Probably the power which was most generally feared in the Greek world was that of the King of Persia. Several times in recent years (and particularly in 387 and 367) he had been requested to make and enforce a general settlement of Hellenic affairs. The settlement of 387 (called the King's Peace, or the Peace of Antalcidas, after the Spartan officer who negotiated it) had ordained the independence of the Greek cities, small and great, with the exception of those in Asia Minor, which were to form part of the Persian Empire, and of Lemnos, Imbros, and Scyros, which were to belong to Athens as before. The attempt to give effect to the arrangement negotiated in 367 failed, and the terms of the Peace of Antalcidas, though it was still appealed to, when convenient, as a charter of liberty, also came to be disregarded. But there was always a sense of the possibility or the danger of provoking the great king to exert his strength, or at least to use his wealth, to the detriment of some or all of the Greek states; though at the moment of which we are speaking (about 355) the Persian Empire itself was suffering from recent disorders and revolutions, and the king had little leisure for interfering in the affairs of Greece.

It was to the department of foreign and inter-Hellenic affairs that Demosthenes principally devoted himself. His earliest political speeches, however, were composed and delivered in furtherance of prosecutions for the crime of proposing illegal legislation. These were the speeches against Androtion (spoken by Diodorus in 355) and against Leptines (in 354). Both these were written to denounce measures which Demosthenes regarded as dishonest or unworthy of Athenian traditions. In the former he displays that desire for clean-handed administration which is so prominent in some of his later speeches; and in the prosecution of Leptines he shows his anxiety that Athens should retain her reputation for good faith. Both speeches, like those of the year 352 against Timocrates (spoken by Diodorus), and against Aristocrates (spoken by Euthycles), are remarkable for thoroughness of argument and for the skill which is displayed in handling legal and political questions, though, like almost all Athenian forensic orations, they are sometimes sophistical in argument.

The first speech which is directly devoted to questions of external policy is that on the Naval Boards in 354; and this is followed within the next two years by speeches delivered in support of appeals made to Athens by the people of Megalopolis and by the exiled democratic party of Rhodes. From these speeches it appears that the general lines of Demosthenes' policy were already determined. He was in opposition to Eubulus, who, after the disastrous termination of the war with the allies, had become the leading statesman in Athens. The strength of Eubulus lay in his freedom from all illusion as to the position in which Athens stood, in his ability as a financier, and in his readiness to take any measures which would enable him to carry out his policy. He saw that the prime necessity of the moment was to recruit the financial and material strength of the city; that until this should be effected, she was quite incapable of carrying on war with any other power; and that she could only recover her strength through peace. In this policy he had the support of the well-to-do classes, who suffered heavily in time of war from taxation and the disturbance of trade. On the other hand, the sentiments of the masses were imperialistic and militant. We gather that there were plenty of orators who made a practice of appealing to the glorious traditions of the past and the claim always made by Athens to leadership among the Greek states. To buy off the opposition which his policy might be expected to encounter, Eubulus distributed funds freely to the people, in the shape of 'Festival-money', adopting the methods employed before him by demagogues, very different from himself, in order that he might override the real sentiments of the democracy; and in spite of the large amounts thus spent he did in fact succeed, in the course of a few years, in collecting a considerable sum without resorting to extraordinary taxation, in greatly increasing the navy and in enlarging the dockyards. For the success of this policy it was absolutely necessary to avoid all entanglement in war, except under the strongest compulsion. The appeals of the Megalopolitans and the Rhodians, to yield to which would probably have meant war with Sparta and with Persia, must be rejected. Even in dealing with Philip, who was making himself master of the Athenian allies on the Thermaic coast, the fact of the weakness of Athens must be recognized, and all idea of a great expedition against Philip must be abandoned for the present. At the same time, some necessary measures of precaution were not neglected. It was essential to secure the route to the Euxine, over which the Athenian corn-trade passed, if corn was not to be sold at famine prices. For this purpose, therefore, alliance was made with the Thracian prince, Cersobleptes; and when Philip threatened Heraeon Teichos on the Propontis, an expedition was prepared, and was only abandoned because Philip himself was forced to desist from his attempt by illness. Similarly, when Philip appeared likely to cross the Pass of Thermopylae in 352, an Athenian force was sent (on the proposal of Diophantus, a supporter of Eubulus) to prevent him. The failure of Eubulus and his party to give effective aid to Olynthus against Philip was due to the more pressing necessity of attempting to recover control of Euboea: it had clearly been their intention to save Olynthus, if possible. But when this had proved impossible, and the attempt to form a Hellenic league against Philip had also failed, facts had once more to be recognized; and, since Athens was now virtually isolated, peace must be made with Philip on the only terms which he would accept—that each side should keep what it de facto possessed at the time.

