Q-Has our entrance into war caused much upset to American business?

A.-No. The adjustment of business throughout the country to war conditions was effected with very little trouble. R. G. Dun and Co. reported that during 1917 there were fewer business failures than in any one of the three years previous. The liabilities of the failures that year totaled $183,441,371, smaller than the corresponding figures for any one of the last ten years.

Q.-Was there a decline in American foreign trade as the immediate result of the submarine blockade?

A.-The German submarine blockade, announced as beginning February 1, 1917, had the following effect: Exports for January, 1917, from the United States, $613,000,000. Exports for February, $466,000,000. The decline in tonnage arriving in February at the port of New York was 23 per cent below the arrivals in January. The drop in tonnage cleared was 20 per

cent.

Q.-Did England levy heavy duties

on German goods?

A.-Great Britain made no discrimination whatever. All goods-with but few exceptions-could enter the country without paying any customs duty at all. Duties were levied on a few commodities, but without the slightest reference to their place of origin. Sugar, for instance, whether from the West Indies, Australia, India, Russia, France or Germany, had to pay a duty of from 10 pence (about 20 cents) to 4 shilling 12 pence (about $1.25) a hundred pounds, according to its quality, irrespective of where it was produced.

of the outcry against the importation of so many German articles which, it was said, were far inferior to the British, and caused unfair competition.

Q.-What was the result of this law?

A.-It turned out that this Act was the greatest advertisement for German goods imaginable. When it came into force people were amazed to find that some of the best articles they purchased were made in Germany instead of, as they had supposed, in Great Britain. The result was that the label, "Made in Germany," instead of being, as was anticipated, a brand of inferiority, became actually a recommendation. The German manufacturers and merchants were quick to seize the opportunity and "Made in Germany" became their slogan which they sent around the world. The Act never was repealed, but has been modified in various ways.

Q.-Did America's foreign trade profit or lose by the war?

A. The total foreign commerce of the United States for 1917 established a record. The following are the official figures for the years before and after the outbreak of the European war:

Exports and imports from the United States for the calendar year 1915, and for a series of calendar years, compare as follows:

1915

1914

1913 1912

1,792,183,645 1,818,073,055

Excess of exports over imports. $3,274,000,000

3,089,184,596

Q.-Does Great Britain control the trade of Holland?

A.-She does so in effect through the Netherlands Oversea Trust. The Dutch

were induced by this means early in the war to divide their exports equally between Germany and the Allies-that is to say, if they wished to send a thousand tons of potatoes to Germany they had to send a thousand to Great Britain, despite the fact that the Germans would probably have been willing to pay twice as much for the supplies. Later the Allies insisted that the Dutch send the British share to England in their own vessels. The Germans, on the other hand, refused to supply coal to the Dutch unless an equivalent in foodstuffs were sent across to Germany.

Q. Is it true that German goods reached this country after war began?

A. Yes, but the amount was exceedingly small compared with that which crossed the Atlantic in ordinary years. For the seven months, March to September, before the war, in round figures the value of imports into the States from Germany and Austria was $120,000,000. From March to September, 1915, the value of imports from these countries dropped to $22,000,000. This sum includes the goods which were already in neutral ports in the way of shipment or in transit.

Q. Why did Great Britain allow

any goods through?

A. As the object of the policy of blockade was to injure the enemy, not neutrals, the Allied Governments in certain cases permitted the export of goods which had been ordered before March 1, 1915 (when the famous Orders-inCouncil were promulgated), and had been either paid for before that date or ordered on terms which made the neutral purchaser liable to pay whether the goods reached him or not. It is clear that in these cases no harm could be done the enemy or pressure be put upon him by not allowing the goods to pass.

Q. What were the specific propo

sitions of the Conference?

A. So far as trading with the enemy after the war is concerned, they were as follows:

"Whereas the war has put an end to all the treaties of commerce between the Allies and the enemy Powers, and whereas it is of essential importance that during the period of economic reconstruction which will follow the cessation of hostilities, the liberty of none of the Allies should be hampered by any claim put

pression after the war?

A. That is a question no one can answer. This struggle has shattered most financial shibboleths, and has touched the industries and trade of the world as no other conflict ever did. If precedent is anything to go by, there will be great prosperity. The Napoleonic wars, the Crimean War, the American Civil War, the Franco-Prussian War, and the Boer War all involved relatively great increase

favored nation treatment, the Allies agree that the benefit of this treatment shall not be granted to those Powers during a number of years to be fixed by mutual agreement among themselves.

"During this number of years the Allies undertake to assure to each other, as far as possible, compensatory outlets for trade in case consequences detrimental to their commerce result from the application of the undertaking referred to in the preceding paragraph."`

Q.-How would this hit the Central Powers?

A. The Allies declared themselves agreed to conserve for the Allied countries before all others their natural resources during the whole period of commercial, industrial, agricultural, and maritime reconstruction, and for this purpose they undertake to establish special arrangements to facilitate the interchange of these resources.

In order to defend their commerce, their industry, their agriculture, and their navigation against economic aggression, resulting from "dumping," or any other mode of unfair competition, the Allies were to fix by agreement a period of time during which the commerce of the enemy Powers should be submitted to special treatment, and the goods originating in their countries be subjected either to prohibitions or to a special regime of an effective character.

The Allies were to devise measures to be taken jointly or severally for preventing enemy subjects from exercising in their territories certain industries or professions which concern national defense or economic independence.

Q.-Do economists approve of the plan for cutting our German trade?

