Obviously therefore it is not merely a question of production, but of production adjusted to consumption, and vice versa; of proper distribution of purchasing power, and a network of processes which must be in increasing degree consciously controlled. We should never have supposed that mere production would suffice, if there did not perpetually slip from our minds the very elementary truth that in a world where division of labour exists wealth is not a material but a material plus a process--a process of exchange. Our minds are still dominated by the mediæval aspect of wealth as a 'possession' of static material such as land, not as part of a flow. It is that oversight which probably produced the War; it certainly produced certain clauses of the Treaty. The wealth of England is not coal, because if we could not exchange it (or the manufactures and services based on it) for other things--mainly food--it certainly would not even feed our population. And the process by which coal becomes bread is only possible by virtue of certain adjustments, which can only be made if there be present such things as a measure of political security, stability of conditions enabling us to know that crops can be gathered, transported and sold for money of stable value; if there be in other words the indispensable element of contract, confidence, rendering possible the indispensable device of credit. And as the self-sufficing economic unit--quite obviously in the case of England, less obviously but hardly less certainly in other notable cases--cannot be the national unit, the field of the contract--the necessary stability of credit, that is--must be, if not international, then trans-national. All of which is extremely elementary; and almost entirely overlooked by our statesmanship, as reflected in the Settlement and in the conduct of policy since the Armistice. 2 _Britain's dependence on the production by foreigners of a surplus of food and raw materials beyond their own needs_ The matter may be clarified if we summarise what precedes, and much of what follows, in this proposition:-- The present conditions in Europe show that much of its dense population (notably the population of these islands) can only live at a standard necessary for civilisation (leisure, social peace, individual freedom) by means of certain co-operative processes, which must be carried on largely across frontiers. The mere physical existence of much of the population of Britain is dependent upon the production by foreigners of a surplus of food and raw materials beyond their own needs. The processes of production have become of the complex kind which cannot be compelled by preponderant power, exacted by physical coercion.