Demosthenes was generally in opposition to Eubulus and his party, of which Aeschines (once an actor and afterwards a clerk, but a man of education and great natural gifts) was one of the ablest members. Demosthenes was inspired by the traditions of the past, but had a much less vague conception of the moral to be drawn from them than had the multitude. Athens, for him as for them, was to be the first state in Hellas; she was above all to be the protectress of democracy everywhere, against both absolutism and oligarchy, and the leader of the Hellenes in resistance to foreign aggression. But, unlike the multitude, Demosthenes saw that this policy required the greatest personal effort and readiness for sacrifice on the part of every individual; and he devotes his utmost energies to the task of arousing his countrymen to the necessary pitch of enthusiasm, and of effecting such reforms in administration and finance as, in his opinion, would make the realization of his ideal for Athens possible. In the speeches for the Megalopolitans and the Rhodians, the nature of this ideal is already becoming clear both in its Athenian and in its Panhellenic aspects. But so soon as it appeared that Philip, at the head of the half-barbarian Macedonians, and not Athens, was likely to become the predominant power in the Hellenic world, it was against Philip that all his efforts were directed; and although in 346 he is practically at one with the party of Eubulus in his recognition of the necessity of peace, he is eager, when the opportunity seems once more to offer itself, to resume the conflict, and, when it is resumed, to carry it through to the end.

We have then before us the sharp antagonism of two types of statesmanship. The strength of the one lies in the recognition of actual facts, and the avoidance of all projects which seem likely, under existing circumstances, to fail. The other is of a more sanguine type, and believes in the power of enthusiasm and self-sacrifice to transform the existing facts into something better, and to win success against all odds. Statesmen of the former type are always attacked as unpatriotic and mean-spirited; those of the latter, as unpractical and reckless. There is truth and falsehood in both accusations: but since no statesman has ever combined all the elements of statesmanship in a perfect and just proportion, and since neither prudence and clear-sightedness, nor enthusiastic and generous sentiment, can ever be dispensed with in the conduct of affairs without loss, a larger view will attach little discredit to either type. While, therefore, we may view with regret some of the methods which both Demosthenes and Aeschines at times condescended to use in their conflicts with one another, and with no less regret the disastrous result of the policy which ultimately carried the day, we need not hesitate to give their due to both of the contending parties: nor, while we recognize that Eubulus and Phocion (his sturdiest supporter in the field and in counsel) took the truer view of the situation, and of the character of the Athenians as they were, need we (as it is now fashionable to do) denounce the orator who strove with unstinting personal effort and self-sacrifice to rouse the Athenians into a mood in which they could and would realize the ideal to which they, no less than he, professed their devotion.

But the difficulties in the way of such a realization were wellnigh insuperable. Neither the political nor the military system of Athens was adapted to such a policy. The Sovereign Assembly, though capable of sensible and energetic action at moments of special danger, was more likely to be moved by feeling and prejudice than by businesslike argument, particularly at a time when the tendency of the best educated and most intelligent men was to withdraw from participation in public life; and meeting, as the Assembly did (unless specially summoned), only at stated intervals, it was incapable of taking such rapid, well-timed, and decisive action as Philip could take, simply because he was a single man, sole master of his own policy, and personally in command of his own forces. The publicity which necessarily attached to the discussions of the Assembly was a disadvantage at a time when many plans would better have been kept secret; and rapid modifications of policy, to suit sudden changes in the situation, were almost impossible. Again, while no subjects are so unsuited under any circumstances for popular discussion as foreign and military affairs, the absence in Athens of a responsible ministry greatly increased the difficulties of her position. It is true that the Controller of the Festival Fund (whose office gradually became more and more important) was now appointed for four years at a time, while all other offices were annual; and that he and his friends, and their regular opponents, were generally ready to take the lead in making proposals to the Council or the Assembly. But if they chose to remain silent, they could do so;[4] no one was bound to make any proposal at all; and, on the other hand, any one might do so. With such a want of system, far too much was left to chance or to the designs of interested persons. Moreover, the Assembly felt itself under no obligation to follow for any length of time any lead which might be given to it, or to maintain any continuity or consistency between its own decrees. In modern times, a minister, brought into power by the will of the majority of the people, can reckon for a considerable period upon the more or less loyal support of the majority for himself and his official colleagues. In Athens the leader of the moment had to be perpetually adapting himself afresh to the mood of the Assembly, and even to deceive it, in order that he might lead at all, or carry out the policy which, in his opinion, his country's need required. It is therefore a remarkable thing that both Eubulus and Demosthenes succeeded for many years in maintaining a line of action as consistent as that taken by practical men can ever be.

