnote 69: E.g. Oscar Wilde and Artzibashev.]
+
+[Footnote 70: "The whole industrial expansion of Germany dates from the
+introduction of the Bessemer process in 1879, by which its supplies of
+iron became possible to work at a profit."--_Bertrand Russell_.]
+
+[Footnote 71: It is unnecessary to refer at length to the world-famous
+caricaturists of _Simplicissimus_, although it may be noted that the
+best of them, Gulbrannson, is a Norwegian, while his chief rival, Heine,
+is a Jew. Munich sculptors whose names might be mentioned are
+Hildebrand, Taschner, Hahn, and Wrba.]
+
+[Footnote 72: Even such scientific achievements as those of Ehrlich and
+Ostwald should be regarded as results of regulated industry and diligent
+experiment.]
+
+[Footnote 73: Another instance of the fallacy is the quite unjustified
+prejudice in the Army in favour of "Regular" officers.]
+
+[Footnote 74: The foundation of German business efficiency not on the
+practical science of the specialist but on theoretic and general mental
+exercise is further illustrated by the great and increasing prevalence
+of Latin and Greek in German education ... while again our own "Business
+Experts" are reversing the process. The passages that follow are quoted
+from a letter of Dr. Rice Holmes in _The Times_ of August 11, 1916.
+
+"In German schools not only are classics taught more systematically and
+more thoroughly than in all but a few of our own, but they are learned
+by a greater proportion of the population; and, moreover, the hours
+devoted to natural science in those schools in which it is taught are
+fewer than in our public schools.... Since 1903 the number of German
+boys receiving a classical education has steadily increased. In 1904
+there were 196,175 pupils in schools (_Gymnasien_ and _Realgymnasien_)
+where Latin is compulsory, of whom 153,680 belonged to the classical
+schools (_Gymnasien_), and therefore learned Greek as well (W. Lexis,
+_Unterrichtswesen im Deutschen Reich_, ii. 218); in 1911, as Mr. R. W.
+Livingstone has shown (_The Times Educational Supplement_, April 4, p.
+49, col. 2), the corresponding figures were 240,000 and 170,000; and in
+1908, 'out of a total of 31,622 students entering 18 out of 21 German
+universities (Munich, Erlangen, and Wurzburg not reporting), ... only
+7-1/2 per cent entered without Latin or Greek' (Professor Francis W.
+Kelsey, _Latin and Greek in American Education_, 1911, p. 43). "Möge das
+Studium der griechischen und römischen Literatur immerfort die Basis der
+höheren Bildung bleiben." So wrote the greatest of the Germans; and the
+countrymen of Goethe, whose genius was scientific as well as poetical,
+have not forgotten his words. On the other hand, in the modern schools
+(_Realgymnasien_ and _Oberrealschulen_) only a small fraction of the
+time-table--from two hours a week (out of twenty-five) to six (out of
+thirty-one)--is devoted to natural science. To anyone who has read
+Matthew Arnold's _Higher Schools and Universities in Germany_, or Dr. M.
+E. Sadler's _The Realschulen in Berlin_, or who is acquainted with the
+opinions expressed by Helmholtz, A. W. Hofmann, Bauer, and other
+'eminent scientific professors,' it will not appear paradoxical that the
+object of thus restricting the hours devoted to the teaching of natural
+science in schools is to promote the scientific efficiency of the German
+nation. It was with this object that by the regulations published in
+1901 the time devoted to Latin in the _Realgymnasien_ was increased. And
+those who do not learn natural science learn what for the nation is
+equally important--the value of scientific method."]
+
+[Footnote 75: The Daily News, October 20, 1915:--
+
+"A pathetic story is told in the _Vorwärts_ by Herr Adolf Köster (who
+acts as war correspondent for the German Socialist Press) in connection
+with the recent fighting at Hooge. A German soldier told him of a young
+Scotsman whom he had killed with a hand-grenade in whose pocket he had
+found a little pocket-book:--
+
+"'We looked through the booklet. It contained postcards from the front,
+from home, from a sister and from a sweetheart--photographs from the
+battlefields of brave soldiers and from home. There was also a small
+amateur photograph, rather badly made, of a young girl sitting at a
+typewriter. She had blonde hair and on the back of the photo she had
+written: "Look at the waves of my hair and note also how very diligent I
+am" (English in the original). One of us asked the soldier to give him
+this photograph. But he replied: "You can take the whole book, photos,
+postcards, etc. But this picture I will keep in memory of my friend." By
+"his friend" he meant the Scotsman whom he had killed by his
+hand-grenade.'"]
+
+
+§ 4
+
+The Manufacture of Hatred
+
+But if there is no natural hatred between the two belligerent
+protagonists, there is a feverish production of the artificial variety.
+Indeed this diligent manufacture of hatred is probably the most
+demoralising result of warfare, particularly disastrous in its ethical
+effect on the individual. It proceeds by the ordinary methods of deceit,
+suppression of the true and suggestion of the untrue, and by means of
+the newspapers this process of moral degeneration is sometimes actively
+directed, sometimes only permitted or encouraged by the Governments
+concerned. The London press is always ready to swallow the pathetic
+fabrications of unscrupulous refugees, and publishes with joy any
+Rotterdam rumour about German bestiality; but refuses to print any
+report however authentic which ventures to suggest that the Germans are
+as human as ourselves. There was, for instance, a Canadian woman, Dr.
+Scarlett-Synge, who under the aegis of her medical diploma, returned
+from Serbia through Germany, and discovered that some of the German
+internment camps are not as bad as they are commonly believed to be.
+Whatever her qualifications and opportunities for forming a correct
+opinion, and they happen to have been particularly good, there is no
+doubt that this woman's report was of the highest interest. Yet not a
+single daily paper in England would consider its publication, on the
+ground presumably that it might reduce the national inflammation and
+thereby "prejudice recruiting." As if true patriotism, sane and lovely,
+had anything to do with the pathological condition of hatred.
+"Recruiting be damned," says the patriotic philosopher, "_odium nunquam
+potest esse bonum_."[76] The method of distortion is also abundantly
+used by journalists of both parties. German hatred of England has often
+been stoked up by isolated mistranslations of sentences from _The
+Times_, and English and French journalists have not been slow in
+following the German example. It is said that after the fall of Antwerp
+the _Koelnische Zeitung_ announced that "as soon as the fall of Antwerp
+was known the church bells in Germany were rung," a harmless message
+which was successively distorted by the _Matin_, the _Daily Mail_, and
+the _Corriere della Sera_, until it finally reappeared in the _Matin_ in
+the following form: "According to the information of the _Corriere della
+Sera_ from London and Cologne it is confirmed that the barbaric
+conquerors of Antwerp punished the unfortunate Belgian priests for their
+heroic refusal to ring the church bells by hanging them as living
+clappers to the bells with their heads downwards."[77]
+
+The Manufacture of Hatred is unfortunately become a part of the
+Nationalist Movement in nearly all modern European States. The spurious
+Nationalism which is the result not of race but of education, depends
+for its existence almost entirely on so-called ethnological propaganda
+and continues to thrive by the cultivation of two propositions, neither
+of which is true: that all the members of one national group are
+racially different from all the members of the neighbouring group; and
+that this racial difference naturally and necessarily and properly
+implies the mutual hatred of the two nations. They proclaim, in fact,
+that certain nations are the "natural enemies " of certain others, by
+hating which they are only fulfilling the national function of
+self-realisation. By such arguments, which have no genuine ethnological
+foundation, the false prophets of nationalism are filling Europe with
+the racial prejudice of artificial Kelts, artificial Poles, and
+artificial Teutons. Of course race hatred between Slav and Teuton is no
+more "natural" than family hatred between Jones and Robinson; and even
+if it were, even that is if the cultures of two neighbouring races were
+mutually exclusive, it could still be argued--as it must in any case be
+argued--that no nation is racially pure. The last "Pole" I met proudly
+professed that the hatred of Russia was _in his blood_. Yet he was born
+in Bessarabia, and it was therefore not surprising that his facial type
+was distinctly Roumanian; he came, that is, if race means anything at
+all, of a Græco-Latin stock, and his hatred of Russia, which seemed to
+be the beginning and the end of his programme of "Polish nationalism,"
+was the result of a few years of neglected education. Half the
+conflicting "Nationalisms" of Europe are programmes of artificial
+hatred, the propagandists of which may actually be of the same blood as
+their opponents; a single generation suffices for the manufacture of the
+racial enthusiast, which is often completed by a modification of the
+family name. Even Greeks and Bulgars are frequently of common descent.
+When a Macedonian village changes hands the Greek Karagiozes has been
+known to develop into the Bulgarian Karagiozoff; and a Mazarakis will
+boast a racial incompatibility with his second cousin Madjarieff. The
+same process for the manufacture of nationalism may be detected at the
+other end of Europe: at Mons of glorious memory there was a Walloon with
+the good old Walloon name of Le Grand, whose grandfather had been an
+equally enthusiastic Fleming with the good old Flemish name of De
+Groodt.
+
+True nationalism may indeed be differentiated by the absence of this
+artificial element of ethnological hatred. True nationalism is simply
+the feeling for the small independent community, a movement for the
+autonomy of the local group. No true manifestation of the nationalist
+movement in Europe is ever opposed to other nationalisms; but all alike
+are involved in a desperate political conflict with their common enemy
+Imperialism.
+
+FOOTNOTES:
+
+[Footnote 76: Spinoza, _Ethica_, IV, 45.]
+
+[Footnote 77: _Labour Leader_, March 30, 1916, quoting an address by Mr.
+Arthur Ponsonby, M.P.--I have not been able to verify these references,
+so I give the story only as an example of the method of progressive
+distortion, and not as one that actually occurred, though it may have
+done so.]
+
+
+§ 5
+
+Imperialism the Enemy
+
+Imperialism, on the other hand, is the feeling for large dominions and
+is very often only an unreasoning lust for the possession of
+territory:[78] surviving perhaps from the time when the land of the
+community was regarded as the reserved hunting-ground of the tribal
+chief, or at least as the private estate of the national monarch. But in
+so far as this passionate desire for extending the superficial territory
+under the central government is a reasoning desire, in so far that is as
+attempts have been made to justify by retrospective theories the almost
+instinctive achievements of painting the map red, it is fairly clear
+(although the issues have been confused by altruistic and Kiplingesque
+but not by any means unfounded views about the White Man's Burden) that
+Imperialism is based on the insatiable claims of over-productive
+commerce. Commerce at any rate is the _ex post facto_ excuse for the
+foundation of the British Empire, and if it can no longer be pleaded as
+a reason for the maintenance of the British Empire, it is simply because
+the British Empire is no longer an empire, but for the most part a
+federation of autonomous states.[79] But Imperialism has only been
+scotched by the unconscious wisdom of English political development. It
+still unhappily survives not only in the intermittent demand for the
+acquisition of fresh colonial territory, but also, in its crudest form,
+without even the shadow of an excuse commercial or altruistic, in the
+continued subjection of Ireland to English rule. We must not be
+surprised if the imperialistic elements of the State receive after the
+war a new lease of life from the mutual encouragement of commerce and
+militarism.
+
+The commercial classes of course support Imperialism because, with an
+obtuseness permitted only to our "business men," they believe that the
+acquisition of more colonies still means the discovery of new
+markets.[80] They have not yet realised that nowadays all markets are
+practically open markets, and that no tariff can effectively exclude
+goods for which there is any demand, for the simple reason that an
+effective demand cheerfully pays an increased price. All nations in fact
+stand to share fairly the commercial advantage of each other's colonial
+markets: and it might even be shown by a little simple book-keeping that
+the particular balance any nation gains from trading with a colony of
+its own must be debited with the expense of governing that colony. In
+short, the commercial excuse for Imperialism is actually obsolete. Yet
+commerce continues to support Imperialism, and although the original
+reason for this support is no longer valid, it is still, unconsciously
+perhaps but very methodically, serving its own interests by this
+support, in so far as Imperialism involves militarism (or "navalism")
+and so leads to the probability of war. But even if the commercial
+reasons which constitute the only possible excuse for Imperialism were
+still valid, it would still remain equally valid and much more important
+that Imperialism is bad in itself, the enemy of liberty and the begetter
+of arrogance.
+
+Imperialism is bad on general grounds because it implies a
+centralisation of authority which violates the natural rights of
+nationalities. A nationality, as has already been suggested, means not
+necessarily a pure racial enclave, but simply a small local group, in
+the formation of which similarity of "race," religion, and culture will
+not be ignored but will naturally be considered as modifications of
+primarily geographical boundaries. The right of nationalities to local
+autonomy, to deal again only with the simplest general reason, is based
+on the idea of democracy, the exercise of a political voice being
+regarded as a natural and inalienable right of the free citizen.
+Democracy means representative government, and representative government
+simply does not work in a large and mixed community of more than twenty
+millions.[81] Hence the right of nationalities to local autonomy is
+fundamental, and is inconsistent with Imperialism as such.
+
+Imperialism is bad because it is based on conquest, implies a "subject
+race," and sooner or later will have to be maintained by war. It breeds
+a conquering and commercial spirit, which is never satisfied unless it
+is carrying some one else's burden (at a high freight). The imperialist
+plutocracy will then find itself so much occupied with other people's
+affairs that it will be neglecting domestic politics altogether: and
+this neglect will be the more disastrous in so far as poverty and
+servitude will have increased at the same rate as luxury. The citizens
+of an Imperialist state will be unable to control their commercial
+masters, and, as Rousseau said of the English, will soon find themselves
+a nation of slaves[82]: and that not only because a policy of conquest
+is incompatible with democracy; but also because the lust of conquest
+and the arrogance of
+
+FOOTNOTES:
+
+[Footnote 78: H. N. Brailsford (_The War of Steel and Gold_, p. 125)
+speaks of an "indifferent democracy." Unhappily our democracy is not
+indifferent to Imperialism, for it is misled to believe that mere
+expansion is somehow grand and good; the only geography it learns at
+school is miscalled "patriotic" because it is designed to encourage this
+belief.]
