… is from pages 76-77 of Felix Morley’s 1949 essay “State and Society,” which is reprinted as Essay Two in the 1979 Liberty Fund collection The Politicization of Society (Kenneth S. Templeton, Jr., ed.):
We must also realize that the strength gained by a victorious state through war is in large part taken not from the enemy but from its own people. All of the private elements in society – the family, the church, the press, the school, the corporation, the union and other cooperatives – are subject to special discipline by the state in wartime. The pressure of this discipline depends on the urgency of the wartime emergency, which the state itself defines.