Themannerinwhichbusinessinterestsworkoutingovernmentpolicymaybeshownbyfollowinguptheirbearingupononephaseofthispolicy。Anextremeexpressionofbusinesspolitics，andatthesametimeacharacteristictraitofthehigherlevelsofnationallifeinChristendom，isthecurrentpolicyofwarandarmaments。Modernbusinessiscompetitive，emulative，andthedirectionofbusinessenterpriseisinthehandsofmenwhoaresingle-mindedintheircompetitiveconductofaffairs。Theyneitherareinclined，norwillbusinesscompetitionpermitthem，toneglectoroverlookanyexpedientthatmayfurthertheirownadvantageorhindertheadvantageoftheirrivals。Underthemodernsituation，asithastakenshapesincetheindustrialrevolution，14*businesscompetitionhasbecomeinternational，coveringtherangeofwhatiscalledtheworldmarket。Inthisinternationalcompetitionthemachineryandpolicyofthestateareinapeculiardegreedrawnintotheserviceofthelargerbusinessinterests；sothat，bothincommerceandindustrialenterprise，thebusinessmenofonenationarepittedagainstthoseofanotherandswingtheforcesofthestate，legislative，diplomatic，andmilitary，againstoneanotherinthestrategicgameofpecuniaryadvantage。Thebusinessinterestsdomiciledwithinthescopeofagivengovernmentfallintoalooseorganizationintheformofwhatmightbecalledatacitringorsyndicate，proceedingonageneralunderstandingthattheywillstandtogetherasagainstoutsidebusinessinterests。Thenearestapproachtoanexplicitplanandorganizationofsuchabusinessringisthemodernpoliticalparty，withitsplatform，tacitandavowed。Partiesdifferintheirdetailaims，butthosepartiesthathavemorethanatransientexistenceandsuperficialeffectstandfordifferentlinesofbusinesspolicy，agreeingallthewhileinsofarthattheyallaimtofurtherwhattheyeachclaimtobethebest，largest，mostenduringbusinessinterestsofthecommunity。Thering15*ofbusinessinterestswhichsecuresthebroadestapprovalfrompopularsentimentis，underconstitutionalmethods，putinchargeofthegovernmentestablishment。Thispopularapprovalmaybesecuredonthegroundofasoundbusinessplatformorinpartonsomegroundextraneoustobusinesspolicyproper，suchasawaveofnationalanimosity，apopularcandidate，alargegraincrop，etc。Buttheonlysecurebasisofanenduringpartytenureofthegovernmentmachineryisabusinesspolicywhichfallsinwiththeinterestsortheprejudicesoftheeffectivemajority。
Ininternationalcompetitiontheultimaratiois，asever，warlikeforce，whethertheissuebebetweenprincesofthegraceofGodorprincesofownership。Itisafavoritemaximofmodernpoliticsthattradefollowstheflag。Thisisthebusinessman’svaluationofnationalpolicyandoftheendsofnationallife。Sostated，themaximprobablyinvertsthesequenceoffacts，butitisnonethelessafairexpressionofthecloserelationthereisbetweenbusinessendeavorandthemodernmilitarypolicies。
Diplomacy，ifitistobeeffectiveforwhateverend，mustbebackedbyashowofforceandofareadinesstouseit。ThedefinitiveargumentofthosewhospeakforarmamentsinEnglandandAmericaisthatthemaintenanceofbusinessinterestsrequiresthebackingofarms。OntheContinentofEuropethisargumentcommonlycomessecond，whilepatrioticfancyandanimositytakethefirstplace。
