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 by oxen only, an elementary commissariat, no medical or surgical supplies to speak of, and scanty munitions of war.  On the other hand, the principal combatants have proved that with money enough they can all use effectively the new methods of war administration and the new implements for destruction.  These facts suggest that the war might be much prolonged without yielding any results more decisive than those it has already yielded; indeed, that its most probable outcome is a stalemate—­unless new combatants enter the field.