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international relations they formally adhere to the rule of Live
and Let Live。 Not so in their domestic policy； however。 They have
all endowed themselves with all the encumbrances of national
pretensions and discrimination which their circumstances will
admit。 Apart from a court and church which foot up to nothing
more comfortable than a gratuitous bill of expense； they are also
content to carry the burden of a national armament； a protective
tariff； a national consular service； and a diplomatic service
which takes care of a moderately burdensome series of treaty
agreements governing the trade relations of the Scandinavian
business community； all designed for the benefit of the vested
interests and the kept classes of the nation； and all at the cost
of the common man。
The case of these relatively free； relatively unassuming； and
relatively equitable national establishments is also instructive。
They come as near the rule of Live and Let Live as any national
establishment well can and still remain a national establishment
actuated by notions of competitive self…help。 But all the while
the national administration runs along； with nothing better to
show to any impartial scrutiny than a considerable fiscal burden
and a moderate volume of hindrance to the country's industry；
together with some incidental benefit to the vested interests and
the kept classes at the cost of the underlying community。 These
Scandinavians occupy a peculiar position in the industrial world。
They are each and several too small to make up anything like a
self…contained industrial community； even under the most
unreserved pressure of national exclusiveness。 Their industries
necessarily are part and parcel of the industrial system at
large； with which they are bound in relations of give and take at
every point。 Yet they are content to carry a customs tariff of
fairly grotesque dimensions and a national consular service of
more grotesque dimensions still。 This situation is heightened by
their relatively sterile soil； their somewhat special and narrow
range of natural resources； and their high latitude； which
precludes any home growth of many of the indispensable materials
of industry under the new order。 Yet they are content to carry
their customs tariff； their special commercial treaties； and
their consular service for the benefit of their vested
interests。
It should seem that this elaborate superfluity of national
outlay and obstruction should work great hardship to the
underlying community whose industry is called on to carry this
burden of lag； leak； and friction。 And doubtless the burden is
sufficiently real。 It amounts； of course； to the nation's working
at cross…purposes with itself； for the benefit of those special
interests that stand to gain a little something by it all。 But in
this as in other works of sabotage there are compensating
effects； and these should not be overlooked； particularly since
the case is fairly typical of what commonly happens。 The waste
and sabotage of the national establishment and its obstructive
policy works no intolerable hardship； because it all runs its
course and eats its fill within that margin of sabotage and
wasteful consumption that would have to be taken care of by some
other agency in the absence of this one。 That is to say；
something like the same volume of sabotage and waste is
indispensable to the prosperity of business under the conditions
of the new order； so long as business and industry are managed
under the conditions imposed by the price system。 By one means or
another prices must be maintained at a profitable level for
reasons of business； therefore the output must be restricted to a
reasonable rate and volume； and wasteful consumption must be
provided for； on pain of a failing market。 And all this may as
well be taken care of by use of a princely court； an otiose
church； a picturesque army； a well…fed diplomatic and consular
service； and a customs frontier。 In the absence of all this
national apparatus of sabotage substantially the same results
would have to be got at by the less seemly means of a furtive
conspiracy in restraint of trade among the vested interests。
There is always something to be said for the national integrity。
The case of these Scandinavian nations； taken in connection
and comparison with what is to be seen elsewhere； appears to say
that a national establishment which has no pretensions to power
and no imperialistic ambitions is preferable； in point of economy
and peaceable behavior； to an establishment which carries these
attributes of self…determination and self…help。 The more nearly
the national integrity and self…determination approaches to make
believe the less mischief is it likely to work at home and the
more nearly will it be compatible with the rule of Live and Let
Live in dealing with its neighbors。 And the further implication
is plain without argument； that the most beneficent change that
can conceivably overtake any national establishment would be to
let it fall into 〃innocuous desuetude。〃 Apparently； the less of
it the better； with no apparent limit short of the vanishing
point。
Such appears to be the object…lesson enforced by recent and
current events； in so far as concerns the material fortunes of
the underlying community at large as well as the keeping of the
peace。 But it does not therefore follow that all men and classes
will have the same interest in so neutralising the nation's
powers and disallowing the national pretensions。 The existing
nations are not of a homogeneous make…up within themselves
perhaps less so in proportion as they have progressively come
under the rule of the new order in industry and in business。
There is an increasingly evident cleavage of interest between
industry and business； or between production and ownership； or
between tangible performance and free income； one phrase may
serve as well as another； and neither is quite satisfactory to
mark the contrast of interest between the common man on the one
hand and the vested interests and kept classes on the other hand。
But it should be sufficiently plain that the national
establishment and its control of affairs has a value for the
vested interests different from what it has for the underlying
community。
Quite plainly the new order in industry has no use or place
for national discrimination or national pretensions of any kind；
and quite plainly such a phrase as 〃national integrity〃 has no
shadow of meaning for this new industrial order which overruns
national frontiers and overcomes national discrimination as best
it can； in all directions and all the time。 For industry as
carried on under the new order； the overcoming of national
discrimination is part of the ordinary day's work。 But it is
otherwise with the new order of business enterprise；
large…scale； corporate； resting on intangible assets； and turning
on free income which flows from managerial sabotage。 The business
community has urgent need of an efficient national establishment
both at home and abroad。 A settled government； duly equipped with
national pretensions； and with legal and military power to
maintain the sacredness of contracts at home and to enforce the
claims of its business men abroad； such an establishment is
invaluable for the conduct of business； though its industrial
value may not unusually be less than nothing。
Industry is a matter of tangible performance in the way of
producing goods and services。 And in this connection it is well
to recall that a vested interest is a prescriptive right to get
something for nothing。 Now； any project of reconstruction； the
scope and method of which are governed by considerations of
tangible performance； is likely to allow only a subsidiary
consideration or something less to the legitimate claims of the
vested interests； whether they are vested interests of business
or of privilege。 It is more than probable that in such a case
national pretensions in the way of preferential concessions in
commerce and investment will be allowed to fall into neglect； so
far as to lose all value to any vested interest whose fortunes
they touch。 These things have no effect in the way of net
tangible performance。 They only afford ground for preferential
pecuniary rights； always at the cost of someone else； but they
are of the essence of things in that pecuniary order within which
the vested interests of business live and move。 So also such a
matter…of…fact project of reconstruction will be likely
materially to revise outstanding credit obligations； including
corporation securities； or perhaps even bluntly to disallow
claims of this character to free income on the part of
beneficiaries who can show no claim on grounds of current
tangible performance。 All of which is inimical to the best good
of the vested interests and the kept classes。
Reconstruction which partakes of this character in any
sensible degree will necessarily be viewed with the liveliest
apprehension by the gentlemanly statesmen of the old