War Cabinet's Official Survey of Military Events and Far-Reaching Economic Changes
A report issued by the British War Cabinet on March 18, 1918, in the form of a Blue Book of 200 pages or more, presents a historical review of what Great Britain accomplished in 1917, with a survey of the changes that came over the character of the war in that year, and of the far-reaching Governmental and economic developments that took place in the British Nation. As the introductory chapter is in itself a comprehensive summary, the main portions of it are here presented.
The year 1917 saw two marked developments. On the one hand there was a profound change in the character of the war itself. The inauguration of a general attack upon the sea communications of the Allies through the unrestricted use of the submarine greatly widened the scope of warlike operations and forced the people of the British Isles to expend an immense amount of time and energy on counterpreparations of all kinds. The Russian revolution completely upset the allied plan for a concerted offensive against the Central Powers on all fronts during the Spring and Summer of 1917, and eventually led to such a disintegration of the Russian Army as enabled the German Government to transfer the greater part of its military resources from the eastern to the western theatre of war. Finally, the overthrow of the Russian autocracy, coupled with the entry of the United States into the war and the adhesion of Greece, Brazil, China, and other neutrals to the allied cause, widened the war itself from a battle for the liberty of small nations and the defense of public right in Europe into a world-wide struggle for the triumph of a free civilization and democratic government.
The year brought a gradual growth of inter-ally co-operation and creation of the Imperial War Cabinet. This development and the sessions of the Imperial War Conference were the natural outcome of the spirit of unity and self-sacrifice which has enabled the peoples of the British Commonwealth to produce no less than 7,500,000 men to fight for freedom in addition to vast quantities of munitions and supplies of all kinds. So successful was this experiment in the opinion of its members that it was decided unanimously that there ought to be an annual meeting of the Imperial Cabinet and that the Prime Ministers of the empire or their specially delegated representatives, together with the Ministers in charge of the great imperial offices, should be its ex officio members.
War Cabinet Reorganization
Another sphere in which reorganization and expansion were necessary was that of home affairs. The period began with a reconstruction of the administrative machinery at the centre. It had become increasingly evident that the older system under which the supreme direction of the war rested, with a Cabinet consisting of the departmental chiefs under the Chairmanship of the Prime Minister, was not sufficiently prompt and elastic for the conduct of a war which involved the mobilization and direction of the resources not only of the United Kingdom but of the British Empire. Even the formation of a smaller Cabinet committee of the departmental Ministers chiefly concerned in the war did not meet the needs of the case. With the advent of the new Government a modification was introduced whereby the supreme direction of the war was intrusted to a small War Cabinet, freed from all administrative duties, and yet in the closest touch with all departmental Ministers, while administrative responsibility was placed in the hands of Ministers who were left free to devote their whole time to this aspect of Governmental work.
By this arrangement the War Cabinet was able to give all its attention to the task of co-ordination and direction, and so make more effective use of the immense resources which the empire had gradually produced during the preceding years. It also made it easier to create a number of much-needed new administrative departments. The most important of these were the Ministry of Shipping, the Ministry of Labor, the Ministry of Food, and the Ministry of Pensions, to which were added at later dates the Ministry of Reconstruction, the Ministry of National Service, and the Ministry of the Air. * * *
The Man-Power Problem
The first problem was that of man power. During the preceding year all sources which could be tapped without trenching upon the essential supplies of the allied armies and the nation had been exhausted, and the question had narrowed itself down to that of finding substitutes for fit men of military age still engaged in industry. An attempt was, therefore, made to enroll a large army of volunteers to take the place of the men called to the army. Partly owing to difficulties in withdrawing labor from the great war industries and partly owing to the limited supply of labor, great obstacles presented themselves in the execution of this scheme. But though the plan of enrolling an army of industrial volunteers had eventually to be abandoned the system of dilution and substitution was steadily carried out, and 820,646 men of all categories were taken for the service of the army during the year.
The needs of the army, however, were not the only drain. A large amount of additional labor was required for agriculture, timber production, and iron ore mining, as well as for industrial purposes. The needs in these respects also were gradually supplied by reducing unessential industries and by organizing supplies of soldier, civilian, and foreign labor. Investigations were carried out as to the use of labor in different trades, and trade committees representing employers and employed were organized to deal with economy of man-power in particular industries. The evidence so obtained, while it demonstrated clearly the complexity and difficulty of a system of compulsory national service in industry, made it clear that in order to effect the best strategic use of the man power of the country, the National Service Department required extension rather than restriction. Accordingly, in August, 1917, the department was reorganized as a Ministry, recruiting was transferred from the War Office, and arrangements were made to insure effective co-operation between the Ministry and the employment exchanges for the period of the war.
