The League of Nations

The Business Man and Internationalism

[The most authoritative writers on international affairs, like Prof. Madariaga or Prof. Ziromern, rightly insist on the fact of the nations' interdependence. That this solidarity is inevitable in the light of modem business conditions is the theme of the present article, which should therefore commend itself to all who are interested in the idea which is expressed in the League of Nations.—En. Spectator.]

IT is a curious fact in human nature that nations, as well as

individuals, can never be taught ; they can only learn from experience. Therefore, the best method of approach to inter- national unity is not through pious aspirations such as are encouraged by the phrase, "putting a stop to war," but by the creation of definite schemes of co-operation.

One of the most definite schemes of international co- operation, which is bringing international morality into operation indirectly, is that of the international cartel or trust. Practical co-operation in an international trust, if conducted on reasonable lines, will necessitate permanent close contact between widely divergent nations, which will retain their individual national characteristics, while they pursue a common business object.

The recently instituted International Bank—if allowed to operate—will be a big step in the right direction. Outside the service of the League we may expect to witness the rapid development of a new type of international civil servant, who

will be imbued with the principle of international trusteeship. I have even seen it suggested that, under the sign of the Inter- national Bank, the great countries of Europe should pool their gold and allow one gold-policeman to exercise authority from Hamburg to Brindisi, and in Paris, Berlin, London and Rome. This would be an outward and visible sign of union of interests, of a sharing of one another's burdens, and of a determination to eschew the horrors of war. Such a scheme of things indeed may at present seem fantastic. There is, however, certainly a latent desire for international co-opere. Lion in finance.

ECONOMIC INTERNATIONALISM: A FACT.

Let us turn from what might be done to what is being done. Geneva is becoming famous as an international city and is known to the ordinary man as the home of the League of Nations, but it is something more than that. It is by way of becoming the hub of international commerce, and the ordinary man does not realize that quite a number of international cartels and trusts are directed from the little Republic of Switzerland. He might ask why Switzerland rather than other countries ? The answer is twofold. First, because the Swiss Republic does not possess anti-Trust laws, and, secondly, because it is traditionally a neutral country. The great struggle between the peoples and the never- ending contest for the possession of raw materials would prima fade lead one to the conclusion that the future holds little hope of world-peace. Fortunately, however, these strivings and struggles are finding safety-valves in the form of agreements, international cartels and trusts which know no national boundaries. The myth of the nation-State is definitely discredited in the face of these international economic combines with all their ramifications, and one can only imagine in the future a more rapid growth of these international economic groups, with a consequent alteration of the traditional seats of power. The internationalization of economic groups has become a force working on an equal footing with the "sovereign" power of the States. In due course, and sooner than most people think, this purely economic force will supplant other forces ; though there are, of course, certain barriers to this complete internationalization, such as the great variety of producers' and consumers' needs, the long- enduring habit of competition, and the alarm of nations who feel their autonomy menaced.

Human society in the modern world is shaping itself under the pressure of masses. But the word "mass," instead of re- presenting sonic vague idea of a multitude, is taking on a more and more definitely economic meaning, in view of the enormous advance of industry and the intensification of modern commerce. More and more is the economic function of everyone fused with this or that cycle of production and consumption, which bands together thousands or millions of men in a confraternity of work (in specialized stages), in order to convert or finish a given material, utilize some common process, or meet universal needs. These groups of thousands or millions, including the rich owner and the humblest labourer (whose lot in this world depends on the vibrations of international markets, on the price of coal, oil, cotton, banking credit, the efficiency of railways, or the invention of new machines) are no longer diffuse, misshapen masses. They are blocs, coherent, organic, having each the most jealous concern for its own interests.

These economic masses have more and more weight in the internal policy of States, and by their irresistible demands render the old idea of the State increasingly obsolete. It is they who determine largely what international relations shall be, since they represent the decisive element in the balance of forces.

THE DYNAMIC PRINCIPLE OF CAPITAL.

Along with this growing economic internationalism there is developing quite a new conception of capital. The idea that wealth is static and calculable at a given moment is being superseded by the principle that capital is dynamic, and that the key to world movements is not in production but in circulation. If you stop circulation, or traffic, production immediately becomes plethoric and begins to fade off ; and, on the contrary, if you speed up and facilitate traffic, then consumption will increase and stimulate production.

The capitalism of dynamic wealth entails neither the social isolation of the individual nor a class struggle. Unity, soli- darity, is conceived, in fact and theory, as dictated by the real nature of the economic system. The individual, whatever his station in life may be, becomes part of a unit made up of other individuals who share the destinies of the same economic group. All the individual members hold the position of " employees " or" salaried workers" for the common welfare, which may be enhanced only by an increase in the collective "return." This is the enlightened economics of the United States of America. It is even argued that America, by its application of the principle of free capitalism, is bringing about the great levelling of mankind, as many doctrinaires have set out to do in the past.

This new economic orientation is moulding a new political theory. Modern Socialism may, indeed, go the way of middle- class Liberalism. Landed capital, under the unscientific methods of the past, was only able to go so far and no further. Then the advent of commercial capital increased prosperity, and to the extent that exchange is really a phase of production it increased the productive power of the world. But commercial capital was not enough, as that, too, was confined within very narrow limits, creating new values simply by bartering existing values. The pyramid of wealth rested on the basis of a limited capital within each community, and could not be piled up beyond a certain height. The nature of modern industrial capital is so different, and potential expansion within each country has become so boundless, as to provide an ever-broadening basis for the benefits of trade and commerce.

Science is not only boundless in its possibilities, but im- partial. It knows no confines of territory and transcends all national boundaries. Never again will a country be able to achieve or retain a monopoly of industrial advantages. For the time being, climatic conditions or racial characteristics may give one nation a temporary preponderance in some particular category of production, but with the overwhelming importance of new industrial methods, applicable impartially to all natural forces, the advantage cannot be permanently retained.

The alteration in the media of transport and the growth of the world market are very important, but the full implications of the industrial revolution are not yet realized. When conceived in the proper perspective it means the coming internationalism of mighty economic empires, in friendly com- petition with each other, not so much for the division of what exists but for the utilization of what can be made to exist.

W. TUDOR DAVIES.