ated as examples of the remarkable adaptability
of the State and the possibility of drastic action under the pressure of
imperative needs.[2]

[Footnote 1: It should be pointed out that the serious condition of the
cotton industry is not due to the war. The overstocking of the Eastern and
Indian markets during the trade boom of 1913, together with the financial
crisis in India last year, has reduced the demand for cotton goods. The
war has merely emphasised a depression which had already fallen on the
industry. Sir Charles Macara's scheme, whilst it may be desirable on other
grounds, cannot compensate for the shrinkage in the demand for Lancashire
products. The Government, it is interesting to note, have commissioned
certain firms in Alexandria "to buy cotton extensively from small
proprietors at a reasonable rate, on Government account, to be stored until
the arrival of more prosperous times." (Press Association Telegram, _Daily
Press,_ Nov. 2, 1914).]

[Footnote 2: The voluntary gifts of different parts of the Empire should
not be overlooked. Besides these other steps have been taken. The
Australian Government, for example, in order to induce farmers to extend
the area of cultivation, has guaranteed "a fixed minimum price of 4s." for
all wheat grown on the newly cultivated land. (Reuter's Correspondent,
_Daily Press_, Oct. 27, 1914).]

The course of events has shown the temporary collapse of economic
individualism in the face of the European crisis. The economic system,
which works during times of peace, could not meet successfully the crushing
effects of a European war. It lacked not only adequate resources but the
necessary power of corporate action and co-ordination. Immediate State
action seemed to be the only way to avert disaster. In a month, Britain
came nearer than ever before to being a co-operative commonwealth. It has
been realised that industry and commerce are not primarily intended as a
field for exploitation and profit, but are essential national services in
as true a sense as the army and navy. The complexity of the modern economic
world and the large individual gains which have been made in it have
obscured the fact that the economic structure exists to serve the needs of
the community. It was recognised by the Government, at any rate to some
extent, that the success of our armies in the field would be nullified if,
in the economic sphere, the production of commodities and services were
seriously di