tolerate the retention of colonial possessions by any dynastic State that may be drawn into the league or under its jurisdiction, as, e.g., the German Empire in case it should be left on an Imperial footing. Whereas, in case the German peoples are thrown back on a democratic status, as neutralised commonwealths without a crown or a military establishment, the question of their colonial possessions evidently falls vacant.
As to the neutralisation of trade relations apart from the question of colonies, and as bears on the case of Germany under the projected jurisdiction of a pacific league of neutrals, the considerations to be taken account of are of much the same nature. As it would have to take effect, e.g., in the abolition of commercial and industrial discriminations between Germany and the pacific nations, such neutralisation would doubtless confer a lasting material benefit on the German people at large; and it is not easy to detect any loss or detriment to be derived from such a move so long as peace prevails. Protective, that is to say discriminating, export, import, or excise duties, harbor and registry dues, subsidies, tax exemptions and trade preferences, and all the like devices of interference with trade and industry, are unavoidably a hindrance to the material interests of any people on whom they are imposed or who impose these disabilities on themselves. So that exemption from these things by a comprehensive neutralisation of trade relations would immediately benefit all the nations concerned, in respect of their material well-being in times of peace. There is no exception and no abatement to be taken account of under this general statement, as is well known to all men who are conversant with these matters.
But it is otherwise as regards the dynastic interest in the case, and as regards any national interest in warlike enterprise. It is doubtless true that all restraint of trade between nations, and between classes or localities within the national frontiers, unavoidably acts to weaken and impoverish the people on whose economic activities this restraint is laid; and to the extent to which this effect is had it will also be true that the country which so is hindered in its work will have a less aggregate of resources to place at the disposal of its enterprising statesmen for imperialist ends. But these restraints may yet be useful for dynastic, that is to say warlike, ends by making the country more nearly a "self-contained economic whole." A country becomes a "self-contained economic whole" by mutilation, in cutting itself off from the industrial system in which industrially it belongs, but in which it is unwilling nationally to hold its place. National frontiers are industrial barriers. But as a result of such mutilation of its industrial life such a country is better able—it has been believed—to bear the shock of severing its international trade relations entirely, as is likely to happen in case of war.
In a large country, such as America or Russia, which comprises within its national boundaries very extensive and very varied resources and a widely distributed and diversified population, the mischief suffered from restraints of trade that hinder industrial relations with the world at large will of course be proportionately lessened. Such a country comes nearer being a miniature industrial world; although none of the civilised nations, large or small, can carry on its ordinary industrial activities and its ordinary manner of life without drawing on foreign parts to some appreciable extent. But a country of small terri
torial extent and of somewhat narrowly restricted natural resources, as, e.g., Germany or France, can even by the most drastic measures of restraint and mutilation achieve only a very mediocre degree of industrial isolation and "self-sufficiency,"—as has, e.g., appeared in the present war. But in all cases, though in varying measure, the mitigated isolation so enforced by these restraints on trade will in their degree impair the country's industrial efficiency and lower the people's material well-being; yet, if the restrictions are shrewdly applied this partial isolation and partial "self-sufficiency" will go some way toward preparing the nation for the more thorough isolation that follows on the outbreak of hostilities.
The present plight of the German people under war conditions may serve to show how nearly that end may be attained, and yet how inadequate even the most unreserved measures of industrial isolation must be in face of the fact that the modern state of the industrial arts necessarily draws on the collective resources of the world at large. It may well be doubted, on an impartial view, if the mutilation of the country's industrial system by such measures of isolation does not after all rather weaken the nation even for warlike ends; but then, the discretionary authorities in the dynastic States are always, and it may be presumed necessarily, hampered with obsolete theories handed down from that cameralistic age, when the little princes of the Fatherland were making dynastic history. So, e.g., the current, nineteenth and twentieth century, economic policy of the Prussian-Imperial statesmen is still drawn on lines within which Frederick II, called the Great, would have felt well at home.
Like other preparation for hostilities this reduction of the country to the status of a self-contained economic or
ganisation is costly, but like other preparation for hostilities it also puts the nation in a position of greater readiness to break off friendly relations with its neighbors. It is a war measure, commonly spoken for by its advocates as a measure of self-defense; but whatever the merits of the self-defenders' contention, this measure is a war measure. As such it can reasonably claim no hearing in the counsels of a pacific league of neutrals, whose purpose it is to make war impracticable. Particularly can there be no reasonable question of admitting a policy of trade discrimination and isolation on the part of a nation which has, for purposes of warlike aggression, pursued such a policy in the past, and which it is the immediate purpose of the league to bind over to keep the peace.
There has been a volume of loose talk spent on the justice and expediency of boycotting the trade of the peoples of the Empire after the return of peace, as a penalty and as a preventive measure designed to retard their recovery of strength with which to enter on a further warlike enterprise. Such a measure would necessarily be somewhat futile; since "Business is business," after all, and the practical limitations imposed on an unprofitable boycott by the moral necessity to buy cheap and sell dear that rests on all businessmen would surreptitiously mitigate it to the point of negligibility. It is inconceivable—or it would be inconceivable in the absence of imbecile politicians and self-seeking businessmen—that measures looking to the trade isolation of any one of these countries could be entertained as a point of policy to be pursued by a league of neutrals. And it is only in so far as patriotic jealousy and vindictive sentiments are allowed to displace the aspiration for peace and security, that such measures can claim consideration. Considered as a pen
alty to be imposed on the erring nations who set this warlike adventure afoot, it should be sufficiently plain that such a measure as a trade boycott could not touch the chief offenders, or even their responsible abettors. It would, rather, play into the hands of the militarist interests by keeping alive the spirit of national jealousy and international hatred, out of which wars arise and without which warlike enterprise might hopefully be expected to disappear out of the scheme of human intercourse. The punishment would fall, as all economic burdens and disabilities must always fall, on the common man, the underlying population.