velopment by means of a "protective" tariff. The second Balkan war turned on such limitations, as between Serbia and Bulgaria, and the Austro-Serb complications which precipitated the present civil war turned on restrictions as between Serbia and Austria-Hungary. Without sovereignty, that is, exclusive possession, a state is, under ordinary conditions, shut off from economic growth. The alternative has ever been- rule or ruin. In this respect, democratic states differ from dynastic ones only in degree.

There is a maxim that capital knows no nationality, that it is international, using nations simply for the purpose of exploiting other nations. Whether this be so or not, labor consciously aspires to internationality, and its aspiration is a reflex from the indisputable fact that in the economy of mankind the wealth of nations is international. As soon as this economy is freed from the repressive stress toward exclusive sovereignty, it must of its own weight and momentum, automatically, prolong peace. For the economic enterprise is an instru

ment, not an end. It provides the matter of the body-politic, but not its mind. This mind is the social personality, the nationality, of a human aggregate, the product of its generous and spontaneous energies, of its free self-expression - its culture. In this a people's personality lives and moves and has its being, not in the economic order. That is undoubtedly the foundation of our house of life, but we live not in, but on, the foundations. Those exist only for the sake of the superstructure, and the firmer the base, the freer and securer the movement of those who dwell upon it. An internationalized economic order is indispensable to the liberation of nationality. The claim to exclusive sovereignty in the economic world has led to repression in the cultural. Policies of Teutonification or Ottomanization or Magyarization or Russification applied by dynastic states to subject or conquered peoples were policies of murder of social personalities. They were guided by the belief that the repression and replacement of one language and culture by another would lead to acquiescence

in foreign dominion, making foreign rule easier by forced abolition of its foreignness. Nothing could have been blinder. A social personality, a nationality, resists murder as does an individual, and is infinitely harder to kill. Exploitation and even slavery are tolerated, as the non-political and nonresistant Jewish nationality has tolerated them. But it is significant that the Jewish nationality has clung to its cultural integrity and spiritually dominated its masters. So with all nationalities. Assault on spiritual values is met with immediate and powerful resistance: it is this assault that makes war between civilized peoples most of all inevitable.

Historically the assault derives from a false equation which the necessities of dynastic survival in the modern world formulate. The political state, declares the equation, is identical with its economic interests and its economic interests with its nationality. Once more we have the dogma of exclusive sovereignty. Its falsity also in this form need not be argued. We may observe the precedent and example of its

contradictory in the economic history of the "sovereign states" of the United States of America, a nation of local state governments and diversified nationalities, freely associating as cultural groups, freely cooperating in the free trade of interstate commerce, its members citizens at once of the American Commonwealth and of the respective states. Time was when economic rivalry was as bitter between these states as between the European, and tariff wars and military conflict were not unheard of. But our federal system has allowed the prosperity of each state to act, as in the course of nature it had to, as a direct function of the prosperity of its fellows. There is no silly talk about "the balance of trade" between states, and other incidents of bookkeeping. The ineluctable fact of the interdependence of the "sovereign states" is incorporated into, not opposed by, the laws of the states. International commerce is only interstate commerce writ large and the problems of its control and regulation are of the same kind. The ineluctable fact of the economic interdependence of mankind

must be written into the laws of nations as it has been written into those of the states. Law must declare and reënforce the fact that the foundation of national prosperity is international comity. Law must provide for equality of commercial opportunity for equal access to undeveloped lands, to raw materials, to carriers, to harbors, to markets. Law must provide for the freedom of the highways of the world to the peoples of the world. These are the economic implications of the "principle of nationality," and so the safeguards of lasting peace.

Their attainment has for its first condition that there be banished from the council of nations any power whose existence is identified in fact as well as in assumption with a programme of exclusive sovereignty. Such an identity exists in the case of dynastic governments of rule or ruin, so that President Wilson's refusal to treat with the present German government is well-advised. But it must not be forgotten that there are others.

Let no one regard the enactment and