And there is a further reason: We still believe in these piracies; we believe they pay and that we may get our turn at some "swag" to-morrow. France is envied for her possession of Morocco; Germany for her increased authority over some pestilential African swamps. But when we realize that in these international burglaries there is no "swag," that the whole thing is an illusion, that there are huge costs but no reward, we shall be on the road to a better tradition, which, while it may not give us international policing, may do better still--render the policing unnecessary. For when we have realized that the game is not worth the candle, when no one desires to commit aggression, the competition in armaments will have become a bad nightmare of the past. SIR MAX WAECHTER It is generally admitted that the present condition of Europe is highly unsatisfactory. To any close observer it must be evident that Europe, as a whole, is gradually losing its position in the world. Other nations which are rapidly coming to the front will, in course of time, displace the European, unless the latter can pull themselves together and abandon the vicious system which now handicaps them In the economic rivalry of nations. The cause of this comparative decline is, in my opinion, to be found in the fact that all the European countries are arming against one another, either for defense, or for aggression, for the attack is frequently the best form of defense. The motive for these excessive armaments can clearly be found in the jealousy and mistrust existing among the nations of Europe. Europe is spending on armaments something like four hundred million pounds sterling per year, and there is a tendency to increase this tremendous expenditure. In order to bring the magnitude of this sacrifice more vividly before the reader, let us assume that a European war is not likely to occur more frequently than about every thirty years. We then find that the incredible sum of twelve thousand million pounds sterling has been spent in peace in preparation for this war, a sum which greatly exceeds the total of all the European state debts. Such stupendous sums can not be raised without imposing crushing taxation, and without neglecting the other duties of the state, such as education, scientific research, and social reform. One serious economic result of this heavy taxation is that European industry is placed at a considerable disadvantage in competing with that of other nations, notably the United States of America. The late Mr. Atkinson, an American authority, declared that, compared with the United States, we were handicapped to the extent of five per cent, in our production. Since then the figures have changed considerably in favor of America. I recently had an opportunity of discussing this point with a great German authority on political economy, and he fixed the advantage in favor of the United States at nearly ten per cent, as regards the cost of production.