Munitions
Notwithstanding the tremendous calls upon the man power of the country for the ever-increasing needs of the army, the supply of munitions has steadily increased. In addition to large consignments to other fronts of the war, there has been an increase of 30 per cent. in all kinds of guns and howitzers, and of over 100 per cent. in heavy guns and howitzers in the recent offensive in France, as compared with those of last year. The weight of shell filled per month has been more than doubled since 1916. The output of high explosives has been sufficient to meet the increased demands of our armies, to build up stocks, and to supply part of the needs of the Allies. There has been a steady improvement in the detonating value of gun ammunition and a continuous reduction in the number of premature explosions. In addition to guns, shells, and rifles, the demands of the military and naval forces during the year for aircraft, tanks, mechanical transport, railway material, and equipment of every sort and kind have been endless. Despite the immensity of the demand, it has, on the whole, been supplied. The British Army is now probably the best provided of all the armies in the field, not only in technical equipment but in clothing, food, and similar provision.
Fighting the Submarine
The most difficult problems which confronted the Administration in the early part of 1917 were those which arose from the growing inadequacy of the overseas communications of the Allies—problems which were aggravated by the introduction of the unlimited submarine campaign on Feb. 1. The expansion of the armies, the ever-increasing demand for warlike material, the fall in production, especially of foodstuffs in all allied countries through the calling of men to the colors, and the decline in cultivation, coupled with the diversion of a large part of the shipping of the Allies to purely military and naval transportation, had already put a severe strain on the shipping resources of the country. The immediate effect of the new campaign was to double the rate of losses which had been incurred during 1916, and these losses rose rapidly to a climax in March and April.
The countermeasures which were adopted by the navy, however, were successful in reducing the attack to manageable proportions, though they involved a drain upon the national resources both in man power and material which is often not fully recognized, and which is by no means the least important of the contributions of the British Empire to the war. The number of men engaged either in the navy or in supplying naval needs now exceeds a million. Unfortunately it is not possible to set forth in detail the immense scope of the Admiralty operations. But they include a very great addition to the armed craft in the service of the navy from torpedo boat destroyers to mine-sweepers, airships, and airplanes, and the organization of a vast system of patrols and mine-sweepers. As a result of the self-sacrificing devotion on the part of the men of the navy and the auxiliary services, and the steadfast performance in all weathers and seasons of their monotonous and dangerous duties, the enemy never succeeded in interfering to any vital degree with the sea communications of the Allies.
The Shipping Problem
The naval preparations, however, were only part of the measures which were necessary to deal with the shipping situation. The second step was to create the Ministry of Shipping. At the end of 1916 the tonnage requisitioned by the State was less than one-half of the whole, and this was mainly used on purely military and naval services for the British Government or the Allies. During 1917 practically the whole of the remainder of the British ocean-going mercantile marine was brought under requisition at Blue Book rates and organized as a national war service. The Dominion Government also liberated much overseas shipping for war purposes, and neutral shipping was brought as far as possible into allied service. A close scrutiny was then made of the countries from which the necessary imports could be derived, and shipping was concentrated on the shortest routes, thereby multiplying the number of voyages the ships could make in the year. Leading regulations were revised, which increased the carrying capacity from the 1913 figure of 106 to 150 tons per 100 tons net of shipping entering our ports, and arrangements were made for shortening the time occupied in the turn round of ships at the ports. In the latter part of the year the convoy system was introduced, which reduced the shipping losses, though it involved certain delays to individual ships.
In addition to these improvements in the methods of using shipping, a large program of shipbuilding was put into operation, not only in British yards but in all the available yards in neutral countries as well. To insure greater speed in building a large number of the new ships were ordered to a standard design. In spite of the difficulties of all kinds which have confronted the production of ships, notably the shortage in the supply of steel plates and of labor, the output has steadily mounted. During 1917 1,163,500 tons of new ships were built, as against 542,000 tons in 1916, and by the end of 1918 the rate of output of all ships, war and merchant, ought to be double that of any previous year in British history. In order to make possible this increase forty-five new berths have been provided in private shipyards, and the construction of three new national shipyards, containing thirty-four berths, has been begun. Besides this effort at home 175,000 tons of shipping were purchased abroad, an amount which would have been very greatly exceeded if the United States had not taken over the whole program of ships being constructed on British account when they entered the war.
The third step in dealing with the shipping problem was a drastic reduction of imports. In 1916 imports were cut down by 1,600,000 tons. Early in 1917 a committee was appointed which recommended a preliminary program of reductions amounting to 6,000,000 tons. This was approved and came into operation on March 1. The program was shortly afterward increased by further severe restrictions of the imports of timber. The outcome of this policy has been that practically all cargo space is now reserved for goods carried directly or indirectly on Government account, and consists almost entirely of essential foodstuffs, raw materials required for the manufacture of national necessities and military needs or of munitions of war. The chief reductions were in timber, paper, feeding stuffs, and brewing materials. The unfortunate but inevitable consequence of the restriction of imports and of the diversion of shipping from trading to war routes has been a large diminution in exports.