+
+[Footnote 79: I.e. as a real "Empire," the British Empire was a failure,
+as all Empires must be. It has been a success since it ceased to be an
+Empire about a hundred years ago. Cf. Professor H. E. Egerton's
+remark:--
+
+"The British Colonial Empire of to-day is not the Empire which was the
+outcome of seventeenth-century methods. So far as the colonists
+themselves were concerned, English colonisation (in the seventeenth and
+eighteenth centuries) was a complete success, but from the point of view
+of the mother country it was a failure, and the rock on which it
+foundered was the same rock which lost America to Spain and caused
+Canada to acquiesce in separation from France."]
+
+[Footnote 80: I am ashamed to say that when I wrote these chapters I had
+not read Mr. H. N. Brailsford's _War of Steel and Gold_. But Mr.
+Brailsford's brilliant examination of the connection between War and
+Finance is quite consistent with my supplementary theory of War and
+Trade. "Trade supplies no explanation of Imperialism," says Mr.
+Brailsford (p. 75). It does, in so far as Traders support Imperialism
+because they think it is good for Trade: while financiers, as Mr.
+Brailsford shows, support Imperialism because they know it is good for
+investments.]
+
+[Footnote 81: "What is vital to any real Democracy in a densely-peopled,
+economically-complicated modern State, is that the Government should not
+be one. The very concentration of authority which is essential in war
+is, in peace, fatally destructive not of freedom alone, but also of that
+maximum individual development which is the very end and purpose for
+which society exists."--Sidney Webb, _Towards Social Democracy?_,
+1916.]
+
+militarism acquire strength with each fresh licence until the community
+as a whole is quite unable to control its own baser passions--a
+condition which more than any other merits the name of servitude.[83]
+Imperialism is a form of political corruption in which a nation is
+consoled for its own slavery by the pride of enslaving its neighbours.
+The attainment of permanent peace connotes the abandonment of
+Imperialism.
+
+FOOTNOTES:
+
+[Footnote 82: "Les Anglais veulent être conquérants; donc ils ne
+tarderont pas d'être esclaves."--_Political Writings_, C. E. Vaughan, I,
+373.]
+
+
+§ 6
+
+Possible Objects of War
+
+If the nations are prepared to abandon the claims of Imperialism there
+will be very little else left to fight about. An examination of the
+documents connected with any war of the last century shows that the
+object of a belligerent in prolonging the agony is usually expressed in
+vague language that can be dissolved by a little analysis. Sometimes a
+government will propose, in the interests of peace and good government,
+to crush the enemy's aggressiveness by a purely defensive aggression, an
+excuse for bloodshed which only the most fanatical pacifist could
+confuse with Mr. Asquith's blunt watchword of "crushing German
+militarism." The logical fallacy of such an excuse which is almost
+invariably pleaded by powerful belligerents,[84] a fallacy of which no
+one could wish to accuse Mr. Asquith's solid intellect, lies (quite
+apart from any question of the priority of aggression) in the fact that
+any attempt to crush by force the Will to Conquer inevitably breeds
+more militarism. The tag about taking a lesson from the enemy, _fas est
+et ab hoste doceri_, is only one half of the unhappy truth that the
+fighter is fatally bound to acquire his enemy's worst characteristics.
+The object undertaken apparently in the interests of democracy can only
+be accomplished by the wholesale suppression of democratic rights, and
+involves an organised manufacture of imperialistic emotion which ends by
+delegating the authority of the State to a reactionary triumvirate of
+bureaucracy, jingoism and vulgarity (or Tory, Landowner and Journalist).
+The guarantees of democracy, the rights of free thought and free speech,
+every sort of civil liberty and every defence against the servile state,
+will all have to be suppressed in the interests of the nation at war. It
+is the old story of the conversion of Thais by Paphnutius: the preacher
+snatches lovely Thais from the burning, but himself is damned--"si
+hideux qu'en passant la main sur son visage, il sentit sa laideur." A is
+white and finds it necessary to whitewash B, who is black: after several
+years of hopeless grey, A finds that he has indeed put some very
+satisfactory daubs of whitewash all over B, but that his own coat has
+been blackened in the course of the struggle. It is as if a gardener,
+having heard of the cannibalistic habit of earwigs, proposed to
+exterminate the earwig in his rose-garden by importing a special army of
+five million earwigs collected at great expense from the surrounding
+country.
+
+Other belligerent governments will raise the plea of checking the spread
+of a hostile and dangerous culture; a plausible because apparently
+philosophical justification of war as the only means of extirpating a
+heresy that might pervert the whole future of European civilisation.
+Unfortunately such a moral effect, such a "conversion by shock," could
+only be accomplished by a very sudden, complete and shattering victory;
+and it is now beginning to be recognised that spectacular triumphs are
+not to be expected in modern warfare. But even if it were as possible by
+violence as it might conceivably be desirable to extirpate or even to
+limit the propagation of a particular form of mental culture, the
+achievement would certainly not be worth the cost to the unhappy
+survivors and their posterity. It would indeed be a crime against
+humanity to eliminate the better part of the younger generation, the
+flower of human brains, in the monstrous pedantry of attempting to
+correct an intellectual error. For the risks of modern warfare are not
+ordinary. It is not sufficiently realised that in six months of
+offensive tactics under modern conditions no man in the front line has
+more than one chance in a million of escaping death or mutilation.
+
+There may remain the plea that a prolonged campaign is necessary in
+order by exhaustion to compel the enemy to evacuate some territory that
+he may have wrongfully occupied. The inevitable answer to such a plea
+would be that if a war had arrived at a stage in which there was a clear
+possibility of coercing the enemy by a process of exhaustion, that
+possibility, if it were well-founded, would certainly not have escaped
+the intelligence of the enemy, who would consequently be prepared to
+save his face by coming to terms. The evacuation of the occupied
+territory, or whatever it is that was to be achieved by the coercive
+exhaustion of another year or two of battle, might then be obtained by
+negotiation at once, and at the cost of a certain amount of paper and
+ink, instead of being forced on a revengeful and embittered opponent by
+the expensive process of killing young men, a process which has the
+disadvantage of working both ways.
+
+The conclusion of these general considerations seems to be that all the
+arguments that are likely to be put forward in the course of a war in
+order to excuse and ensure its continuation, are only excuses to gain
+time, put forward in hope that the chances of a further campaign may
+enable the government concerned to retrieve some apparent advantage out
+of the disastrous muddle through which they drifted into the first
+declaration of war. Having drawn the sword in a moment of embarrassment,
+they have now jolly well got to pretend that it was the right thing to
+do, and are not going to sheathe it till they see a chance of proving
+that they are glad they drew it. In short, there comes a point in all
+modern wars in which the belligerents are fighting for nothing at all,
+except for a more or less advantageous position from which to discuss a
+way to stop fighting.[85]
+
+FOOTNOTES:
+
+[Footnote 83: Spinoza, _Ethica_, IV, _praefat. ad init._ Humanam
+impotentiam in moderandis et coercendis affectibus servitutem voco.]
+
+[Footnote 84: See above, § 2, on "defensive" war, and compare a passage
+from Mr. C. Grant Robertson's letter in _The Times_ of August 15,
+1916:--
+
+"Bismarck repeatedly and explicitly in the Reichstag justified the wars
+of 1864, 1866, and 1870 as 'defensive'--i.e. as not 'willed' by Prussia.
+On the contrary, they were wars 'forced' on a peace-loving State denied
+its 'rights' by Denmark, Austria, and France. The argument, briefly, on
+Bismarckian principles is this. Prussia's policy is an
+'_Interessenpolitik_'--a policy of 'interests.' An 'interest' confers a
+'right.' The satisfaction of 'national interest' is therefore the
+achievement of 'national rights.' If these 'rights' can be achieved by a
+compromise--i.e. by the complete surrender of Prussia's opponents to the
+demands based on these 'rights'--that is a proof of her peace-loving
+nature. But if her opponents refuse, then the war by which the 'rights'
+are secured is a war 'forced' on Prussia. She has not 'willed' it. It is
+a 'defensive' war to prevent the robbery of her 'rights' by others;
+Bismarck, not without difficulty, converted his Sovereign to this
+argument. In each case--1864, 1866, 1870--William I was ultimately
+convinced that Denmark, Austria, and France were resisting the 'rights'
+of Prussia, and that war to secure them was 'defensive,' 'forced' on the
+King, and just. The successful issues confirmed William's conscience and
+proved that Bismarckian principles had the Divine sanction."]
+
+[Footnote 85: This attitude is well illustrated by the history of the
+Crimean War. In January, 1855, "peace seemed impossible until some of
+the disgrace was wiped away, and the pacificists, Cobden and Bright,
+were burned in effigy.... The prolongation of the war called out no
+protest from the public." Yet "the popular war produced an unpopular
+peace." When after another year of fighting our French allies finally
+insisted on peace, "'there was no indication,' said a Frenchman, 'as to
+which was the victor and which the vanquished.' Reviews and
+illuminations could not obscure the truth; Britain had sacrificed lives
+and treasure and obtained little in return."--Alice Green's Epilogue to
+J. R. Green's _Short History of the English People_.]
+
+
+§ 7
+
+Physical Force in a Moral World
+
+The explanation of all this seems to lie in the simple fact that it is
+for ever impossible to solve questions of moral or political principle
+by the expenditure of physical force. Anyone at all conversant with
+philosophical thought, if I may adopt a simile used by Mr. H. G. Wells,
+"would as soon think of trying to kill the square root of 2 with a rook
+rifle." Physical violence can only solve purely physical problems. But
+as man no longer exists, if he ever did exist, in the completely
+unsocial "state of nature,"[86] the relations of one individual with
+another are no longer purely physical: their position as members of one
+society has given them a moral relation, questions affecting which can
+only be settled by reference to the judgment of the society as a whole.
+Within the limits of the State this fact is already clearly recognised
+by the common voice of public opinion. If Smith quarrels with his
+neighbour Robinson, because Smith's old English sheep-dog is suspected
+of having scratched up Robinson's lawn, and Smith says the poor dog
+would never do such a thing, and anyhow Robinson had no business to
+leave his back gate open, while Robinson declares that that brute is
+becoming a damned nuisance, and so provokes Smith to express a hope that
+now perhaps that grass of Robinson's won't want so much godless mowing
+on Sunday morning: if two neighbours, in short, have a difference of
+opinion they both know perfectly well that the rights of the argument
+can never be decided by a free fight in the middle of the road, even if
+one of them happens to be a heavy-weight champion. Moreover, if they do
+come to blows it is perfectly certain that the opinion of the whole road
+will be against them, and that the Law, to which they might have
+appealed in the first instance, will intervene as the embodiment of that
+opinion. The street fight is clearly recognised as not only futile but
+immoral; it not only settles no questions of principle but it
+constitutes a breach of the moral relation between two members of one
+community; it is become merely a rather sordid exhibition of irrelevant
+physical facts. The average citizen of England or Germany would never
+think of encouraging a fight between two sides of a street: why does he
+not recognise with equal directness the futility and immorality of a
+fight between two sides of a continent?[87] It is only because public
+opinion has not yet effectively realised that the moral sphere includes
+not only the citizens of one city and the cities of one nation, but the
+nations of a continent and the continents of the world. But it is a fact
+that the moral sphere does include the whole of humanity, who are
+colleagues in the task of civilisation, inspired by the
+twentieth-century corollary of gloomy nineteenth-century religious
+agnosticism, the cheerful corollary that it is Man's duty rather than
+God's to improve the habitable earth. The truth of this fact is already
+recognised by the better thought of all the nations concerned, and there
+is no reason why it should be withheld any longer from the people who
+suffer most by its suppression. As soon as public opinion is allowed to
+grasp this truth--and it is only too willing to clutch at any
+generalisation that is emotionally encouraged by its governors--there
+need be no difficulty at all in embodying that opinion in some form of
+international government: for, as Rousseau might have said, where
+there's a General Will, there's a way. As a matter of fact the way has
+already been admirably mapped by several parties of surveyors.[88]
+
+On the constitution of an International Authority, even on the general
+aspiration of Europe towards some form of supernational judicature, war
+will cease to have any more attraction or justification than the street
+brawl. For war is actually in the community of nations what the street
+fight is between individual citizens. War is futile, because it can
+settle no questions of principle; it is immoral, because it is an
+offence against the membership of a moral community. There is abundant
+evidence in Blue Books and in the overt acts of Germany that war
+releases and encourages the elementary brutality of the individual which
+is normally inhibited by the consciousness of social relations. I have
+tried to show in a former chapter that war serves the lowest interests
+of a parasitic commercial class at the expense of the better part of the
+community. War fosters at the same time the basest elements in the
+individual, and the basest individuals in the community. War is a crime
+against the peace of the people.
+
+FOOTNOTES:
+
+[Footnote 86: _Supra_, I, § 5.]
+
+[Footnote 87: Mr. Gilbert Cannan has noted somewhere that "a 'straight'
+fight between Great Britain and Germany will be like a fight between two
+drunken women in a slum."]
+
+[Footnote 88: See, for example, the quite definite and complete report
+on _International Government_, published by the Fabian Society (1916):
+and compare Mr. J. A. Hobson's book _Towards International Government_,
+and Mr. H. G. Wells' _The World Set Free_.]
+
+
+§ 8
+
+Imperialism and Capitalism through War and Trade the Enemies: Socialism
+to the Rescue
+
+It is the most remarkable fact in political bibliography that all the
+Utopias worth mentioning have been written by Socialists. The fact is
+not surprising to anyone who has considered that the Socialists are the
+only political party in the State who ever attempt to look more than a
+dozen years ahead. The ordinary politician steers the ship by keeping a
+look-out for rocks and squalls, and does not trouble to make for any
+distant landmark. Only the Socialist looks ahead to a harbour attainable
+perhaps in a hundred years, from which a happier voyage may be begun.
+Only the Socialist seems to realise that in the world conceived, as
+modern thought must conceive it, as a continuous process, Government
+rather than Trade, Science and Art rather than Industry are the chief
+activities of the citizen. Government is nothing less than the
+organisation of the State to take its place among the other States of
+the world. It includes of course education, being itself a form of
+education: for the State must be educated to fulfil its duty to other
+States, just as the citizen must be (and more or less is) educated in
+duty towards his neighbour. The first task of education is naturally to
+eliminate violence, to inhibit, by inducing in the young citizen the
+recognition of mutual rights, those acts of ferocity by which primitive
+man instinctively expresses his solipsistic passions.
