ntry, our political parties are going to be changed and
reconstructed. The Labour Party has already made a big appeal
to "brain and hand workers," and has announced its scheme of
re-organization.

One definite result of the war in the minds of the people of our
country is the definite mental discarding of state socialism of the
bureaucratic kind as a conceivable system of government. We have seen
bureaucracy at work to a great extent, and shall undoubtedly have
to continue control in many ways after peace comes, but we do not
like it. Socialism will have to go on to new lines of thought and
development if it wishes to achieve anything--and the most interesting
thought and schemes are on the lines of Guild Socialism.

How the great Liberal and Unionist Parties will emerge, we cannot
say--but this we know, they will be different. We have a new
electorate, more men and the women, and the opinion and needs of the
women will undoubtedly affect our political reconstruction. Most of
us, in the war, have entirely ceased to care for party; even the most
fierce of partisans have changed, and the "party appeal," in itself,
will be of little account in our country.

I feel sure we shall scrutinize measures and men and programmes more
carefully, and the work of educating our women will be part of the
women's great tasks in reconstruction.

Our ability to reconstruct and renew rests fundamentally upon our
financial condition--even the power to make the best peace terms rests
upon it. Crippled countries cannot stand out for the best terms, so
finance is all-important.

The democratic nature of our loans is all-important, too. We have had
people suggesting that these loans would be repudiated--a suggestion
that is not only absurd, but is humorous when one realizes that about
ten million of our people have invested in them. To get a House of
Commons elected that would repudiate these loans would be a difficult
task.

The widespread nature of the loans is sound for the people and the
Government, and will help us not only to win the war, but, what is
still more important, "to win the peace." We have in this struggle
paid more and better wages to our people than ever before, conditions
have been improved, masses of our people have led a fuller existence
than ever before. We want to make these and still better conditions
permanent. We cannot do that by a military victory only--we can only
do it by finishing financially sound, and th