In its direct relation, war destroys those who to the underwriter represent the "best risks," the men most valuable to themselves and thus most valuable to the community. Those whom war leaves behind, to slip along the lines of least resistance into the city slums, are the people insurance rarely reaches. War confuses administration of insurance. Policies, in war time, can be written only on a sliding scale. This greatly increases the premium by reducing the final payments. Increase of rate of premium must decrease business. War means financial anarchy, inflated currency and depreciation of bonds. A currency which fluctuates demoralizes all business and war leaves no alternative. The slogan "business as usual" in war time deceives nobody. If it did, nobody would gain by the deception. Enforced loans from the reserve fund of insurance companies to the state mean the depreciation of reserves. The substitution of unstable government bonds means robbery of the bond holders. The yielding to the state, by enforced "voluntary action," of reserves of savings banks and insurance companies represents a form of state robbery. This is now in practice on the continent of Europe. Such funds are probably never actually confiscated but held in abeyance until the close of the war. This is another form of the everpresent "military necessity," which seizes men's property with little more compunction than it shows in seizing men's bodies. War conditions mean insecurity of investment. In war, all bonds are liable to become "scraps of paper," and no fund can be made safe. The insurance investments in Europe have been enormously depleted in worth, a reduction in market value estimated at 50 per cent. Experts in insurance tell me that in war time certain policies are written so as to be scaled down automatically when the holder goes under the colors. Some are invalid in time of war, and some have the clause of free travel greatly abridged. A few are written to apply to all conditions, but on these the rates of premiums would naturally increase. Companies generally refuse to pay under conditions not nominated in the bond, and in general all policies are automatically reduced to level of war policies when war begins. I am told that some American companies issue group policies as for any or all of a thousand men, these not subject to a physical examination. The war claims in Great Britain have been very heavy, because such a large proportion of clerks, artisans, students and other insurable or well-paid men have been first to volunteer. Some insurance companies have been much embarrassed by the general enlistment of their employees. In fire insurance, conditions are much the same. All contracts in foreign nations are held in abeyance until the close of war. Such companies doing business in America are now mostly incorporated as American.