+
+But where, it may well be asked, is the authority which is to begin the
+neglected education of the nations of Europe? Where is what Mr. Boon (or
+Mr. Bliss) would call "the Mind of the Race"? At present the only body
+of doctrine with any conception of the nature of government for the
+collective benefit of humanity is International Socialism. It is the
+International Socialists who must lead the attack on War, if only
+because the only instigators of war themselves form an international
+body in so far as the only occasions for war are contrived by the
+Imperialists and Capitalists who are to be found in every nation. To
+Socialism belongs the duty of educating Europe against Imperialism, as
+it has begun to educate the nation against Capitalism; for Imperialism
+is only an allotropic form of Capitalism, manifesting itself in the
+exploitation of fellow-nations instead of in the exploitation of
+fellow-citizens. The first step in that education must be the fight not
+only against "private" or profiteering Trade, but against "private" or
+profiteering War: and "private war" is every war that is not authorised
+by an International Authority and waged by an International army.
+
+I seem to have heard it said before that there is only one way to break
+the chains that bind us: and that Amalgamation is the mother of Liberty.
+The need for the education of Europe is a call to the Trade Unionists
+and Fabians and Collectivists and Guildsmen of every Nation:
+
+       SOCIALISTS OF THE WORLD
+                UNITE.
+
+
+       *       *       *       *       *
+
+
+APPENDIX TO CHAPTER III
+
+
+
+
+SOME TYPICAL WAR PROFITS
+
+
+I. _The Manchester Guardian_, January 3, 1916:
+
+BRITISH INDUSTRY IN WAR
+
+The first full calendar year of war has been a period of unparalleled
+industrial activity and, generally speaking, prosperity in this country.
+Heavy losses and bad times have been encountered in a few important
+industries, but these are balanced by unprecedented profits made by a
+large variety of industries, whether directly or indirectly affected by
+the war. One frequently finds that the neutral visitor carries away with
+him an impression of industrial England as one great living arsenal.
+That is not surprising, as since July last the Munitions Ministry has
+erected (or improvised) and started a large number (it is not
+permissible to say how many) of State munitions works, and it has also
+mobilised the whole engineering resources of the nation to such an
+extent that in the first week of December no fewer than 2026
+manufacturing establishments had been declared "controlled firms."
+
+But it would be a mistake to suppose that, while war manufactures
+prospered, all other industry languished and decayed. To prove the
+contrary and show that only here and there were there heavy losses, we
+may quote some figures compiled by the _Economist_, which show that 720
+industrial concerns publishing their reports during the first nine
+months of 1915, and having a capital of £531,678,701, made profits
+amounting to £52,881,300, or under 2-1/4 millions less than in the
+previous year (which in the case of almost all the reports was a year
+before the war).
+
+Dissecting these figures, we find that not only iron, coal, steel, and
+shipping companies report enormous profits, but that increased earnings
+were shown by breweries, gas, rubber, oil, and trust companies, and
+others. The large exceptions which depressed the total profits were
+textile companies (other than those engaged on war contracts), catering,
+and cement companies. Shipping leads the van of prosperity owing to
+phenomenal freight rates, while iron and steel and shipbuilding, as
+direct and established purveyors of armaments, are close behind. As
+showing the industrial tendency of the year, one may quote the remarks
+of a trust company chairman at a recent meeting. Of 150 home investments
+possessed by his company, he remarked that a hundred had since the war
+yielded the same as in the year before war, while thirty had paid less
+and twenty more.
+
+Into the circle of munition producers have been drawn cycle and motor,
+machinery, electrical, and many other branches of manufacture. Of other
+industries driven to fever heat by the war may be mentioned woollen and
+leather factories. Secondary effects of the war also produced a boom in
+several unexpected quarters. For instance, the high wages earned by war
+workers, and too generously spent in a vast number of cases, led to a
+strong demand for cheap furniture, pianos and many types of household
+goods which in normal times are usually out of reach of the purse of
+most wage-earners. But one trouble has beset all industries in common--a
+shortage of labour, which cannot but grow with every increase to the
+numbers of men drafted from the ranks of productive industry into the
+army or the munitions works. From all quarters comes the tale of orders,
+both from home and from abroad, that cannot be accepted. In the case of
+foreign orders that have to be refused, the labour shortage has what one
+fears may be lasting consequences. For custom once diverted to America
+or elsewhere is not easily regained.
+
+
+2. _The Manchester Guardian_, March 3, 1916:
+
+MORE GREAT PROFITS
+
+HOLT LINE'S ENORMOUS SURPLUS
+
+The China Mutual Steam Navigation Company (Holt Line) has had a greater
+year than ever. It has been supposed that regular liners were getting
+little benefit from the boom in freights, but a profit of £591,005, as
+against about £294,000 in 1914 and £386,418 in 1913, can only be
+explained by a very large participation in special war-time gains. The
+dividend and bonus on the ordinary shares make 106 per cent for the
+fourth year in succession, and a still larger sum is being kept in hand,
+£200,000 being put to the reserve, as against £50,000 for 1914 and
+£100,000 for each of two years before that, and the balance forward is
+raised from £81,014 to £201,367. Most of the Company's capital, however,
+only bears 6 per cent interest. The ordinary shares (which we believe
+are held privately) only amount to a little over £83,000.
+
+
+3. _Pall Mall Gazette_, September 24, 1915:
+
+WAR PROFITS
+
+The other taxes are accepted by the public and traders alike as
+inevitable, but special interest is being taken in the excess war
+profits tax. That Mr. McKenna is likely to find his estimate of
+£30,000,000 largely exceeded is admitted. The _Daily Chronicle_
+publishes a table in which the City Editor compares the last profits
+announced by some of our greatest undertakings, covering a
+considerable portion of the war period in most and some portion of it in
+all cases, with the average of the previous three years. It will be seen
+that in every instance the war has brought greatly increased prosperity.
+
+                                      Last     Average
+                                      Profit.  Previous  Increase.
+                                               3 years.
+                                         £         £         £
+
+  ARMSTRONG WHITWORTH                 802,000   624,000   178,000
+  (Engineering, Shipb., etc.)
+
+  WM. BEARDMORE                       219,000   185,000    34,000
+  (Engineering, Shipb., etc.)
+
+  JOHN BROWN                          586,000   347,000   239,000
+  (Engineers, Shipbuilders, etc.)
+
+  BEYER PEACOCK                        83,000    35,000    48,000
+  (Locomotive Builders)
+
+  BRUNNER MOND                        824,000   770,000    54,000
+  (Alkali Manufacturers)
+
+  CAMMELL, LAIRD                      238,000   147,000    91,000
+  (Iron, Steel, and Shipb.)
+
+  HAWTHORN LESLIE                     202,000   102,000   100,000
+  (Sh'b. & Marine Engin'ring)
+
+  KYNOCH'S                            153,000   114,000    39,000
+  (Explosives)
+
+  LAMBERT BROS.                       142,000    84,000    58,000
+  (Coal Exporters, etc.)
+
+  POWELL DUFFRYN                      422,000   279,000   143,000
+  (Collieries)
+
+  SAMUEL FOX                           66,000    39,000    27,000
+  (Engineers)
+
+  SPILLERS & BAKERS                   367,000   140,000   227,000
+  (Millers)
+
+  VICKERS, LTD.                     1,019,000   809,000   210,000
+  (Eng. and Shipbuilding)
+
+This table indicates that the Chancellor may expect to receive far more
+than the sum he estimated from the war profits tax.
+
+
+4. _The Manchester Guardian_, Feb. 28, 1916:
+
+COAL PROFITS NEARLY DOUBLED
+
+The tale of colliery war profits is continued by the report of North's
+Navigation Collieries (Glamorganshire). The output for 1915 was actually
+less by 87,810 tons (1,141,900 tons against 1,229,710), but the profit
+was nearly doubled--£130,071 against £65,578. With the £10,496 brought
+into the account the directors had their biggest total in recent years
+available for distribution. The ordinary shareholders get 10 per cent
+and a bonus of 2-1/2 per cent, which is the best payment since the 15
+per cent paid for 1907. Advantage is taken of a prosperous year to place
+£35,000 to the reserve fund, which has been rather overlooked recently,
+only one allocation of £20,000 having been made in four years. It now
+stands at £155,000, against £650,000 of share capital. For depreciation,
+with regard to which item substantial provision is made each year,
+£15,000 is written off. This leaves £10,567 to be carried forward. The
+Company has the reputation of being well managed, and its coal
+properties are regarded as being very valuable. The recently opened St.
+John's pits are being developed satisfactorily, it appears, a further
+increase in output being shown.
+
+Despite a decrease in output of nearly 400,000 tons, the Powell Duffryn
+Steam Coal Company is enabled to show a profit for 1915 of £438,799, as
+compared with £422,204 for 1914 and £364,421 for 1913. The usual 20 per
+cent is distributed on the ordinary shares, free of income tax, and last
+year's allocation of £50,000 to the reserve fund is repeated. In
+addition, the reserve for income tax benefits to the extent of £50,052,
+and there remains £120,236 to carry forward. The decrease in output, it
+should be noted, is due to the enlistment of the miners, and its
+restoration to the normal and probable increase after the war should
+balance the decline in profit that may be expected to attend the
+decreased demand.
+
+
+5. The Times, May 19, 1916:
+
+SOAPMAKERS' "RECORD" PROFITS
+
+Presiding yesterday at the annual meeting of Joseph Watson and Sons
+(Limited), soapmakers, Leeds, Mr. Joseph Watson said that the company's
+profits for the year amounted to £122,000, or £19,000 in excess of any
+previous year's profits. Their turnover had largely increased because
+they were now supplying soap to France, Belgium, Scandinavia, and a
+small amount to Spain and Italy. It was not a question to-day of getting
+orders; it was a question of refusing them. They had at the present time
+three months' orders on the books.
+
+
+6. _The New Witness_:
+
+THE SCANDAL OF WAR PROFITS
+
+It is a sinister and deplorable fact--one of the most ironical with
+which the continuance of the War has yet confronted us--that there has
+grown up in Great Britain a number of firms and businesses to whom a
+successful prosecution of the campaign would mean ruin, and who have an
+actual vested interest in the indecisive continuance of hostilities.
+This is due entirely to the lack of grip and resolution which the
+Government have displayed in dealing with the ugly phenomenon of War
+Profits. We know, of course, what happens to those profits at present.
+Half is taken by the State: half passes to the firms who are getting
+"rich quick" out of its necessities. In theory, it is an anomalous
+arrangement, indefensible in logic, and opposed to every canon alike of
+justice and of taxation. In practice it works out in the way we have
+indicated: that certain privileged firms and individuals are amassing
+huge fortunes out of the gravest crisis through which the nation has
+passed, and which will pinch us all before it is over.
+
+Let us give some examples of the mammoth profits that some of these
+concerns are making. There is first of all the famous old English firm
+of Levinstein--Messrs. Levinstein of Manchester--to be considered. This
+"all-British" concern has not done badly out of the terrible situation
+through which we are slowly toiling. While mere vulgar English Tommies
+have been dying in the trenches or have returned incapacitated to
+England--to find that their country cannot afford them a
+pension--Levinsteins have been pocketing several thousands of that
+country's cash. Levinsteins' are dye-makers, and in 1914-15 they made a
+profit of £80,000 _on a capital of_ £90,000: a profit large enough to
+make the mouth of the deceased usurer Kirkwood dry with envy. But, while
+our legislature passed laws to restrain the usurer in his exactions, the
+"war profiteer" has no restriction placed on him. His workmen can, in
+certain cases, be fined or sent to prison if they absent themselves from
+work, and hundreds have been proceeded against under the Defence of the
+Realm Act. But the profiteer himself is immune! It is childish to say
+that the State can recover half of the profit he has wrung from the
+country's necessity. What right has he to the other half? In the case of
+Levinstein, this £80,000 profit enables the company to pay 14-1/2
+years' preference dividend, to distribute a dividend of 30 per cent on
+its ordinary shares, and to write off £21,000 for depreciation! It is
+merely fatuous to pretend, or to endeavour to pretend, that the
+appropriation of half these profits squares matters between the
+community and the British firm in question.
+
+As with Levinstein, so with other firms. Messrs. Cammell, Laird & Co.
+averaged profits of £146,000 for the three years before the war. Since
+last year those profits have risen to £237,000. Those profits, of
+course, are subject to war profits taxation. But most manifestly that
+taxation is utterly inadequate. So it is in the case of Messrs. W.
+Beardmore, whose profits rose from £184,000 (three years' pre-war
+average) to £219,000; of the British Westinghouse Co., which rose from
+£56,000 to £151,000; and of Beyer Peacock's, which increased from
+£57,000 to £109,000.
+
+In all these cases the deduction of 50 per cent by the Government is
+entirely inadequate and utterly misleading. It is at once an admission
+that the firm in question has no right to amass huge profits out of the
+welter and tragedy of the European War, and that the State is content to
+stultify itself by surrendering the other half.
+
+Many of these profits have been made by covering rises in raw material
+far in excess of the actual increases. Many have been wrung from the
+poor and the needy, who are now being enjoined by the Government to eat
+less meat. Messrs. Spillers & Baker, of South Wales, increased their
+profits from an average of £140,000 (three years' pre-war average) to
+£367,000 in 1914-15. We do not blame them. The rise in price was beyond
+their control. They could hardly help benefiting. But it is mere madness
+for the Government to leave them in possession of these vast accretions
+of wealth. Firms that paid 8 per cent before the war, now paying 22-1/2
+per cent (such as Messrs. Richard Dickeson & Co., the Army contractors)
+are able to pocket tens of thousands that ought to go to strengthen the
+resources of the nation. Others, like the Mercantile Steamship Co.,
+increase their dividend from 20 per cent to 35 per cent; and some are
+able to pay dividends actually larger than the capital of the company
+itself!
+
+It is ludicrous for the Government to allow this condition of affairs to
+continue. Their course is quite clear. They should limit profits to the
+average of three years before the war, and add at the most 5 per cent.
+Anything short of this is a betrayal of the national interests to
+private firms.
