So long as we live under such a State system as at present, the German Imperial Chancellor certainly hit the nail on the head when he declared, in his speech in the Reichstag on March 30, 1911, that treaties for arbitration between nations must be limited to clearly ascertainable legal issues, and that a general arbitration treaty between two countries afforded no guarantee of permanent peace. Such a treaty merely proved that between the two contracting States no serious inducement to break the peace could be imagined. It therefore only confirmed the relations already existing. "If these relations change, if differences develop between the two nations which affect their national existence, which, to use a homely phrase, cut them to the quick, then every arbitration treaty will burn like tinder and end in smoke." It must be borne in mind that a peaceful decision by an Arbitration Court can never replace in its effects and consequences a warlike decision, even as regards the State in whose favour it is pronounced. If we imagine, for example, that Silesia had fallen to Frederick the Great by the finding of a Court of Arbitration, and not by a war of unparalleled heroism, would the winning of this province have been equally important for Prussia and for Germany? No one will maintain this. The material increase in power which accrued to Frederick's country by the acquisition of Silesia is not to be underestimated. But far more important was the circumstance that this country could not be conquered by the strongest European coalition, and that it vindicated its position as the home of unfettered intellectual and religious development. It was war which laid the foundations of Prussia's power, which amassed a heritage of glory and honour that can never be again disputed. War forged that Prussia, hard as steel, on which the New Germany could grow up as a mighty European State and a World Power of the future. Here once more war showed its creative power, and if we learn the lessons of history we shall see the same result again and again.