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 side, the traitors and their families became clannish. Finding it impossible to dwell in safety in the midst of the betrayed proletariat, they moved into new localities inhabited by themselves alone. In this they were favored by the oligarchs. Good dwellings, modern and sanitary, were built for them, surrounded by spacious yards, and separated here and there by parks and playgrounds. Their children attended schools especially built for them, and in these schools manual training and applied science were specialized upon. Thus, and unavoidably, at the very beginning, out of this segregation arose caste. The members of the favored unions became the aristocracy of labor. They were set apart from the rest of labor. They were better housed, better clothed, better fed, better treated. They were grab-sharing with a vengeance.

In the meantime, the rest of the working class was more harshly treated. Many little privileges were taken away from it, while its wages and its standard of living steadily sank down. Incidentally, its public schools deteriorated, and education slowly ceased to be compulsory. The increase in the younger generation of children who could not read nor write was perilous.

The capture of the world-market by the United States had disrupted the rest of the world. Institutions and governments were everywhere crashing or transforming. Germany, Italy, France, Australia, and New Zealand were busy forming coöperative