Have the societies of the Old World also been remodeled?«
    »Yes,« replied Dr. Leete, »the great nations of Europe as well as Australia,
Mexico, and parts of South America, are now organized industrially like the
United States, which was the pioneer of the evolution. The peaceful relations of
these nations are assured by a loose form of federal union of world-wide extent.
An international council regulates the mutual intercourse and commerce of the
members of the union and their joint policy toward the more backward races,
which are gradually being educated up to civilized institutions. Complete
autonomy within its own limits is enjoyed by every nation.«
    »How do you carry on commerce without money?« I said. »In trading with other
nations, you must use some sort of money, although you dispense with it in the
internal affairs of the nation.«
    »Oh, no; money is as superfluous in our foreign as in our internal
relations. When foreign commerce was conducted by private enterprise, money was
necessary to adjust it on account of the multifarious complexity of the
transactions; but nowadays it is a function of the nations as units. There are
thus only a dozen or so merchants in the world, and their business being
supervised by the international council, a simple system of book accounts serves
perfectly to regulate their dealings. Customs duties of every sort are of course
superfluous. A nation simply does not import what its government does not think
requisite for the general interest. Each nation has a bureau of foreign
exchange, which manages its trading. For example, the American bureau,
estimating such and such quantities of French goods necessary to America for a
given year, sends the order to the French bureau, which in turn sends its order
to our bureau. The same is done mutually by all the nations.«
    »But how are the prices of foreign goods settled, since there is no
competition?«
    »The price at which one nation supplies another with goods,« replied Dr.
Leete, »must be that at which it supplies its own citizens. So you see there is
no danger of misunderstanding. Of course no nation is theoretically bound to
supply another with the product of its own labor, but it is for the interest of
all to exchange some commodities. If a nation is regularly supplying another
with certain goods, notice is required from either side of any important change
in the relation.«
    »But what if a nation, having a monopoly of some natural product, should
refuse to supply it to the others, or to one of them?«