Armamentsservetradenotonlyinthemakingofgeneraltermsofpurchaseandsalebetweenthebusinessmenofcivilizedcountries，buttheyaresimilarlyusefulinextendingandmaintainingbusinessenterpriseandprivilegesintheoutlyingregionsoftheearth。TheadvancednationsofChristendomareproselyters，andtherearecertainvaluableperquisitesthatcometothebusinessmenofthoseproselytingnationswhoadvancethefrontiersofthepecuniarycultureamongthebackwardpopulations。Thereiscommonlyahandsomemarginofprofitindoingbusinesswiththese，pecuniarilyunregenerate，populations，particularlywhenthetrafficisadequatelybackedwithforce。
But，alsocommonly，thesepeoplesdonotenterwillinglyintolastingbusinessrelationswithcivilizedmankind。Itisthereforenecessary，forthepurposesoftradeandculture，thattheybefirmlyhelduptosuchcivilizedrulesofconductaswillmaketradeeasyandlucrative。Tothisendarmamentisindispensable。
Butintheportioningoutofthetradeperquisitesthatfalltotheproselytersanybusinesscommunityisindangerofbeingoverreachedbyaliencivilizingpowers。Norecoursebutforceisfinallyavailableindisputesofthiskind，inwhichtheaimofthedisputantsistotakeadvantageofoneanotherasfarastheycan。Awarlikefrontisthereforenecessary，andarmamentsandwarlikedemonstrationshavecometobeapartoftheregularapparatusofbusiness，sofarasbusinessisconcernedwiththeworldmarket。
Insofarasitisguidedbytheexigenciesoftrade，theobjectiveendofwarlikeendeavoristhepeaceandsecuritynecessarytoanorderlydevelopmentofbusiness。Internationalbusinessrelations，itiswellsaid，makeforpeace；inthesense，ofcourse，thattheyenforcethepacificationofrecalcitrantbarbariansandleadtocontentionbetweencivilizednationsforarevisionofthepeaceterms。Whenamoderngovernmentgoestowarfortradepurposes，itdoessowithaviewtoreestablishingpeaceontermsmorelucrativetoitsbusinessmen。16*
Theaboveinquiryintothenatureandcausesofthewarsofnationshasresultedinlittleelsethanarecitalofcommonplaces；thefactsandtheirconnectionaremattersofcommonnotoriety，andprobablynoonewouldhazardaquestionofthesightandobviousinferencesdrawninthecourseoftherecital。Theexcuseforthisdiscursivereviewofthemotivesandaimsofawarpolicyisthatitgivesabasisforanoutlookonthepresentandimmediatefutureofbusinessenterprise。17*
TheexperienceofContinentalEuropeinthematterofarmamentsduringthelasthalf-century，andofallthegreaternationsduringthelasttwodecades，arguesthatwhenwarlikeemulationbetweenstatesofsomewhatcomparableforcehasoncegotunderwayitassumesacumulativecharacter；sothatascaleofexpenditureforarmamentswhichwouldattheoutsethaveseemedabsurdlyimpossiblecomespresentlytobeacceptedasamatterofcourse。Hithertothecumulativeaugmentationofwarexpendituresandofwaranimusshowsnosignofslackening。Oneafteranother，thestatesthathaveofferedsomeshowofpeaceableinclinationshavebeendrawnintotheinternationalgameofcompetitivearmaments，astheyhaveoneafteranotherbecomeambitioustopushtheenterprisesoftheirbusinessmenintheinternationalmarkets。Anarmamentisserviceableonlyifitisrelativelylarge；itsabsolutemagnitudeisamatterofnoparticularconsequenceforcompetitivepolitics。Itisitscomparativesizethatcounts。Hencethegreatertheseveralarmaments，thegreaterthepoliticalneedofgreaterarmaments，andthepromptertheresentmentofinjuriesandthelivelierthefeltneedofoffendingandoftakingoffence。Aprogressivelylargerproportionofthenation’sforcesarewithdrawnfromindustryanddevotedtowarlikeends。Inthiscumulativediversionofefforttowarlikeendsapointispresentlyreachedbeyondwhichthequestionofarmamentisnolonger，Whatamountofwarlikeexpenditureisneededtoextendormaintainbusinesstraffic？