The War proclaims the downfall of the national state. Yet at the same time it proclaims the downfall of the capitalist system of economy. By means of the national state capitalism has revolutionized the whole economic system of the world. It has divided the whole earth among the oligarchies of the great powers, around which were grouped the satellites, the small nations, who lived off the rivalry between the great ones. The future development of world economy on the capitalistic basis means a ceaseless struggle for new and ever new fields of capitalist exploitation, which must be obtained from one and the same source, the earth. The economic rivalry under the banner of militarism is accompanied by robbery and destruction which violate the elementary principles of human economy. World production revolts not only against the confusion produced by national and state divisions but also against the capitalist economic organization, which has now turned into barbarous disorganization and chaos.

The War of 1914 is the most colossal breakdown in history of an economic system destroyed by its own inherent contradictions.

All the historical forces whose task it has been to guide the bourgeois society, to speak in its name and to exploit it, have declared their historical bankruptcy by the War. They defended capitalism as a system of human civilization, and the catastrophe born out of that system is primarily their catastrophe. The first wave of events raised the national governments and armies to unprecedented heights never attained before. For the moment the nations rallied around them. But the more terrible will be the crash of the governments when the people, deafened by the thunder of the cannon, realize the meaning of the events now taking place in all their truth and frightfulness.

The revolutionary reaction of the masses will be all the more powerful the more prodigious the cataclysm which history is now bringing upon them.

Capitalism has created the material conditions of a new Socialist economic system. Imperialism has led the capitalist nations into historic chaos. The War of 1914 shows the way out of this chaos by violently urging the proletariat on to the path of Revolution.

For the economic backward countries of Europe the War brings to the fore problems of a far earlier historic origin--problems of democracy and national unity. This is in a large measure the case with the peoples of Russia, Austria-Hungary and the Balkan Peninsula. But these historically belated questions, which were bequeathed to the present epoch as a heritage from the past, do not alter the fundamental character of the events. It is not the national aspirations of the Serbs, Poles, Roumanians or Finns that has mobilized twenty-five million soldiers and placed them in the battlefields, but the imperialistic interests of the bourgeoisie of the Great Powers. It is imperialism that has upset completely the European status quo, maintained for forty-five years, and raised again the old questions which the bourgeois revolution proved itself powerless to solve.

Yet in the present epoch it is quite impossible to treat these questions in and by themselves. They are utterly devoid of an independent character. The creation of normal relations of national life and economic development on the Balkan Peninsula is unthinkable if Czarism and Austria-Hungary are preserved. Czarism is now the indispensable military reservoir for the financial imperialism of France and the conservative colonial power of England. Austria-Hungary is the mainstay of Germany's imperialism. Issuing from the private family clashes between the national Servian terrorists and the Hapsburg political police, the War very quickly revealed its true fundamental character--a struggle of life and death between Germany and England. While the simpletons and hypocrites prate of the defense of national freedom and independence, the German-English War is really being waged for the freedom of the imperialistic exploitation of the peoples of India and Egypt on the one hand, and for the imperialistic division of the peoples of the earth on the other.

Germany began its capitalistic development on a national basis with the destruction of the continental hegemony of France in the year 1870-1871. Now that the development of German industry on a national foundation has transformed Germany into the first capitalistic power of the world, she finds herself colliding with the hegemony of England in her further course of development. The complete and unlimited domination of the European continent seems to Germany the indispensable prerequisite of the overthrow of her world enemy. The first thing, therefore, that imperialistic Germany writes in her programme is the creation of a Middle European League of Nations. Germany, Austria-Hungary, the Balkan Peninsula and Turkey, Holland, the Scandinavian countries, Switzerland, Italy, and, if possible, enfeebled France and Spain and Portugal, are to make one economic and military whole, a Great Germany under the hegemony of the present German state.

This programme, which has been thoroughly elaborated by the economists, political students, jurists and diplomats of German imperialism and translated into reality by its strategists, is the most striking proof and most eloquent expression of the fact that capitalism has expanded beyond the limits of the national state and feels intolerably cramped within its boundaries. The national Great Power must go and in its place must step the imperialistic World Power.

In these historical circumstances the working class, the proletariat, can have no interest in defending the outlived and antiquated national "fatherland," which has become the main obstacle to economic development. The task of the proletariat is to create a far more powerful fatherland, with far greater power of resistance--the republican United States of Europe, as the foundation of the United States of the World.