The Fruits of Victory / A Sequel to The Great Illusion

by Norman Angell

‘The Treaty of Peace sets up a great Commission, known as the Reparations Commission.... That Reparation Commission can determine the currents of trade, the conditions of credit, of international credit; it can determine how much Germany is going to buy, where it is going to buy, and how it is going to pay for it.’[22]

In other words, it is no longer open to Germany, as the result of guarantees of free movement accorded to individual traders, to carry on that process by which before the War she supported herself. Individual Germans cannot now, as heretofore, get raw materials by dealing with foreign individuals, without reference to their nationality. Germans are now, in fact, placed in the position of having to deal through their State, which in turn deals with other States. To buy wheat or iron, they cannot as heretofore go to individuals, to the grower or mine-owner, and offer a price; the thing has to be done through Governments. We have come much nearer to a condition in which the States do indeed ‘own’ (they certainly control) their raw material.

The most striking instance is that of access to the Lorraine iron, which before the War furnished three-fourths of the raw material of Germany’s basic industry. Under the individualist system, in which ‘the buyer is king’ in which efforts were mainly directed to finding markets, no obstacle was placed on the export of iron (except, indeed, the obstacle to the acquisition by French citizens of Lorraine iron set up by the French Government in the imposition of tariffs). But under the new order, with the French State assuming such enormously increased economic functions, the destination of the iron will be determined by political considerations. And ‘political considerations,’ in an order of international society in which the security of the nation depends, not upon the collective strength of the whole society, but upon its relative strength as against rival units, mean the deliberate weakening of rivals. Thus, no longer will the desire of private owners to find a market for their wares be a guarantee of the free access of citizens in other States to those materials. In place of a play of factors which did, however clumsily, ensure in practice general access to raw materials, we have a new order of motives; the deliberate desire of States, competing in power, owning great sources of raw material, to deprive rival States of the use of them.

That the refusal of access will not add to the welfare of the people of the State that so owns these materials, that, indeed, it will inevitably lower the standard of living in all States alike, is certainly true. But so long as there is no real international society organised on the basis of collective strength and co-operation, the motive of security will override considerations of welfare. The condition of international anarchy makes true what otherwise need not be true, that the vital interests of nations are conflicting.

Parenthetically, it is necessary to say this: the time may have come for the destruction of the older order. If the individualist order was that which gave us Armageddon, and still more, the type of mind which Armageddon and the succeeding ‘peace’ revealed, then the present writer, for one, sheds no tears over its destruction. In any case, a discussion of the intrinsic merits, social and moral, of socialism and individualism respectively, would to-day be quite academic. For those who profess to stand for individualism are the most active agents of its destruction. The Conservative Nationalists, who oppose the socialisation of wealth and yet advocate the conscription of life; oppose Nationalisation, yet demand the utmost military preparedness in an age when effective preparation for war means the mobilisation particularly of the nation’s industrial resources; resent the growing authority of the State, yet insist that the power of the National State shall be such as to give it everywhere domination; do, indeed, demand omelets without eggs, and bricks not only without straw but without clay.

A Europe of competing military nationalisms means a Europe in which the individual and all his activities must more and more be merged in his State for the purpose of that competition. The process is necessarily one of progressively intense socialisation; and the war measures carried it to very great lengths indeed. Moreover, the point to which our attention just now should be directed, is the difference which distinguishes the process of change within the State from that which marks the change in the international field. Within the State the old method is automatically replaced by the new (indeed nationalisation is mostly the means by which the old individualism is brought to an end); between nations, on the other hand, no organised socialistic internationalism replaces the old method which is destroyed. The world is left without any settled international economy.

Let us note the process of destruction of the old economy.

In July, 1914, the advocacy of economic nationalisation or Socialism would have been met with elaborate arguments from perhaps nine average Englishmen out of ten, to the effect that control or management of industries and services by the Government was impossible, by reason of the sheer inefficiency which marks Governmental work. Then comes the War, and an efficient railway service and the co-ordination of industry and finance to national ends becomes a matter of life and death. In this grave emergency, what policy does this same average Englishman, who has argued so elaborately against State control, and the possibility of governments ever administering public services, pursue? Almost as a matter of course, as the one thing to be done, he clamours for the railways and other public services to be taken over by the Government, and for the State to control the industry, trade, and finance of the country.

Now it may well be that the Socialist would deny that the system which obtained during the War was Socialism, and would say that it came nearer to being State Capitalism than State Socialism; the individualist may argue that the methods would never be tolerated as a normal method of national life. But when all allowances are made the fact remains that when our need was greatest we resorted to the very system which we had always declared to be the worst from the point of view of efficiency. As Sir Leo Chiozza Money, in sketching the history of this change, which he has called ‘The Triumph of Nationalisation,’ says: ‘The nation won through the unprecedented economic difficulties of the greatest War in history by methods which it had despised. National organisation triumphed in a land where it had been denied.’ In this sense the England of 1914-1920 was a Socialist England; and it was a Socialist England by common consent.

This fact has an effect on the moral outlook not generally realised.