In consequence of the enormous size of the national armies and the
withdrawal of the able-bodied men from productive industries, the
industries and commerce of the whole world are seriously interrupted,
whence widespread, incalculable losses to mankind.

These few months of war have emphasized the interdependence of nations
the world over with a stress never before equaled. Neutral nations far
removed from Europe have felt keenly the effects of the war on the
industries and trades by which they live. Men see in this instance that
whatever reduces the buying and consuming capacity of one nation will
probably reduce also the producing and selling capacity of other
nations; and that the gains of commerce and trade are normally mutual,
and not one-sided.

All the contending nations have issued huge loans which will impose
heavy burdens on future generations; and the yield of the first loans
has already been spent or pledged. The first loan issued by the British
Government was nearly twice the national debt of the United States; and
it is supposed that its proceeds will be all spent before next Summer.
Germany has already spent $1,600,000,000 since the war broke out--all
unproductively and most of it for destruction. She will soon have to
issue her second great loan. In short, the waste and ruin have been
without precedent, the destruction of wealth has been enormous, and the
resulting dislocations of finance, industries, and commerce will long
afflict the coming generations in all the belligerent nations.

All the belligerent nations have already demonstrated that neither urban
life, nor the factory system, nor yet corroding luxury has caused in
them any physical or moral deterioration which interferes with their
fighting capacity. The soldiers of these civilized peoples are just as
ready for hand-to-hand encounters with cold steel as any barbarians or
savages have ever been. The primitive combative instincts remain in full
force and can be brought into play by all the belligerents with
facility. The progress of the war should have removed any delusions on
this subject which Germany, Austria-Hungary, or any one of the Allies
may have entertained. The Belgians, a well-to-do town people, and the
Serbians, a poor rural population, best illustrate this continuity of
the martial qualities; for the Belgians faced overwhelming odds, and the
Serbians have twice driven back large Austrian forces, although they
have a transport b