It is science above all that has determined the importance of raw materials in international competition. Coal and iron and oil, especially, are the bases of power, and thence of wealth. The nation which possesses them, and has the industrial skill required to utilize them in war, can acquire markets by armed force, and levy tribute upon less fortunate nations. Economists have underestimated the part played by military prowess in the acquisition of wealth. The landed aristocracies of Europe were, in origin, warlike invaders. Their defeat by the bourgeoisie in the French Revolution, and the fear which this generated in the Duke of Wellington, facilitated the rise of the middle class. The wars of the eighteenth century decided that England was to be richer than France. The traditional economist’s rules for the distribution of wealth hold only when men’s actions are governed by law, i.e. when most people think the issue unimportant. The issues that people have considered vital have been decided by civil wars or wars between nations. And for the present, owing to science, the art of war consists in possessing coal, iron, oil, and the industrial skill to work them. For the sake of simplicity, I omit other raw materials, since they do not affect the essence of our problem. We may say, therefore, speaking very generally, that men have used the increased productivity which they owe to science for three chief purposes in succession: first, to increase the population; then, to raise the standard of comfort; and, finally, to provide more energy to war. This last result has been chiefly brought about by competition for markets, which led to competition for raw materials, especially the raw materials of munitions. III. THE INCREASE OF ORGANIZATION The stimulation of nationalism which has taken place in modern times is, however, due very largely to another factor, namely the increase of organization, which is of the very essence of industrialism. Wherever expensive fixed capital is required, organization on a large scale is of course necessary. In view of the economies of large scale production, organization in marketing also becomes of great importance. For some purposes, if not for all, many industries come to be organized nationally, so as to be in effect one business in each nation.