We have not indeed a true federalism in the United States to-day; we are now learning the lesson of federalism. Some one must analyze for us the difference between centralization and true federalism, which is neither nationalization, states-rights, nor balance, and then we must work for true federalism. For the federal government to attempt to do that which the states should do, or perhaps even are doing, means loss of force, and loss of education-by-experience for the states. On the other hand, not to see when federal action means at the same time local development and national strength, means a serious retarding of our growth. It is equally true that when the states attempt what the federal government alone should undertake, the consequence is general muddle. And it is by no means a question only of what the federal government should do and what it should not do. It is a question of the _way_ of doing. It is a question of guiding, where necessary, without losing local initiative or local responsibility. It is a question of so framing measures that true federation, not centralization, be obtained. Recently, even before the war, the tendency has been towards increased federal action and federal control, as seen, for instance, in the control of railroad transportation, of vocational education etc. The latter is an excellent example of the possibility of central action being true federal and not nationalized action. The federal government upon application from a state grants to that state an amount for vocational education equal to what the state itself will appropriate. The administration of the fund rests with the state. The federal government thus makes no assumptions. It _recognizes existing facts_. And it does not impose something from without. The state must understand its needs, must know how those needs can best be satisfied; it must take responsibility. The experience of one state joins with the experience of other states to form a collective experience. As we watch federalism being worked out in actual practice at Washington, we see in that practice the necessity of a distinction which has been emphasized throughout this book as the contribution of contemporary psychology to politics: nationalization is the Hegelian reconciliation, true federalism is the integration of present psychology. This means a genuine integration of the interests of all the parts. If our present tendency is towards nationalization, we must learn the difference between that and federalism and change it into the latter. We need a new order of statesmen in the world to-day—for our nation, for our international league—those who understand federalism.