+
+
+7. _The New Statesman_, March 25, 1916:
+
+An innocent person might think that when a manufacturing company is
+faced with an enormous rise in the cost of the principal commodity it
+consumes, its profits would be diminished. Some law must be in operation
+which has escaped the attention of economists, for so far from this
+being the case, what appears to happen is that the profits of
+manufacturers rise in a greater degree than the price of the raw
+material. Thus, so far from being hit by the enormous rise in the price
+of flour, Peek, Frean & Co., the well-known biscuit manufacturers, made
+a net profit of £107,478 last year, as compared with £99,578 in 1914,
+and £98,607 in 1913. After paying the usual 5 per cent on the £300,000
+of preference shares no less than 25 per cent is paid on the £230,000 of
+ordinary share capital, which has been issued. This company raised its
+money very cheaply from the public, which paid 102 per cent for its 4
+per cent debenture stock and par for the 5 per cent preference shares.
+The investing public does not benefit by the big dividend on the
+ordinary shares. These were never offered to the public, but are
+privately held.
+
+Another shipping company, sister to the Court Line, mentioned in these
+notes last week, has issued its report. This is the Cressington
+Steamship Company, which owns two modern tramp steamers of slightly over
+7,000 tons each. The company was very fortunate in that one of these
+vessels was delivered in February, 1915, it having been contracted for
+at pre-war prices. The profits for the year amounted to £50,015, as
+compared with £6,861 in 1914 (when only one vessel was trading). The
+dividend for the year is 15 per cent, £7,072 is allocated to
+depreciation, £22,000 for special war profits and income-tax, whilst
+about £3,000 is being carried forward. The financial position of the
+company is such that if its ships were sold at £2 15s. per ton,
+shareholders would receive the return of their capital in full. On
+present prices, however, they would probably fetch over £15 per ton. The
+shares are now quoted at 28s.
+
+The Bengal Iron and Steel Company, whose report has also been issued
+during the week, has had an interesting career; it works large iron ore
+and coalmining areas in Bengal. At first the company did well, but then
+it went in for an unfortunate steel venture and fell into arrears with
+its preference dividend. This was overcome, and during the past few
+years the company has done well, particularly from its coal business.
+The report for the year ended September 30th, 1915, shows a working
+profit of £144,913, as compared with £79,200 during the previous year.
+This considerable improvement enables the company, after writing off
+various old items, to place to a general reserve £20,000, and to declare
+a dividend payable quarterly of 24 per cent on the £224,850 of ordinary
+shares, which compares with 12 per cent a year ago. By way of a change,
+the report states that the trading results would have been even better
+had war conditions not prevailed.
+
+  EMIL DAVIES.
+
+
+8. _The New Statesman_, May 27, 1916:
+
+Markets have displayed unwonted cheerfulness during the past week, and
+all sorts of peace rumours are in circulation. It is more than likely,
+however, that it is the firmness of the market which is responsible for
+the rumours, and not _vice versa_. There is a steady stream of orders
+from the Midlands and the North, where people are making money, and
+these have the effect of putting up prices in several of the markets.
+The Brazilian Funding Loan, which was recommended here on the 29th April
+at 74, has been noticeably firm, and is now 77-1/4. It still appears to
+be the cheapest Government Loan. Brazilian securities are attracting
+more attention, and Brazil Traction Common, which a year ago was below
+50, now stands at 64. There has been a large business in Castner Kellner
+on the working agreement between that chemical company and Brunner, Mond
+& Co., the shares having jumped four or five shillings to their present
+price of 69s. 6d. Precisely a year ago they were recommended in these
+notes at 66s. 10-1/2d. Shipping shares have been exceptionally firm;
+Court Lines have risen another few shillings to 34s., the large business
+in them being probably due to the fact that they are one of the few
+shipping shares which can be obtained. Rubber shares are equally firm.
+Nobel's Explosive Company has just issued its report for last year,
+showing a profit of £529,738 _after_ providing for excess profits duty.
+The dividend is 15 per cent, free of income-tax, or 5 per cent more than
+last year. This increase in the dividend came as a surprise to the
+market, and the price of the shares (which are a favourite investment in
+Glasgow) jumped from 31s. to 38s. 3d.
+
+The profits of the Oceanic Steam Navigation Company (the White Star
+Line) for last year have attracted a good deal of attention. They were
+stated as being £1,968,285, as compared with £887,548 in 1914 and
+£1,121,268 in 1913, which was the Company's record year; but the figure
+given for 1915 does not indicate the full profit, for it is arrived at
+"after providing for excess profits taxation and contingent
+liabilities." Replying to a question asked in the House of Commons by
+Mr. W. C. Anderson, Captain Pretyman stated that the Company informed
+him that the profit mentioned was before deduction of debenture interest
+and depreciation. Captain Pretyman added that the sum divided as
+dividend was £487,500, the same amount as in the year 1913 before the
+war. Where people are protesting against large war profits it may, at
+first sight, appear an adequate answer to point out that a Company is
+not paying out more in dividends than it did in the year preceding the
+war. As a statement of fact it is perfectly correct, but it has no
+bearing upon the amount of profit that has been made, as the following
+calculation will show. We now know that the 1915 profit shown in the
+accounts is _after_ allowing for excess profits taxation, deferred
+repairs, contingent liabilities, debenture interest and depreciation.
+Since 1913 the Company has increased its debenture issue, and last year
+had to pay in debenture interest £109,536, as compared with £65,211 in
+1914. How much has been placed on one side for depreciation before
+showing the profits can only be known to very few people, but the amount
+the Company must have put on one side for excess profits taxation must
+be at least half a million, and possibly a great deal more. The actual
+profits for last year were therefore probably in the neighbourhood of
+three millions, if not more. As indicated above, out of the £1,968,285
+shown as profit, only £487,500 is paid out in dividends, the remainder
+going to various reserves. The dividend works out at 65 per cent, but
+all goes to the International Mercantile Marine Company, the
+much-talked-of American shipping trust associated with the name of the
+late J. Pierpont Morgan, which holds all the Ordinary Shares. The trust
+was in a bankrupt condition prior to the war, but the present state of
+affairs is radically altering its position. It must be annoying to the
+American holders that a large slice of the profits of an American-owned
+concern has to go to the British Government in the shape of war
+taxation.
+
+
+9. _The New Statesman_, June 24, 1916:
+
+Another firm which has apparently benefited by the war is Ruston,
+Proctor & Co., the well-known Lincoln manufacturers of agricultural
+implements. A final dividend of 5-1/2 per cent is declared, plus a bonus
+of 2 per cent, making 10 per cent for the year, which still allows the
+Company to place £45,000 to reserve and to carry over £16,300. This
+dividend is 3 per cent more than was paid last year, and is the highest
+in the twenty-six years' history of the Company. Shipping shares remain
+firm, and it is almost impossible to purchase any of the best shares. As
+an illustration of the profits that are being made, the Nitrate
+Producers' Steamship Company's accounts for the year ended April 30th
+last show a gross profit of £404,022, as compared with £151,905 and
+£135,986 in 1914 and 1913 respectively. The dividend is 25 per cent,
+free of income tax, £100,000 is placed to reserve, £200,000 to a special
+fund for excess profits tax, income tax, etc., £30,000 is added to the
+insurance fund, and the carry forward is increased by some £7000. The
+Company owned a fleet of ten steamers, which has, however, been reduced
+to five by the sinking of one last September by an enemy submarine and
+by the sale of four vessels. A new vessel is under construction, and
+should be ready for delivery in August. The capital of the Company
+consists of £200,000 in Ordinary Shares and £200,000 in 5 per cent
+Cumulative Preference Shares.
+
+
+10. _The New Witness_, June 15, 1916:
+
+WAR PROFITS AND THE GOVERNMENT
+
+It is essential that a determined effort should be made to rouse the
+nation to a sense of the gross and scandalous injustice of the huge
+profits that are at present being "earned" by certain firms piling up
+wealth which is really amazing to contemplate. This is not mere empty
+rhetoric; the figures support the description up to the hilt. Let us
+take the case of five well-known companies, all engaged in "war work,"
+and see to what account they have turned our soldiers' sacrifices:--
+
+  FIRMS.                          PROFITS.
+
+                          1913      1914      1915
+
+                            £         £         £
+
+  Cammell, Laird         171,700   235,500   301,500
+
+  Curtis & Harvey         48,100    77,800   143,800
+
+  Projectile              14,000    40,400   192,700
+
+  Webley & Scott           9,500    16,400    61,300
+
+  Thornycroft             13,000   107,640   267,333
+                                            (6 mos.)
+
+These figures can only be described as staggering--staggering, that is,
+to anyone who cherishes a faint, lingering belief that "equality of
+sacrifice" is to be a reality and not merely a bitter jest. Look for a
+moment at the tale that these profits show! The Projectile Company has
+multiplied its 1913 profit _thirteen times over_! Five or six years ago
+its affairs were in so parlous a state that 19s. had to be written off
+as lost from each 20s. share. Now, as Mr. Charles Duguid reminds us, "it
+is paying a first dividend of 50 per cent and is returning to the
+shareholders 3s. 6d. out of the 19s. they regarded as lost." The return
+on the shares, according to the same financial authority, is 400 per
+cent!!!
+
+Look at the case of Thornycrofts. The profits for the first half of 1915
+are twenty times as big as the profit for the whole of 1913--an
+increase, as Mr. Duguid reminds us, _of 3800 per cent upon the year_, a
+year that will spell blank financial ruin, impoverishment and
+destitution to the families of thousands and tens of thousands of our
+fighting men!
+
+Thornycrofts are by no means peculiarly fortunate; Nobels, for instance,
+have managed to earn quite a tidy little profit. Their net profit for
+1915 comes out, we learn, at over half a million sterling (£529,800),
+exclusive of £213,900 brought forward out of the large profit of the
+preceding year, and this makes the total amount available for
+distribution as much as £743,700. Even after paying a dividend of 10 per
+cent and a bonus of 5 per cent, making 15 per cent, all free of income
+tax, the Company has still £424,700 unallocated. In its most prosperous
+year, 1913-1914, the net profit of the Nobel Dynamite Trust did not
+amount to more than £381,300. We have, we need hardly say, no feeling
+against Nobels or Thornycrofts or the Projectile Company. We only want
+fair play in this matter. If this aggregation of profits is not stopped
+the wealth of England will be in the hands of men who will regard the
+triumphant conclusion of the War as spelling ruin to themselves and who
+will see in victory only the cessation of profits that in normal times
+they have never dared to contemplate.
+
+The remedy for this is simple. The Government have refused to the
+workman the right to extort unearned increment out of the country in its
+dire necessity. The workman may not strike or cease work or even change
+employment without the permission of the State. Assuredly the State has
+the right to exact that obedience from him. But it is essential that it
+should, and at no distant date, lay its restraining hands also upon the
+employers who are earning these huge dividends, otherwise we shall have
+enacted in England the tragedy that we have seen in Ireland. We shall
+have a Government without moral authority, a Government which will,
+therefore, be perpetually embarrassed in the conduct of war.
+
+
+11. _The New Witness_, June 15, 1916:
+
+WILLIAM CORY & SON
+
+This famous coal company has taken every advantage of the demand for
+coal, and can show a record profit. After providing for excess profits,
+the balance of profit is £453,136, or £237,808 more than last year. As I
+have again and again pointed out, I do not think the Government should
+allow such huge profits to be made in war time. The coal trade is in a
+few hands, and firms like Corys may be said to control it. The directors
+content themselves with raising the dividend 5 per cent to 15 per cent;
+but they place £100,000 to reserves, making them £500,000; £30,000 goes
+to staff pensions and £25,000 to a war fund for employees. The carry
+forward is raised £30,740 to £88,969. The steamers, tugs and barges are
+now to be formed as separate companies; and the French business is also
+to be transferred to a subsidiary. The balance-sheet shows creditors up
+£204,971, presumably to meet the excess profits liability. Debit
+balances have increased £509,840, and now include Treasury bills. War
+loans have been increased £280,652, and the total assets are up
+£451,183, at £4,541,601, and have earned 10 per cent. When all creditors
+have been paid the quick assets amount to £930,654, and amply protect
+the debentures, £900,000 which are an admirable security. I do not
+suppose the present Ministry will do anything to control the profits
+made out of the War by those who run the coal trade; and, therefore, we
+may expect that 1916-17 will be as good a year as that just ended. But I
+am not in agreement with a policy of _laissez-faire_ in war time unless
+the policy is carried out stringently.
+
+
+HOLBROOKS
+
+Apparently the sauce trade has not been seriously injured by the War,
+for Holbrooks have increased their trading profit £4,694 to £35,170; but
+income tax is higher, and £5,000 has been used as a special reserve for
+investments, so the available profit is only £23,046, as against £25,055
+in the previous year. The dividend remains at 20 per cent, but £3,072
+more is carried forward than was brought in, and the Board say that the
+unsettled state of the world justifies them in doing this. I suspect
+that they are building up a reserve for the purpose of attacking the
+Yankee trade which for so many years has been in the hands of Lea &
+Perrins. The business is well managed by the two managing directors, who
+have been in the firm since it was promoted. The alterations in the
+balance-sheet are not of any moment. Quick assets total £151,557 when
+liabilities have been met, and the assets have earned 7-1/2 per cent on
+their book value--not a very splendid profit for a sauce.
+
+
+JAMES HINKS & SON
+
+This famous firm of lamp makers should benefit largely by the complete
+absence of German competition all over the world, and the eleven months
+show the satisfactory profit of £13,595. The dividend for the previous
+thirteen months was only 6 per cent, but the report now issued declares
+10 per cent and a bonus of 1s. 6d., or 17-1/2 per cent--a record
+distribution. Also £2,250 is placed to reserve and the carry forward is
+raised from £3,603 to £6,399. As long as the War lasts we may expect
+this remarkable prosperity to continue. The reserves are now in excess
+of the capital. The company has earned 7-1/2 per cent on the book value
+of its assets, which, in spite of goodwill and patents having been
+written off, looks as though they were fully valued at £179,765. The
+shares are a fair industrial speculation.
+
+
+12. _The Manchester Guardian_, June 19, 1916:
+
+While everybody knows that the immense disbursements on the War have led
+to a greater demand for labour than it is possible to meet at present
+and that employers have done well, in spite of their difficulties, it is
+perhaps not generally known how greatly the profits of nearly all the
+public companies have increased during the last year. They have had to
+pay higher wages in many cases, though not in all, their materials have
+been much more costly, and their foreign trade has been hampered by
+restrictions, in furtherance of the policy of preventing the enemy from
+getting goods which he requires and which it is in our power to control.
