492. Modern military and naval armaments. The extensiveness of modern preparation for war and its influence on universal peace is brought out in the following:

In winning and defending world-wide empires the countries of Europe have been compelled to maintain large military and naval forces in addition to those necessary for actual national defense. Colonies and protectorates inhabited by subject races require the presence of European soldiers; and the protection of merchant vessels on the high seas and in foreign ports demands large navies. Consequently imperial ambitions and patriotic pride have led to a steady increase in the armies and navies of Europe.

The cost of maintaining these great military establishments is greatly enhanced by the continued invention of new and ever more formidable instruments of destruction which speedily render old equipment obsolete and compel every country to keep abreast of the nation most advanced in the science of warfare. The old flintlock rifle loaded at the muzzle gave way to the Minié rifle charged with a cartridge and fired by a percussion cap; the Minié rifle was in turn supplanted by the breechloader; then came the rapid-fire repeating rifle, with a range of a mile. The ancient muzzle-loading cannon, with its short and uncertain range, has been gradually improved, and in its place we now have the enormous breech-loading Krupp guns carrying balls weighing five hundred pounds for ten miles or more with wonderful accuracy. New explosives of terrible power-nitroglycerin, melinite, and lyddite-make gunpowder seem like a child's plaything, and smokeless powder, by keeping the field clear, makes range finding more deadly than ever. Moreover, new instruments, such as the war balloon, armored trains, automobiles, wireless telegraphy, and searchlights, greatly facilitate military operations.

Sea fighting has undergone a revolution no less complete and rapid. Within fifty years the wooden man of war has disappeared before armored vessels, which are rapidly developing in speed, tonnage, and fighting capacity. Even the battleship of fifteen years ago is giving way before vessels of the Dreadnought type. The ineffectiveness of the ordinary cannon against the steel battleship has led to the use of torpedoes of terrible explosive power; and these in turn to the invention of torpedo destroyers. The new and dangerous factor of the submarine mine has been added, while the submarine vessel may soon considerably modify the present mode of naval warfare.

Indeed, there seems to be no end to the rivalry of nations in the invention of costly instruments of war. Millions and billions have been expended in ships and guns which have become obsolete without ever

being brought into action. France to-day, in time of peace, has an army of over six hundred thousand men and spends nearly two hundred million dollars annually for war purposes, an establishment which rivals that maintained by Napoleon when at war with all Europe. Germany also supports a standing army of over six hundred thousand men. England spends over three hundred million dollars a year for the army and navy, -five times as much as for education.

Nevertheless it may be said that this marvelous military development has contributed something to the movement toward peace in Europe. The enormous number of men that would speedily be called into action and hurried to the front in express trains, the countless millions that a general European war with these costly instruments would involve, the terrible loss of life and property that it would bring, all this has tended to make statesmen shrink from risking the possibilities of war. Moreover, the cost of maintaining armies on even a peace footing is so great, the strong protest of workingmen and socialists against warfare.

antimilitarism as it is called — is so determined, the financial interests involved are so influential, and the effects of international conflicts on industry and trade are so disastrous, that a movement for the peaceful settlement of international disputes and the reduction of armaments has developed in every civilized nation.

493. The preservation of internal peace. Besides the maintenance of state existence against foreign aggression, the preservation of internal order and security is an essential governmental function.

As the primary function of the state is the protection of the lives and property of the community through war, it is not strange that a similar function in internal affairs should develop. State authority in such matters, however, grew much more slowly. Long before the state existed men had protected themselves and still felt abundantly able to do so in ordinary emergencies. In all civilizations, groups of men are found united in bonds of real or fictitious kinship for purposes of joint protection. How instinctive this has become is seen at a glance by observing the numerous fraternal orders of developed civilization. These groups in early civilization were united for purposes of blood revenge, fine payments, and mutual responsibility. The patriarchal family at a later stage answered the same purpose. The loosening of patriarchal family ties through commerce and industry brought about in city life the development of the guild, the guild for social and religious purposes, the trades guild, the merchant guild, and akin to these the orders of knighthood and

the brotherhoods of the church. Such associations, found in all civilizations and in all times and places, devoted themselves to the preservation of the peace by restraints placed on individual members, by discipline inflicted on disturbers of the peace, and by presenting a united front against aggressions of unruly members of the community.

But besides associations for the preservation of the peace there were others organized for opposite purposes, associations composed of outlaws, robbers, criminals who had fled from home, men owning no master, worthless fellows for whom no one would be responsible. Against such the united strength of the entire community was necessary. The state therefore developed the function of unifying the force of the community against armed associations of lawless men within its own borders. Similarly, armed resistance to the laws of the community in the form of rebellions, insurrections, and riots, was suppressed through the power and strength of the state. In this way developed the right of the state to suppress such disturbances with a strong hand, if necessary suspending civil law for the time and exercising arbitrary war powers.

