After the war, when the States of Europe begin to tread the paths of peace again, one of the first things to be done will be to repair as far as possible the damage done by the war. Take Belgium as an extreme example; leaving aside the irreparable destruction of historic buildings and priceless treasures, there are many million pounds' worth of houses and farm buildings, shops, warehouses, factories, public buildings, ships, railway stations, and bridges to be replaced. This work will take precedence over other kinds of production. Sugar, motor cars, glass, etc., will still be manufactured, but chiefly in order to buy the requisite raw materials and finished goods for the replacement of the wealth destroyed by the ravages of the war. Speaking generally, Belgium will probably consume less food than ordinarily, wear less clothes, and consume less luxuries. Savings, which would normally have been devoted to new industrial developments, will be needed to make good the losses in existing industrial establishments. It is clear, therefore, that the economic growth of Belgium will be retarded in a great degree.[1] The same holds good of Germany, though probably not to the same extent unless the theatre of war is extended to cover a considerable part of the Empire. In the case of our own country, provided it remains free from invasion, there will not be such a large replacement of lost wealth and capital destroyed by the war, except in the case of shipping; but in common with other States there will be the war to pay for, and certain obligations to meet regarding the maimed and the relatives of the slain. Taxation will be heavy, and therefore, on this ground alone the accumulation of new capital will be retarded. Industrial organisation, having been re-arranged and modified to meet the requirements of the war period, will not resume its old form without a good deal of creaking and jolting. And even if it could, it will not be able to face the new conditions arising out of the war at all rapidly. There is every prospect, therefore, of a time of great difficulty after the war is over, before the normal course of industrial and commercial activity is fully resumed. In all likelihood, we shall find that the relative importance of our various industries will have altered to some extent, and that the nature of our trade will have been modified also. Then also the relative positions of our home and foreign trade may shift; in other words, if the war lasts sufficiently long for new industries to develop and become efficient, they may survive the competition of foreign goods after the war; in which case, the goods which have hitherto been produced to buy the foreign goods will not now be required for foreign trade. It may be that on the return of peace, some European States, in order to give their industries an opportunity to recover from the effects of the war, will inaugurate new tariffs; there is, indeed, a strong possibility that on