+Many, however, have done a large business for Allied Governments as well
+as our own, especially in army equipment, and the demand for coal has
+been greater than our power of supplying it. All our production has
+commanded high prices, and profit margins have in most cases been very
+large. It is a way that chairmen of companies have to take big profits
+as being in the natural order of things, and dwell mostly on the
+difficulties which have prevented them from showing even better results.
+If this has obscured the real state of affairs it is desirable that the
+other side of the picture should be clearly presented, for it is
+impossible to understand the economic side of the War without a thorough
+comprehension of its industrial effects.
+
+We give below a tabular statement of profits which have been declared
+this year, with the figures for two preceding years added so as to show
+their true significance. Some are gross and others net profits, but in
+this we have simply followed the methods adopted by the directors in
+their reports, that being in practice the only way of showing how the
+comparison stands. In some cases the capital has been increased during
+the three years, but the extent to which that has occurred does not
+affect the tables if they are regarded comprehensively. Some did very
+badly in the first few months of the war, and the profits they declared
+in 1915 look very small in comparison with those in the first column of
+the tables. In those cases the third column will act as a corrective,
+for in the main it shows the companies' normal earnings. It will be
+noticed that some of these were very small. Here and there the company
+was in the development stage, but as a rule it may be taken that the
+concern was not a very profitable one in peace times. Possibly it was
+over-capitalised, or over-weighted with debentures, or its plant was out
+of date, or it could not get sufficient business to make full use of its
+productive capacity. We shall not attempt the invidious task of singling
+out which come in these categories, but we call attention to the cases
+in which small pre-war profits have been converted into large ones since
+because they are really the most instructive of the whole series.
+
+For very large increases upon profits which were already good the most
+notable are the shipping companies. Our list is typical rather than
+exhaustive. Some of the small concerns, with only one ship, or up to
+half a dozen, have done better relatively than several of the big lines,
+as they were more at liberty to take advantage of the big freight-rates
+which were going. We have not set these out, however, because it does
+not appear to be necessary. The dividends in virtually all cases have
+been substantial, and in some cases very large indeed. It would be
+useless, however, to show these in tables, as some of the leading
+companies use reserves greatly exceeding their nominal capital, and
+quite a number have devoted a larger proportion of their profits to
+strengthening their position than to the payment of dividends. In the
+case of the Moor line we are unable to give the amount of the profit
+reported last year, as the balance-sheets are not issued publicly,
+although we have been favoured with them occasionally.
+
+Coal, iron, engineering companies and shipbuilding companies are
+bracketed together because so many of them are concerned in at least two
+of those fields of industry. As our table shows, they have had a great
+revival, many having been used by the Government, while all have felt
+the effect of the great demand for munitions. The miscellaneous list
+offers an interesting field of study, and the rubber and tea companies'
+results are in some respects more striking still. We have only given a
+selection of these, but they suffice to show that rubber and tea have
+been very profitable since the War began. An appeal was made some time
+ago with a view to the "young" rubber companies being relieved of the
+excess profits tax, but our list shows how unnecessary it was to make
+any special concession to the industry they represent. In the last two
+months a great many of the companies have indicated that they were
+setting some thousands of pounds aside for the tax.
+
+Among the other concerns which have announced their appropriations to
+meet the excess profits tax the most notable one that we recall is the
+British Oil and Cake Mills Company, which expected to have to pay
+£225,000. The Nitrate Producers' Steamship Company is putting £200,000
+to a reserve for the excess profits duty and income tax. Most of the big
+companies have provided for the tax before striking the profit balance,
+and as this is strictly correct it would hardly be fair to say that they
+have concealed part of their profits. The figures would have been more
+striking, however, if the gross sums had been given. As we read the
+White Star line's figures they indicate that the company has had to pay
+much more than the British Oil and Cake Mills Company, but the Cunard
+line has probably had to pay much less.
+
+The amount payable in any given case is the excess over the pre-war
+standard, which is fixed by taking the best two of the three immediately
+preceding years. Speaking generally, the companies do not appear to have
+hurried in their payment of the tax. For the year ended March last the
+total yield was estimated at £6,000,000, but the actual sum received was
+only £140,000, and the £6,000,000 has not been got yet, the yield from
+April 1 to June 10 being only £3,556,000. A sharp increase is bound to
+come, however, in the course of the financial year. The Chancellor of
+the Exchequer expects to get £86,000,000 in excess profits tax and
+munitions levies by the end of March next, and he cannot possibly have
+made so enormous a mistake as the receipts to date would suggest if we
+did not know that thousands of firms have still to pay very considerable
+sums.
+
+In the tables appended the years at the tops of columns are those in
+which the profits mentioned were announced. A large proportion of the
+results shown in the 1916 columns are for the year ended December last.
+Some, however, are for years which have ended since then, while a few,
+relating to companies which carry on business abroad, are for years
+which began soon after the outbreak of the War:--
+
+  SHIPPING
+
+                              1916        1915        1914
+
+                                £           £           £
+
+  British and African         94,388      64,464      41,357
+  Booth Line                 328,127     225,267     154,828
+  China Mutual               591,005     286,725     381,729
+  Court                      137,446      25,034      23,890
+  Cunard                   1,579,170   1,286,948   1,187,831
+  Cairn                      152,152      85,988     102,318
+  Elder, Dempster            349,444     326,122     307,605
+  Eagle Oil Transport        325,928     302,897      92,866
+  Elder                       66,266      55,305      38,975
+  Field                       71,393      11,881        --
+  France, Fenwick            179,100      64,900      76,800
+  Gulf                       188,093      39,436      65,014
+  Houlder Bros               118,802      95,587     102,893
+  Indo-China                 109,089      16,020      45,364
+  India Gen                   65,738      41,974     118,379
+  King                       102,319      17,426      90,392
+  Leyland (Fredk.)         1,441,690     620,839     589,810
+  Lamport & Holt             332,897     149,108     200,691
+  London & Northern          586,299     118,419     135,541
+  Mercantile                 259,159      93,391     129,946
+  Moor                       335,349        --       254,000
+  Neptune                    146,718      73,310     112,563
+  Nitrate Producers          381,599     134,826     125,990
+  Pool                       601,338     118,000        --
+  Pyman                      165,078     72,504       62,413
+  Royal Mail                 808,731     98,232      436,470
+  Redcroft                   117,953     13,125       21,396
+  Sutherland                 295,220     74,841       41,779
+  White Star               1,968,285    887,548    1,121,268
+
+
+  COAL, IRON AND ENGINEERING
+
+  Albion Steam Coal           44,536      36,820       24,094
+  Arrol (Sir W.) & Co        119,060      49,756       51,096
+  Brown, Bayley's Steel       32,017       1,578       29,758
+  Barrow Hematite            119,377      51,518      104,664
+  British Aluminium          180,057     156,066      154,488
+  Beyer, Peacock              54,177     109,783       87,843
+  British Westinghouse       176,752     151,627      106,494
+  Brit.Ins. & Helsby         295,131     277,428      247,351
+  Bell Bros                  145,360      45,969      128,736
+  Bessemer (Hy.)              55,348      35,826       23,308
+  Cammell, Laird             303,841     237,899      174,126
+  Cory (W.) and Son          453,136     215,328      313,906
+  Cargo Fleet                162,276     131,142      124,219
+  Callender's Cable          113,266      98,692       91,861
+  Carlton M. Colliery        188,545     128,413      177,025
+  Clayton & Shuttleworth      72,787      44,643       53,496
+  Consolidated Cambrian      185,139     140,097      147,648
+  Crossley Bros               65,337      15,347       42,517
+  D. Davis                   200,127     215,744      217,970
+  Dorman, Long               404,524     237,579      257,863
+  Edinburgh Collier's         64,807     17,420        63,969
+  Fife Coal                  224,058      89,866         --
+  Gt. West. Colliery         137,008     111,821      158,420
+  Hadfields                  265,403     139,301      109,513
+  Henley's Tel               153,224     112,898      106,380
+  Howard & Bullough          136,152      32,766      163,066
+  Jessop (W.) & Sons         103,726      60,354       87,343
+  Knowles (A.) & Sons         47,199      18,329       29,140
+  Leyland Motors             252,107       85,037        --
+  Lysaght (John)             414,764      313,707     330,576
+  Locket's Merthyr Colleries  45,635        6,229      22,238
+  Met'n Carriage             372,140      321,091     365,739
+  Newton, Chambers            60,669        4,182      89,523
+  N. B. Locomotive           174,241      160,644     140,889
+  North's Nav. Coal          130,071       65,578     100,144
+  Parkgate Iron              107,344       66,643      85,169
+  Projectile                 194,136       30,739      18,880
+  Powell Duffryn             438,799      422,204     364,421
+  Pease & Partners           435,772      248,216     385,975
+  Rhymney Iron               127,733       52,488     131,901
+  S. Durham Steel            239,868      150,257     302,955
+  Shelton                    109,554       63,465      81,185
+  Stewarts & Lloyds          256,308      233,420     246,065
+  Swan, Hunter, etc          305,083      217,498     264,124
+  United Collieries          216,065       57,600     100,503
+  Wigan Coal, etc            143,288       44,829     138,118
+
+
+  MISCELLANEOUS
+
+  Angus (Geo.) & Co           54,461       43,574      32,123
+  Burmah Oil               1,413,170    1,411,279   1,363,389
+  Bradford Dyers             568,623      387,923     430,081
+  Bleachers' Association     416,394      197,835     423,416
+  Bryant and May             115,159      101,616      90,158
+  Broxburn Oil                46,729       22,252      57,046
+  British Cotton and Wool
+    Dyers                     93,524       42,297       9,290
+  Brunner, Mond            1,011,590      799,322     769,343
+  Bovril                     168,796      137,584     119,813
+  Buttons                     63,297       38,880      32,834
+  Borax Consolidated         205,825      195,449     235,285
+  Barlow & Jones              46,798       38,936      33,584
+  British Oil, etc., Mills   243,110      111,203     116,541
+  British and Argentine Meat 651,289       67,288        --
+  Curtis's & Harvey          143,830       77,754      48,117
+  Courtaulds                 741,668      520,349     474,154[89]
+  Calico Prin. (half yr.)    176,521        --         55,495
+  E. Velvet, etc., Dyers      70,833       61,161      72,467
+  Fore St. Warehouse          48,957       28,597        --
+  Forestal Land              900,947      234,065     383,362
+  Fine Spinners              535,854      391,057     613,415
+  Gas Light & Coke           604,314      449,510     522,710
+  Hollins (W.) & Co          105,639       65,786      65,986
+  Henry (A. and S.)          249,713      104,098     122,528
+  Imperial Tobacco         3,699,891    3,533,360   3,354,476
+  Lever Bros               1,265,933    1,152,107     988,238
+  Linen Thread               257,418      188,773     189,142
+  Lennards                    41,300       34,457      30,377
+  Lister and Co              133,874       94,403     151,458
+  Lyons (J.) & Co            278,293      276,403     353,303
+  Maypole Dairy              528,274      488,026     489,643
+  Mandleberg (J.)             74,506       52,049      57,964
+  Pumpherston Oil            134,927       74,010     140,025
+  Rylands & Sons (half yr.)  120,032       55,179        --
+  Rotherham (Jer.)           104,925       74,638      59,692
+  Salt Union                 140,524       89,443      82,791
+  Sears (J.) & Co             82,070       65,032      57,061
+  Stead & Simpson             59,898       32,762      30,357
+  Samnuggur Jute             299,829       44,307      86,574
+  Spillers & Bakers          217,416      367,866      89,351
+  United Alkali              341,986      217,081     193,604
+  Winterbottom Book Cloth    171,191      119,795     165,213
+  Webley & Scott              61,277       16,376       9,511
+  Whiteaway, Laidlaw         131,577      107,952     129,790
+  Watson (Joseph)            122,001       89,290     103,999
+  Young's Paraffin            47,953       24,139      80,152
+
+
+  RUBBER, &c.
+                            1916       1915       1914
+                              £          £          £
+  Anglo-Malay              121,224     76,931    104,583
+  Assam-Dooars              51,674     22,269       --
+  Amalgamated Tea          157,818     98,176     78,787
+  Batu Tiga                 56,293     22,315     24,762
+  Bukit Sembawang           33,989     14,344      6,090
+  Consolidated Tea         479,815    289,262    247,633
+  Chersonese                59,602     35,019     29,081
+  Ceylon Tea               163,899    108,300     93,900
+  Damansara                 48,680     30,580     29,081
+  Eastern Produce          126,406     71,724     69,004
+  Grand Central            248,201    132,019     87,554
+  Highlands & Lowlands     108,343     75,425     79,079
+  Jorehaut Tea,             64,508     43,204     34,088
+  Jhanzie Tea               35,881     17,286     15,113
+  Klanang                   37,918     20,458     24,257
+  Kuala Selangor            47,748     42,013     32,798
+  Kanan Devan              208,612    120,119    106,909
+  Linggi                   125,739     78,899     83,746
+  Lunuva                    32,994     12,599     12,602
+  Malacca                  252,006    144,224    131,156
+  Nuwara Eliya              49,915     21,921       --
+  Nordanal                  39,658     36,686     49,344
+  Panawatte Tea             38,167     23,833       --
+  Rub. Est., Johore         42,703     22,541     10,931
+  Rani Travancore           63,791     35,349     32,259
+  Singlo Tea                68,857     36,166     31,449
+  Sungei Way                38,532     36,533     25,624
+  Straits                  157,678    164,750    185,426
+  Sungei Kapar              59,966     39,426     42,364
+  Selangor                  55,457     58,007     41,940
+  Seremban                  43,410     24,198     22,471
+  Sunnygama                 63,688     43,142     31,931
+
+
+13. _The New Witness_, June 22, 1916:
+
+The Tenth Ordinary General Meeting of the Forestal Land, Timber, and
+Railways Co. (Ltd.) was held on Friday last, at Winchester House, E.C.,
+Baron Emile B. d'Erlanger (chairman of the company), presiding.
