FUTURE OF THE EMPIRE
in any case would have had no money to indulge
in further fleet-building. And a "draw" of any
sort would have discredited the war-makers
everywhere, and would not have generated the
exacerbated nationalism which makes it so doubt-
ful whether Europe will ever settle down again*
Whatever may be thought about the War, it
will be generally admitted that British statesman-
ship failed completely in the making of the peace.
Not only did it abandon loth the cardinal princi-
ples of British policy, naval supremacy, and the
balance of power, but it sacrificed security as
well; for it has left the British Empire at the
mercy of one foreign power, and its capital at
the mercy of another. At present both these
powers are friendly, and the sword of Damokles
remains suspended over our heads; but that the
British Empire is in a more precarious state than
ever it was before the War will easily appear
from a survey of the present posture of affairs.
ILL THE PRESENT
THAT the balance of power is gone is manifest
Politically Europe is dominated by France, as it
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