The Federal political organization has always tended to confuse to the American mind the relation between democracy and nationality. The nation as a legal body was, of course, created by the Constitution, which granted to the central government certain specific powers and responsibilities, and which almost to the same extent diminished the powers and the responsibilities of the separate states. Consequently, to the great majority of Americans, the process of increasing nationalization has a tendency to mean merely an increase in the functions of the central government. For the same reason the affirmation of a constructive relation between the national and the democratic principles is likely to be interpreted merely as an attempt on the grounds of an abstract theory to limit state government and to disparage states rights. Such an interpretation, however, would be essentially erroneous. It would be based upon the very idea against which I have been continually protesting—the idea that the American nation, instead of embodying a living formative political principle, is merely the political system created by the Federal Constitution; and it would end in the absurd conclusion that the only way in which the Promise of American democracy can be fulfilled would be by the abolition of American local political institutions.The nationalizing of American political, economic, and social life means something more than Federal centralization and something very different therefrom. To nationalize a people has never meant merely to centralize their government. Little by little a thoroughly national political organization has come to mean in Europe an organization which combined effective authority with certain responsibilities to the people; but the national interest has been just as likely to demand de-centralization as it has to demand centralization. The Prussia of Frederick the Great, for instance, was over-centralized; and the restoration of the national vitality, at which the Prussian government aimed after the disasters of 1806, necessarily took the form of reinvigorating the local members of the national body. In this and many similar instances the national interest and welfare was the end, and a greater or smaller amount of centralized government merely the necessary machinery. The process of centralization is not, like the process of nationalization, an essentially formative and enlightening political transformation. When a people are being nationalized, their political, economic, and social organization or policy is being coördinated with their actual needs and their moral and political ideals. Governmental centralization is to be regarded as one of the many means which may or may not be taken in order to effect this purpose. Like every other special aspect of the national organization, it must be justified by its fruits. There is no presumption in its favor. Neither is there any general presumption against it. Whether a given function should or should not be exercised by the central government in a Federal system is from the point of view of political logic a matter of expediency—with the burden of proof resting on those who propose to alter any existing Constitutional arrangement.
There are a few fallacies here which live on to this day of which I won't spend too much time here; rather, I want to focus on the ideological aspect of progressivism.
When Croly drones on about "nationalizing" the people, what he means is getting concepts like the 10th amendment out of their thoughts and culture, and he means turning them into a national collective. America's people at the time of the birth of progressivism was not nationalized. Yes, the country had been in existence for over 100 years but the states held tremendous sway with the people and many people still considered themselves individual "Tennesseans", "New Yorkers", "Arizonans", and so forth; much in the same way as the Founders did. Yes, we are Americans, but we are very much dual citizens. "My state has a constitution", the American/Missourian of 1900 would say - "and the Bill of Rights contained in my State's Constitution is something I appreciate", they would likely continue.
Today, Americans are completely nationalized to the extent that they are shocked to learn that America has 51 constitutions as well as 51 bills of rights. In this sense, the original progressive "New Nationalists" have been extraordinarily successful at abolishing the states in the minds of the people.
Croly does a brilliant bait and switch here. He says:
Consequently, to the great majority of Americans, the process of increasing nationalization has a tendency to mean merely an increase in the functions of the central government. For the same reason the affirmation of a constructive relation between the national and the democratic principles is likely to be interpreted merely as an attempt on the grounds of an abstract theory to limit state government and to disparage states rights. Such an interpretation, however, would be essentially erroneous. It would be based upon the very idea against which I have been continually protesting—the idea that the American nation, instead of embodying a living formative political principle, is merely the political system created by the Federal Constitution; and it would end in the absurd conclusion that the only way in which the Promise of American democracy can be fulfilled would be by the abolition of American local political institutions.
Yet, that's exactly what happened. But the cultural shift is what is important. The original progressives knew that if they nationalized the people first, the progressives wouldn't have to abolish the states. The people would abolish the states all on their own in a de-facto manner. Think of the last time a constitutional question came about. Did your state's constitution get overlooked first? As the late Andrew Breitbart famously said: "politics is downstream of culture". Croly makes this quite clear:
When a people are being nationalized, their political, economic, and social organization or policy is being coördinated with their actual needs and their moral and political ideals. Governmental centralization is to be regarded as one of the many means which may or may not be taken in order to effect this purpose. Like every other special aspect of the national organization, it must be justified by its fruits. There is no presumption in its favor. Neither is there any general presumption against it. Whether a given function should or should not be exercised by the central government in a Federal system is from the point of view of political logic a matter of expediency—with the burden of proof resting on those who propose to alter any existing Constitutional arrangement.
What he is saying is that the narrative is "the thing you want is x", mr. voter. What is the quickest way to get it? Don't worry about which governmental entity employed to get it, just make sure you get what you want. Don't you want it? Yeah, you want it. So just vote for anybody, anywhere who will give it to you. Of course, the progressives will always drive people to the national government. See what they did just a few years later with the 17th amendment, a gross injustice against America, the states, and Federalism. In the very next paragraph(third), he says:
It may be affirmed, consequently, without paradox, that among those branches of the American national organization which are greatly in need of nationalizing is the central government.
Of course the national government needs to get bigger, according to the opening of paragraph three. Opening of paragraph four is about growing government bigger, paragraph 5 is about denigrating the states, and paragraph 6 returns with an opening of how government needs to get bigger. Croly is nothing if consistent. Towards the last paragraphs of this section, Croly writes:
The great obstacle to American national fulfillment must always be the danger that the American people will merely succumb to the demands of their local and private interests and will permit their political craft to drift into a compromising situation—from which the penalties of rescue may be almost as distressing as the penalties of submission.
What "local" and "private" interests. He means the states. Or "worse" in the eyes of a progressive, would be county/city matters. He means one of the most important aspects of American Federalism - just throw it out.
Progressives today have left nationalism behind and have graduated to globalism. But at the time, they fully recognized that the way forward was first to convince the people that "You're just an American", and America has only one constitution. A strikingly simple goal to attain, especially at a time when the progressive era was in full swing - "private" and "special" interests were universally looked down upon and to assist in the process America's first progressive president was also helping to push everybody away from their states.