+
+The chairman said that the share capital remained unaltered, and the
+debenture debt had only been decreased by the yearly amortisation. No
+less than £143,600 had been added to the depreciation account, making it
+£634,170. Credit balances had swollen by the sum of £175,589. The profit
+on the year was £900,947, as against £234,064 last year. On the credit
+side, properties stood at £4,405,917, and had increased by the new
+properties acquired. The live stock stood at £34,000 less than last
+year, due to a smaller stock of "Invernada" cattle. The stocks of
+extract and felled timber had risen by £115,000, principally owing to a
+larger stock of felled timber. Debit balances had risen to £156,000. In
+the profit and loss account the trading profit was £1,281,299, as
+compared with £614,879 last year, and, after deducting London charges,
+debenture interest, depreciation, and legal reserve, there was left a
+profit of £900,947.
+
+
+14. _The Westminster Gazette_, July 15, 1916:
+
+The accounts of the W. and C. T. Jones Steamship Company, Limited, of
+Cardiff, for the year ended June 30, show that, with a fleet of thirteen
+steamers, £524,855 profit has been earned, representing 187 per cent on
+the capital of £280,000.
+
+The previous year's earnings were £87,105.
+
+A dividend of 15 per cent, making, with 10 per cent interim dividend, 25
+per cent for the year, free of income tax, is declared.
+
+
+15. _The New Statesman_, July 1, 1916:
+
+The prolonged debate in the House of Commons on the Excess Profits Tax
+ended on Monday in a vote which found Mr. McKenna's critics in a small
+though substantial minority. The point actually at issue was not very
+simple, and in spite of repeated explanations several of the most
+persistent speakers never grasped it. The demand was that all
+"controlled establishments" should be exempt from the excess profits tax
+in consideration of the patriotic services they were rendering to their
+country and of the "bargain" alleged to have been concluded with the
+Ministry of Munitions whereby any profits they may make in excess of 20
+per cent above their normal profits are in any event taken by the State.
+This meant, of course, that a controlled firm which made a profit of
+£50,000 in 1914, and of £60,000 (due to war contracts) in 1916, would
+retain the whole of their excess profits without reduction. Mr. McKenna
+argued that such firms, having the advantages of practically compulsory
+labour and freedom from Trade Union restrictions, ought, at any rate,
+not to be let off more lightly than uncontrolled firms. It is amazing
+that such a proposition should have to be stated at all.
+
+The point of view of the ordinary member of the public undoubtedly is
+that excess profits on the making of munitions simply ought not to
+exist. If engineering firms are permitted to maintain their old standard
+of profit and dividend (with fair arrangements, of course, for new
+capital and depreciation), they ought to be more than satisfied. Great
+heat was developed on the debate by the representatives of various
+capitalist interests, notably Sir Arthur Markham, Mr. J. M. Henderson,
+Sir Croydon Marks, and Sir Alfred Mond; and some of them were not even
+ashamed to hint that if their demands were not agreed to there might be
+a diminution of output. At a moment when tens of thousands of men are
+giving up their whole incomes as well as their savings, in order to
+fight for their country, it is impossible to imagine any spectacle more
+unedifying for the wage-earning class than that of these malcontent
+capitalist legislators angrily fighting for their extra war-profits.
+When one remembers that it was these same gentlemen who were so
+enthusiastic for compelling younger and poorer men to sacrifice
+everything they possess, it is hard to find words to say what ought to
+be said of them. We hope, at all events, that the names of those who
+voted against the Government on the division will not be allowed to be
+forgotten in the constituencies.
+
+
+16. _Pall Mall Gazette_, January 31, 1916:
+
+_From Our Own Correspondent._
+
+PARIS, _Saturday_.
+
+The trouble that has been brewing for months past at the Central Markets
+has now come to a head. A well-known dealer was suspended by the Prefect
+of Police; the Home Office thought this insufficient and revoked his
+licence; and there is now talk of a prosecution.
+
+The Central Markets are not a place which the habitual Parisian cares to
+venture into. Apart from its own peculiar and particularly pungent
+odours, the markets are peopled with a class of stallkeeper who do not
+exactly keep their tongue in their pocket, as the French say. They have,
+in fact, a flow of language, and it requires a brave man to make a stand
+against it--and all the brave men are at the front just now.
+
+But the Central Markets not only have a language of their own; they have
+ways and methods of dealing that require long years of acquaintance to
+fathom, so only experts venture to make head or tail of them.
+
+All this means that between the Central Markets, at the depository, and
+most of all that Paris wants to eat, and the actual consumer as
+represented by the ordinary housewife starting out on her daily round of
+shopping, there move and live a host of intermediaries. Large as their
+number is, they cannot compare with the middlemen who squeeze in between
+the Central Markets and the actual grower, breeder, or producer.
+
+With so many hands for produce to pass through, each one eager to grab
+all that it can for itself before it passes the stuff along, it is small
+wonder that prices grow, not taking into account the burden of taxes and
+other charges the goods have to bear on their journey from the farm to
+the household.
+
+
+ARMY OF INSPECTORS
+
+The police have an army of inspectors for watching and superintending
+the work of the markets. The rules drawn up for their regulation would
+more than fill an old-fashioned three-volume novel, and each one
+provides for penalties severer and stricter than the other. Yet the
+profitable game of rigging the market and everything connected with it
+is in full swing, and no one is more fooled than the police, unless it
+be the public.
+
+Since the war broke out, the State, the city, and the public alike,
+backed up by the small retail trader, have done their best to get even
+with the Central Markets. The more they try to put things right the
+worse they seem to get. Prices appear to ease for a brief space, but
+they soon become inflated once more. Or, if they do not, the particular
+commodity concerned simply disappears in some mysterious fashion until
+the "powers that be" submit to the inevitable, and shut their eyes to
+scheming they are helpless to prevent.
+
+
+AS MUCH FOOD AS USUAL
+
+The worst of it is that statistics can always be produced to show that
+the rise in prices is purely and simply the outcome of a falling off in
+supplies. Arrivals of fruits, vegetables, and fish in the last quarter
+of the past year were exactly half the average supply of an ordinary
+year; eggs were two-thirds below the proper figures, meat some 4,000
+tons short, butter six tons, cheeses only a ton.
+
+Of course, the population of the city has diminished also to a certain
+extent, but not so much as might be expected considering that there is
+practically no single family that has not one or more members at the
+front.
+
+They have been replaced by refugees, sick and wounded soldiers, huge war
+administrations of one kind and another. Paris consequently wants almost
+as much feeding as in ordinary times, not taking any account of the fact
+that portions of both the British and French Armies still buy provisions
+on the Paris markets.
+
+Notwithstanding the legitimate reasons that can be put forward to
+explain the upward trend of prices, the authorities know well enough
+that all is not so innocent and above board as it appears. One or two
+more glaring instances than usual of manipulation have put them on the
+right track at last. Other steps may also be expected, for public
+opinion has got to the point that either the "inside ring" must be
+broken up or popular resentment will take a form that no Government can
+afford to overlook or affect to ignore.
+
+
+17. _The Daily News_, August 16, 1915:
+
+A YEAR OF ECONOMIC WAR
+
+The _Vorwaerts_, without boasting, as Dr. Helfferich has been doing, of
+Germany's financial invincibility, yet sees cause for satisfaction in
+the economic condition of the Empire after twelve months of war.
+
+The upheaval of the first week of war was indeed serious, and the grim
+spectre of unemployment was in the air. But it was soon laid.
+
+The best results were obtained in the sphere of unemployment. At the
+beginning of the war it was about 22-1/2 per cent, in October only 10·9
+per cent, and in May it had further sunk to 2·9 per cent. The figures
+for June were 2·6 per cent as against 2·5 per cent in the previous
+June.... Similarly the daily output of coal of the Rhenish Westphalian
+Coal Syndicate, which in July, 1914, reached 327,974 tons, sank in
+August to 170,816 tons, in September rose again to 211,995, and in
+October to 223,760, the figures for that month being 60 per cent of
+those of the previous October.... In later months, in spite of the
+calling up of more and more workers, it has only been 25 to 27 per cent
+below the normal.
+
+The writer tells the same story of the iron and textile industries, and
+traces the good results to the fact that the supplies of raw materials
+were far greater than had been thought. For instance, there were about
+700,000 bales of cotton more than are needed in a normal year. Besides
+which the stores of conquered countries were at the disposal of the
+conquerors. The only trades which really suffered were those in
+luxuries.
+
+The article concludes thus:
+
+     The German trade has survived the shocks of the first year of war
+     better than the most convinced optimist could have hoped, and
+     better than the organisation of other belligerents. All fears of
+     immediate inevitable industrial collapse which haunted us at the
+     beginning of the war have been dissipated. Instead of this we meet
+     in all industrial circles with the consciousness [often much
+     exaggerated] that "We can endure."
+
+The words in brackets are significant.
+
+
+18. _Pall Mall Gazette_, November 10, 1916:
+
+  LIVING ON WAR
+
+  KRUPPS' PROFIT JUMPS FROM 1-1/2 MILLIONS TO 4-1/2
+
+  AMSTERDAM, _Tuesday Night_.
+
+An Essen telegram states that the clear profit last year of Krupps
+amounted to 86,400,000 marks (£4,320,000), as compared with a profit of
+33,900,000 marks (£1,695,000) in the preceding year. A dividend of 12
+per cent has been distributed.--Reuter.
+
+
+_19. Pall Mall Gazette:_
+
+GERMAN DIVIDENDS
+
+ECONOMIC POSITION OF SOME OF HER COMPANIES
+
+The 1914 dividends of over sixty limited companies, nearly all German,
+and the remainder Austrian, show that in the case of sixteen companies
+the dividends amounted to 20 per cent or over, the average being 25-3/16
+per cent. These companies (says the _Morning Post_) are mainly engaged
+in the production of leather, dynamite, explosives, india-rubber, arms,
+ammunition, and powder. In one case, that of an explosives company in
+Hamburg, the dividend attained 40 per cent.
+
+Germany is still barring the Swiss frontier, and for the last five days
+the German post arrived at Berne very late or not at all, thus pointing
+to great activity in military matters beyond the German-Swiss frontier.
+
+As further proof, if proof were needed, of the sufficiency of Germany's
+food supplies, it is pointed out that she now offers to send to
+Switzerland large quantities of potatoes.
+
+
+20. _The Times_, July 5, 1916:
+
+  WAR PROFIT-MONGERS IN RUSSIA
+
+  _From our Correspondent._
+
+  PETROGRAD, _July 2_.
+
+The clergy will to-morrow publicly anathematise the "freebooters of the
+rear," who are amassing huge fortunes at the expense of the public.
+
+21. _The Westminster Gazette_, Aug. 28, 1916:
+
+  GERMAN WAR SCANDALS
+
+  700 PER CENT PROFIT FOR EAST PRUSSIAN LANDOWNERS
+
+  ZURICH, _Sunday_.
+
+Details of several recent corrupt affairs which have come to light in
+Germany have reached Switzerland.
+
+At Mainz a timber merchant was arrested for bribing army officers to
+secure contracts for his firm. The official investigation revealed that
+he had paid a total of £50,000 in bribes to army officers. Some of the
+individual bribes were as high as £2,500. This timber merchant, who was
+almost a poor man before the war, has accumulated in two years a fortune
+which compelled him to pay income-tax on an income of £25,000 per annum.
+
+Another scandalous affair was discovered in Herr von Batocki's new
+Imperial Food Department. One of his officials, Bernot by name, was
+bribed by numerous East Prussian landowners to have the crops from their
+estates bought by the Government at exorbitant prices. Bernot pocketed
+some £15,000, and the landowners in question sold their wheat at a
+profit of 700 per cent.--Wireless Press.
+
+FOOTNOTES:
+
+[Footnote 89: Net loss of £276,560 in first half 1914-15.]
+
+
+       *       *       *       *       *
+
+
+_BY THE SAME AUTHOR_
+
+LETTERS FROM GREECE
+
+F'cap 8vo. 2s. _net_
+
+CASSANDRA IN TROY
+
+Sm. 4to. 5s. _net_
+
+
+
+
+_MARTIN SECKER_
+
+_HIS COMPLETE CATALOGUE MCMXVII_
+
+_The Books in this list should be obtainable from all Booksellers and
+Libraries, and if any difficulty is experienced the Publisher will be
+glad to be informed of the fact. He will also be glad if those
+interested in receiving from time to time Announcement Lists,
+Prospectuses, &c, of new and forthcoming books from Number Five John
+Street will send their names and addresses to him for this purpose. Any
+book in this list may be obtained on approval through the booksellers,
+or direct from the Publisher, on remitting him the published price, plus
+the postage.
+
+All prices indicated in this Catalogue are NET.
+
+MARTIN SECKER Publisher Number Five John Street Adelphi London
+
+Telephone Gerrard 4779 Telegraphic Address: Psophidian London_
+
+
+
+Martin Secker's Catalogue
+
+
+PART ONE INDEX OF AUTHORS
+
+
+  ABERCROMBIE, LASCELLES
+    SPECULATIVE DIALOGUES.                   _Cr. 8vo. 5s._
+    HARDY: A CRITICAL STUDY.             _Dy. 8vo. 7s. 6d._
+    THE EPIC
+       (_The Art and Craft of Letters_).   _F'cap 8vo. 1s._
+
+  AFLALO, F. G.
+    BEHIND THE RANGES.            _Wide Demy 8vo. 10s. 6d._
+    REGILDING THE CRESCENT.            _Demy 8vo. 10s. 6d._
+    BIRDS IN THE CALENDAR.             _Crown 8vo. 3s. 6d._
+
+  ALLSHORN, LIONEL
+    STUPOR MUNDI.                     _Medium Octavo. 16s._
+
+  APPERSON, G. L.
+    THE SOCIAL HISTORY OF SMOKING.         _Post  8vo. 6s._
+
+  ARMSTRONG, DONALD
+    THE MARRIAGE OF QUIXOTE.               _Crown 8vo. 6s._
+
+  ARTZIBASHEF, MICHAEL
+    SANINE. _Preface by Gilbert Cannan._   _Crown 8vo. 6s._
+    BREAKING-POINT.                        _Crown 8vo. 6s._
+    THE MILLIONAIRE.
