LITMIR.BIZ

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in so far as it conduces to political success, which is always a question of warlike success in the last resort. The limitation which this consideration imposes on the government's economic policy are such as will make the nation a self-sufficient or self-balanced economic commonwealth. It must be a self-balanced commonwealth at least in such measure as will make it self-sustaining in case of need, in all those matters that bear directly on warlike efficiency.

      Of course, no community can become fully self-sustaining under modern conditions, by use of the modern state of the industrial arts, except by recourse to such drastic measures of repression as would reduce its total efficiency in an altogether intolerable degree. This will hold true even of those nations who, like Russia or the United States, are possessed of extremely extensive territories and extremely large and varied resources; but it applies with greatly accentuated force to smaller and more scantily furnished territorial units. Peoples living under modern conditions and by use of the modern state of the industrial arts necessarily draw on all quarters of the habitable globe for materials and products which they can procure to the best advantage from outside their own special field so long as they are allowed access to these outlying sources of supply; and any arbitrary limitation on this freedom of traffic makes the conditions of life that much harder, and lowers the aggregate efficiency of the community by that much. National self-sufficiency is to be achieved only by a degree of economic isolation; and such a policy of economic isolation involves a degree of impoverishment and lowered efficiency, but it will also leave the nation readier for warlike enterprise on such a scale as its reduced efficiency will compass.

      So that the best that can be accomplished along this line by the dynastic statesmen is a shrewd compromise, embodying such a degree of isolation and inhibition as will leave the country passably self-sufficient in case of need, without lowering the national efficiency to such a point as to cripple its productive forces beyond what will be offset by the greater warlike readiness that is so attained. The point to which such a policy of isolation and sufficiency will necessarily be directed is that measure of inhibition that will yield the most facile and effective ways and means of warlike enterprise, the largest product of warlike effectiveness to be had on multiplying the nation's net efficiency into its readiness to take the field.

      Into any consideration of this tactical problem a certain subsidiary factor enters, in that the patriotic temper of the nation is always more or less affected by such an economic policy. The greater the degree of effectual isolation and discrimination embodied in the national policy, the greater will commonly be its effect on popular sentiment in the way of national animosity and spiritual self-sufficiency; which may be an asset of great value for the purposes of warlike enterprise.

      Plainly, any dynastic statesman who should undertake to further the common welfare regardless of its serviceability for warlike enterprise would be defeating his own purpose. He would, in effect, go near to living up to his habitual professions touching international peace, instead of professing to live up to them, as the exigencies of his national enterprise now conventionally require him to do. In effect, he would be functus officio.

      There are two great administrative instruments available for this work of repression and national self-sufficiency at the hands of the imperialistic statesman: the protective tariff, and commercial subvention. The two are not consistently to be distinguished from one another at all points, and each runs out into a multifarious convolution of variegated details; but the principles involved are, after all, fairly neat and consistent. The former is of the nature of a conspiracy in restraint of trade by repression; the latter, a conspiracy to the like effect by subsidised monopoly; both alike act to check the pursuit of industry in given lines by artificially increasing the cost of production for given individuals or classes of producers, and both alike impose a more than proportionate cost on the community within which they take effect. Incidentally, both of these methods of inhibition bring a degree, though a less degree, of hardship, to the rest of the industrial world.

      All this is matter of course to all economic students, and it should, reasonably, be plain to all intelligent persons; but its voluble denial by interested parties, as well as the easy credulity with which patriotic citizens allow themselves to accept the sophistries offered in defense of these measures of inhibition, has made it seem worth while here to recall these commonplaces of economic science.

      The ground of this easy credulity is not so much infirmity of intellect as it is an exuberance of sentiment, although it may reasonably be believed that its more pronounced manifestations—as, e.g., the high protective tariff—can be had only by force of a formidable cooperation of the two. The patriotic animus is an invidious sentiment of joint prestige; and it needs no argument or documentation to bear out the affirmation that its bias will lend a color of merit and expediency to any proposed measure that can, however speciously, promise an increase of national power or prestige. So that when the statesmen propose a policy of inhibition and mitigated isolation on the professed ground that such a policy will strengthen the nation economically by making it economically self-supporting, as well as ready for any warlike adventure, the patriotic citizen views the proposed measures through the rosy haze of national aspirations and lets the will to believe persuade him that whatever conduces to a formidable national battle-front will also contribute to the common good. At the same time all these national conspiracies in restraint of trade are claimed, with more or less reason, to inflict more or less harm on rival nationalities with whom economic relations are curtailed; and patriotism being an invidious sentiment, the patriotic citizen finds comfort in the promise of mischief to these others, and is all the more prone to find all kinds of merit in proposals that look to such an invidious outcome. In any community imbued with an alert patriotic spirit, the fact that any given circumstance, occurrence or transaction can be turned to account as a means of invidious distinction or invidious discrimination against humanity beyond the national pale, will always go far to procure acceptance of it as being also an article of substantial profit to the community at large, even though the slightest unbiased scrutiny would find it of no ascertainable use in any other bearing than that of invidious mischief. And whatever will bear interpretation as an increment of the nation's power or prowess, in comparison with rival nationalities, will always be securely counted as an item of joint credit, and will be made to serve the collective conceit as an invidious distinction; and patriotic credulity will find it meritorious also in other respects.

      So, e.g., it is past conception that such a patent imbecility as a protective tariff should enlist the support of any ordinarily intelligent community except by the help of some such chauvinistic sophistry. So also, the various royal establishments of Europe, e.g., afford an extreme but therefore all the more convincing illustration of the same logical fallacy. These establishments and personages are great and authentic repositories of national prestige, and they are therefore unreflectingly presumed by their several aggregations of subjects to be of some substantial use also in some other bearing; but it would be a highly diverting exhibition of credulity for any outsider to fall into that amazing misconception. But the like is manifestly true of commercial turnover and export trade among modern peoples; although on this head the infatuation is so ingrained and dogmatic that even a rank outsider is expected to accept the fallacy without reflection, on pain of being rated as unsafe or unsound. Such matters again, as the dimensions of the national territory, or the number of the population and the magnitude of the national resources, are still and have perhaps always been material for patriotic exultation, and are fatuously believed to have some great significance for the material fortunes of the common man; although it should be plain on slight reflection that under modern conditions of ownership, these things, one and all, are of no consequence to the common man except as articles of prestige to stimulate his civic pride. The only conjuncture under which these and the like national holdings can come to have a meaning as joint or collective assets would arise in case of a warlike adventure carried to such extremities as would summarily cancel vested rights of ownership and turn them to warlike uses. While the rights of ownership hold, the common man, who does not own these things, draws no profit from their inclusion in the national domain; indeed, he is at some cost to guarantee their safe tenure by their rightful owners.

      In so pursuing their quest of the Kingdom, the Power and the Glory, by use of the national resources and by sanction of the national spirit, the constituted authorities also assume the guardianship of sundry material interests that are presumed to touch the common good; such as security of person and property

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