The arrival of the German submarine "liner" in America has aroused vast interest in the possibilities suggested for the future. Americans are practical, however, and they do not expect to see the Allied blockade of Germany rendered suddenly abortive through the conversion of the German submarine fleet into peaceful merchantmen. The appearance of this first submarine merchantman is not unimportant, however, especially for the future, as this vessel probably bears the same relation to the submarine liner of the years to come as did the first Wright "flyer" to the present-day aeroplane.

Submarines for the Atlantic trade have been talked of for a long time. Their use in times of peace would be for the carrying of high-priced passengers desiring to escape the effects of storms at sea and to ensure the safety of vessel and valuable cargo in severe weather, especially in the winter. The character of the cargo carried by the Deutschland-dyestuffs and drugswarranted the great expense of the journey. At present prices it is estimated that the voyage will not only pay for itself, but for the initial cost of the boat as well. The return trip, providing it is successful, will be made with rubber and nickel, for which the German Government will pay the price asked, regardless of market prices elsewhere. It would not take many such boats making regular trips to add considerably to the depleted German stocks of high-priced and concentrated materials needed to carry on the war, and owing to the shortage in America of dyes and drugs there is plenty of valuable outwardbound cargo awaiting shipment. The enterprise, even if successful, will not alter the course of the war to an appreciable extent, though it renders a

speedy military victory by the Allies even more necessary than before. The effort appeals to the imagination, and American interest and admiration have been aroused. It was a clever and dramatic bit of advertising, and American opinion has estimated it as such.

No event of recent days in Europe has excited more profound and serious interest in America than the announced results of the Economic Conference held in Paris by the Allies last month. On the face of the resolutions a commercial union of the Allies is suggested-one that would apparently lead to discrimination against American export trade. It is believed in America that a new community of interest within the British Empire will be found to exist as a result of the war; such an outcome is looked upon as natural and legitimate. It appears as a different matter, however, when it is proposed that England, France, Russia, Belgium, and Italy should combine as against the world to help each other's trade, and so far, in spite of the Conference, Americans are not convinced that such a plan will prevail.

It would mean in the first place the termination of all existing commercial treaties, a like discrimination in America against the exports of the Allies, and a more or less retaliatory combination between America and the Central Empires. Trade experts in America preIdict that when such a commercial alliance of the present Allies as is suggested comes under serious consideration for enactment it will fail to materialize because of the obvious flagrant violation of the laws of supply and demand. Little or no irritation has been shown in the United States, therefore, over the Paris suggestions, for the simple reason that it is not believed that they will be carried out to such a point as will inter

fere with American trade with Europe, and this not only for the sake of America, but for the convenience and prosperity of the Allies themselves. It is argued that the business interests of the United Kingdom will not care to make any discrimination against American trade other than in favor of exchanges within the Empire, by reason of the fact that in 1914 America was England's most important customer, buying nearly twice as many goods from English manufacturers as were bought by any other country in the world, and in return furnishing needed food and raw material at the lowest prices obtainable anywhere.

It is also believed there are many other reasons why America will not be regarded as an outsider when the day comes that the trade of the world will be reconstructed, and that these reasons are not all concerned with money values. The people of Belgium and France especially have come to look upon America in this war as a friend, almost an Ally, and in the present mood of the French and Belgian people it is extremely unlikely they would be agreeable to discriminate against American commerce. Even more significant to the people of the United Kingdom is the increased intimacy between America and Canada due to war conditions. Americans have come to the aid of Canada with money, goods, and men to such an extent as enormously to strengthen the bond of friendship and community interest between the two countries.

