borne no sacrifice of life and money made by the allied countries."

Return to the economic pact again and you find that it continues to
bristle with dangerous possibilities for us. You will recall that one of
the clauses forbids the resumption of a favoured-nation arrangement with
enemy countries for a period "to be fixed by mutual agreement." This may
be for an indefinite time.

Now the danger here lies in the European interpretation of the
favoured-nation idea. To quote an authority: "Most of these countries
have treaties under which each must grant most-favoured-nation treatment
to the other; and this means that a reduction in duties granted to one
country is automatically extended to all other countries with whom such
treaties exist. The result is that the lowest rate in any treaty
becomes, with exception, the rate extended to all countries."

We have the favoured-nation relation with many European countries, and
herein lies the possible danger: The war automatically annulled all
treaties between belligerents. When the day of treaty making comes again
shall we suffer for the sins of friend and foe in the rearrangement of
international trade and lose some precious commercial privileges? It is
worth thinking about.

II--_England Awake_

Meantime, regardless of how the economic pact works out, England's
policy is "Deeds, not Words," as she prepares for the time when normal
life and business succeed the strain and frenzy of fighting days.

No man can range up and down the British Isles to-day without catching
the thrill of a galvanic awakening, or feeling an imperial heartbeat
that proclaims a people roused and alive to what the future holds and
means. The kingdom is a mighty crucible out of which will emerge a new
England determined to come back to her old industrial authority. It is
with England that our commerce must reckon; it is English competition
that will grapple with Yankee enterprise wherever the trade winds blow.

There are many reasons why. "For England," as one man has put it,
"victory must mean prosperity. However triumphant she may be in arms,
her future lies in a preeminence in world industries. Through it she
will rise as an empire or sink to a second-rate nation."

In the second place, as all hope of indemnity fades, England realises
that she will not only have to pay all her own bills but likewise some
of the bills of her allies. Already her millions have been poured into
the allied