A.-No. Although at the time the Paris resolutions were hailed with enthusiasm by many who misjudged afterwar conditions, it was not long before thoughtful men everywhere began to see how utterly impossible it will be to put them into force. One of the first to raise his voice against the economic blockade was Yves Guyot, most distinguished of French economists. He was Minister of Public Works for some years. Many of his works have been translated into Eng

more?

A. The Allies were to determine by agreement through diplomatic channels the special conditions to be imposed during the above mentioned period on the ships of the enemy Powers.

Guyot, speaking in London, said that "any attempt to suppress free exchange of goods between France and Germany could be advantageous only to smugglers." Dealing with the drastic measures proposed, he said that "a treaty of peace could not be a treaty of war."

Q. What rations are allowed to an Englishman?

A-A system of rationing went into effect in London and the English counties on meat, butter and margarine on February 25, 1918. The allowance for meat is 20 ounces per mature person per week. Children over 10 are entitled to only onehalf a pound weekly.

Meat, butter and margarine may be obtained on ration-cards only. On the meat cards are four coupons for each. Of these only three may be used in buying butchers' meats, such as beef, mutton and pork.

The butter and margarine ration is four ounces per person weekly.

-Were meatless days ordered in
England?

A.-Not until January, 1918, when Lord Rhondda, the Food Controller, issued an order applying to all hotels, restaurants, boarding houses, and public places, to begin forthwith. It specified two meatless days weekly-Tuesdays and Fridays in the London district, and Wednesdays and Fridays in other parts of the kingdom.

It ordered that between the hours of 5 and 10:30 o'clock in the morning no meat, poultry, or game may be consumed on any day, and no milk may be consumed as a beverage except by children under ten years of age.

A guest must provide his own sugar for sweetening beverages except that residents of hotels, clubs, and boarding houses may be supplied with not exceeding six ounces of sugar weekly for this purpose, if they do not possess the ordinary sugar rations.

Q.-Had England done anything

else in food regulation?

A. In 1916 it was made illegal for bread to be sold unless it were at least twelve hours old, and in the shape of a one-piece oven bottom loaf, or a tin loaf or a roll, no currant, sultana, or milk bread to be sold, and no sugar to be used in making bread. Bakers were also prohibited from exchanging new bread for old. All bread was to be sold by weight, and the loaves had to weigh under i pound or an even number of pounds, and

loaves not weighing the prescribed amount were to be cut up and sold by weight. Rolls had to weigh 2 ounces.

Q.-What was the price for pota

toes fixed in Great Britain?

A. The fixing of prices created a good deal of criticism and protest in England and ultimately it was decided that the prices named should not be regarded as contract prices, but as minimum prices, guaranteed by the Government for potatoes of the first quality. Prices were as follow:

£5 15s. per ton for delivery from December 15 to January 31, 1917.

£6 per ton for delivery in February and March, 1917.

£6 10s. per ton for delivery for the remainder of the season, for quantities of not less than six tons, F.O.B. or F.O.R.

Q.-Were meat prices high in England in 1918?

A.-It was reported in March that the prices ranged from about 43 cents a pound for the best cuts to about 25 cents a pound for inferior cuts.

-Did the British nation's whole food cost increase very heavily?

A.-England's imports of foodstuffs in the whole of 1917 increased $198,500,000 in cost over the preceding year, the increase being very largely due to higher prices.

Q.-Is it possible to purchase sugar in England without buying other provisions at the same time?

A. It is illegal for anybody to make conditional food-sales in Great Britain. Food Order, 1917, provides that, except under authority of the Food Controller, no person may impose any condition, when selling any article of food, to necessitate the purchase of any other article. Grocers may not sell any article of food in excess of the customer's ordinary requirements.

Total 102,607,000 102,594,000 88,400,000

This would seem to suggest that during 1915 England must have drawn on her stores for at least 14,000,000 cwts., and, therefore, had to enter 1916 with a more slender margin between importation and consumption than is customary.

Q. What foods does England import and raise?

A. It is somewhat difficult to answer that question as there are so many items, and given in such different measures, while no estimate even can be made as to the local production of many articles of food. The main staples can, however, be given:

Produced in U. K. Imported.

80 per cent of the staple cereal supply was imported every year. He said then that the existing food stocks were alarmingly low, and urged that every effort should be made to increase that year's harvest and the next. If the area under cultivation was not increased at once, he said, the nation might have to choose between diminishing its military efforts and underfeeding its population.

Q.-Were there heavy imports of wheat into England during 1916?

A. The imports for what is called the harvest year (September 1, 1915, to August 31, 1916) were practically the same as for the previous one, 1914-15, viz., 106,000,000 cwts., as compared with 110,000,000 cwts. for 1913-14, but the home production was 41,500,000 cwts., as against 31,300,000 in 1913-14, and 36,700,000 cwts. in 1914-15. During the last five months of 1916 viz., from June 17th to December 16th, the imports were as follow:

It would seem, therefore, that the imports during the twelve months of 1916 were a good deal behind those of 1914.

Q.-Is it true that supplies-nota

bly sugar-shipped to the Allies have been resold to Americans?

A.-Food shipped to the Allies is, from the moment of its arrival, under supervision or control of Government agencies.

In Italy such an agency exists since 1915, under control of a "Commissary General of Supplies." Especially drastic regulations govern the use, import and export of sugar.

In France, a special "Ministry of Provisioning and Maritime Transports" takes care of all imports and exports.

In England the "Ministry of Food" and the "Royal Wheat Commission" look after such matters. To re-sell supplies exported from America to the Allies is, therefore, next to impossible.