It is interesting to study the effect of the war on the food situation of the neutral powers. In Scandinavia, there was at first a panicky feeling of a world-wide catastrophe; then there came the realization of an unparalleled chance for making profit. The international shortage of tonnage made freight rates soar. Shipping shares became attractive. Then came the submarine sinkings, and the refusal of the Allies to allow goods to be imported into Scandinavia for the sole purpose of selling them to the Central Powers. Imports fell off rapidly. Everything which could be sold had been sold in the beginning of the war. The next step was the placing of an embargo on exports by the Scandinavian governments:
"The index of the Swedish official list of laws, dated October 31, 1916, forbidding exports, mentioned more than 1,100 articles, and even that was expressly called only a help to find the commodity looked for and did not pretend to be a complete index. The result was, of course, that trade, compared to former volumes, decreased very considerably, and the energy as well as the wealth actually earned was turned towards speculation on the local exchange.
"To supply all the people of Scandinavia with the necessities of life was a problem. Law upon law, one governmental decree after the other, tried to regulate the distribution of commodities as well as their prices. The majority of the people were in actual need. Prices soared, and it really did not matter to the ordinary man whether the cause of this rise in the cost of living was a too big circulation of paper currency or a limited supply of goods. What confronted him was the fact itself, not theories, and he realized all too well that he could not make 'both ends meet.' There was, generally speaking, no doubt that under normal circumstances the laws of supply and demand will work satisfactorily to the community and that artificial interference was only harmful. The supply being short, consequently the demand and the consumption must be controlled to secure a fair distribution. Sugar cards, which had been used in Sweden for months, and which were decreed in Denmark to go into force January 1, 1917, were an example of the means employed to control the distribution and to prevent waste to supplies.
"While on the one hand one saw new millionaires permit themselves to indulge in the most senseless luxuries, which incidentally added considerably to the high cost of living under circumstances like these, the less well-to-do actually were without many things formerly considered necessities. Collections of money and foodstuffs were made all over Scandinavia to help the less fortunate through the winter. The poorer population of the cities was especially considered. It was even difficult to get a roof over one's head. Proposals and counter proposals to remedy the evil were forthcoming, but no real remedy seemed to be in sight."
FEEDING EUROPE'S STARVING MILLIONS
A preliminary accounting was rendered on December 1, 1919, by Herbert C. Hoover, covering the $100,000,000 fund appropriated by Congress for the relief of starving Europeans. From Mr. Hoover's report it appears that in payment for relief supplied to eight European countries Mr. Hoover decided to accept their notes bearing 5% interest. Mr. Hoover's report stated:
"About 88 per cent. of the relief supplies furnished were sold under contract to the various Governments in the relief areas. For all such sales these Governments gave their special treasury notes in a form approved by the United States Treasury, bearing 5 per cent. interest, due June 30, 1921, to June 30, 1924. It was impossible to obtain reimbursement in cash because the currency in the countries to which these supplies were sent was impossible to convert into foreign exchange, except in comparatively insignificant amounts.
POLAND THE BIGGEST DEBTOR
"I give herewith approximate list of the notes of each Government, which we expect to turn over to the United States Treasury.
| Poland | $57,000,000 |
| Czechoslovakia | 6,750,000 |
| Armenia | 10,000,000 |
| Russia. | 5,000,000 |
| Esthonia | 2,300,000 |
| Latvia | 3,000,000 |
| Lithuania | 700,000 |
| Finland | 4,000,000 |
| —————— | |
| Total | $88,750,000 |