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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

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