The fourth step was to secure a large increase in the production of food and raw materials at home. There is now good reason to expect that in 1918 the tillage area in the United Kingdom will exceed that of 1916 by over 3,000,000 acres. These satisfactory results have only been possible through the public-spirited activity of large numbers of people throughout the country, including farmers, workers, and organizers, to whom the nation has good reason to be grateful.
Control of Food Consumption
The fifth step in meeting the shipping shortage was to expand Government control over the distribution of all the chief national supplies, partly in order to secure that the best use was made of what was available and partly in order to prevent waste. The most important measure in this sphere was the creation of the Ministry of Food. Its first step was to insure an adequate supply of breadstuffs. This was accomplished by raising the percentage of milling of wheat, by requiring the dilution of wheat with other cereals and by an increased program of imports. At the same time a scale of voluntary rations was announced and an active campaign was started in order to secure observance of them. The use of wheat, oats, barley, and maize for animal food was also restricted or prohibited. As a result, at the beginning of the Winter of 1917 the national reserve of breadstuffs was in a more satisfactory position than any time since the outbreak of war, the wheat stocks alone being 3,000,000 quarters in excess of the stocks in the corresponding period of 1916. A serious shortage, however, in the French and Italian harvests and the needs of our other allies placed a heavy demand upon our supplies of wheat, and toward the end of the year considerable quantities were diverted to their use. During the year the control of the Ministry was extended to cover all imported foodstuffs, practically all of which are now purchased on the national account, and an increasing measure of control has been established over home-grown cereals, meat, and dairy produce. In order to prevent the artificial raising of prices through competition, these purchases are now carried out in concert with our allies through inter-ally committees. As the year progressed the need for greater economy in consumption than was apparently attainable by voluntary means and the difficulties in distributing equitably the restricted supplies compelled the introduction of a system of rationing. The system began with sugar, and at the end of the year was gradually being extended to cover other staple foodstuffs.
Beer and Other Articles
Another large economy was effected early in the year by a reduction of the manufacture of beer from the 1914 total of about 36,000,000 barrels and the 1916 total of 26,000,000 barrels to a total of some 14,000,000 standard barrels. The manufacture of spirits for human consumption has been stopped. Strong measures have also been taken to restrict the consumption of coal, oils, timber, cotton, and other articles. At the beginning of the year the coal mines and iron mines were taken over for the period of the war, and Government control over the available supplies was established. A system of distribution of coal was then brought into operation, which has not only insured all necessary supplies, but has effected economy in railway transportation. It is estimated that this reform will result in an economy of no less than 700,000,000 railway ton miles in the carriage of coal. A Timber Controller was appointed to ration the greatly restricted supplies of wood. The consumption of petrol for private use was gradually curtailed until it was finally forbidden. Much has also been done to economize labor and material through the more active control in the national interest both of railway and canal transportation.
Naval and Military Results
The result of these drastic measures has been that, despite all the enemy efforts to win a victory by the destruction of the merchant shipping of the world, the British people have been able to prosecute the war with the utmost vigor during the whole year. The navy has continued to hold its predominant position at sea, has denied the oceans to the enemy for the purpose of transporting troops or supplies and has exercised an ever-growing pressure upon him through the blockade. At the same time, though the submarine menace has not yet been mastered, the supply both of the military expeditions in all parts of the world and of the civilian population at home has been maintained. It may, indeed, be said with confidence that as the result of the work of the navy, of the merchant marine, and of many civilian sections of the community the German attempt to win the war by the destruction of the merchant shipping of the world has been definitely baffled.
In the military sphere, though no decision has been reached, great results have also been achieved. At the outset of the year the military prospects before the Allies were good. Their plans, however, for a converging attack on the Central Empires on all fronts were upset by the disorganization of the Russian armies which followed the revolution—a disorganization which ended in such complete dissolution that the Germans were enabled to transfer a large part of their eastern forces to the western front by the end of the year. None the less, during the whole of 1917 the German forces have been steadily pressed back from one highly fortified position to another in face of the systematic assaults of the allied armies. The enemy, indeed, has consistently borne tribute to the terrible power of the British attacks and to the heavy losses, both on land and in the air, which they have inflicted upon him. The chief successes have been gained at Arras, Messines, and in Flanders.
