Enclosure No. 1
 
 
              Address delivered by Ambassador               
 
               William E. Dodd at Luncheon of               
 
              American Chamber of Commerce in               
 
             Germany, Berlin, October 12, 1933.             
 
                                                            
 
                    ECONOMIC NATIONALISM                    
 
                                                            
 
                             I.                             
 
 
In times of great stress men are too apt to abandon
 
too much of their past social devices and venture too far
 
upon unchartered courses.  And the consequence has always
 
been reaction, sometimes disaster.  With the breakdown of
 
the old Roman democracy after the enormous success of the
 
Punic Wars, great group leaders contending for personal and
 
group advantages brought the Republic to the verge of col-
 
lapse.  Then a Caesar rose, asserted autocratic powers and
 
for a time stabilized society.  The great fact so appealed
 
to Gibson that he wrote the masterpiece of all historical
 
work.  He overlooked or under-emphasized the cruelties and
 
the outside exploitation of his golden empire.  I allude
 
to this because human governmental and economic combina-
 
tions have always appeared under a few patterns and both
 
philosophers and politicians waver and hesitate between
 
the models offered in a Cato, a Gracchus or a Julius Cae-
 
sar and the ideals which these figures connote.  There are
 
not many forms of human association- though many new names
 
have been invented from time to time.  Half-educated states-
 
men today swing violently away from the ideal purpose of
 
the first Gracchus and think they find salvation for their
 
troubled fellows in the arbitrary modes of the man who
 
fell an easy victim to the cheap devices of the lewd Cleo-
 
patra.  They forget that the Gracchus democracy failed upon
 
 
                                                  the