12 JANUARY 1940, Page 15

Their purpose, if I understand it aright, is to create

a New World Order in which there will be less poverty and no war. That is a purpose which we all acclaim. From the economic point of view they hope to establish Free Trade among the nations, or, as they would prefer to say, to devise some system for the collectivisation of resources, production and distribution. I fully agree that if we are to pass without riot from a war-economy into a peace-economy, we must attempt the impossible. In considering, for instance, the ways and means by which the people of the United States, in Congress assembled, can be persuaded fundamentally to lower their present tariffs, the Federal Unionists will be doing valuable research work. There are other problems, such as oil, wool and cotton, which might also engage their attention. But I know that political economy is a dry and undemocratic subject; I therefore pass to the political aspects of Federal Union. It is contended that if a sufficient number of Nation States surrender a proportion of their national sovereignty to a Central Federal authority, then war will be abolished as a means of settling international disputes. 1 quite agree that war will become less probable as between members of the Federation. But what I do not understand is how war will be rendered less probable between one Federation and coalitions of outside States or other Federa- tions. This difficulty is one which the Federal Unionists are apt to evade.

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