These losses amounted for the last quarter of last year to 1,200,000 tons. That was by far the lowest quarter of sinkings we have had since unrestricted submarine warfare began, and it looks as if this quarter was going to be lower still. So that we have the fact that by increase in output and decrease in sinkings for the last quarter of last year the Allies were within 100,000 tons, on the average per month, of making good the loss due to enemy action and marine risks. Considering British losses and output alone, the proportionate deficiency is somewhat higher. We lost on the average 260,000 tons per month during the last quarter of 1917, and we built 140,000 tons per month, an average deficiency of 120,000 tons per month. We must all regret that the British position has suffered most among the Allies, but we have contributed the greatest naval effort, and have sustained the greatest attacks, and I do not think we, as a nation, will bemoan our stars or our naval efforts in this great war. The net result of maritime risk and enemy action, whether by surface, air or submarine craft, from the beginning of the war until the end of last year is a reduction of 2,500,000 tons of shipping, and from the last quarter of last year the Allies and neutrals are replacing 75 per cent. of the lost tonnage, or only 100,000 tons a month below the losses from all causes. It is well within the capacity of the allied yards, or even our own yards, before very long, with a proper supply of material and man power entirely to make good the world losses. SUMMARY OF PROGRESS