ng the war
the European governments printed 75 billions of dollars' worth of paper
money. This paper depreciated to a ridiculous extent. Before the war,
the franc, the lira, the mark and the crown had about the same value--20
to 23 cents, or about five to a dollar. By 1920 the dollar bought 15
francs; 23 liras; 40 marks, and 250 Austrian crowns. In some of the
ready-made countries, constituted under the Treaty or set up by the
Allies as a cordon about Russia, hundreds and thousands of crowns could
be had for a dollar. Even the pound sterling, which kept its value
better than the money of any of the other European combatants, was
thirty per cent. below par, when measured in terms of dollars. This
situation made it impossible for the nations whose money was at such a
heavy discount to purchase supplies from the more fortunate countries.
But to make matters even worse, the rate of exchange fluctuated from day
to day and from hour to hour so that business transactions could only be
negotiated on an immense margin of safety.

Add to this financial dissolution the mountains of debt, the huge
interest charges and the oppressive taxes, and the picture of economic
ruin is complete.

The old capitalist world, organized on the theory of competition between
the business men within each nation, and between the business men of one
nation and those of another nation, reached a point where it would no
longer work.

In Russia the old system had disappeared, and a new system had been set
up in its place. In Germany, and throughout central Europe, the old
system was shattered, and the new had not yet emerged. In France, Italy
and Great Britain the old system was in process of disintegration--rapid
in France and Italy; slower in Great Britain. But in all of these
countries intelligent men and women were asking the only question that
statesmanship could ask--the question, "What next?"

The capitalist system was stronger in Great Britain than in any of the
other warring countries of Europe. Before the war, it rested on a surer
foundation. During the war, it withstood better than any other the
financial and industrial demands. Since the war, it has made the best
recovery.

Great Britain is the most successful of the capitalist states. The other
capitalist nations of Europe regard her as the inner citadel of European
capitalism. The British Labor Movement is seeking to take this citadel
from within.

The British Labor Movement is a for