3. _Trade Unions, Co-operative Societies and Distress_.--Before the outbreak of the war there were signs that the wave of industrial activity which reached a high point in 1913 was receding, and that unemployment was beginning to increase; but the trade unions did not anticipate that the ordinary ebb and flow of trade was to be disturbed by a great war. Within a very short time after the declaration of war, the trade unions experienced a heavy drain on their funds in respect of unemployment benefit. It is, of course, obvious that the accumulated funds of trade unions were never intended as a subsidy to the community during a time of war, which is what, in point of fact, they became. It is true that the unions made efforts to conserve their resources in various ways, not least by advising their younger members without dependants to join the army; it is true also that most of them profited under Section 106 of the National Insurance Act by the State refund of one-sixth of their payments to their unemployed members; but these measures--and others--were inadequate to maintain the unions in a sound financial condition, and many unions trembled on the verge of bankruptcy.[1] Such a condition of affairs was viewed with apprehension not only by the trade union movement, but by the State, with the result that at the beginning of October the Government subsidy of one-sixth was under certain conditions increased.[2] But even with this assistance, many unions will undoubtedly experience considerable difficulty in avoiding financial disaster. Speaking generally, the trade union movement as a whole will emerge from the war in straitened circumstances. Some unions may have collapsed, and amongst others the movement in favour of amalgamation may have received an impetus owing to financial embarrassments. [Footnote 1: Speaking generally, it cannot be said that the trade unions faced the crisis with either wisdom or courage. Their attitude, on the whole, was one of utter bewilderment. The lack of the power of adaptability to new circumstances, together with the fact that sufficient pressure was not brought to bear upon the Government in the first weeks of the war, accounts for the unfortunate position in which the trade unions found themselves.]