erial footing. Whereas, in case the German peoples are
thrown back on a democratic status, as neutralised commonwealths without
a crown or a military establishment, the question of their colonial
possessions evidently falls vacant.

As to the neutralisation of trade relations apart from the question of
colonies, and as bears on the case of Germany under the projected
jurisdiction of a pacific league of neutrals, the considerations to be
taken account of are of much the same nature. As it would have to take
effect, e.g., in the abolition of commercial and industrial
discriminations between Germany and the pacific nations, such
neutralisation would doubtless confer a lasting material benefit on the
German people at large; and it is not easy to detect any loss or
detriment to be derived from such a move so long as peace prevails.
Protective, that is to say discriminating, export, import, or excise
duties, harbor and registry dues, subsidies, tax exemptions and trade
preferences, and all the like devices of interference with trade and
industry, are unavoidably a hindrance to the material interests of any
people on whom they are imposed or who impose these disabilities on
themselves. So that exemption from these things by a comprehensive
neutralisation of trade relations would immediately benefit all the
nations concerned, in respect of their material well-being in times of
peace. There is no exception and no abatement to be taken account of
under this general statement, as is well known to all men who are
conversant with these matters.

But it is otherwise as regards the dynastic interest in the case, and as
regards any national interest in warlike enterprise. It is doubtless
true that all restraint of trade between nations, and between classes or
localities within the national frontiers, unavoidably acts to weaken and
impoverish the people on whose economic activities this restraint is
laid; and to the extent to which this effect is had it will also be true
that the country which so is hindered in its work will have a less
aggregate of resources to place at the disposal of its enterprising
statesmen for imperialist ends. But these restraints may yet be useful
for dynastic, that is to say warlike, ends by making the country more
nearly a "self-contained economic whole." A country becomes a
"self-contained economic whole" by mutilation, in cutting itself off
from the industrial system in which industrially it belongs, but i