But effective use requires co-operation. And a boycott injures also those who apply it.
Assuming that the members of the League included all or most of the important commercial and financial nations, and that they could be relied upon to press energetically all or even a few of these forms of boycott, could any country long resist such pressure? Would not the threat of it and the knowledge that it could be used form a potent restraint upon the law-breaker? Even the single weapon of a complete postal and telegraphic boycott would have enormous efficiency were it rigorously applied. Every section of the industrial and commercial community would bring organized pressure upon its Government to withdraw from so intolerable a position and to return to its international allegiance. It may be said, Why is it that such a powerful weapon of such obvious efficacy has never been applied? The answer is that the conditions for its rapid and concerted application have never hitherto existed. For in order that it may be effective, a considerable number of nations must have previously undertaken to apply it simultaneously and by common action. And, what is more, each nation must have confidence in the bona fides of the intention of other nations to apply it. For the detailed application of the boycott, in most points, must of necessity remain in the hands of the several national Governments. Here comes the practical difficulty. Every boycott has a certain injurious rebound. It hits back the nation that applies it. The injury of suspended intercourse is, of course, not equal, otherwise the process would be futile. If the whole circle of A’s neighbors boycott him, each suffers half the loss of his separate intercourse with A, but A suffers this loss multiplied by the number of his neighbors. Now if A’s intercourse with all his neighbors is of equal magnitude, each of them can probably afford easily to bear the sacrifice involved in the boycott, trusting to the early effect of their action in bringing A to terms. But if one or two of A’s neighbors are in much closer relations with A than the others, and if, as may be the case, they are getting more advantage from this intercourse than A, the risk or sacrifice they are called upon to undergo will be proportionately greater. They must bear the chief brunt of a policy in the adoption of which they have not the determinant voice.
Take, for example, the case of Germany. An all-round boycott applied to her would evidently cause more damaging reactions to Holland, Belgium, and Denmark than to any of the greater nations whose united voice might have determined its application. The injury to Holland, in particular, might in the first instance be almost as grave as that sustained by Germany, the supposed object of the boycott. It would evidently be necessary to make provision against this unequal incidence by devising a system of compensations or indemnity to meet the case of such a special injury or sacrifice.
A brief allusion to the other side of the objection will suffice, viz., the fact that any such boycott would be far less potent or immediate in its pressure against some nations than against others. While Great Britain would have to yield at once to the threat of such pressure, Russia, or even the United States, could stand out for a considerable time, and China might even regard the boycott as a blessing. But it is pretty evident that in the long run no civilized nation could endure such isolation, and that this weapon is one which the League might in certain cases advantageously employ.
Other difficulties.
Other aspects of the social-economic boycott raise other difficulties. While certain modes and paths of intercourse lie directly under the control of the Governments of the cooperating States, others belong to private enterprise. Though postal, railway, and telegraphic intercourse could be cut off easily by agreements between Governments, private trading could not so easily be stopped. It is not found a simple matter to stop all trading between members of nations actually at war when national sentiment sides strongly with the legal prohibition. It might be much more difficult to prevent all commercial intercourse for private gain when there was no special hostility between the two nations in question. But this is, after all, only a minor difficulty. Provided that the respective Governments were prepared to use their normal powers of control over the principal modes of communication and of transport, the potency of the boycott so established would appear exceedingly effective.
It involves, however, a risk which needs recognition. The extreme pressure of the boycott might lead to forcible reprisals on the part of the boycotted State which would, in fact, precipitate a war. Declaring what would be in effect a blockade by sea and land, it might be necessary for the League to patrol the seas in order to stop “illegal traffic,” and to keep some force along the land frontiers for general purposes. A boycotted nation might, in the stress and anger of the case, begin hostilities against those of its neighbors who were most active in the operations of the boycott. In that event the economic boycott would have to be supported by armed pressure. This would also be the case where the breach of international law against which action was taken consisted, not in refusing to arbitrate or conciliate an issue but in an actual opening of hostilities. Such an act of war, directed necessarily against some one or more States, could not be met merely by a boycott. It would involve armed cooperation as well, the economic boycott forming an accompaniment.
International Bank would strengthen League.
There is another method of bringing financial pressure upon a law-breaking State which deserves consideration. It is put forward in the following terms by Mr. F. N. Keen in his able little book, “The World in Alliance”: “The States comprised in the international scheme might be required to keep deposited with, or under the control of, the International Council sums of money, proportioned in some way to their relative populations or financial resources, which might be made available to answer international obligations, and an international bank might be organized, which would facilitate the giving of security by States to the International Council for the performance of their obligations and the enforcement of payments between one State and another (as well as probably assisting in the creation of an international currency and discharging other useful international functions).”
The organized concentration of international finance by the formation of an international bank is a line of action which might immensely strengthen that body of pacific forces the rising importance of which Mr. Norman Angell has so effectively expounded. It might consolidate to an almost incalculable degree the effective unity of the International League by placing under it the solid foundation of world-peace, while the power which such an institution would wield, either for purposes of fiscal or financial boycott, would be enormous.