III. OPTIONAL FUNCTIONS

494. Evolution of governmental ownership of public utilities. Certain industries are to-day of fundamental social interest. This public importance did not always exist, nor is it of equal degree in all states at present. A general process of development may, however, be noted.

With wide variations in detail, we can trace a general law of development, in five stages:

1. Everywhere at first all of the above enterprises are in private hands, and are used for purposes of profit and sometimes of extortion, like the highways, the coinage, and the post offices of medieval Europe, or the early bridges, canals, and markets.

2. In the next stage they are "affected with a public interest " and are turned over to trustees who are permitted to charge fixed tolls, but required to keep the service up to a certain standard. This was the era of the canal or turnpike trusts and companies.

3. In the subsequent stage the government assumes the business, but manages it for profit, as is still the case in some countries with the postal and railway systems.

4. In the fourth stage the government charges tolls or fees to cover expenses only, as was recently true of canals and bridges, and as is the theory of the postal system and municipal water supply in America to-day.

5. In the final stage the government reduces charges until finally the service is free and the expenses are defrayed by a general tax on the community. This is the stage now reached in the common roads, in the coinage, in most of the canals and bridges, and which has been seriously proposed by officials of several American cities for other services, like the water supply.

495. Forms of public industries. Ely classifies under the following heads the industries undertaken by states:1

In the beginning, let us briefly pass in review the principal classes of industrial enterprise in which the modern State engages for the satisfaction of other than State wants; because, obviously, we are not concerned with enterprises like the government printing office, the government navy yards, and in general, those incidental industries whose products the government consumes but does not regularly sell.

I. First, we find States like Switzerland monopolizing the manufacture of alcohol and certain alcoholic beverages, Japan monopolizing the opium traffic in Formosa, or commonwealths engaging in the retail distribution of intoxicating beverages. The purpose of the State in engaging in such industries is primarily sumptuary; it is desired to regulate the traffic almost to the point of suppression, perhaps. Ordinarily a good revenue would be secured, but revenue is a very secondary consideration. Prices will be placed above the level of highest net profit, and not improbably the ideal of regulating consumption will be so vigorously pursued that profits will 'disappear altogether.

II. Secondly, we have the group of so-called "fiscal monopolies." France, for instance, monopolizes the manufacture of matches, cigarettes, and tobacco in general; Japan has recently gone farther than any other country in the creation of fiscal monopolies; while Prussia, Austria, Italy, Spain, and other European countries maintain public lotteries as did many of the American colonies during the eighteenth century. The primary object of the State in undertaking these enterprises is public revenue, gain; and naturally a monopoly price is charged, the price which will yield the greatest net revenue.

III. Next, we have a group of enterprises consisting principally of the so-called "natural monopolies," which the State undertakes not for suppression, not for profit, but primarily for regulation to regulate the quality of the product, as in the case of water; to maintain effectively what have been called "equitable conditions for the prosecution of private business," as in the case of railways; to prevent monopolistic extortion and corporate abuse, as in the case of lighting companies, the 1 Copyright, 1908, by The Macmillan Company.

post office, the telegraph, and the telephone; or to prevent crime and preserve intact the foundations of commercial prosperity, as in the monopoly of coinage. The charges here are ordinarily adjusted to either the "revenue " or the cost" principle, that is to say, the State will either aim to make a fair business profit such as is secured in competitive private enterprises, or it will endeavor approximately to meet expenses by adjusting its charges to the cost of production.

IV. Finally we have a large and heterogeneous group of industries which are maintained principally for service, for their educational and developmental influence, not primarily for regulation, and not at all for profit, but "for the public good." We include here not only schools and educational institutions of all kinds, but roads and canals; the savings banks and public pawnshops maintained in several countries of continental Europe; workingmen's insurance as developed by Germany, Austria, and several of the Australian colonies; and the model manufacturing establishments such as France maintains for the production of tapestries and fine porcelains. In this group charges will sink to a minimum, and in some lines of enterprise, such as education, practically disappear. Revenue here is not only a minor, but is almost a negligible, consideration.

496. The United States governments in business. While the United States has not, like some states, entered extensively into governmental operation of business enterprises, its various governments do carry on a number of public industries.

First and last, the national, state, and municipal governments exercise a considerable number of industries on public account.

The national government is the largest publisher in the world, expending every year over $4,000,000 for printing and issuing documents and books. It is a manufacturer, as in the government arsenals and navy yards where ships and materials of war are made. The post office is so nearly self-supporting that it may fairly be considered a vast business for forwarding intelligence; and it is much better conducted than the private express companies. It is not impossible that the federal government will also become the proprietor of telegraphs and telephones, and even of the railroads of the country. The United States manufactures at its own expense bank bills for all the national banks. During the Spanish War it organized transport steamers, which were virtually a large freight and passenger line.

Some of the states are engaging in public forests as a state industry. Most of them keep up some kind of manufacturing in their prisons and