The policy of gigantic armaments cannot in the very nature of things ensure any final settlement of disputes between States. It leads, and can only lead, to an intolerable situation from which war comes to be regarded by diplomacy as the only escape. An all-round limitation of armaments must follow the present war if the world is to be permanently relieved of the nightmare which has weighed upon it for so long. We can no longer afford to listen to arguments as to the impracticability of such a course from those whose claims to the possession of human wisdom and experienced guidance have so utterly broken down. [Sidenote: Armament industry rests in government demand, and creates an economic force interested in war preparedness.] The difficulty of compelling a change in the policy of European Governments has been intensified by the conditions under which armament construction is carried on in this and other countries. Every one is familiar with the fact that the object of a commercial firm is to push its wares in every legitimate manner, to advertise them, and systematically to tout for orders both at home and abroad. Every one is aware that there exists a powerfully-equipped industry for the manufacture of military and naval engines and instruments of offense. Disguise it as we may, that industry waxes and wanes, the profits its management derives rise and fall, the dividends earned by its shareholders increase and dwindle in the measure of the demand for the articles it produces. That demand does not emanate from members of the public. It emanates from the military and naval departments of the public services. The industry relies, therefore, for its existence and for its profits not upon a private demand, but upon a Government demand, and the extent of that Government demand will depend upon the view which the Government may take of the number and nature of these articles required to ensure the national safety. Such a condition of affairs is a permanent and terrible danger both to democratic government and to international peace. What are its implications? [Sidenote: Private interests manipulate government.]