butrather，Whatamountwillthenation’sresourcesbear？Buttheprogressiondoesnotstopatthatpoint；witnessthecaseofItaly，France，andGermany，wherethewardrainhasvisiblyimpairedtheindustrialefficiencyoftheseveralnationsconcerned，butwheretheburdenstillgoesongrowing，withnostopping-placeinsight。Englandand，moreparticularly，Americaarenotsonearexhaustion，becausetheyhavelargerresourcestodrawonaswellasacultureandapopulationmoreefficientforindustrialwork。Butthereisnoevidentreasonwhythesetwoshouldnotlikewiseenteronapolicyofemulativeexhaustion，andsosacrificetheiraggregateindustrialandbusinessinteresttothefurtheranceofthe“greatgame。“
Thequestionmaysuggestitself，Whyshouldnotthebusinesscommunity，whohavealargediscretionininternationalpoliticsandwhoseaggregategainsarecutintobyexcessivewarexpenditures，callahaltwhenthecriticalpointisreached？
Thereismorethanonereasonfortheirfailuretodoso。Warandpreoccupationwithwarlikeenterprisebreedawarlikeanimusinthecommunity，aswellasahabitofarbitrary，autocraticruleonthepartofthoseinauthorityandanunquestioning，enthusiasticsubservienceonthepartofthesubjects。Nationalanimosityandnationalpridedemandmoreandmoreofmilitarystanding，atthesametimethatthegrowingofficialclassneedsincreasingemolumentsandalargerfieldofemploymentanddisplay。Theculturaleffectsofthedisciplineofwarfareandarmamentaremuchthesamewhetheritisundertakenfordrasticorforbusinessends；ineithercaseittakesonadynasticcomplexionandbreedsthetemperament，ideals，andinstitutionalhabitspropertoadrasticsystemofpolitics。Thefartheritgoesthemoreitcomestomakeuseofbusinessinterestsasameansratherthananend，as，e。g。，inmodernGermany，France，andItaly，andintheContinentalstatesofthesixteenthandseventeenthcenturies。Thecrown，court，bureaucracy，militaryestablishment，andnobility，underwhateverdesignations，graduallycometotheirownagaininsuchasituation，andaffairsagaincometoturnonquestionsofthemaintenanceanddignityofthesesuperiorelementsofthepopulation。18*Theobjectiveendofprotractedwarlikeendeavornecessarilyshiftsfrombusinessadvantagetodynasticascendancyandcourtlyhonor。
Businessinterestsfalltothepositionoffiscalwaysandmeans，andbusinesstrafficbecomessubservienttohigherends，withafairchanceofultimateexhaustionorcollapsethroughthebankruptcyofthestate。
Businessenterpriseisanindividualmatter，notacollectiveone。Solongastheindividualbusinessmanseesaproximategainforhimselfinmeetingthedemandsforwarfundsandmaterialstomaintainthecourtlyandofficialestablishmentsthatgowithmilitarypolitics，itisnotinthenatureofthebusinessmantodrawback。Itisalwayshisprofits，nothislivelihood，thatisinvolved；thequestionwhichtoucheshisprofitsistherelativegainfulnessofalternativelinesofinvestmentopentohim。Solongasthepecuniaryinducementsheldoutbythestate，inbiddingforfundsorsupplies，overbalancetheinducementsofferedbyalternativelinesofemployment，thebusinessmenwillsupplythesedemands，regardlessofwhattheulteriorsubstantialoutcomeofsuchacoursemaybeintheend。Fundsandbusinessenterprisearenowofsopronouncedaninternationalorcosmopolitancharacterthatanybusinessmanmay，evenwithoutfullyappreciatingthefact，lendhisaidtothefiscofahostilepowerasreadilyastoafriendlypowerortothehomegovernment；wherebyanequableandcomprehensiveexhaustionoftheseveralcommunitiesinvolvedintheconcertofnationsisgreatlyfacilitated。Barringaccidentsanduntowardculturalagenciesfromoutsideofpolitics，business，orreligion，thereisnothinginthelogicofthemodernsituationthatshouldstopthecumulativewarexpendituresshortofindustrialcollapseandconsequentnationalbankruptcy，suchasterminatedthecarnivalofwarandpoliticsthatranitscourseontheContinentinthesixteenthandseventeenthcenturies。19*
