This chapter suggests the following:-- * * * * * The trans-national processes which enabled Europe to support itself before the War, were based mainly on private exchanges prompted by the expectation of individual advantage. They were not dependent upon political power. (The fifteen millions for whom German soil could not provide, lived by trade with countries over which Germany had no political control, as a similar number of British live by similar non-political means.) The old individualist economy has been largely destroyed by the State Socialism introduced for war purposes; the Nation, taking over individual enterprise, became trader and manufacturer in increasing degree. The economic clauses of the Treaty, if enforced, must prolong this tendency, rendering a large measure of such Socialism permanent. The change may be desirable. But if co-operation must in future be less as between individuals for private advantage, and much more as between _nations_, Governments acting in an economic capacity, the political emotions of nationalism will play a much larger rôle in the economic processes of Europe. If to Nationalist hostilities as we have known them in the past, is to be added the commercial rivalry of nations now converted into traders and capitalists, we are likely to have not a less but more quarrelsome world, unless the fact of interdependence is much more vividly realised than in the past. The facts of the preceding chapter touching the economic chaos in Europe, the famine, the debauchery of the currencies, the collapse of credit, the failure to secure indemnities, and particularly the remedies of an international kind to which we are now being forced, all confirm what had indeed become pretty evident before the War, namely, that much of Europe lives by virtue of an international, or, more correctly, a transnational economy. That is to say, there are large populations that cannot live at much above a coolie standard unless there is a considerable measure of economic co-operation across frontiers. The industrial countries, like Britain and Germany, can support their populations only by exchanging their special products and services--particularly coal, iron, manufactures, ocean carriage--for food and raw materials; while more agricultural countries like Italy and even Russia, can maintain their full food-producing capacity only by an apparatus of railways, agricultural machinery, imported coal and fertilisers, to which the industry of the manufacturing area is indispensable.