working capacity be permanently reduced, they will not participate in this reconstruction. The fifteenth part of our people is missing at the very time we need all our material and moral forces in order to build up our life again. The younger part, yea, the stronger part of our nation, the flower of France, has died away on the battle-fields. Our country has been bereft of its most precious resources.

"Our war expenses, on the other side, 120,000,000,000 francs, are weighing heavily on our shoulders. To pay off this debt there are at hand only such limited resources as invasion has left us. The territories which have been under German occupation for four years were the wealthiest part of France. Their area did not exceed six per cent of the whole country. They paid, however, twenty-five per cent of the sum total of our taxes.

"These territories which have been, for the last three months, occupied again by us at the cost of our own blood and of the blood of our allies, are now in a state of ruin even worse than we had anticipated. Of the cities and villages nothing remains but ruins; 350,000 homes have been destroyed. To build them up again— I am referring to the building proper, without the furnishings— 600 million days' of work will be necessary, involving, together with building material, an outlay of 10,000,000,000 francs. As regards personal property of every description either destroyed by battle, or stolen by the Germans, there stands an additional loss of at least 4,000,000,000 francs.

"This valuation of lost personal property does not include as definite figures are lacking as yet-the countless war contributions and fines by the enemy, amounting also to billions. I need hardly say that, in those wealthy lands, practically no agricultural resources are left.

The losses in horses and in cattle, bovine and ovine species, hogs, goats, amount to 1,510,000 head-in agricultural equipment to 454,000 machines or carts-the two items worth together 6,000,000,000 francs.

"Now as regards industries, the disaster is even more complete. These districts occupied by the Germans and whose machinery has been methodically destroyed or taken away by the enemy, were, industrially speaking, the very heart of France. They were the very backbone of our production, as shown in the following startling figures:

"In 1913 the wool output of our invaded regions amounted to 94 per cent of the total. French production and corresponding figures were: For flax from the spinning mills, 90 per cent; iron ore, 90 per cent; pig iron, 83 per cent; steel, 70 per cent; sugar, 70 per cent; cotton, 60 per cent; coal 55 per cent; electric power, 45 per cent. Of all that, plants, machinery, mines, nothing is left. Everything has been carried away or destroyed by the enemy. So complete is the destruction that, in the case of our great coal mines in the north, two years of work will be needed before a single ton of coal can be extracted and ten years before the output is brought back to the figures of 1913.

"All that must be rebuilt, and to carry out that kind of reconstruction only, there will be a need of over 2,000,000 tons of pig iron, nearly 4,000,000 tons of steel-not to mention the replenishing of stocks and of raw materials which must of necessity be supplied to the plants during the first year of resumed activity. If we take into account these different items we reach as regards industrial needs a total of 25,000,000,000 francs.

"To resurrect these regions, to reconstruct these factories, raw materials are not now sufficient; we need means of transportation. Now the enemy has destroyed our railroad tracks, our railroad equipment, and our rolling stock, which in the first month of the war, in 1914, was reduced by 50,000 cars, has undergone the wear and tear of fifty months of war.

"Our merchant fleet, on the other hand, has lost more than a million tons through submarine warfare. Our shipyards during the last four years have not built any ships. For they have produced for us and for our allies cannon, ammunition, and tanks. Here, again, for this item alone of means of transportation we must figure on an expense of 2,500,000,000 francs.

"This makes, if I sum up these different items, a need of raw material which represents in cost, at the present rate of prices in France, not less than 50,000,000,000 francs.

"And this formidable figure, gentlemen, does not cover everything. I have not taken into account the loss represented for the future production of France by the transformation of so many factories which for four years were exclusively devoted to wat munitions. I have not taken into account foreign markets lost to us as a result of the destruction of one-fourth of our productive

capital and the almost total collapse of our trade. I have not taken into account the economic weakening that we will suffer tomorrow owing to that loss, to which I referred a while ago, of 2,500,000 young and vigorous men."

