As bearing upon the truth of those propositions, we cannot neglect the condition of Germany.

If ever national military power, the sheer efficiency of the military instrument, could ensure a nation’s political and economic security, Germany should have been secure. It was not any lack of the ‘impulse to defence,’ of the ‘manly and virile qualities’ so beloved of the militarist, no tendency to ‘softness,’ no ‘emasculating internationalism’ which betrayed her. She fell because she failed to realise that she too, for all her power, had need of a co-operation throughout the world, which her force could not compel; and that she must secure a certain moral co-operation in her purposes or be defeated. She failed, not for lack of ‘intense nationalism,’ but by reason of it, because the policy which guided the employment of her military instrument had in it too small a regard for the moral factors in the world at large, which might set in motion material forces against her.

It is hardly possible to doubt that the easy victories of 1871 marked the point at which the German spirit took the wrong turning, and rendered her statesmen incapable of seeing the forces which were massing for her destruction. The presence in 1919 of German delegates at Versailles in the capacity of vanquished can only be adequately explained by recalling the presence there of German statesmen as victors in 1871. It took forty years for some of the moral fruits of victory to manifest themselves in the German spirit.

But the very severity of the present German lot is one that lends itself to sophistry. It will be argued: ‘You say that preponderant military power, victory, is ineffective to economic ends. Well, look at the difference between ourselves and Germany. The victors, though they may not flourish, are at least better off than the vanquished. If we are lean, they starve. Our military power is not economically futile.’

If to bring about hardship to ourselves in order that some one else may suffer still greater hardship is an economic gain, then it is untrue to say that conquest is economically futile. But I had assumed that advantage or utility was to be measured by the good to us, not by the harm done to others at our cost. We are arguing for the moment the economic, and not the ethical aspect of the thing. Keep for a moment to those terms. If you were told that an enterprise was going to be extremely profitable and you lost half your fortune in it, you would certainly regard as curious the logic of the reply, that after all you had gained, because others in the same enterprise had lost everything.

We are considering in effect whether the facts show that nations must, in order to provide bread for their people, defeat in war competing nations who otherwise would secure it. But that economic case for the ‘biological inevitability’ of war is destroyed if it is true that, after having beaten the rival nation, we find that we have less bread than before; that the future security of our food is less; and that out of our own diminished store we have to feed a defeated enemy who, before his defeat, managed to feed himself, and helped to feed us as well.

And that is precisely what the present facts reveal.

Reference has already been made to the position of France. In the forty years of her defeat France was the banker of Europe. She exacted tribute in the form of dividends and interest upon investments from Russia, the Near East, Germany herself; exacted it in a form which suited the peculiar genius of her people and added to the security of her social life. She was Germany’s creditor, and managed to secure from her conqueror of 1871 the prompt payment of the debts owing to her. When France was not in a position to compel anything whatsoever from Germany by military force, the financial claims of Frenchmen upon Germany were readily discountable in any market of the world. To-day, the financial claims on Germany, made by a France which is militarily all-powerful, simply cannot be discounted anywhere. The indemnity vouchers, whatever may be the military predominance behind them, are simply not negotiable instruments so long as they depend upon present policy. They are a form of paper which no banker would dream of discounting on their commercial merits.

To-day France stands as the conquerer of the richest ore-fields in the world, of territory which is geographically the industrial centre of Europe; of a vast Empire in Africa and Asia; in a position of predominance in Poland, Hungary, and Rumania. She has acquired through the Reparations Commission such power over the enemy countries as to reduce them almost to the economic position of an Asiatic or African colony. If ever wealth could be conquered, France has conquered it. If political power could really be turned to economic account, France ought to-day to be rich beyond any nation in history. Never was there such an opportunity of turning military power into wealth.

Then why is she bankrupt? Why is France faced by economic and financial difficulties so acute that the situation seems inextricable save by social revolution, a social reconstruction, that is, involving new principles of taxation, directly aiming at the re-distribution of wealth, a re-distribution resisted by the property-owning classes. These, like other classes, have since the Armistice been so persistently fed upon the fable of making the Boche pay, that the government is unable to induce them to face reality.[126]