(_d_) The condition of the victorious State: manner of levy and use of contributions and war indemnities; influence upon industry and social life. (_e_) The manner in which the energy of nations is stimulated or depressed by war. 11. Loss of human life in war and as a result of war: influence upon population (birth-rate, relation between the sexes, ratio of the various ages, sanitary conditions). 12. The influence of war and of the possibility of war upon the protective policy, upon banking conditions (especially upon banks of issue), and upon monetary systems. 13. The influence of annexation upon the economic life of the annexing States, and upon the State whose territory has been annexed. 14. The annexation of half-civilized or uncivilized peoples, considered especially from the point of view of the economic interests, which act as motive powers; the methods through which private enterprises take root in such regions and through which they bring influence to bear upon their own governments; the effects of such annexations upon the development of trade with the annexing State and with other countries, as well as upon the economic and social life of the natives. 15. The progressive exemption of commercial and industrial activities from losses and interferences through war. 16. Influence of the open-door policy upon war and peace. Report of the Second Commission ARMAMENTS IN TIME OF PEACE. MILITARY AND NAVAL ESTABLISHMENTS. THE THEORY, PRACTICE, AND HISTORY OF MODERN ARMAMENTS. 1. Definition. Armaments might be described as ‘the preparations made by a State either for defence or for attack’. These would include the provision of food, financial preparations, and also semi-military railways, canals, docks, &c. 2. Causes of armaments. Motives for increasing or commencing them, distinguishing the great from the small powers. 3. Rivalry and competition in armaments. Motives and consequences of rivalry, with the possibilities of limitation. 4. Modern history of armaments, with special fullness from 1872. To be noted as important landmarks: (_a_) The introduction of conscription into Germany, France, Austria, Italy, Japan, &c. (_b_) Modern inventions affecting war. (_c_) The question of privateering and private property at sea. (_d_) Duration of military service. (_e_) The traffic in arms. 5. Military budgets from 1872 (distinguishing ordinary from extraordinary expenditures). 6. The burden of armaments in recent times. (_a_) The proportion of military to civil expenditure. (_b_) Military expenditure per capita. (_c_) Military expenditure from loans in time of peace, i.e. a comparison of expenditure from taxes with expenditure from borrowed money. (_d_) Comparative burdens of individual taxpayers in different countries and the extent to which the differences are due to armaments. (_e_) Military pensions.