+       _Intro. by the Author._             _Crown 8vo. 6s._
+    TALES OF THE REVOLUTION.               _Crown 8vo. 6s._
+
+  BARRINGTON, MICHAEL
+    GRAHAME OF CLAVERHOUSE.            _Imperial 8vo. 30s._
+    _Edition de Luxe                                 _63s._
+
+  BENNETT, ARNOLD
+    THOSE UNITED STATES.                _Post 8vo. 2s. 6d._
+
+  BLACK, CLEMENTINA
+    THE LINLEYS OF BATH.                 _Medium 8vo. 16s._
+    THE CUMBERLAND LETTERS.                _Med. 8vo. 16s._
+
+  BOULGER, D. C.
+    THE BATTLE OF THE BOYNE.               _Med. 8vo. 21s._
+
+  BROWN, IVOR
+    YEARS OF PLENTY.                       _Crown 8vo. 6s._
+    SECURITY.                              _Crown 8vo. 6s._
+
+  BURROW, C. KENNETT
+    CARMINA VARIA.                     _F'cap 8vo. 2s. 6d._
+
+  CALDERON, GEORGE (With St. John Hankin)
+    THOMPSON: A COMEDY.                  _Sq. Cr. 8vo. 2s._
+
+  CANNAN, GILBERT
+    BUTLER: A CRITICAL STUDY.            _Dy. 8vo. 7s. 6d._
+    SATIRE
+       (_Art and Craft of Letters_).       _F'cap 8vo. 1s._
+
+  CHESTERTON, G. K.
+    MAGIC: A FANTASTIC COMEDY.           _Sq. Cr. 8vo. 2s._
+
+  COKE, DESMOND
+    THE ART OF SILHOUETTE.             _Demy 8vo. 10s. 6d._
+
+  CRAVEN, A. SCOTT
+    THE FOOL'S TRAGEDY.                    _Crown 8vo. 6s._
+
+  CROSLAND, T. W. H.
+    THE ENGLISH SONNET.                 _Demy 8vo. 7s. 6d._
+    COLLECTED POEMS.                   _Small 4vo. 7s. 6d._
+    WAR POEMS.                            _Crown 8vo._ 1s._
+    THE BOOK OF ENGLISH SONNETS.
+      (_Edited with an Introduction._)      _Pott 8vo. 5s._
+
+  DAWSON, WARRINGTON
+    THE TRUE DIMENSION.                    _Crown 8vo. 6s._
+
+  DE SELINCOURT, BASIL
+    WHITMAN: A CRITICAL STUDY.           _Dy. 8vo. 7s. 6d._
+    RHYME
+      (_The Art and Craft of Letters_).    _F'cap 8vo. 1s._
+
+  DOUGLAS, NORMAN
+    FOUNTAINS IN THE SAND.          _Wide Dy. 8vo. 7s. 6d._
+    OLD CALABRIA.                         _Demy. 8vo. 15s._
+    SOUTH WIND.                            _Crown 8vo. 6s._
+  DRAYCOTT, G. M.
+    MAHOMET: FOUNDER OF ISLAM.          _Dy. 8vo. 12s. 6d._
+
+  DRINKWATER, JOHN
+    MORRIS: A CRITICAL STUDY.            _Dy. 8vo. 7s. 6d._
+    ROSSETTI: A CRITICAL STUDY.          _Dy. 8vo. 7s. 6d._
+    THE LYRIC
+       (_The Art and Craft of Letters_).   _F'cap 8vo. 1s._
+
+  FALLS, CYRIL
+    KIPLING: A CRITICAL STUDY.           _Dy. 8vo. 7s. 6d._
+
+  FEA, ALLAN
+    OLD ENGLISH HOUSES.                _Demy 8vo. 10s. 6d._
+    NOOKS AND CORNERS OF OLD ENGLAND.                 _5s._
+
+  FLECKER, J. E.
+    COLLECTED POEMS.                   _Small 4to. 7s. 6d._
+    THE GOLDEN JOURNEY TO SAMARKAND.                  _5s._
+
+  FRANCIS, RENÉ
+    EGYPTIAN ÆSTHETICS.            _Wide Demy 8vo. 7s .6d._
+
+  GRETTON, R. H.
+    HISTORY
+       (_The Art and Craft of Letters_).   _F'cap 8vo. 1s._
+
+  HANKIN, ST. JOHN
+    THE DRAMATIC WORKS, with an Introduction by John Drinkwater.
+       _Small 4to. Definitive Limited Edition
+                            in Three Volumes._       _25s._
+    THE RETURN OF THE PRODIGAL.          _Sq. Cr. 8vo. 2s._
+    THE CASSILIS ENGAGEMENT.             _Sq. Cr. 8vo. 2s._
+
+  HANKIN, ST. JOHN (_continued_)
+    THE CHARITY THAT BEGAN AT HOME.                   _2s._
+    THE CONSTANT LOVER, ETC.            _Sq. Cr. 8vo.  2s._
+
+  HAUPTMANN, GERHART
+    THE COMPLETE DRAMATIC
+        WORKS.        _6 vols. Crown 8vo.  5s. per volume._
+
+  HEWLETT, WILLIAM
+    TELLING THE TRUTH.                    _Crown 8vo.  6s._
+    UNCLE'S ADVICE: A NOVEL IN LETTERS.     _Cr. 8vo.  6s._
+    THE CHILD AT THE WINDOW.              _Crown 8vo.  6s._
+    INTRODUCING WILLIAM ALLISON.          _Crown 8vo.  6s._
+
+  HORSNELL, HORACE
+    THE BANKRUPT.                         _Crown 8vo.  6s._
+
+  HOWE, P. P.
+    THE REPERTORY THEATRE.              _Cr. 8vo. 2s.  6d._
+    DRAMATIC PORTRAITS.                   _Crown 8vo.  5s._
+    SHAW: A CRITICAL STUDY.             _Dy. 8vo. 7s.  6d._
+    SYNGE: A CRITICAL STUDY.            _Dy. 8vo. 7s.  6d._
+    CRITICISM
+       (_The Art and Craft of Letters_).  _F'cap 8vo.  1s._
+
+  HUEFFER, FORD MADOX
+    JAMES: A CRITICAL STUDY.            _Dy. 8vo.  7s. 6d._
+    COLLECTED POEMS.                       _Demy 8vo.  6s._
+
+  IBSEN, HENRIK
+    PEER GYNT. A New Translation
+       by R. Ellis Roberts.          _Wide Crown 8vo.  5s._
+
+  JACOB, HAROLD
+    PERFUMES OF ARABY.            _Wide Demy 8vo.  7s. 6d._
+
+  JAMES, HENRY
+    THE TURN OF THE SCREW.
+    THE LESSON OF THE MASTER.
+    THE DEATH OF THE LION.
+    THE ASPERN PAPERS.
+    DAISY MILLER.
+    THE COXON FUND.
+
+  JAMES, HENRY (continued)
+    THE REVERBERATOR.
+    THE ALTAR OF THE DEAD.
+    THE BEAST IN THE JUNGLE.
+    THE FIGURE IN THE CARPET.
+    GLASSES.
+    THE PUPIL.                   _Each F'cap 8vo.  2s. 6d._
+
+  JOHNSON, OWEN
+    THE SALAMANDER.                       _Crown 8vo.  6s._
+    MAKING MONEY.                         _Crown 8vo.  6s._
+
+  LAMONT, L. M.
+    A CORONAL: AN ANTHOLOGY.          _F'cap 8vo.  2s. 6d._
+
+  LEWISOHN, L.
+    THE MODERN DRAMA.                     _Crown 8vo.  5s._
+
+  LLUELLYN, RICHARD
+    THE IMPERFECT BRANCH.                 _Crown 8vo.  6s._
+
+  LOW, IVY
+    THE QUESTING BEAST.                   _Crown 8vo.  6s._
+
+  LYNCH, BOHUN
+    UNOFFICIAL.                           _Crown 8vo.  6s._
+    THE COMPLETE GENTLEMAN.               _Crown 8vo.  6s._
+
+  McFEE, WILLIAM
+    CASUALS OF THE SEA.                   _Crown 8vo.  6s._
+
+  MACHEN, ARTHUR
+    HIEROGLYPHICS.                   _F'cap 8vo.  2s. 6d._
+
+  MACKENZIE, COMPTON
+    THE PASSIONATE ELOPEMENT.      _Cr. 8vo.  6s. and 2s._
+    CARNIVAL.                    _Crown 8vo.  6s. and 2s._
+    SINISTER STREET. Volume I.     _Cr. 8vo.  6s. and 2s._
+    SINISTER STREET. Volume II.          _Crown 8vo.  6s._
+    GUY AND PAULINE.                     _Crown 8vo.  6s._
+    KENSINGTON RHYMES.                   _Crown 4to.  5s._
+
+  MAVROGORDATO, JOHN
+    LETTERS FROM GREECE.                  _F'cap 8vo.  2s._
+    CASSANDRA IN TROY.                    _Small 4to.  5s._
+    THE WORLD IN CHAINS                   _Crown 8vo.  2s._
+
+  MELVILLE, LEWIS
+    SOME ECCENTRICS AND A WOMAN.       _Dy. 8vo.  10s. 6d._
+
+  METHLEY, VIOLET
+    CAMILLE DESMOULINS: A Biography.       _Dy. 8vo.  15s._
+
+  MEYNELL, VIOLA
+    LOT BARROW.                           _Crown 8vo.  6s._
+    MODERN LOVERS.                        _Crown 8vo.  6s._
+    COLUMBINE.                            _Crown 8vo.  6s._
+    NARCISSUS.                            _Crown 8vo.  6s._
+
+  MURRY, J. MIDDLETON
+    DOSTOEVSKY: A Critical Study.       _Dy. 8vo.  7s. 6d._
+
+  NORTH, LAURENCE
+    IMPATIENT GRISELDA                    _Crown 8vo.  6s._
+    THE GOLIGHTLYS: FATHER AND SON.         _Cr. 8vo.  6s._
+
+  ONIONS, OLIVER
+    WIDDERSHINS.                  _Crown 8vo.  6s. and 2s._
+    IN ACCORDANCE WITH THE EVIDENCE.        _Cr. 8vo.  6s._
+    THE DEBIT ACCOUNT.                    _Crown 8vo.  6s._
+    THE STORY OF LOUIE.                   _Crown 8vo.  6s._
+
+  PAIN, BARRY
+    ONE KIND AND ANOTHER.           _Cr. 8vo.  6s. and 2s._
+    COLLECTED TALES: Volume I.           _Medium 8vo.  5s._
+    COLLECTED TALES: Volume II.          _Medium 8vo.  5s._
+    THE SHORT STORY
+     (_The Art and Craft of Letters_).    _F'cap 8vo.  1s._
+
+  PALMER, JOHN
+    PETER PARAGON.                        _Crown 8vo.  6s._
+    THE KING'S MEN.                       _Crown 8vo.  6s._
+    COMEDY
+     (_The Art and Craft of Letters_).    _F'cap 8vo.  1s._
+
+  PERUGINI, MARK E.
+    THE ART OF BALLET.                    _Demy 8vo.  15s._
+
+  PHILIPS, AUSTIN
+    BATTLES OF LIFE.                      _Crown 8vo.  6s._
+
+  PRESTON, ANNA
+    THE RECORD OF A SILENT LIFE.          _Crown 8vo.  6s._
+
+  REID, FORREST
+    YEATS: A CRITICAL STUDY.            _Dy. 8vo.  7s. 6d._
+
+  ROBERTS, R. ELLIS
+    IBSEN: A CRITICAL STUDY.            _Dy. 8vo.  7s. 6d._
+    PEER GYNT: A NEW TRANSLATION.            Cr. 8vo.  5s._
+
+  SABATINI, RAFAEL
+    THE SEA-HAWK.                   _Cr. 8vo.  6s. and 2s._
+    THE LION'S SKIN.                      _Crown 8vo.  2s._
+    THE BANNER OF THE BULL.               _Crown 8vo.  6s._
+    THE SNARE.                            _Crown 8vo.  6s._
+
+  SAND, MAURICE
+    THE HISTORY OF THE HARLEQUINADE.
+      _Two Volumes._             _Med. 8vo.  25s. the set._
+
+  SCOTT-JAMES, R. A.
+    PERSONALITY IN LITERATURE.          Demy 8vo.  7s. 6d._
+
+  SIDGWICK, FRANK
+    THE BALLAD (_Art and Craft of Letters_).          _1s._
+
+  SIMMS, EVELYN
+    A VISION OF CONSOLATION.              _Crown 8vo.  1s._
+    THE CROWNING PURPOSE.                 _Crown 8vo.  1s._
+
+  SOLOGUB, FEODOR
+    THE OLD HOUSE.                        _Crown 8vo.  6s._
+    THE LITTLE DEMON.                     _Crown 8vo.  6s._
+    THE CREATED LEGEND.                   _Crown 8vo.  6s._
+
+  SQUIRE, J. C.
+    GEORGIAN POETS.                       _Crown 8vo.  5s._
+    TRICKS OF THE TRADE.              _Crown 8vo. 2s.  6d._
+    THE GOLD TREE.                      Demy 8vo.  7s. 6d._
+
+  STONE, CHRISTOPHER
+    THE BURNT HOUSE.                      _Crown 8vo.  6s._
+    PARODY (_Art and Craft of Letters_).              _1s._
+
+  STRAUS, RALPH
+    CARRIAGES AND COACHES.                _Med. 8vo.  18s._
+
+  SWINNERTON, FRANK
+    GISSING: A CRITICAL STUDY.          _Dy. 8vo. 7s.  6d._
+    STEVENSON: A CRITICAL STUDY.        _Dy. 8vo. 7s.  6d._
+
+  SWINNERTON, FRANK (_continued_)
+    NOCTURNE.
+    THE CHASTE WIFE.                   _Each Cr. 8vo.  6s._
+
+  TAYLOR, G. R. STIRLING
+    _Mary Wollstonecraft._              Demy 8vo.  7s. 6d._
+
+  TAYLOR, UNA
+    MAETERLINCK: A CRITICAL STUDY.      _Dy. 8vo.  7s. 6d._
+
+  THOMAS EDWARD
+    SWINBURNE: A CRITICAL STUDY.        _Dy. 8vo.  7s. 6d._
+    PATER: A CRITICAL STUDY.            _Dy. 8vo.  7s. 6d._
+    THE TENTH MUSE.                   _F'cap 8vo.  2s. 6d._
+
+  VAUGHAN, H. M.
