lO 
Land & Water 
August I, 1918 
industries with a corps of teclinical experts and experimenters 
free of charge. It will be used to subsidise these industries 
to wbate\'er limit and in whatever form is necessary to keep 
their costs below all possible rivalry. 
They are to obtain priority supplies of raw materials, on 
a par wiHi government war orders. The fund is to be used 
in every case to reduce the price of raw materials where they 
seem too high, and to lay in huge stocks \\here there seems 
any danger of their being curtailed. The workmen in these 
plants are to enUst for Hfe, as in an arm}', and "under no 
circumstances" be allowed to strike or halt the business, 
even for a day. If need be, their pay will be higher than 
others. If so, the guarantee fund is all ready. Capital in 
these concerns, limited to German control, is also enlisted 
at the pleasure of the Government, and may not be trans- 
ferred. And all the capital necessary is absolutely assured 
by the blessed guarantee fund. When the "screws are 
turned on" and an embargo ypon some of these necessities 
is declared to bring us "to our senses" the guarantee fund 
will serve to keep the enterprises going, accumulating a 
surplus stock against the time when a hungry world will 
capitulate and call for them. 
This I'nion will determine the government policy in 
granting freight rebates and export premiums, and in re- 
mitting ta.xes to any of these businesses that need it in order 
to "throttle" competition. 
It is not expected that any of this guarantee fund will be 
lost. For by utterly routing all competition in the Indis- 
pensable Industries, and thereafter with their invincible help 
compelling all foreign nations to purchase the oytput of all 
German factories, it is presumed that the ledger will show 
a handsome profit in the end. 
The methods they propose to employ to make sure that 
none of these "weapons of protection" or their secrets are 
ever transplanted to any other soil are illuminative of their 
whole conception of business, and conduct of everj' affair 
under the sun. 
"All persons who are employed in industries of protective 
value must be entered in special lists by the body controlling 
manufacturing processes, so as to safeguard these industries. 
From the general lists a special. list is to be drawn up which 
contains the names' of employees in protective industries, 
who work with manufacturing methods or procedures, over 
which foreign countries hostile to our exports have no con- 
trol. ... These persons, whether they are directors, 
operating or scienrific officers, or labourers, must be subject 
to State organisation similar to that of the army. Without 
permission of this organisation no emigration of persons in 
these lists can take place. They are subject to especially 
strict rules for safeguarding manufacturing secrets and 
methods. Foreigners cannot be permitted to find employ- 
ment m concerns of this sort. . . . There will always be 
deserters. They must expect severe punishment meted out 
according to the amount of responsibility attached to the 
post which they left." 
The same military tribunal is to have fi.nal authority over 
all transfers of ownership or shares in these industries. 
"The exclusive maintenance of such industries for, the 
empire demands a further controljwhich extends to change 
in ownership. . . ." 
"The State control will limit itself to ascertaining whether 
the future owner exhibits those peculiarities which in a 
material, technical, and moral connection offer a guarantee 
that the industry in question will remain at its former height 
and capacity for development, and banish all possibility of 
its being transplanted to foreign countries by the new 
owner. . . . The exclusion of foreigners is important in 
all cases." 
Let us suppose a great factory to be estabhshed in Germany 
• making its finished products out of raw material also obtain- 
able in Germany, and that it is operated upon some technical 
secret process making some universally used product. And 
then let us suppose that all the raw material it can use 
is supplied to it and at its own price before any one 
else in Germany obtains any, regardless of the market. 
' More than that, that every process or machine it uses 
is being worked upon for improvement by the best 
experts in the country, free of charge, and that every new 
invention is put into operation at once, regardless of the cost 
of scrapping other new machinery ; that this factory has a 
full complement of skilful labour that never leaves for any 
• other employment, and never under any circumstances 
strikes ; thai none of its processes or methods can possibly 
reach the ears of any competitor ; that in case it has the 
slightest fear of competition everj' industry in Germany 
instantly contributes to make good any loss from cutting 
prices ; that it has the right to fix its own freight rates, its 
own export premium, its own taxes, its own tariff upon any 
needed supplies it may import ; and that in case of need it 
can instantly call upon the German Ambassador to threaten 
any action by the German Government or Army that might 
induce us to remove any impediments to its business developing. 
Imagine such a concern, and voila ! — you have precisely one 
of these industries with which we shall have to compete after 
the war. 
In contemplating the enormous disadvantage that any 
private business, no matter how large or how well organised, 
will have in competition with these gigantic Government 
industries, we must be actively alive not only to the danger 
threatening our own interests, with which it may be that our 
Government is competent to cope by tariffs, but to the certain 
dependence and ruin they entail upon our weaker, and the 
possibly unendurable strain they put upon our stronger. 
Allies. If the threat is to be met— if knowledge of the 
enemy's intention thus put into our hands is to serve in any 
way in this struggle to free the world— we shall have to 
meet in joint action with all our Allies. 
With these "indispensable" or "protective" industries 
thus subsidised and militarised and guarded and loaded 
ready to shoot, Herr Herzog's plan proceeds to show' how 
it is to be linked up with every transaction made by 
German traders over the surface of the globe, and to 
display the details of its operations in the camps of the 
enemies. 
March of the Czecho-Slovaks : By M. Loubich 
THE ROMANCE OF THE BLACK GUARDS 
The Japanese decision lo give armed assistance to the Czecho- 
slovaks in Stbena adds point lo this authoritaiive study of the 
ongm, history, and aims of the Czechoslovak Army, in which 
the author indicates the hostility existing between the Bolshevik 
Farty and this section of the Slavonic peoples which has retained 
aims identical with those of the Allies, and is furthering the 
Allied cause m the Far East, while its gradual extension to 
Western Siberia forms a definite threat to German interests in 
European Russia. 
AT a lecture on the people of Russia, delivered at 
<jne of the intellectual centres of Britain about 
the tmie the Bolsheviks came into power, the 
lecturer was met with the heart-searching ques- 
tion : " Where exactly in Russia is situated the 
nation of the Bolsheviks?" 
Now that every one realises, perhaps, alas ! too well the 
meaning of the term Bolshevik, another puzzling name is 
brought to this country bv the whiriwind of the east— 
ytu^^T'^}?''^"^^ "^^•'" =""^" ^^^y • Whence do thev come ' 
What do they stand for .■' 
Czecho-Slovaks now in Eastern Europe are not one of the 
peoples of old Russia, though some few Czechs lived in Southern 
Russia previous to the war. The Czechs, to the number of some 
seven millions, live in Bohemia, Moravia, and parts of Silesia, 
while the Slovaks, to the number of three millions live in 
the land called Slovakia, or Northern Hungary, between the 
Danube and the Upper Theiss. Thus the Bojiemians are 
technically Austrian subjects, and the Slovaks Hungarian, 
but the history, civilisation, and language of the two peoples 
are so similar, and Austria-Hungary is so feared as a common 
enemy, that with the revival of Nationalism there came a 
strong tendency to amalgamate into one nation— the Czecho- 
slovak nation. 
The Hapsburg dynasty has ruled Bohemia since 1526, but 
it IS only since the Thirty Years War and the Peace of West- 
phalia in 1648 that the Czecho-Austrian relations have become 
more bitter, and, with time, ever more and more hostile. 
There must have been something very wrong indeed in the 
Austrian regime, if in spite of these centuries of common 
rule and, to a great extent, a common Roman Catholic religion 
as well as the existence of a large German element in the 
kingdom of Bohemia— they now, more than ever, seek to 
separate themselves from Austria. 
This dissatisfaction of the Czechs and Slovaks who 
together with the Poles, form the western branch of the 
