went to the distilleries each year, it is calculated that about 40,000,000 were used to make whisky and other distilled liquors. A large number of small distilleries were forced to close down as the result of the prohibition, but others producing alcohol for commercial and medicinal uses continued in operation. The whisky drinker is not likely to be deprived of his drink for some time yet, however, because it is estimated that about 230,000,000 gallons had accumulated in the bonded warehouses, liquor stores, and saloons. This is enough to provide for two years' average consumption.

Reducing Sugar Consumption

The sugar industry was taken over by the Government on Sept. 15, when the President issued a proclamation placing all branches of the business under a strict licensing system as from Oct. 1. This action was taken to enforce agreements entered into by the Food Administrator and the beet and cane sugar men. Mr. Hoover fixed the price at $7.25 a hundredweight for beet sugar at refining centres. A saving of many millions of dollars to the country's consumers is anticipated as a result of the new system.

The necessity of economy in the use of sugar was urged by Mr. Hoover in a statement issued on Sept. 23 apropos of a request from the French Government for supplies. The statement read:

We have received a request from the French Government that we allow them to export from the United States 100,000 tons of sugar during the next month, and probably more at a later period. Our own situation is that we have just sufficient

sugar to maintain our normal consumption until the first of January, when the new West Indian crop becomes available to all.

Our consumption is at the rate of ninety pounds per person per year-a little under four ounces per day per person. The French people are on a ration of sugar equal to only twenty-one pounds per annum per person-or at the rate of less than one ounce per day per person-a little more than the weight of a silver dollar each day. The English and Italian rations are also not over one ounce per day.

The French people will be entirely without sugar for over two months if we refuse to part with enough from our stocks to keep them supplied with even this small allowance, as it is not available from any other quarter.

Sugar even to a greater amount than the French ration is a human necessity. If our people will reduce by one-third their purchases and consumption of candy and of sugar for other uses than preserving fruit, which we do not wish to interfere with, we can save the French situation.

Controlling All Foodstuffs

The most sweeping measure of food regulation was that enacted by President Wilson on Oct. 10 when he issued a proclamation setting forth the terms under which the Food Administration, after Nov. 1, would control the manufacture, storage, importation, and distribution of practically all of the essential foodstuffs. The proclamation provided that a license, issued under rules and regulations governing the conduct of the business of the licensee, must be secured on or before Nov. 1 by individuals and corporations with certain exceptions. The proclamation concluded with a warning that any violation of the regulations would be subjected to the penalties provided for in the Food Control act.

THE

HE new armies of the United States are not being subjected to rush and hustle, but are growing into effective fighting forces in a thoroughly purposeful manner, so that when they make their appearance on the firing line they will be capable of a maximum of effort. The regular army on Oct. 12, 1917, had to its credit 226,918 new enlist

ments, that is, over 43,000 more than the number originally required to bring it up to war strength. On the other hand, as certain National Guard divisions had not reached full strength, their ranks had to be filled up from the men drafted into the National Army. Orders were accordingly issued by the War Department on Oct. 13 for the transfer of about 75,400

drafted men to bring six National Guard divisions up to war strength. The orders also involved the transfer of about 55,000 drafted men from Eastern and Middle Western cantonments to Camps Gordon and Pike. Altogether about 130,400 men were redistributed and regrouped to fill up tactical units. About 250,000 men of the draft army had not yet been mobilized because the cantonments were not ready in every particular.

The training work mapped out by the War Department for National Guard and National Army divisions before they are regarded as ready for duty abroad is based on a sixteen weeks' course of the most intensive kind of work in the open, varied with lectures by American and allied officers who are experts in modern warfare. Great stress is laid upon the necessity for night training. Trench raiding, scouting, trench building, and operations of all kinds which may be called for in actual combat are duplicated at the camps through the night hours. Target practice runs through the entire 'course, and the schedules call for forty hours' training each week. A striking feature of the program is the fact that practically the entire period of sixteen weeks is devoted to training individuals, platoons, and companies. Brigade, divisional, and even regimental exercises are reserved for a later period with some minor exceptions during the last weeks

Details of the Government system of insuring members of the nation's fighting forces were made public on Oct. 14 by the War Risk Insurance Bureau of the Treasury Department. The insurance law is applicable to the entire military and naval establishment of the United States, including army, navy, Marine Corps, Coast Guard, Naval Reserves, nurses, and all others serving with the army and navy. Provision is made for family allowances, for re-education of wounded and cripples, and for compensation in case of death or injury.

The specimen contract made public by the Secretary of the Treasury is based on age 25 and is for $5,000. The premium is $3.30 a month. The insurance is payable in installments of $28.75 per month in case of death or total disability.

The table given for a $5,000 policy begins with a monthly premium of $3.15 at the ages of 15, 16, and 17 years, increases to $3.20 a month for the ages of 18, 19, and 20; to $3.25 a month for the ages of 21, 22, and 23; with progressive increases for ages above those given. The minimum amount of insurance is $1,000, the maximum $10,000. The monthly premium for a $10,000 policy at age 25 is only $6.60.

