states of Europe made a conflict almost inevitable.

Under a federated system of the European states, civil war would be
possible, but the chances of a conflict would be greatly lessened by the
presence of a central authority before whom questions of divergent
interests could be publicly threshed out. For when issues arise between
organizations of equal and parallel jurisdiction, a conflict can
frequently be avoided if there is some commonly recognized and superior
authority before whom the points in dispute may be laid, and whose
decision will prove binding on both parties.

What is so obviously true of Europe is also true of the remainder of the
Western world, though to a lesser degree. The economic, social and
cultural life of civilization has passed beyond national boundaries.
Until this fact is recognized, and until some organization is created
with a jurisdiction as wide as the problems at issue, misunderstanding,
conflict and catastrophe will continue to occur.

5. _Building a Producers' Federation_

The first step in economic reorganization is the recognition or
establishment of local district, divisional and world groups of
producers affiliated along the lines of their economic activities. This
is a simple acceptance, in social terms, of the economic forms that have
been evolving since the industrial revolution.

The second step in economic reorganization is the recognition or
establishment of local, district, divisional and world federations of
the local, district, divisional and world industrial groups. This second
step must be taken in order that there may be some authority competent
to deal with those problems which are common to two or more of the
groups in question.

There are two general types of problems that the federations of
industrial groups will be called upon to handle:

1. Those problems involving inter-relations between the various
producing groups, such as the factory workers, transport workers,
agricultural workers and the like, that must exchange their products
and receive from one another the materials upon which existence
depends.

2. Those problems which are common to all producing groups simply
because they are common to men and women who are trying to live and
to function together. The water-supply, roads, education, are
questions of this type.

Problems of the second sort, and the issues raised by them, cannot be
entered upon at this point. The