For the rest of the year the Federal Administration had to face a very difficult situation. Its declaration of neutrality was followed by a long series of measures necessitated by one of the most critical situations in Swiss history.[26] Besides the purely military measures originating especially with the General Staff—the mobilisation and training of the troops, the war time-table (involving a reduced service) of the Federal Railways, and the construction of fortifications, the deficiency of grain had to be supplied from abroad by the Federal Council, and a kind of monopoly of cereals became inevitable.
On the declaration of war the stocks of grain and flour in hand, together with those in the hands of traders, secured the food supply of the country for three months at most. With the home crop there would be enough, with strict supervision, to last till mid-December. Refraining from sequestration of home-grown grain, the Federal Council confined itself to demanding its sale at the price of imported grain, though its yield was lower. This step had not the desired effect, but fortunately in the spring the Federal Council had made arrangements for a supply with Germany and France. The arrangement concluded with Germany proved ineffectual, the war stopping the transit of grain up the Rhine. Cargoes on their way to Rotterdam were intercepted by the British Fleet. But as compensation Switzerland obtained the delivery of the 2,600 carloads of wheat and some hundreds of carloads of oats stored in German warehouses or in transit by the Rhine at the outbreak of the war. Meanwhile the Federal authorities made considerable purchases in America. The arrangement with France permitted the daily discharge and despatch to Swiss territory of quantities of wheat and oats representing the daily Swiss consumption, but in fact the ports of St. Nazaire and Bordeaux, which were to secure the maintenance of this service, at no time did so, and the average supply continuously fell short of the normal need. As it happened, the deficit could be made good through Genoa, notably in December, when the importation reached its maximum. In January, 1915, the crowded condition of the port of Genoa caused a decline, but the French authorities just then gave permission for importation to Switzerland through Marseilles. Charges were made that the export of wheat to the belligerents had been permitted; but they were unfair and baseless.[27] The supply of fuel was a still greater difficulty; but the courtesy of the neighbouring countries enabled it to be maintained.
The Federal Council had also to prohibit the exportation of commodities indispensable to the nation, and to attempt to obtain the raw materials necessary to the continuance of Swiss industries, it had also to induce the Press as far as possible to observe neutrality so as not to hamper it in negotiation. It had to repress espionage, to regulate the relations of debtors and creditors so as to avert a financial crisis, to enable payments to be deferred, to lessen unemployment, to regulate the relations of workmen with employers whose business was affected by the crisis; it had specially to supplement the stock of silver coin, to issue notes and Treasury bonds of 5, 10, 20, 25 and 40 francs, to create a Loan Bank, and to contract two Federal Loans, of 25,000,000 francs and 40,000,000 francs respectively, and to prepare legislation enabling the repayment of part of the expenditure incurred, which would reach 200,000,000 francs early in 1915.
Immense services were rendered to the country in all financial operations by the National Bank. Under the earlier system of a number of cantonal banks of issue, the crisis would have been far more serious. Nevertheless a host of industries were paralysed, beginning with the hotel industry (p. [187]) and the building trade. Fortunately agriculture has remained important in the national economy.
After a few days of panic on the outbreak of the war among certain classes, with a run on the banks and the provision shops, the public reverted to a saner view of the position. The establishment of military rule and the total prohibition of demonstrations of all sorts contributed largely to this result. Apprehension was quieted by the publication of a statement of the resources of the country and by the means taken to assure fresh supplies of food, and, up to the end of the year at any rate, the gravest results of the economic crisis had been averted by a judicious administration of relief. The public services were put to a severe test, but their immediate difficulties had been overcome. The military organisation had proved to be excellent; so had the railway administration. The financial administration had emerged but slowly from its difficulties. Despite its honesty, soundness and prudence, the crisis seemed to have shown that it needed some additional mechanism.
Protests were made by the Federal Government against the seizure of grain cargoes destined for Swiss use and against an alleged violation of Swiss territory during the air raid on Friedrichshafen (Nov. 21; p. 245). The first difference was arranged amicably; the violation of territory was denied by the British Government.
Finally, the country recovered itself and rallied when confronted by the immensity of the misery demanding relief. The Red Cross Society was unsparing in its exertions. Conclusive reasons prevented the despatch by it of ambulances to the seat of war, but many medical men and nurses went abroad to devote themselves to the care of the wounded. The International Red Cross Committee at Geneva created an Agency for Prisoners of War, which collected the names and addresses of French prisoners in Germany and of German prisoners in France. It transmitted to them letters or parcels sent by their relatives, and though, eventually, direct communication became possible, the Agency was still receiving thousands of demands for information daily after the New Year had begun.
An Agency to deal with interned civilians was also established at Berne, and was assisted by a Committee at Geneva for the Germans and at Schaffhausen for the French. It was indefatigable in its exertions. It served as an intermediary between the belligerents for the repatriation of the persons interned. It took thousands of them under its charge at one or other frontier and conducted them to their own country.
In offering hospitality to Belgian refugees Lausanne led the way. By the close of the year some hundreds of them had arrived and the stream was continuing. They were received by the whole people with a thrill of sympathy, and were distributed throughout the French-speaking cantons. The wave of pity for them spread to German Switzerland; gifts for them poured in; subscriptions were opened for them by the Press; workrooms were filled with clothing and underclothing, and much work was done for them in private houses. While the ingenuity of their hosts was taxed on their behalf and on that of the wounded, it was necessary also to provide for the Swiss who had been deprived by the occupation of the frontiers of their means of subsistence. Here also the Red Cross organisation lent its aid, distributing clothing, boots, underclothing and relief. In charitable work the nation recovered its unity, which for a short time had been compromised by sectional differences of opinion and reciprocal violence of language. The alleged divergence of view between French and German Swiss was largely generated by the allegations in the Press that it existed, and was misinterpreted as a manifestation of cantonal antagonism. Facts may be differently appreciated and feelings may vary in degree, but in the hour of danger the unity of the Swiss people is complete.