It is of little use going on producing great quantities of goods for which there is at present no market, and no use producing above the European market price. It would be truer to say that the strikes are partly the result of the depression. Most of the strikes have been caused by "cuts" in wages. Wages have been sought to be reduced in order to turn out cheaper products and so be able to compete with other cheap European goods. The secret of the obduracy of the coal-owners has lain in the fact that British coal costs more than the world-price per ton. The difference in price could be put on to the private consumer but there are limits to his means of purchasing. It is impossible to do more trade with the consumer. The main coal business is with the factory and the ship, and these compete in world-markets for their own business. All want to keep the cost of production low in order to compete with the countries of low exchange. The European exchange is proving to be the most vital matter for English trade. Its irregularities reflect the irregularities of our Europe and they must be met. An equality of values must somehow be obtained, and it could be obtained in a spirit of general friendship and good-will. Great sacrifices would be necessary from rich people of all the nations concerned, and large schemes of revenge and punishment would have to be abandoned. But in doing so we should all save one another; in not doing so we are likely all to ruin one another. LETTERS OF TRAVEL XVII. FROM PARIS France is the mainspring of the new mechanism, and Paris the control. That is why I chose to go to Paris last--so that all, even London, could be related to her. The initiative in European politics is taken by France and she has the most active policy. Most other States wait to see what France is doing and shape their policies accordingly. London is generally in opposition to Paris, but English action is so sluggish and so independable that even those States who loathe the new France are obliged to assume that England does not really count. With the exception of Greece, England is not giving active support or practical sympathy to any other country in Europe. But France backs Poles and Turks and Hungarians and Serbs, and is carrying out a grand scheme of world-policy clearly--if not very effectively. France has made great progress since the war. Alone among the warring powers in this respect she stands higher than she did in 1914. She stands higher than she has done at any time since the great Napoleon. The Government it is true is in direful need of money, and has always a difficult political path to tread, but both the French individual and the nation as a whole have gained enormously. Peoples and governments are too often confused, and the plight of M. Briand sometimes deceives people as to the position of France.