In The Fate of Homo sapiens I examined the word "democracy" with some care, since it already seemed likely that great quantities of our young men were to be asked to cripple and risk their lives for its sake. I showed that it was still a very incompletely realised aspiration, that its complete development involved socialism and a level of education and information attained as yet by no community in the world. Mr Streit gives a looser, more rhetorical statement-a more idealistic statement, shall we say? — of his conception of democracy, the sort of statement that would be considered wildly exaggerated even if it was war propaganda, and though unhappily it is remote from any achieved reality, he proceeds without further enquiry as if it were a description of existing realities in what he calls the "democracies" of the world. In them he imagines he finds "government of the people, by the people, for the people".
In the book I have already cited I discuss What is Democracy? and Where is Democracy? I do my best there to bring Mr Streit down to the harsh and difficult facts of the case. I will go now a little more into particulars in my examination of his project.
His "founder democracies" are to be: "The American Union, the British Commonwealth (specifically the United Kingdom, the Federal Dominion of Canada, the Commonwealth of Australia, New Zealand, the Union of South Africa, Ireland), the French Republic, Belgium, the Netherlands, the Swiss Confederation, Denmark, Norway, Sweden and Finland."
Scarcely one of these, as I have shown in that former book, is really a fully working democracy. And the Union of South Africa is a particularly bad and dangerous case of race tyranny. Ireland is an incipient religious war and not one country but two. Poland, I note, does not come into Mr Streit's list of democracies at all. His book was written in 1938 when Poland was a totalitarian country holding, in defiance of the League of Nations, Vilna, which it had taken from Lithuania, large areas of non-Polish country it had CONQUERED from Russia, and fragments gained by the dismemberment of Czechoslovakia. It only became a democracy, even technically and for a brief period, before its collapse in September 1939, when Mr Chamberlain was so foolish as to drag the British Empire into a costly and perilous war, on its behalf. But that is by the way. None of these fifteen (or ten) "founder democracies" are really democracies at all. So we start badly. But they might be made socialist democracies and their federation might be made something very real indeed-at a price. The U.S.S.R. is a federated socialist system, which has shown a fairly successful political solidarity during the past two decades, whatever else it has done or failed to do.
Now let us help Mr Streit to convert his "federation" from a noble but extremely rhetorical aspiration into a living reality. He is aware that this must be done at a price, but I want to suggest that that price is, from what I judge to be his point of view, far greater, and the change much simpler, more general and possibly even closer at hand, than he supposes. He is disposed to appeal to existing administrative organisations, and it is questionable whether they are the right people to execute his designs. One of the difficulties he glosses over is the possible reluctance of the India Office to hand over the control of India (Ceylon and Burma he does not mention) to the new Federal Government, which would also, I presume, take charge of the fairly well governed and happy fifty-odd million people of the Dutch East Indies, the French colonial empire, the West Indies and so on. This, unless he proposes merely to re-christen the India Office, etc., is asking for an immense outbreak of honesty and competence on the part of the new Federal officialdom. It is also treating the possible contribution of these five or six hundred million of dusky peoples to the new order with a levity inconsistent with democratic ideals.
Quite a lot of these people have brains which are as good or better than normal European brains. You could educate the whole world to the not very exalted level of a Cambridge graduate in a single lifetime, if you had schools, colleges, apparatus and teachers enough. The radio, the cinema, the gramophone, the improvements in both production and distribution, have made it possible to increase the range and effectiveness of a gifted teacher a thousandfold. We have seen intensive war preparations galore, but no one has dreamt yet of an intensive educational effort. None of us really like to see other people being educated. They may be getting an advantage over our privileged selves. Suppose we overcome that primitive jealousy. Suppose we speed up-as we are now physically able to do-the education and enfranchisement of these huge undeveloped reservoirs of human capacity. Suppose we tack that on to the Union Now idea. Suppose we stipulate that Federation, wherever it extends, means a New and Powerful Education. In Bengal, in Java, in the Congo Free State, quite as much as in Tennessee or Georgia or Scotland or Ireland. Suppose we think a little less about "gradual enfranchisement" by votes and experiments in local autonomy and all these old ideas, and a little more about the enfranchisement of the mind. Suppose we drop that old cant about politically immature peoples.
That is one direction in which Mr Streit's proposals are open to improvement. Let us turn to another in which he does not seem to have realised all the implications of his proposal. This great Union is to have a union money and a union customs-free economy. What follows upon that? More I think than he realises.
There is one aspect of money to which the majority of those that discuss it seem to be incurably blind. You cannot have a theory of money or any plan about money by itself in the air. Money is not a thing in itself; it is a working part of an economic system. Money varies in its nature with the laws and ideas of property in a community. As a community moves towards collectivism and communism, for example, money simplifies out. Money is as necessary in a communism as it is in any other system, but its function therein is at its simplest. Payment in kind to the worker gives him no freedom of choice among the goods the community produces. Money does. Money becomes the incentive that "works the worker" and nothing more.
But directly you allow individuals not only to obtain goods for consumption, but also to obtain credit to procure material for types of production outside the staple productions of the state, the question of credit and debt arises and money becomes more complicated. With every liberation of this or that product or service from collective control to business or experimental exploitation, the play of the money system enlarges and the laws regulating what you may take for it, the company laws, bankruptcy laws and so forth increase. In any highly developed collective system the administration will certainly have to give credits for hopeful experimental enterprises. When the system is not collectivism, monetary operations for gain are bound to creep in and become more and more complicated. Where most of the substantial side of life is entrusted to uncoordinated private enterprise, the intricacy of the money apparatus increases enormously. Monetary manipulation becomes a greater and greater factor in the competitive struggle, not only between individuals and firms, but between states. As Mr Streit himself shows, in an excellent discussion of the abandonment of the gold standard, inflation and deflation become devices in international competition. Money becomes strategic, just as pipe lines and railways can become strategic.