The central conclusion suggested by the following analysis of the events of the past few years is that, underlying the disruptive processes so evidently at work--especially in the international field--is the deep-rooted instinct to the assertion of domination, preponderant power. This impulse sanctioned and strengthened by prevailing traditions of 'mystic' patriotism, has been unguided and unchecked by any adequate realisation either of its anti-social quality, the destructiveness inseparable from its operation, or its ineffectiveness to ends indispensable to civilisation. The psychological roots of the impulse are so deep that we shall continue to yield to it until we realise more fully its danger and inadequacy to certain vital ends like sustenance for our people, and come to see that if civilisation is to be carried on we must turn to other motives. We may then develop a new political tradition, which will 'discipline' instinct, as the tradition of toleration disciplined religious fanaticism when that passion threatened to shatter European society. Herein lies the importance of demonstrating the economic futility of military power. While it may be true that conscious economic motives enter very little into the struggle of nations, and are a very small part of the passions of patriotism and nationalism, it is by a realisation of the economic truth regarding the indispensable condition of adequate life, that those passions will be checked, or redirected and civilised. This does not mean that economic considerations should dominate life, but rather the contrary--that those considerations will dominate it if the economic truth is neglected. A people that starves is a people thinking only of material things--food. The way to dispose of economic pre-occupations is to solve the economic problem. The bearing of this argument is that developed by the present writer in a previous book, _The Great Illusion_, and the extent to which it has been vindicated by events, is shown in the Addendum. CONTENTS CHAPTER PAGE I OUR DAILY BREAD 3 II THE OLD ECONOMY AND THE POST-WAR STATE 61 III NATIONALITY, ECONOMICS, AND THE ASSERTION OF RIGHT 81 IV MILITARY PREDOMINANCE--AND INSECURITY 112 V PATRIOTISM AND POWER IN WAR AND PEACE: THE SOCIAL OUTCOME 142 VI THE ALTERNATIVE RISKS OF STATUS AND CONTRACT 169 VII THE SPIRITUAL ROOTS OF THE SETTLEMENT 199 ADDENDUM: SOME NOTES ON 'THE GREAT ILLUSION' AND ITS PRESENT RELEVANCE 253