l of the State. The unity of to-day must necessarily
make its influence felt even when the reason of its existence has passed
away. In the meantime it is assisting in the growth of a new spirit which
the war itself has fostered. The social outlook of the people and their
attitude towards the larger problems of life is changing, and patriotism
has taken a deeper meaning.

So far we have devoted our attention to some of the immediate effects of
the war. But on the return of peace there will be new influences at work,
the immediate and ultimate effects of which will powerfully affect the
course of future development. The European War will mark an era in
international politics. It may also stand as a landmark in the history of
the social and economic life of Western Europe. It is not unlikely that in
this respect it will surpass in its importance all the wars of the past.
The reasons are to be found in the magnitude and costliness of the war, the
highly developed character and the inter-relatedness of foreign commerce,
the possibility of new industrial forces coming into play, and the
influence of the war on the political and social ideas of the European
peoples. It may be that in this country the war will let loose economic
forces destined to modify industrial organisation very profoundly; and
that social forces, especially on the Continent, will be liberated to work
towards fuller political freedom. These things lie in the veiled future,
and prophecy is dangerous. We may, however, turn to consider some of the
probable effects the war will leave behind it.

C. AFTER THE WAR

1. _General Effects_.--When the war comes to an end, an immediate revival
of commercial relations between the combatant States and a general revival
of foreign trade cannot be reasonably expected. After the Napoleonic Wars,
English manufacturers, assuming the eagerness of continental peoples to buy
their goods, were met with the obvious fact that impoverished nations are
not good customers. When peaceful relations are resumed in Europe, we shall
recognise very vividly the extent to which industry and commerce on the
Continent have been closed down. Even assuming that British production
continues, Germany, Belgium and Austria will have little to send us
in exchange. The closing of the overseas markets of Germany, and the
consequent shrinkage in production, the disruption of normal industrial
life by the withdrawal of millions of men to join the c