President Wilson on Oct. 8 signed commissions as Generals for Major Gen. Tasker H. Bliss, who has succeeded Major Gen. Hugh L. Scott as army Chief of Staff, and for Major Gen. John J. Pershing, commanding the American forces in France. Though both officers have equal rank, General Bliss takes precedence by virtue of his position as the directing head of the entire army organization. The new grade carries a salary of $10,000 a year, an increase of $2,000 over the pay of Major General. Only four other officers of the United States Army have held the rank and title of General. They were Washington, Grant, Sherman, and Sheridan. The grade of Lieutenant General also was revived by Congress, the rank to be given commanders of army corps. Besides the new commissions for Generals Bliss and Pershing, the President signed commissions of army bureau chiefs to be Major Generals and commissions of many new Brigadier Generals whose nominations were confirmed by the Senate in the closing hours of the special session of Congress.

More than 100,000 American officers and soldiers are now in France under General Pershing's command. Training is proceeding to the utmost satisfaction of the military authorities.

Increased Activity of the Navy

Reports from Admiral Sims, the American naval commander in Europe, show that every type of naval craft from small launches to powerful warships is now inIcluded in his force. The most recent additions were Coast Guard cutters and fishing vessels for mine-sweeping work. American naval vessels, including destroyers, are doing convoy work in the Mediterranean as well as in and near British and French waters.

Mr. Daniels, Secretary of the Navy, on

Oct. 9 awarded contracts to five shipbuilding companies for the construction of $350,000,000 worth of destroyers. This is the biggest contract for vessels of this type ever awarded by any Government. With the award of these contracts the

THE

HE first step toward an embargo was the issue of the President's proclamation on July 9 prohibiting exports of coal, food, grains, meats, steel, and other products except by license. In an explanatory statement the President said that his purpose was the amelioration of food conditions which have arisen or are likely to arise in our own country before new crops are harvested." But in his next proclamation, dated Aug. 27, the President had a further object in view, namely, to prevent neutral nations from re-exporting foods into Germany from the United States. Those neutrals were no longer to get supplies which "either directly or indirectly" might be made the "occasion of benefit to the enemy." Sweeping in its terms, the proclamation placed under control of the Export Council all articles of commerce, so far as the neutrals of Europe were concerned. The President, in a supplemental statement, pointed out that it was obviously necessary to exercise a closer supervision of trade with these Governments than with others. Coin, bullion, currency, and evidences of debt were included in the restricted list affecting the European neutrals and enemy countries. This was to prevent money going to neutrals upon whom Germany, offering coal and other essential supplies in return, made demands for gold.

Enemy countries and European neutrals adjacent to Germany and its allies were treated in a separate section of the proclamation. Another section directed that certain commodities be added to the list of articles already under export con

trol to all countries of the world, including the allies of America. The most notable of these were cotton, sugar, and lumber.

Strict Rationing of Neutrals

The fact that the President treated the position of the European neutrals, such as the Scandinavian countries, Holland, Spain, and Switzerland, in a separate section, and cut off from them, except under special license, practically every commodity from the United States, was regarded here as the initiation of a policy of strict rationing on a basis that would leave for Germany no hope of help from those quarters.

An embargo on the exportation of coin, bullion, and currency, except by license of the Secretary of the Treasury, by advice of the Federal Reserve Board, was proclaimed by President Wilson on Sept. 7. This step was made necessary by heavy withdrawals of gold by Japan, Mexico, and Spain. For some time previously Treasury and Reserve Board officials had been viewing with concern the tendency of gold to flow away from the United States, a movement which started with the financing of the Allies. Within the five weeks' period ended Aug. 17 exports totaled $73,000,000, or more than four times the total of imports. The movement had been too recent, however, to affect substantially the great volume of gold in this country. The stock was then $3,000,000,000, of which approximately 40 per cent. had been imported since January, 1915. Imports of gold during the current year were more than

$538,000,000. Exports were estimated to have approximated $300,000,000, or more than twice as much as the volume exported altogether in 1916. Much of this gold went to Japan, which had a balance of trade against the United States, and recently exportations to Spain had assumed large proportions.

Arrangement with Canada

The Exports Administrative Board, co-operating with the Canadian Food Controller, announced on Sept. 14 that at the request of the United States Food Administrator all exports of wheat, wheat flour, butter, and sugar to Canada and Newfoundland would require an individual license for each shipment. The purpose of the order, it was explained, was to provide means of closer co-operation between the American and Canadian Food Administrators and to put the United States in position to conserve its supplies if shortages appear likely. Shipments of food in small quantities, however, were permitted to both Canada and Mexico. Dr. H. A. Garfield, the Fuel Administrator, requested the Exports Administrative Board to permit no more coal to be shipped from the country except under license restrictions, and asked that no licenses be granted unless they were approved by the Fuel Administration.

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Tightening the Food Embargo

To tighten up restrictions previously made the Exports Administrative Board published on Sept. 16 a conservation list which included wheat, wheat flour, sugar, steel, iron, and many materials needed for the manufacture of explosives, announcing at the same time that the export of these commodities would be practically prohibited" for the present. The ruling was accepted generally as definite notice to most of the northern neutrals of Europe that for some time to come they would have to get along without American wheat, and that at no time during the war period would shipments be made to them except on the strictest rationing basis, and only after obtaining satisfactory guarantees.

