ugh 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 hitherto done and
the services performed for Germany and Austria are now no longer called
for; our allies in the west of Europe are suffering acutely from the
immediate economic effects of the war and the large destruction of capital;
our neutral customers have not escaped scot-free. It would seem, therefore,
that in spite of the British command of the seas, production must
necessarily be seriously curtailed and that, therefore, the volume
of unemployment must be very considerable. On the other hand, though
production in France, Belgium and Russia may diminish in many directions,
what goods they do produce for export will find no market in Germany and
Austria-Hungary and a proportion of them will find their way to this
country. Such commodities will not only be valuable as food and raw
material for industry, but will set up a flow of British goo