Notwithstanding the tremendous calls upon the man power of the country for the ever-increasing needs of the army, the supply of munitions has steadily increased. In addition to large consignments to other fronts of the war, there has been an increase of 30 per cent. in all kinds of guns and howitzers, and of over 100 per cent. in heavy guns and howitzers in the recent offensive in France, as compared with those of last year. The weight of shell filled per month has been more than doubled since 1916. The output of high explosives has been sufficient to meet the increased demands of our armies, to build up stocks, and to supply part of the needs of the Allies. There has been a steady improvement in the detonating value of gun ammunition and a continuous reduction in the number of premature explosions. In addition to guns, shells, and rifles, the demands of the military and naval forces during the year for aircraft, tanks, mechanical transport, railway material, and equipment of every sort and kind have been endless. Despite the immensity of the demand, it has, on the whole, been supplied. The British Army is now probably the best provided of all the armies in the field, not only in technical equipment but in clothing, food, and similar provision. Fighting the Submarine The most difficult problems which confronted the Administration in the early part of 1917 were those which arose from the growing inadequacy of the overseas communications of the Allies--problems which were aggravated by the introduction of the unlimited submarine campaign on Feb. 1. The expansion of the armies, the ever-increasing demand for warlike material, the fall in production, especially of foodstuffs in all allied countries through the calling of men to the colors, and the decline in cultivation, coupled with the diversion of a large part of the shipping of the Allies to purely military and naval transportation, had already put a severe strain on the shipping resources of the country. The immediate effect of the new campaign was to double the rate of losses which had been incurred during 1916, and these losses rose rapidly to a climax in March and April.