A modification of previous orders was made by the board on Oct. 2, when it issued a long list of American commod

ities which it was decided might be exported to other nations, with the exception of Germany, her allies, and the neutral countries contiguous to Germany, without obtaining a license. There were about 600 articles in the list. The decision did not affect wheat and other vital cereals, the more important shipbuilding steel, meats, sugar, raw cotton, concentrated fodder, coal, fuel oils, and other products looked upon as essential to this nation's welfare. Neither did it disturb the complete embargo declared against Holland, Sweden, Norway, and Denmark, the nations accused of helping to feed Germany.

The London Gazette of Oct. 2 printed a poclamation by the British Government prohibiting the exportation to Sweden, Norway, Denmark, and the Netherlands of all articles, except printed matter of all descriptions and personal effects accompanied by their owners. The action in this worldwide embargo was taken at the instance of the United States, which insisted that Great Britain so modify its regulations as to prevent nullification of the American embargo.

Ban on Bunker Coal

A final step to prevent Germany, or northern neutrals of Europe, from obtaining products of the United States, Canada, Mexico, or any of the South American nations that might aid the enemy, was taken on Oct. 4 by the Exports Administrative Board, by placing a ban upon bunker coal. In an official statement it was asserted that the United States had failed to obtain the definite information it had asked of northern neutrals concerning their actual needs for home consumption, and the status of the traffic in which they had engaged with the Central Powers. It was stated further that the Administration had adopted as definite the policy that it would in no way contribute to trade with these neutrals which "will undoubtedly accrue to the benefit of the enemy."

The ban on bunker coal was adopted with the approval of all the Allies. It followed closely Great Britain's declaration of a complete embargo against the Northern European neutrals, which was

designed to strengthen the embargo already put into force by the United States. Latin-American countries were now the only nations left in the world in which Germany had a chance to obtain foodstuffs and other necessaries through the border countries. With this source cut off, allied statesmen felt that the ring around Germany was drawn so tightly that the economic pressure, reinforcing the Allies' ever-growing military superiority, would make the German people see their cause is hopeless.

Plight of European Neutrals

The American embargo was viewed with considerable alarm and no little resentment by the neutral nations of Northern Europe. The prohibition of exports and the withholding of bunker coal licenses resulted in the complete paralysis of Dutch and Scandinavian shipping in the transatlantic trade. Passenger and freight vessels to the number of 136, representing 750,000 gross tons and worth $150,000,000, were detained for many weeks in Atlantic ports, most of them in New York Harbor. Included in the total were fifty Dutch freighters, which were loaded with wheat in August, fifty-three Norwegian freighters, besides Danish and Swedish vessels. Some of them were tied up as early as July. As has already been mentioned, the reason for holding up these vessels arose from the determination of the United States Government to prevent supplies reaching Germany through contiguous neutral countries. According to a statement, dated Aug. 20, by the Intelligence Bureau of Diplomatic Information of one of the allied Governments, the excess in 1916 of Dutch food imports over home consumption was sufficient to provision 1,200,000 soldiers for one year.

An agreement entered into between Holland and Germany, fixing the percentage of exports from the Netherlands to the Central Powers, was, according to an announcement on Sept. 29, refused recognition by the United States, and a translation of documents bearing upon the agreement, which had come into the possession of the Government, was made public. The negotiations, which took

place in September, 1916, showed that Germany demanded:

At least 75 per cent. of the total exports of butter.

At least 66 2-3 per cent. of the total exports of export cheese.

At least as much pig meat and sausage as. was exported to other countries, including exports for the relief of sufferers in Belgium.

At least the same amount of live cattle or meats as was exported to other countries.

At least 75 per cent. of the total export of vegetables.

At least 75 per cent. of the total exports of fruit and marmalade.

At least 75 per cent. of the total exports of fresh and preserved chickens' and ducks' eggs.

At least half the total exports of flax. To enforce these demands Germany threatened to cut off exports of coal into Holland, thereby causing the closing down of factories and the absence of heat in the houses of many of the people. Holland was thus still in the crossfire of embargoes on essentials coming from both belligerent groups. A further step toward bringing pressure to bear upon Holland was the refusal of the United States Government to permit Dutch ships to leave America unless they guaranteed to return to the jurisdiction of the United States. The Nederland Steamship Company, on Oct. 9, announced that it had acquiesced in the American conditions for granting bunkering facilities, which provide that the company's vessels for every voyage between Java and the United States should make a return voyage with cargoes exclusively American or partly Canadian.

The most drastic action by the United States was foreshadowed at this time by the statement in New York shipping circles that if America's allies were badly in need of supplies through lack of tonnage the United States Government probably would sequester Dutch steamships in American ports for the period of the war and afterward pay for them whatever sum a court awarded. The Dutch steamship companies in Holland did not wish to charter the vessels to the United States Government because they said the tonnage was needed to take foodstuffs to Holland. At this writing (Oct. 18) the fate of these ships has not been decided.