SeeChapterIVabove。
Cf。e。g。，Ashley，“TheEconomicAtmosphereofAmerica“inSurveys，HistoricalandEconomic，pp。405etseq。
4。ThisdateistrueforEngland。ForAmericathedisciplinefavorabletothegrowthofthenatural-libertydogmalastednearlyacenturylonger。InAmericathenew，modern，technologicalandbusinesseracanscarcelybesaidtohavesetiningoodvigoruntiltheperiodoftheCivilWar。Hence，withalongerandlatertraining，thepreconceptionsofnaturallibertyarefresherandmoretenaciousinAmerica。FortheContinentalpeoplesthecaseisdifferentagain。WiththemthemoderntechnologicalandbusinesssituationisofapproximatelythesamedateasinAmerica，buttheirtraininguptothedateofthetransitiontothemodernsituationwasinamuchlessdegreeatraininginindividualinitiative，freescatteredindustry，andpettytrade。TheContinentalpeoplesforthemostpartmadeasomewhatabrupttransitionafterthemiddleofthenineteenthcenturyfromastaleanddilapidatedsystemofguildandfeudalisticprescriptionstotheforthemexoticsystemofmoderntechnologyandbusinessprinciples。
SeeChapterIIaboveandChapterIXbelow。
Underthesystemofhandicraftandpettytradetheconversewastrue。Livelihoodwasthefundamentalnormofbusinessregulations；profitshadbutasecondarystanding，ifany。
E。g。，astoemployer’sliabilityforaccidentsorunsanitarypremises，thesafeguardingofmachinery，agelimitoflabourersorhourlimitofworkingtime，etc。
E。g。whereaworkman’sacceptingemploymentonmachinerywhichisnotsafeguardedasthelawrequiresisconstruedasanexerciseoftheindefeasiblerightoffreecontractonhispart，whichtherebyexemptstheemployerfromliabilityforeventualaccidents。
Inpointoflegalprinciplethereluctancetoalloworrecognizelimitedliabilityinjointstockcompanies，intheEnglishpracticepriortotheCompaniesActs，wasofmuchthesamenatureasthecurrentreluctancetoallowanalienationorabridgmentofaworkman’sindividualreSpOnsibilityforthetermsofhisemploymentandtheconsequencesfollowingfromit。Itwasfeltthatapecuniaryliabilitywasapersonalmatter，ofwhichthepersonwasnotcompetenttodivesthimselfunderthatsystemofmutualrightsanddutiesinwhichthemembersofthecommunitywereboundtogether。Impersonal，collective，andlimitedliabilitywonitsway，asagainstthesystemofnaturalliberty，inthisfieldbysheerforceofbusinessexpediency。Inaconflictofprinciplesbetweenthemainpropositionandoneofitscorollaries，thecorollarywonbecausethefactshadoutgrowntheprimaryimplicationofthemainproposition。
9。Thecommonlawisofcourseaformulationofthedeliverancesofcommonsenseonthepointswhichittouches。Butcommonlaw，aswellascommonsense，beingaformulationofhabitsofthought，isnecessarilyanoutgrowthofpastratherthanofpresentcircumstances，-inthiscasethecircumstancesoftheeighteenthcentury，whereasthesympathiesofthevulgar，astheyappearinjurydecisions，arelargelytheoutcomeofthosemodernexperiencesthatareatincreasingvariancewiththefoundationsofthecommonlaw。