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 was once the case. Countries like Spain and Greece and the Argentine Confederation, that made no effort to pay their debts fifty years ago, have begun to learn by experience, though still in a halting and imperfect manner, that repudiation is far too costly a luxury to be indulged in.

Nevertheless, there seem to be two possibilities in the future that may reasonably inspire a little anxiety. One is, that States over-confident in the future may encumber themselves with obligations which it will scarcely be possible to discharge by any sacrifice. Let us suppose, for instance, that England tries an experiment in State Socialism, and buys up the land in Great Britain to distribute it again to small tenants by issuing a 2¾ per cent stock. We may assume, further, that the operation is carried out skilfully; that the landowner gets a sufficient, but not a fancy value for his land; and that the State may reasonably expect, if existing values are maintained, to lose nothing by the transaction, and even to gain ultimately, if farming by small occupiers proves a success, as great authorities have contended that it is bound to do. All of course depends upon this latter consideration. Now, it is at least conceivable that even though the small farmer gets more out of the land than the great landowner did, the farmer may yet fail to pay expenses, because the foreign market may be shut against his produce, and the home market may have diminished. For instance, the English coal-measures may have begun to fall off, or countries like