It must be admitted, on the other hand, that there is a possibility of a period of reaction and torpor after the strain of the war; the country will be seriously impoverished, and there will be a heavy burden of taxation in spite of some probable relief from the burden of armaments. Still, social evils and injustices will be more obvious than ever. There will be many new national and imperial problems clamouring to be faced. The intellectual ferment which has had its source in the war will remain at work to widen the mental outlook and deepen the social consciousness. On the whole, it will probably be true to say that, though circumstances may postpone it, there will sooner or later arise a great movement pledged to cleanse our national life of those features which bar the way to human freedom and happiness.

It also seems undeniable that the deep interest taken by large numbers of people in the war will rouse them to a sense of the importance of problems of government and of foreign policy. The working men's committees on foreign affairs of half a century ago, which have left no trace behind them, may be revived in a new form, and the differentiation of economic and social questions from political and foreign problems may be obliterated. The importance of the gradually widening area of vision among the more thoughtful section of the people can hardly be exaggerated. In no respect is the broadening of outlook more discernible than in the sphere of imperial affairs. Hitherto the Empire to the working man has been regarded as almost mythical. In so far as it did exist, it was conceived as a happy hunting ground for the capitalist exploiter. The spontaneous assistance given to the mother country by the colonies and dependencies has convinced him of the reality of the Empire, and vaguely inspired him with a vision of its possibilities as a federation of free commonwealths. In other words, the British Empire, contrasted with that of Germany, is gradually being recognised as standing for Democracy, however imperfect its achievements may be up to the present. Consequently, the return of peace will see a deeper interest in imperial questions; indeed, it is not too much to say that there will be an imperial renaissance, born of a new patriotism, "clad in glittering white." The change of heart which is taking place in the people of this country, through the opening of the flood-gates of feeling and thought by the unsuspecting warrior in shining armour, may bring a new age comparable in its influence on civilisation with the great epochs of the past. To-day is seed-time. But the harvest will not be gathered without sweat and toil. The times are pregnant with great possibilities, but their realisation depends upon the united wisdom of the people.

BOOKS

In order to understand the machinery of international trade, reference should be made to Hartiey Withers' Money Changing (5s.), or Clare's A.B.C. of the Foreign Exchanges (3s.); an outline of the subject will be found in any good general text-book on Economics. On the financial situation, see articles on "Lombard Street in War" and "The War and Financial Exhaustion" (Round Table, September and December 1914); "War and the Financial System, August 1914," by J.M. Keynes (Economic Journal, September 1914); and articles in the New Statesman on "Why a Moratorium?" (August 15,1914), and "The Restoration of the Remittance Market" (August 29, 1914). Norman Angell's The Great Illusion (2s. 6d.) should be consulted for an examination of the relations between war and trade. The most accessible book dealing with the foreign trade of the European countries is the Statesman's Year-Book, published annually at 10s. 6d. The chapters reprinted from the Encyclopaedia Britannica are also useful. A valuable article on "The Economic Relations of the British and German Empires," by E. Crammond, appeared in the Journal of the Royal Statistical Society, July 1914. The same writer published an article on "The Economic Aspects of the War" in The Quarterly Review for October 1914 (6s.). A grasp of the economic development of Germany may be obtained from W.H. Dawson's Evolution of Modern Germany (5s.) and the same writer's Industrial Germany (Nation's Library, 1s.). Mr. F.W. Taylor's Scientific Management (5s.) and Miss J. Goldmark's Fatigue and Efficiency (8s.) explain scientific management. A short account is also given in Layton's Capital and Labour (Nation's Library, 1s.).

The course of unemployment in this country may be traced from the returns published each month in the Board of Trade Labour Gazette (monthly, 1d.). Proposals for dealing with possible and existing distress during the war are to be found in a pamphlet on The War and the Workers, by Sidney Webb (Fabian Society, 1d.). For the possible use of trade unions as a channel for the distribution of public assistance, see an article in The Nation for September 5, 1914, and Mr. G.D.H. Cole's article on "How to help the Cotton Operative" in The Nation for November 7, 1914. The same paper published two suggestive articles on "Relief or Maintenance?" (September 19 and October 3). The situation which has arisen in the woollen and worsted industries owing to the large demand for cloth for the troops is dealt with in an article on "The Government and Khaki," by Arthur Greenwood in The Nation for November 28, 1914. Reference may be made to the official White Paper on Distress; other official documents of note are the following:

"Separation allowances to the Wives and Children of Seamen,
Marines, and Reservists." Cd. 7619. 1914. 1/2d.
"Increased Rates of Separation Allowance for the Wives and
Children of Soldiers." Cd. 7255. 1914. 1/2d.
"Return of Papers relating to the Assistance rendered by the
Treasury to Banks and Discount Houses since the Outbreak of
War on August 4, 1914, and to the Questions of the Advisability
of continuing or ending the Moratorium and of the Nature of
the Banking Facilities now available." H.C. 457 of 1914. 1d.
"Report, dated April 30, 1914, of a Sub-Committee of the Committee
of Imperial Defence on the Insurance of British Shipping in
Time of War, to devise a scheme to ensure that, in case of war,
British Steamships should not be generally laid up, and that
Oversea Commerce should not be interrupted by reason of
inability to cover war risks of Ships and Cargoes by Insurance,
and which would also secure that the insurance rates should not
be so high as to cause an excessive rise in prices." Cd. 7560.
1914. 2 1/2d.

The Government has issued a Manual of Emergency Legislation (3s. 6d.) containing the statutes, proclamations, orders in council, rules, regulations, and notifications used in consequence of the war; the appendices contain other documents (the Declarations of Paris and of London, the Hague Convention, etc.).

CHAPTER IX

GERMAN CULTURE AND THE BRITISH COMMONWEALTH

"Peace cannot become a law of human society, except by passing through the struggle which will ground life and association on foundations of justice and liberty, on the wreck of every power which exists not for a principle but for a dynastic interest."—MAZZINI in 1867.