In the biscuit trade as well as in the bread trade, the directors carried out as far as possible their policy of keeping prices as low as was consistent with securing the Federation against loss, but the rapidity with which the various ingredients for these luxuries of the baking trade increased in price caused the prices to the societies to be raised shortly after the outbreak of war. In March 1915, it was decided to reduce the discount allowed on teabread by two and a half per cent., in order to compensate in some measure for the increases in the cost of materials. Toward the end of 1915 the Society found that their stocks of biscuits were falling very low, owing to the shortage of labour, as about 30,000 tins of biscuits were being sent out every week. Systematic overtime was worked in the biscuit factory with the object of overcoming the shortage. The Society were also faced with a serious shortage of biscuit tins, due to the fact that societies were not returning the empty tins promptly, while the manufacturers were not able to supply the demand for new tins. To meet this difficulty the directors authorised the purchase of a machine for the manufacture of the tins. By the beginning of 1916 the shortage of materials necessary for the manufacture of pastries, and especially of sugar, was becoming very marked, and in March of that year it was decided to stop the manufacture of a number of the varieties of which sugar was a considerable ingredient. In May, it was found necessary to advance the price of biscuits by, on the average, nine shillings per cwt., yet, notwithstanding the high price, the Society were having difficulty in fulfilling their orders. Earlier in the year it had been decided to look out for suitable ground for an extension of the biscuit factory, and at the quarterly meeting held in September power was granted the directors to spend up to £9,500 in purchasing land for this purpose. By October, the price of biscuits was advanced other eight shillings per cwt., but as this was four shillings per cwt. below the price which other merchants were charging the societies were getting a very good bargain. In November, it was decided to cease the manufacture of all French, iced, and sugar-coated pastries, owing to the increasing shortage of sugar. THE SOCIETY AND ITS WORKERS.