to Paris or London, with its corollary of mountainous shopping, is abandoned, and a more modest holiday is spent at the seaside or in the mountains at home. The daily story, flashed along the cables from Europe, of strife, of heroism, of self-sacrifice, conduces to reflection and grave judgment. Finally, the meaning of the struggle has been now brought home to every South American people. Every one of them is closely touched by the recent developments of maritime warfare. Every one is forced to come to a decision. Whatever that decision may be, whether it be for open war, or limited participation, or rupture of relations, or complete neutrality, that decision is expectantly watched by the whole world and adds its weight in the balance of the great trial. The effect must be a graver sense of national responsibility, a more sober consciousness of national dignity. The economic recovery, which followed the first shock, favoured this national consolidation and development. Imports diminished, whereas the urgent demand of the Allies for foodstuffs and raw materials soon produced, in most of the states, a great expansion in the value, if not in the volume of exports. Hence a favourable trade balance and an increase in wealth. These conditions encouraged that movement of industrial enterprise which everywhere sought to supply, by the exploitation of home products and by the development of home manufactures, the needs which had been hitherto supplied by importation from abroad. Examples, taken mostly from the A.B.C. countries, will best illustrate this industrial movement, which has been one of the most notable effects of the war.