effect on industrial and commercial life in both France and Belgium.[2] The position in Belgium, however, is much more serious than in France.  It may best be described in the words of Professor Sarolea, written after a visit of five weeks to his native country.  “Other belligerent nations may suffer from unemployment.  In Belgium alone there has been created a whole nation of unemployed.  In other countries trade and industry are dislocated.  In Belgium they have come to a complete standstill.  Out of a population of eight millions, seven millions are under the heel of the invader.  Railwaymen are starving, for railways have ceased to work.  Office clerks are starving, for banks and offices are closed.  Public officials are starving, for no salaries can be paid....  Journalists and printers are starving, for newspapers and books have ceased to appear.  Mill hands and coal miners and ironworkers are starving, for mills and coal mines and iron works are closed."[3] Bad as this is, the condition of affairs is somewhat relieved so far as France and Belgium are concerned by the fact that the seas are open to them, but even then we must add these areas to Germany and Austria-Hungary as regions where industry and trade are at the best severely hampered, regions all of which are important factors in the markets of Europe, and whose commercial paralysis will re-echo through the whole commercial world.

[Footnote 1:  “The shortage of raw materials, notably cotton, wool, jute, and petroleum, is greatly restricting production in many branches of manufacture in Austria-Hungary.  According to official estimates, the supplies of some of the most necessary raw products are barely sufficient for two more months.  Factories are closing down, and the number of unemployed is steadily increasing” (Reuter’s telegram from Venice, Oct. 21, 1914).]

[Footnote 2:  For example, the probable number of French factories in a position to produce sugar in 1914-15, will be 82 or 83 as against 206 during the year 1913-14 (Times, Nov. 3, 1914).]

[Footnote 3:  Letter to the Press dated Sept. 12, 1914.  Mr. J.H.  Whitehouse, M.P., who visited Belgium says, “The whole life of the nation has been arrested.”]

The most fortunately situated combatants in Europe are Russia and Great Britain.  The former, covering half the area of Europe, has almost limitless resources, and is much more easily capable of being self-supporting than any of the other Great Powers engaged in the war.  This country still has the seas open to it.[1] The State subsidy to marine insurance has encouraged overseas trade, and the re-establishment of the remittance market has removed an obstacle to the flow of exports and imports.  Still, it is true that the financial world cannot recover all at once.  “It is like a man whose nervous system has been shattered by a great shock.  Tonics and stimulants may save him from complete collapse, but real recovery is a matter of months and even years."[2] Further, the work