This was one of the great by-products of the war. Thousands of young Americans, vigorous evangels of democratic thought, remained in Europe to bring American ideals and American force into the affairs of the old world.

Those who returned were formidable factors in re-shaping the affairs of the nation. Grave injustices were done in some instances to young men who had volunteered in the early days of the war through patriotic motives and who returned to find their places in industry taken by others. In the main, however, the process of absorption went forward steadily and without serious incident.

One factor making for satisfactory adjustment was the insurance system put into effect by the United States Government, affecting its war forces. Immediately following the armistice, the following announcement was made:

Preparations by the government for re-insuring the lives of soldiers and sailors on their return have been hastened by the signing of the armistice. Although regulations have not yet been fully drafted, it is certain that each of the 4,250,000 men in the military or naval service now holding voluntary government insurance will be permitted within five years after peace is declared to convert it without further medical examination into ordinary life, twenty-pay life, endowment maturing at the age of sixty-two, or other prescribed forms of insurance.

This insurance will be arranged by the government, not by private companies, and the cost is expected to be at least one-fourth less than similar forms offered by private agencies. The low cost will result from the fact that the government will pay all overhead administration expenses, which, for private companies, amount to about seventeen per cent of premium receipts; will save the usual solicitation fees and, in addition, bear the risk resulting from the wounding or weakening of men while in the service. Private companies would not write insurance on many wounded men, or their rates would be unusually high.

The government will arrange to collect premiums monthly, if men wish to pay that way, or for longer periods in advance. This may be done through post-offices. The minimum amount of insurance to be issued probably will be $1,000, and the maximum $10,000, with any amount between those sums in multiple of $500. There will be provision for payments in case of disability as well as death, according to the tentative plan.

Thus will be created out of the government's emergency war insurance bureau the greatest life insurance institution in the world for peace times, with more policyholders and greater aggregate risks than a half dozen of the world's biggest private companies combined. Out of the experience gained may eventually develop expansion of government insurance to old age, industrial and other forms of insurance, in the opinion of officials who have studied the subject.

Regulations for reinsuring returning soldiers and sailors are being framed by an advisory board to the military and naval section of the war risk bureau, consisting of Arthur Hunter, actuary of the New York Life Insurance Company; W. A. Fraser, Omaha, of the Woodmen of the World, and F. Robertson Jones, of the Workmen's Compensation Publicity Bureau, New York.

Plans also are under consideration for allowing beneficiaries of men who have died or been killed in the service to choose between taking monthly payments over a period of twenty years or to commute these payments in a lump sum.

B

CHAPTER LV

AMERICA'S POSITION IN WAR AND PEACE

Y common consent of the Entente Allies, President Wilson was made the spokesman for the democracy of the world.

As Lloyd George, Premier Clemenceau of France, Premier Orlando of Italy, and other Europeans recognized, his utterances most clearly and cogently expressed the principles for which civilization was battling against the Hun. More than that, these statesmen and the peoples they represented recognized that back of President Wilson were the high ideals of an America pledged to the redemption of a war-weary world.

The war produced a sterility in literature. Out of the great mass that was written, however, two productions stood out in their nobility of thought and in their classic directness of expression. These were the address before Congress by President Wilson on the night of April 2, 1917, when, recognizing fully the dread responsibility of his action, he pronounced the words which led America into the World War, and the speech made by him on Monday, November 11, 1918, when addressing Congress he announced the end of the war. Other declarations of the President that will be treasured as long as democracy survives, are those enunciating the fourteen points upon which America would make peace, and two later declarations as to America's purposes.

His address of April 2d was delivered before the most distinguished assemblage ever gathered within the hall of the House of Representatives. The Supreme Court of the United States, headed by the Chief Justice, every member of the embassies then resident in Washington, the entire membership of the House and Senate, and a host of the most distinguished men and women that could crowd themselves into the great hall, listened to what was virtually America's Declaration of War.

The air was still and tragic suspense was upon every face as the President began his address. At first he was pale as the marble rostrum against which he leaned. As he read from small