while the production of utilities is decreasing in proportion to the production of luxuries, labour is exacting increasing pay for decreasing hours of work and quality of output, and the enormous financial structure, elaborately and ingeniously built up through several generations, is in grave danger of immediate catastrophe.  The whole world is in the position of an insolvent debtor who is so deeply involved that his creditors cannot afford to let him go into bankruptcy, and so keep him out of the Poor Debtor’s Court by doling out support from day to day.  Confidence is the only thing that keeps matters going; what happens when this is lost is now being demonstrated in many parts of Europe.  The optimist claims that increased production, coupled with enforced economy, will produce a satisfactory solution, but there is no evidence that labour, now having the whip-hand, will give up its present advantage sufficiently to make this possible; even if it did, payment must be in the form of exchange or else in further promises to pay, while the capacity of the world for consumption is limited somewhere, though thus far “big business” has failed to recognize this fact.  At present the interest charges on debts, both public and private, have reached a point where they come near to consuming all possible profits even from a highly accelerated rate of production.  Altogether it is reasonable to assume that the present financial-industrial system is near its term for reasons inherent in itself, let alone the possibility of a further extension of the drastic and completely effective measures of destruction that are characteristics of Bolshevism and its blood-brothers.

Assuming that this is so, two questions arise:  what is to take the place of imperial industry, and how is this substitution to be brought about?

I think the answer to the first is:  a social and industrial system based on small, self-contained, largely self-sufficing units, where supply follows demand, where production is primarily for use not profit, and where in all industrial operations some system will obtain which is more or less that of the guilds of the Middle Ages.  I should like to go into this a little more in detail before trying to answer the second question.

The normal social unit is a group of families predominantly of the same race, territorially compact, of substantially the same ideals as expressed in religion and the philosophy of life, and sufficiently numerous to provide from within itself the major part of those things which are necessary to physical, intellectual and spiritual well-being.  It should consist of a central nucleus of houses, each with its garden, the churches, schools and public buildings that are requisite, the manufactories and workshops that supply the needs of the community, the shops for sale of those things not produced at home, and all necessary places of amusement.  Around this residential centre should be sufficient agricultural land to furnish all the farm products that will be consumed by the community itself.  The nucleus of habitation and industry, together with the surrounding farms, make up the social unit, which is to the fullest possible degree, self-contained, self-sufficient and self-governing.