+    MELEAGER.                             _Crown 8vo.  6s._
+    THE DIAL OF AHAZ.                     _Crown 8vo.  6s._
+    AN AUSTRALASIAN WANDER-YEAR.       _Dy. 8vo.  10s. 6d._
+
+  WALPOLE, HUGH
+    FORTITUDE.                            _Crown 8vo.  6s._
+    THE DUCHESS OF WREXE.                 _Crown 8vo.  6s._
+    THE DARK FOREST.                      _Crown 8vo.  6s._
+
+  WEST, JULIUS
+    CHESTERTON: A CRITICAL STUDY.       _Dy. 8vo.  7s. 6d._
+
+  WILLIAMS, ORLO
+    VIE DE BOHÈME.                        _Demy 8vo.  15s._
+    MEREDITH: A CRITICAL STUDY.         _Dy. 8vo.  7s. 6d._
+    THE ESSAY (_The Art and Craft of Letters_).       _1s._
+
+  YOUNG, FILSON
+    NEW LEAVES.                      _Wide Crown 8vo.  5s._
+    A CHRISTMAS CARD.                     _Demy 16mo.  1s._
+
+  YOUNG, FRANCIS BRETT
+    DEEP SEA.                             _Crown 8vo.  6s._
+    THE DARK TOWER.                       _Crown 8vo.  6s._
+    THE IRON AGE.                         _Crown 8vo.  6s._
+    FIVE DEGREES SOUTH                    _Crown 8vo.  1s._
+
+  YOUNG, F. & E. BRETT
+    UNDERGROWTH.                          _Crown 8vo.  6s._
+    BRIDGES: A CRITICAL STUDY.           _Dy. 8vo  7s. 6d._
+
+
+PART TWO: CLASSIFIED INDEX OF TITLES
+
+
+_General Literature_
+
+  ART OF BALLET, THE. _By Mark E. Perugini._
+
+  ART OF SILHOUETTE, THE. _By Desmond Coke._
+
+  BATTLE OF THE BOYNE, THE. _By D. C. Boulger._
+
+  BEHIND THE RANGES, _By F. G. Aflalo._
+
+  BIRDS IN THE CALENDAR. _By F. G. Aflalo._
+
+  CAMILLE DESMOULINS. _By Violet Methley._
+
+  CARRIAGES AND COACHES. _By Ralph Straus._
+
+  CHRISTMAS CARD, A. _By Filson Young._
+
+  CUMBERLAND LETTERS, THE. _By Clementina Black._
+
+  DRAMATIC PORTRAITS. _By P. P. Howe._
+
+  ENGLISH SONNET, THE. _By T. W. H. Crosland._
+
+  GEORGIAN POETS. _By J. C. Squire._
+
+  GOLD TREE, THE. _By J. C. Squire._
+
+  GRAHAME OF CLAVERHOUSE. _By Michael Barrington._
+
+  HIEROGLYPHICS. _By Arthur Machen._
+
+  HISTORY OF THE HARLEQUINADE, THE. _By M. Sand._
+
+  LETTERS FROM GREECE. _By John Mavrogordato._
+
+  LINLEYS OF BATH, THE. _By Clementina Black._
+
+  MAHOMET. _By G. M. Draycott._
+
+  MARY WOLLSTONECRAFT. _By G. R. Stirling Taylor._
+
+  NEW LEAVES. _By Filson Young._
+
+  PERSONALITY IN LITERATURE. _By R. A. Scott-James._
+
+  REGILDING THE CRESCENT. _By F. G. Aflalo._
+
+  SOCIAL HISTORY OF SMOKING, THE. _By G. L. Apperson._
+
+  SOME ECCENTRICS AND A WOMAN. _By Lewis Melville._
+
+  SPECULATIVE DIALOGUES. _By Lascelles Abercrombie._
+
+  STUPOR MUNDI. _By Lionel Allshorn._
+
+  TENTH MUSE, THE. _By Edward Thomas._
+
+  TRICKS OF THE TRADE. _By J. C Squire._
+
+  THOSE UNITED STATES. _By Arnold Bennett._
+
+  VIE DE BOHÈME. _By Orlo Williams._
+
+  WORLD IN CHAINS, THE. _By J. Mavrogordato._
+
+
+  _Verse_
+
+  BOOK OF ENGLISH SONNETS, THE.
+
+  CARMINA VARIA. _By C. Kennett Burrow._
+
+  COLLECTED POEMS OF T. W. H. CROSLAND.
+
+  COLLECTED POEMS OF J. E. FLECKER.
+
+  COLLECTED POEMS OF F. M. HUEFFER.
+
+  CORONAL, A. A NEW ANTHOLOGY. _By L. M. Lamont._
+
+  CROWNING PURPOSE, THE. _By Evelyn Simms._
+
+  FIVE DEGREES SOUTH. _By F. Brett Young._
+
+  GOLDEN JOURNEY TO SAMARKAND, THE. _By J. E. Flecker._
+
+  KENSINGTON RHYMES. _By Compton Mackenzie._
+
+  VISION OF CONSOLATION, A. _By Evelyn Simms._
+
+  WAR POEMS BY 'X.'
+
+
+  _Drama_
+
+  DRAMATIC WORKS OF ST. JOHN HANKIN.    _3 vols._
+
+  DRAMATIC WORKS OF GERHART HAUPTMANN.  _6 vols._
+
+  CASSANDRA IN TROY. _By John Mavrogordato._
+
+  MAGIC. _By G. K. Chesterton._
+
+  MODERN DRAMA, THE. _By L. Lewisohn._
+
+  PEER GYNT. _Translated by R. Ellis Roberts._
+
+  REPERTORY THEATRE, THE. _By P. P. Howe._
+
+  THOMPSON. _By St. John Hankin and G. Calderon._
+
+
+  _Travel_
+
+  AUSTRALASIAN WANDER-YEAR, AN. _By H. M. Vaughan._
+
+  EGYPTIAN ÆSTHETICS. _By Rene Francis._
+
+  FOUNTAINS IN THE SAND. _By Norman Douglas._
+
+  NOOKS AND CORNERS OF OLD ENGLAND. _By Allan Fea._
+
+  OLD CALABRIA. _By Norman Douglas._
+
+  OLD ENGLISH HOUSES. _By Allan Fea._
+
+  PERFUMES OF ARABY. _By Harold Jacob._
+
+
+  _Martin Secker's Series of
+  Critical Studies_
+
+  ROBERT BRIDGES. _By F. & E. Brett Young._
+
+  SAMUEL BUTLER. _By Gilbert Cannan._
+
+  G. K. CHESTERTON. _By Julius West._
+
+  FYODOR DOSTOEVSKY. _By J. Middleton Murry._
+
+  GEORGE GISSING. _By Frank Swinnerton._
+
+  THOMAS HARDY. _By Lascelles Abercrombie._
+
+  HENRIK IBSEN. _By R. Ellis Roberts._
+
+  HENRY JAMES. _By Ford Madox Hueffer._
+
+  RUDYARD KIPLING. _By Cyril Falls._
+
+  MAURICE MAETERLINCK. _By Una Taylor._
+
+  GEORGE MEREDITH. _By Orlo Williams._
+
+  WILLIAM MORRIS. _By John Drinkwater._
+
+  WALTER PATER. _By Edward Thomas._
+
+  D. G. ROSSETTI. _By John Drinkwater._
+
+  BERNARD SHAW. _By P. P. Howe._
+
+  R. L. STEVENSON. _By Frank Swinnerton._
+
+  A. C. SWINBURNE. _By Edward Thomas._
+
+  J. M. SYNGE. _By P. P. Howe._
+
+  WALT WHITMAN. _By Basil de Selincourt._
+
+  W. B. YEATS. _By Forrest Reid._
+
+
+  _The Art and Craft of Letters_
+
+
+  BALLAD, THE. _By Frank Sidgwick._
+
+  COMEDY. _By John Palmer._
+
+  CRITICISM. _By P. P. Howe._
+
+  EPIC, THE. _By Lascelles Abercrombie._
+
+  ESSAY, THE. _By Orlo Williams._
+
+  HISTORY. _By R. H. Gretton._
+
+  LYRIC, THE. _By John Drinkwater._
+
+  PARODY. _By Christopher Stone._
+
+  SATIRE. _By Gilbert Cannan._
+
+  SHORT STORY, THE. _By Barry Pain._
+
+
+  _The Tales of Henry James_
+
+  ALTAR OF THE DEAD, THE.
+  ASPERN PAPERS, THE.
+  BEAST IN THE JUNGLE, THE.
+  COXON FUND, THE.
+  DAISY MILLER.
+  DEATH OF THE LION, THE.
+  FIGURE IN THE CARPET, THE.
+  GLASSES.
+  LESSON OF THE MASTER, THE.
+  PUPIL, THE.
+  REVERBERATOR, THE.
+  TURN OF THE SCREW, THE.
+
+
+  _Martin Secker's Series of
+  Two-Shilling Novels_
+
+  CARNIVAL. _By Compton Mackenzie._
+
+  SINISTER STREET: VOL. I. _By Compton Mackenzie._
+
+  THE PASSIONATE ELOPEMENT. _By Compton Mackenzie._
+
+  THE SEA-HAWK. _By Rafael Sabatini._
+
+  SANINE. _By Michael Artzibashef._
+
+  FORTITUDE. _By Hugh Walpole._
+
+  THE LION'S SKIN. _By Rafael Sabatini._
+
+  WIDDERSHINS. _By Oliver Onions._
+
+  ONE KIND AND ANOTHER. _By Barry Pain._
+
+
+  _Fiction_
+
+  BANKRUPT, THE. _By Horace Horsnell._
+
+  BANNER OF THE BULL, THE. _By Rafael Sabatini._
+
+  BATTLES OF LIFE. _By Austin Philips._
+
+  BREAKING-POINT. _By Michael Artzibashef._
+
+  BURNT HOUSE, THE. _By Christopher Stone._
+
+  CARNIVAL. _By Compton Mackenzie._
+
+  CASUALS OF THE SEA. _By William McFee._
+
+  CHASTE WIFE, THE. _By Frank Swinnerton._
+
+  COLLECTED TALES: VOL. I. _By Barry Pain._
+
+  COLLECTED TALES: VOL. II. _By Barry Pain._
+
+  COLUMBINE. _By Viola Meynell._
+
+  COMPLETE GENTLEMAN, THE. _By Bohun Lynch._
+
+  CREATED LEGEND, THE. _By Feodor Sologub._
+
+  DARK FOREST, THE. _By Hugh Walpole._
+
+  DARK TOWER, THE. _By F. Brett Young._
+
+  DEBIT ACCOUNT, THE. _By Oliver Onions._
+
+  DEEP SEA. _By F. Brett Young._
+
+  DIAL OF AHAZ, THE. _By H. M. Vaughan._
+
+  DUCHESS OF WREXE, THE. _By Hugh Walpole._
+
+  FOOL'S TRAGEDY, THE. _By A. Scott Craven._
+
+  FORTITUDE. _By Hugh Walpole._
+
+  GOLIGHTLYS, THE. _By Laurence North._
+
+  GUY AND PAULINE. _By Compton Mackenzie._
+
+  IMPATIENT GRISELDA. _By Laurence North._
+
+  IMPERFECT BRANCH, THE. _By Richard Lluellyn._
+
+  IN ACCORDANCE WITH THE EVIDENCE. _By O. Onions._
+
+  INTRODUCING WILLIAM ALLISON. _By William Hewlett._
+
+  IRON AGE, THE. _By F. Brett Young._
+
+  KING'S MEN, THE. _By John Palmer._
+
+  LION'S SKIN, THE. _By Rafael Sabatini._
+
+  LITTLE DEMON, THE. _By Feodor Sologub._
+
+  LOT BARROW. _By Viola Meynell._
+
+  MARRIAGE OF QUIXOTE, THE.  _By Donald Armstrong._
+
+  MAKING MONEY. _By Owen Johnson._
+
+  MELEAGER. _By H. M. Vaughan._
+
+  MILLIONAIRE, THE. _By Michael Artzibashef._
+
+  MODERN LOVERS. _By Viola Meynell._
+
+  NARCISSUS. _By Viola Meynell._
+
+  NOCTURNE. _By Frank Swinnerton._
+
+  OLD HOUSE, THE. _By Feodor Sologub._
+
+  ONE KIND AND ANOTHER. _By Barry Pain._
+
+  PASSIONATE ELOPEMENT, THE. _By Compton Mackenzie._
+
+  PETER PARAGON. _By John Palmer._
+
+  QUESTING BEAST, THE. _By Ivy Low._
+
+  RECORD OF A SILENT LIFE, THE. _By Anna Preston._
+
+  SALAMANDER, THE. _By Owen Johnson._
+
+  SANINE. _By Michael Artzibashef._
+
+  SEA HAWK, THE. _By Rafael Sabatini._
+
+  SECURITY. _By Ivor Brown._
+
+  SINISTER STREET. I. _By Compton Mackenzie._
+
+  SINISTER STREET. II. _By Compton Mackenzie._
+
+  SNARE, THE. _By Rafael Sabatini._
+
+  SOUTH WIND. _By Norman Douglas._
+
+  STORY OF LOUIE, THE. _By Oliver Onions._
+
+  TALES OF THE REVOLUTION. _By M. Artzibashef._
+
+  TELLING THE TRUTH. _By William Hewlett._
+
+  TRUE DIMENSION, THE. _By Warrington Dawson._
+
+  UNCLE'S ADVICE. _By William Hewlett._
+
+  UNDERGROWTH. _By F. & E. Brett Young._
+
+  UNOFFICIAL. _By Bohun Lynch._
+
+  WIDDERSHINS. _By Oliver Onions._
+
+  YEARS OF PLENTY. _By Ivor Brown._
+
+
+PRINTED BY
+WM. BRENDON AND SON, LTD. PLYMOUTH, ENGLAND.
+
+
+
+
+
+End of Project Gutenberg's The World in Chains, by John Mavrogordato
+
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