Non-European Theatres
On the other hand, there has been a complete transformation of the scene in the non-European theatres of the war. After a long period of comparative stagnation and failure, British arms have once more advanced to victory. The last of the German colonies—German East Africa—has been cleared of the enemy; Mesopotamia, with its capital, Bagdad, has been rescued from the devastating rule of the Turk, and Southern Palestine, including Jerusalem, after many centuries of effort, has been liberated by Christian hands. British prestige, indeed, in the East, which had fallen to a low ebb, has been completely restored; Germanic hopes of southeastern conquest have been rudely shattered through the withdrawal of over 100,000 square miles of territory from German control, and the capacity of Turkey to continue the war has been gravely impaired. The military results of the year are thus very considerable. British armies have fought not in France alone, but in Italy, Macedonia, Mesopotamia, Palestine, and East Africa, and from being a combination of peaceful communities the empire stands forth as the most powerful of all the Commonwealths which are withstanding Prussian aggression. The extent of this effort, the unfailing courage and morale of the British armies, and the clear determination of all the British peoples to accept no peace which does not restore national liberty and public right afford ground for confidence that the Allies will eventually secure the purpose for which they entered the war.
Social and Economic Changes
There is a nonmilitary aspect of the administrative developments of the year which it is important to note. In themselves these developments have been the result of the determination of the people to leave nothing undone which could contribute to the winning of the war. None the less they are bound to produce lasting and far-reaching effects on the social and economic life of the community. No record of the year would be complete which did not point out the changes which have been wrought in the structure of society by the experiences of the war.
In the first place, the organic life of the community has been greatly strengthened. On the one hand, not only have enormous numbers of men, and latterly of women also, been mobilized for military and naval purposes, but the vast majority of the people are now working directly or indirectly on public service. If they are not in the army, the navy, or the civil service, they are growing food, or making munitions, or engaged in the work of organizing, transporting, or distributing the national supplies.
On the other hand the State has taken control for the period of the war over certain national industries, such as the railways, shipping, coal, and iron mines, and the great majority of engineering businesses. It has also made itself responsible for the securing of adequate quantities of certain staple commodities and services, such as food, coal, timber, and other raw materials, railroad and sea transportation, and for distributing the available supplies justly as between individual and individual in the national interest.
Regulating Prices
The Government has further had to regulate prices and prevent profiteering. It has done so partly by controlling freights, fixing maximum prices to the home producer, and regulating wholesale and retail charges, and partly by its monopoly of imported supplies. The information which the Government has obtained as to sources of supply, consumption, and cost of production, and the relations it has entered into with other Governments as to the mutual purchase of essential products which they jointly control, have, for the first time, brought within the sphere of practical politics the possibility of fixing relatively stable world prices for fundamental staples. The State has even taken the drastic step of fixing the price of the four-pound loaf at 9d., at a considerable loss to itself.
Thus the war, and especially the year 1917, has brought about a transformation of the social and administrative structure of the State, much of which is bound to be permanent. Owing to the imperative importance of speed there has perhaps been an undue expansion of the function of the Central Government. But a very large amount of work has been devolved on to local authorities and to new bodies, such as the War Agricultural Executive Committees or the Local Food Control Committees. Taking the year as a whole the Administration has been brought into far closer contact with every aspect of the life of the people, the provinces and the metropolis have been linked more closely together, and the whole community has received an education in the problems of practical democracy such as it has never had before.
The Industrial Problem
In the second place, the war has profoundly altered the conditions of the industrial problem. Since 1914 the community itself has become by far the greatest employer of labor. It has assumed control for the duration of the war over a great number of the larger private undertakings, it has limited profits by imposing an 80 per cent. excess profits tax, and it has intervened to prevent profiteering in the essential requirements of the nation. Further, the regulation of the trade unions have been suspended for the duration of the war, industry has been diluted throughout, new methods and new industries have been introduced, labor-saving machinery has been everywhere installed, and the speed of production and the number and skill of workers has greatly risen. The nation today is far better organized and far more productive than it has ever been before.
With the advent of the new Government at the end of 1916 a Ministry of Labor was created to deal with labor questions. It is still early to speak of the results of its work, but an important step toward the creation of better conditions in the industrial world has been taken in the adoption by the Government of the report of the Whitley Committee, which recommended the development of machinery in the shape of industrial councils, representatives of employers and employed throughout the country, whereby it should be possible to solve the difficulties which will arise by the process of peaceful conference and negotiation in place of the methods of industrial war. Despite all difficulties and the recent increase in industrial unrest, it is probably true to say that as the result of the war there is now a better understanding both by capital and labor of their mutual problems than at any previous time.
1917 in Retrospect
Looked at as a whole, 1917 has been a remarkable year. During it the war has assumed more and more the character of a struggle on the part of all the free nations for the final destruction of militarism and the establishment of an international order which will give real securities for liberty and public right throughout the world. The nations of which the British Commonwealth is composed have been drawn together in their joint effort for the common cause. And within the United Kingdom there has been a growth in the sense of public service and of the power to improve and adapt economic and social and administrative methods which will make it far easier to build up a healthier and more equitably organized society in future.