First American edition of a book published in 1912, on the economic condition of the British domestic government and the status of capitalism in the world in general. A highly theoretical, precise and original view of history which now has a prophetic quality though his treatment of the past in support of his distributive state may be considered over-idealized. Belloc's thesis is that capitalism is unstable because (1) there is conflict between its economic realities and its moral base of laws and traditions, and (2) capitalism destroys security. Inevitably, capitalism seeks stability in the form of what Belloc calls the collective or servile state, or the distributive state, and he shows how collectivism in action produces the servile state. And more specifically he demonstrates how collectivist reforms are diverted into diametrically different channels, how English social legislation subjects the proletariat to servile conditions, how the socialist is confirming rather than expropriating, the capitalist in his power. And as a solution to the capitalist dilemma he proposes his distributive state, the Jeffersonian ideal of majority control of the means of production. A valuable, thought-provoking document.