The outstanding facts of the present situation most worth our attention in this connection are these: Military predominance, successful war, evidently offer no solution either of specifically international or of our common social and economic problems. The political disintegration going on over wide areas in Europe is undoubtedly related very intimately to economic conditions: actual lack of food, the struggle for ever-increasing wages and better conditions. Our attempted remedies--our conferences for dealing with international credit, the suggestion of an international loan, the loans actually made to the enemy--are a confession of the international character of that problem. All this shows that the economic question, alike nationally and internationally, is not, it is true, something that ought to occupy all the energies of men, but something that will, unless dealt with adequately; is a question that simply cannot be swept aside with magnificent gestures. Finally, the nature of the settlement actually made by the victor, its characteristic defects, the failure to realise adequately the victor's dependence on the economic life of the vanquished, show clearly enough that, even in the free democracies, orthodox statecraft did indeed suffer from the misconception which _The Great Illusion_ attributed to it. What do we see to-day in Europe? Our preponderant military power--overwhelming, irresistible, unquestioned--is impotent to secure the most elementary forms of wealth needed by our people: fuel, food, shelter. France, who in the forty years of her 'defeat' had the soundest finances in Europe, is, as a victor over the greatest industrial nation in Europe, all but bankrupt. (The franc has fallen to a discount of over seventy per cent.) All the recurrent threats of extended military occupation fail to secure reparations and indemnities, the restoration of credit, exchange, of general confidence and security. And just as we are finding that the things necessary for the life of our peoples cannot be secured by military force exercised against foreign nations or a beaten enemy, so are we finding that the same method of force within the limits of the nation used by one group as against another, fails equally. The temper or attitude towards life which leads us to attempt to achieve our end by the forcible imposition of our will upon others, by dictatorship, and to reject agreement, has produced in some degree everywhere revolt and rebellion on the one side, and repression on the other; or a general disruption and the breakdown of the co-operative processes by which mankind lives. All the raw materials of wealth are here on the earth as they were ten years ago. Yet Europe either starves or slips into social chaos, because of the economic difficulty.