The work of supplying and equipping new armies depends largely on our ability to obtain the war material required.  Our demands on the industries concerned with the manufacture of munitions of war in this country have naturally been very great, and have necessitated that they and other ancillary trades should work at the highest possible pressure.  The armament firms have promptly responded to our appeal, and have undertaken orders of vast magnitude.  The great majority also of the employees have loyally risen to the occasion, and have worked, and are working, overtime and on night shifts in all the various workshops and factories in the country.

Notwithstanding these efforts to meet our requirements, we have unfortunately found that the output is not only not equal to our necessities, but does not fulfill our expectations, for a very large number of our orders have not been completed by the dates on which they were promised.  The progress in equipping our new armies, and also in supplying the necessary war material for our forces in the field, has been seriously hampered by the failure to obtain sufficient labor, and by delays in the production of the necessary plant, largely due to the enormous demands not only of ourselves, but of our allies.

While the workmen generally, as I have said, have worked loyally and well, there have, I regret to say, been instances where absence, irregular timekeeping, and slack work have led to a marked diminution in the output of our factories.  In some cases the temptations of drink account for this failure to work up to the high standard expected.  It has been brought to my notice on more than one occasion that the restrictions of trade unions have undoubtedly added to our difficulties, not so much in obtaining sufficient labor, as in making the best use of that labor.  I am confident, however, that the seriousness of the position as regards our supplies has only to be mentioned, and all concerned will agree to waive for the period of the war any of those restrictions which prevent in the very slightest degree our utilizing all the labor available to the fullest extent that is possible.

I cannot too earnestly point out that, unless the whole nation works with us and for us, not only in supplying the manhood of the country to serve in our ranks, but also in supplying the necessary arms, ammunition, and equipment, successful operations in the various parts of the world in which we are engaged will be very seriously hampered and delayed.  I have heard rumors that the workmen in some factories have an idea that the war is going so well that there is no necessity for them to work their hardest.  I can only say that the supply of war material at the present moment and for the next two or three months is causing me very serious anxiety, and I wish all those engaged in the manufacture and supply of these stores to realize that it is absolutely essential not only that the arrears in the deliveries of our munitions of war should be wiped off, but that the output of every round of ammunition is of the utmost importance, and has a large influence on our operations in the field.