The ultimate explanation of the higher cost of slave labour is the ultimate explanation of the difficulty of using political power for economic ends, of basing our economic security upon military predominance. Here is France, with her old enemy helpless and prostrate. She needs his work for reparations, for indemnities, for coal. To perform that work the prostrate enemy must get upon his feet. If he does, France fears that he will knock her down. From that fear arise contradictory policies, self-stultifying courses. If she overcomes her fear sufficiently to allow the enemy to produce a certain amount of wealth for her, it is extremely likely that more than the amount of that wealth will have to be spent in protecting herself against the danger of the enemy's recovered vitality. Even when wars were less expensive than they are, indemnities were soon absorbed in the increase of armament necessitated by the Treaties which exacted the indemnities. Again, this is a very ancient story. The victor on the Egyptian vase has his captured enemy on the end of a rope. We say that one is free, the other bond. But as Spencer has shown us, both are bond. The victor is tied to the vanquished: if he should let go the prisoner would escape. The victor spends his time seeing that the prisoner does not escape; the prisoner his time and energy trying to escape. The combined efforts in consequence are not turned to the production of wealth; they are 'cancelled out' by being turned one against another. Both may come near to starvation in that condition if much labour is needed to produce food. Only if they strike a bargain and co-operate will they be in the position each to turn his energy to the best economic account. But though the story is ancient, men have not yet read it. These pages are an attempt to show why it has not been read. Let us summarise the conclusions so far reached, namely:-- That predominant political and military power is important to exact wealth is shown by the inability of the Allies to turn their power to really profitable account; notably by the failure of France to alleviate her financial distress by adequate reparations--even adequate quantities of coal--from Germany; and by the failure of the Allied statesmen as a whole, wielding a concentration of power greater perhaps than any known in history to arrest an economic disintegration, which is not only the cause of famine and vast suffering, but is a menace to Allied interest, particularly to the economic security of Britain.