Capital Out of the Country.
But I must here warn everyone concerned that the most formidable opposition to the break-up of these unnatural alliances between east and west, between Democracy and Autocracy, between the twentieth century and the Dark Ages, will not come from the Balancers of Power. They are not really Balance of Power alliances: in fact, they are tending to an enormous overbalance of power in favor of the east as against the west and in favor of Militarist Autocracy as against Democracy. They are at root absolutely unpatriotic, even absolutely conscienceless products of commercial finance; and the Balance of Power theories are only the attempts of our diplomats to put a public spirited face on the operations of private cupidity. This is not the first time nor the second that I have had to urge that the greatest danger to us in the sphere of foreign politics is the tendency of capital to run away from civilization: the one running downhill to hell as naturally as the other struggles uphill to the Celestial City. The Englishman is allowed to produce the subsistence of himself and his family only on condition that he produces the subsistence of the capitalist and his retainers as well; and lo! he finds more and more that these retainers are not Englishmen, but Russians, South Americans, Kaffirs, Persians, or yellow or black barbarians armed for his destruction (not to mention Prussians and Austrians), and that the treaties made by our diplomatists have less and less to do with the security of the nation or the balance of power or any other public business, and more and more with capitalist opportunities of making big dividends out of slavish labour. For instance, the Anglo-Russian agreement is not a national treaty: it is the memorandum of a commercial agreement settling what parts of Persia are to be exploited by the Russian and English capitalists respectively; the capitalists, always against State interference for the benefit of the people, being very strongly in favor of it for coercing strikers at home and keeping foreign rivals off their grass abroad. And the absurd part of it is that when the State has thus arranged for our capitalists to exploit certain parts of Persia, and for their sakes to protect the parliamentary liberties of the part left to Russia, they discovered that, after all, the most profitable game was to lend Russia the money to exploit with, and to facilitate the operation by allowing her to destroy the Persian parliament in the face of our own exhortation to it to keep the flag flying, which we accordingly did without a blush. The French capitalists had dragged France into an alliance with Russia long before this; but the French Republic had the excuse of the German peril and the need for an anti-German ally. Her natural ally for that purpose was England; but as there was no market in England for her money, her plutocrats drove her into the alliance with Russia as well; and it is that alliance and not the alliance with England that has terrified Germany into flying at her throat and plunging Europe into a frightful war. The natural alliance with England twice averted war: in the Moroccan crises of Algeciras and Agadir, when Sir Edward Grey said boldly that we should defend France, and took the first steps towards a joint military and naval control of the French and English forces. Why he shrank from that firm position last July and thereby led Germany to count so fatally on our neutrality I do not pretend to know; it suffices for my argument that we were able to hold the balance between France and Germany, but failed to hold it between Germany and Russia, and that it was the placing of Russian loans in France and England that brought Russia into our western affairs. It would have paid us ten times over to have made Russia a present of all we and France have lent her (indemnifying, of course, the holders of the stock through an addition to the income tax) rather than pay the price of a European war. But what is the use of crying for spilt milk? I am merely explaining why, when French money went to Russia, the French papers discovered that the Russians were a most interesting people and their Government—properly understood—a surprisingly Liberal Government; and why, when English money went to Russia, the English press suddenly developed leanings towards the Greek Church, and deplored the unofficial execution of Stolypin as deeply as it had rejoiced in the like fate of Bobrikoff. The upshot of it all is that western civilization is at present busy committing suicide by machinery, and importing hordes of Asiatics and Africans to help in the throat cutting, not for the benefit of the silly capitalists, who are being ruined wholesale, but to break up the Austrian Empire for the benefit of Russia and the Slavs of eastern Europe, which may be a very desirable thing, but which could and should be done by the eastern Powers among themselves, without tearing Belgium and Germany and France and England to pieces in the process.
The Red Flag and the Black.
Will you now at last believe, O stupid British, German, and French patriots, what the Socialists have been telling you for so many years: that your Union Jacks and tricolours and Imperial Eagles ("where the carcase is, there will the eagles be gathered") are only toys to keep you amused, and that there are only two real flags in the world henceforth: the red flag of Democratic Socialism and the black flag of Capitalism, the flag of God and the flag of Mammon? What earthly or heavenly good is done when Tom Fool shoots Hans Narr? The plain fact is that if we leave our capital to be dealt with according to the selfishness of the private man he will send it where wages are low and workers enslaved and docile: that is, as many thousand miles as possible from the Trade Unions and Trade Union rates and parliamentary Labour Parties of civilization; and Germany, at his sordid behest, will plunge the world into war for the sake of disgracing herself with a few rubber plantations, poetically described by her orators and journalists as "a place in the sun." When you do what the Socialists tell you by keeping your capital jealously under national control and reserving your shrapnel for the wasters who not only shirk their share of the industrial service of their country, but intend that their children and children's children shall be idle wasters like themselves, you will find that not a farthing of our capital will go abroad as long as there is a British slum to be cleared and rebuilt, or a hungry, ragged, and ignorant British child to be fed, clothed, and educated.
A League of Peace.
But in the west I see no insuperable obstacle to a Treaty of Peace in the largest sense. This war has smoothed the way to it, if I may use the word smoothing to describe a process conduced with so little courtesy and so much shrapnel. Germany has now learned—and the lesson was apparently needed, obvious as it would have been to a sanely governed nation—that when it comes to shoving and shooting, Germany instantly loses all the advantages of her high civilization, because France and England, cultured or uncultured, can shove and shoot as well or beter than she, whilst as to slashing and stabbing, their half barbarous Turco and Ghoorka slaves can cut the Prussian Guard to bits, in spite of the unquestionable superiority of Wagner's music to theirs. Then take France. She does not dream that she could fight Germany and England single-handed. And England could not fight France and Germany without a sacrifice as ruinous as it would be senseless. We therefore have the necessary primary conditions for a League of Peace between the three countries; for if one of them break it, the other two can make her sorry, under which circumstances she will probably not break it. The present war, if it end in the reconquest of Alsace and Lorraine by the French, will make such a League much more stable; not that France can acquire by mere conquest any right to hold either province against its will (which could be ascertained by plebiscite), but because the honors of war as between France and Germany would then be easy, France having regained her laurels and taught Germany to respect her, without obliterating the record of Germany's triumph in 1870. And if the war should further result in the political reconstruction of the German Empire as a democratic Commonwealth, and the conquest by the English people of democratic control of English foreign policy, the combination would be immensely eased and strengthened, besides being brought into harmony with American public feeling, which is important to the security and prestige of the League.
The Case of the Smaller States.
Already the war has greatly added to the value of one of the factors upon which the League of Peace will depend. The smaller States: Holland, Belgium, Switzerland, and the Scandinavian Powers, would have joined it any time these 40 years, had it existed, for the sake of its protection, and thereby made the Protestant north of Mr. Houston Chamberlain's dream as much a reality as any such dream is ever likely to be. But after the fight put up by Belgium the other day, the small States will be able to come in with the certainty of being treated with considerable respect as military factors; for Belgium can now claim to have saved Europe single-handed. Germany has been very unpleasantly reminded