Over sixteen thousand Americans have enlisted in the Canadian Army. So numerous have been these enlistments that the unofficial name of this force is the American Legion. Five battalions of the Canadian Army are now composed entirely of Americans and are commanded by American officers. One of these battalions, the 97th, is now serving in Europe, and in Canada people are even talking of an American

Division to be commanded by an Amer ican General. Thousands of other Amer icans are now scattered throughout the armies of the Allies, and many of these are in the French Foreign Legion. There is no recruiting in the United States, as that would be a violation of official neutrality, but there is no need of advertisement, for Canadian affairs are as well known to Americans as their own; in fact, the social and business life of the two countries has been closely allied for years past.

Nearly all the Americans who have enlisted for service in Europe have borne arms in some previous war, great or small, and the influence that carries them into the present conflict is estimated to be about 50 per cent the quest for adventure and the other 50 the conviction that they are fighting for righteousness and, indirectly at least, on behalf of the future of their own country. Canadian staff officers have stated that it takes less than three months to train these American recruits so that they are ready for active service. The American courts have decided that the taking of the military service oath does not alienate the American citizenship of these men, so when the war is over those who survive will return to the United States trained and hardened in the methods of modern warfare, and in time might fill a useful place in the American military organization when it needs to be expanded. That these Americans are rendering actual service is shown by the statement made some months ago by Sir Sam Hughes, the Canadian War Minister, to the effect that he had already been called upon to write over two thousand letters to relatives of Americans killed or wounded on the firing line.

There can be but one result of such a comradeship in arms, and that is an even closer sympathy between Americans and British than has existed heretofore, and this contact is all the more

valuable in that it takes place between men who would otherwise be given small opportunity of meeting and thus getting to know each other at first hand. They do not come from an isolated group, but are drawn from every part of America and from all classes, and when they return to their homes their friendship and respect for the men beside whom they have fought will serve as beneficent leaven in the mental habit of communities which finally claim them. There is much of significance and interest in this commingling of Canadians and Americans in the overseas forces arriving daily to strengthen the arm of the British Empire. It should tend to soften political asperities which may arise in the future relations of Canada and America, and it is not conceivable that the people of either country will ever again look upon their neighbors across the political line as other than friends.

Before this war there was a vast amount of American capital invested in Canada. After this war there will be an enormous increase, for Canada will need outside money to continue her development, and the United States will be the source to which she will naturally and inevitably go. As a rule, in the past Americans have fought shy of foreign investment, for in the first place there has always been as good or better opportunity at home, and, secondly, because of the lack of knowledge of and confidence in foreign conditions which is very general among Americans, especially those remote from the seaboard. Curiously enough, the present war, in the opinion of many of these, entirely justifies their past and present reluctance to send their money abroad. They have always regarded foreign countries as more likely to suffer from disturbances than their own.

Canada, however, has been excepted from this general reluctance to fare afield in financial adventure, and for

reasons of geographical nearness, similarity of physical conditions, like racial origins, and a social and Government organization with which Americans were familiar. Canadian influence in Imperial matters will in the future very possibly be exerted more than ever towards a closer alliance between the people of the United States and the peoples of the British Empire. It is only by a political fluke that there has not been free trade between the United States and Canada for some time past, and that it may yet come, barring certain discriminations retained for Imperial purposes, is by no means a remote possibility. All this will have to be taken into account in constructing any scheme of Imperial commercial or financial unity, for it will be found that Canada will go just so far and no farther in the erection of trading barriers between herself and the United States.

In the past it has been for economic reasons only that Canada has been friendly towards American immigration of men and money, and this in spite of some ill-feeling towards America engendered by local pride and encouraged by some for political reasons. America has, however, in the past two years contributed heavily of men and money to the Canadian offering to England and the Empire. There now exists a community of human as well as of economic interest more in evidence than ever before. Canada receives credit with the Empire for the splendid part she has played, and America has appreciably helped her to play this part, asking nothing but the privilege of participation under the Canadian colors.

These matters may seem at first glance to have a very remote bearing upon after the war problems, but it will be found that these American contributions of men and money to the Canadian effort will soften the politico-economic situation to be confronted by the Empire after the war far more than will the