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war, is recruited, and the socialists. The former produce food, which they wish to sell for high prices by aid of tariffs; the latter produce manufactured articles and have to buy dear food.

But Freetrade still reigned supreme in most of the markets of the British Empire, hence enormoiis quantities of German goods could be sold in those markets, which included England and all its colonies and possessions (with the exception, in some unimportant respects, of Australia and South Africa) with a population of about 400 millions of souls. But in England an influential minority clamoured for protection and it was quite possible although not probable that, in the long run, the protectionists would prevail. That would have been a calamity for Germany. Hence, economically, she feit herself at England's mercy! The liberal party in England, unconsciously perhaps, feit the difficulty and rather than rouse Germany upheld the principles of Cobden and Bright and strove to arriv├ę at an understanding, which was on the very point of being concluded when the war broke out, which it could have done a great deal to prevent. For it would have disarmed the war-party in Germany to the extent of bereaving it of one of its arguments: Germany's economie dependence on the British Empire. We know now, of course, that even this would not have been suffici├źnt. We know, that as long as Byzantinism and ultra-militarism prevail in Germany, all the understandings, economie or other, will