the war. - "The currency does not depend for its value upon its gold cover,   
        but on the value which the State gives it."         
 
                                                            
 
 
6. Continental Europe would not be wholly autarktc but would reach out   
on a barter basis to Russia (that was the purpose of the trade agreement) and  
to South America and Mittel Europa would be on a better bargaining footing than   
the individual nations could ever be. The British Empire was to be ignored and  
the United States could come in or stay out as she pleased. 
 
                                                            
 
 
7. The author observes that 93% of Europe is agricultural and that peasant  
labor cannot produce wheat, etc. at a price to compete with overseas imports   
from the mechanized areas; the standard of living in Eastern Europe is now   
well below that of pre-1914. The countries need insulation from world markets  
and the Funk proposals of contract prices in .a nearly closed economy offer   
an over-all solution. The economic advantages are great and will probably   
overcome the political.' This is not wholly true, however, for, while Eastern   
Europe and Russia would gain, the Low Countries and Scandinavia would lose,   
while France, Spain and Italy would be neither better nor worse off. The   
primary objection is the same as List made against Napoleon's scheme- the   
emphasis may be put on a German hegemony and not on the general welfare. (This  
me thought that is developed in Ferrero's "Reconstruction of
 
                                                            
 
 
8. But, continues the author, Eastern Europe must be organized if the   
tragedies of the 1919 Treaties are not to be repeated. England cannot do the   
organizing because (a) she cannot, in view of her Empire commitments, take   
their products;(b) she is not on the Continent; and (c) having no peasants,   
she cannot understand the peasant mentality. Therefore, regardless of Nazi   
pretensions and government, Germany is the only country capable of doing the   
organizing and the real task of the war is to force or persuade Germany to   
undertake the organization along lines of enlightened selfishness.  
                                                            
 
"It will, of course, immediately be objected that a Germany   
    which is put into this key position will also be a strong Germany,   
    able once again to throw the world into chaos in another bid for   
    world domination. But, as I have said already, the fundamental truth   
    is that it is not we, but Nature (God, if you like), which has put   
    Germany in this key position in Europe. Even if all the SO million   
    Germans were exterminated, some peoples would still inhabit the former  
    German territory, and in due course of time they would wax great and   
    powerful and their shadow would fall heavily over the rest of Europe.  
    No amount of wishful thinking will eliminate Germany from the European  
    scene; she is there - a very solid and intractable fact - and we   
    have to work out a way of living with her as a Great Power, which  
    will preserve us and our children in this small sub-continent from  
    the fratricidal wars which have been our bane in the past. The   
    politico-military conditions which must be fulfilled in order that   
    such a state of security could be obtained do not seem to me to   
    be beyond the grasp of the nations at the end of this war, if all  
                are willing to face realities."