The fact that the Council of Five Hundred, which acted as a standing committee of the people, and prepared business for the Assembly and was responsible for the details of measures passed by the Assembly in general form, was chosen by lot and changed annually, as did practically all the civil and the military officials (though the latter might be re-elected), was all against efficiency and continuity of policy.[5] After the system of election by lot, the most characteristic feature of the Athenian democracy was the responsibility of statesmen and generals to the law-courts.[6] Any citizen might accuse them upon charges nominally limited in scope, but often serving in reality to bring their whole career into question. Had it been certain that the courts would only punish incompetence or misconduct, and not failure as such, little harm would have resulted. But although there were very many acquittals in political trials, the uncertainty of the issue was so great, and the sentences inflicted upon the condemned so severe (commonly involving banishment at least), that the liability to trial as a criminal must often have deterred the statesman and the general from taking the most necessary risks; while the condemnation of the accused had usually the result of driving a really able man out of the country, and depriving his fellow countrymen of services which might be urgently required when they were no longer available.

The financial system was also ill adapted for the purposes of a people constantly liable to war. The funds required for the bare needs of a time of peace seem indeed to have been sufficiently provided from permanent sources of income (such as the silver mines, the rent of public lands, court fees and fines, and various indirect taxes): but those needed for war had to be met by a direct tax upon property, levied ad hoc whenever the necessity arose, and not collected without delays and difficulties. And although the equipment of ships for service was systematically managed under the trierarchic laws,[7] it was still subject to delays no less serious. There was no regular system of contribution to State funds, and no systematic accumulation of a reserve to meet military needs. The raising of money by means of loans at interest to the State was only adopted in Greece in a few isolated instances:[8] and the practice of annually distributing surplus funds to the people,[9] however necessary or excusable under the circumstances, was wholly contrary to sound finance.

An even greater evil was the dependence of the city upon mercenary forces and generals, whose allegiance was often at the call of the highest bidder, and in consequence was seldom reliable. There is no demand which Demosthenes makes with greater insistence, than the demand that the citizens themselves shall serve with the army. At a moment of supreme danger, they might do so. But in fact Athens had become more and more an industrial state, and men were not willing to leave their business to take care of itself for considerable periods, in order to go out and fight, unless the danger was very urgent, or the interests at stake of vital importance; particularly now that the length of campaigns had become greater and the seasons exempted from military operations shorter. In many minds the spread of culture, and of the ideal of self-culture, had produced a type of individualism indifferent to public concerns, and contemptuous of political and military ambitions. Moreover, the methods of warfare had undergone great improvement; in most branches of the army the trained skill of the professional soldier was really necessary; and it was not possible to leave the olive-yard or the counting-house and become an efficient fighter without more ado. But the expensiveness of the mercenary forces; the violent methods by which they obtained supplies from friends and neutrals, as well as foes, if, as often happened, their pay was in arrear; and the dependence of the city upon the goodwill of generals and soldiers who could without much difficulty find employment under other masters, were evils which were bound to hamper any attempt to give effect to a well-planned and far-sighted scheme of action.

It also resulted from the Athenian system of government that the general, while obviously better informed of the facts of the military situation than any one else could be, and at the same time always liable to be brought to trial in case of failure, had little influence upon policy, unless he could find an effective speaker to represent him. In the Assembly and in the law-courts (where the juries were large enough to be treated in the same manner as the Assembly itself) the orator who could win the people's ear was all powerful, and expert knowledge could only make itself felt through the medium of oratory.