England. On their return voyage the Zeppelins were attacked by French airmen. Four of the airships were destroyed and three captured, one, the L-49, being brought down intact at Bourbonne-lesBains in France.

NAVAL EVENTS

In the German campaign in the Baltic provinces of Russia naval forces cooperated with the military. When German troops were landed on Oesel and Dagö Islands on Oct. 13, the Russian shore batteries were silenced by German warships. Next day there was an engagement between German and Russian naval forces in Soeia Sound. Two German torpedo boats were sunk and two damaged. The Russians lost one torpedo boat. On Oct. 18 the Germans seized Moon Island and sunk the Russian battleship Slava. The whole of the Russian Baltic fleet was driven into the inner waters of Moon Sound behind a barrier of mines planted by German submarines, but, managing to escape from its awkward position, inflicted considerable loss on the German fleet in an engagement in and near the Gulf of Riga on Oct. 21. Six German torpedo bcats were sunk, while two dreadnoughts, one cruiser, six torpedo boats, and one transport were put out of action. The other naval episodes worth mentioning were the sinking by a British naval force of a German auxiliary cruiser and ten patrol boats in the Cattegat on Nov. 3 and the sinking of one German light cruiser and the crippling of another off the coast of Heligoland on Nov. 17.

No new important factor entered into the submarine situation during the period under review. The German U-boats continued to sink very nearly the average number of allied and neutral ships which they had destroyed each week since the opening of their unrestricted warfare. Sir Eric Geddes, in his first speech in the House of Commons as First Lord of the Admiralty, on Nov. 1 declared that the German official figures were greatly exaggerated and that Germany was losing larger numbers of U-boats than ever before. Nevertheless, the loss in shipping was considerable, as was indicated

in the official figures relating to British vessels. During the thirteen weeks ended Dec. 2, 150 ships over 1,600 tons and seventy-four under 1,600 tons were reported sunk by German submarines or mines. To these have to be added the lost ships of other allied countries and of the neutral nations carrying freight for the Allies.

AMERICA IN THE WAR

The best indication of the progress of America's preparations for fighting was the announcement, already mentioned, that the training of the troops in France had reached the stage when men were being exposed to the enemy's fire in the trenches. At the beginning of September the combined strength of the regular Guard, army, National and other branches of the military forces was over 800,000 officers and men, to which an almost equally large number began to be added as the draft recruits for the national army assembled at the sixteen new camps specially prepared for their training. The calling up of the conscripts was only gradual, and at the en! of the period under review a considerable number of the 687,000 men in the first draft had yet to be summoned to duty.

The figures so far given represented only the beginnings of America's contribution in men to the allied cause. When asking Congress on Sept. 19 for emergency appropriations the Secretary of War stated that the money would be required to equip and supply an army of 2,300,000 men. Secretary Baker had previously said that by Jan. 1, 1918, the United States Army would have a strength of 2,030,000. This force was to consist of the regular army recruited up to 450,000, the National Guard expanded to 470,000, the first draft army of 687,000, auxiliary troops, including aviators and engineers, to the number of 170,000, a hospital corps of 140,000, and Quartermaster and other supply troops. The progress made up to Nov. 7 was shown by the figures made public by Secretary Baker on that date. The army was then over 1,800,000 strong, distributed as follows: National (draft) army, 616,820; National Guard called into Federal serv

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Military necessity precluded public statements as to how many of these men were with Pershing in France, but Secretary Baker, in the first announcement regarding the increase in the size of the expeditionary force, issued on Nov. 23, said that troops were departing from the United States and arriving in France as rapidly as intended in the War Department's plans. A further announcement was made on Nov. 29 that National Guardsmen from every State in the Union had arrived in France and that some were already in training within sound of the guns on the battle front.

The growth of the United States Navy was no less satisfactory. At the end of November the personnel had increased since the beginning of the year from 4,500 officers and 68,000 men to 15,000 officers and 254,000 men; the number of stations of all kinds from 130 to 363; the number of civil employes from 35,000 to 60,000; the strength of the Naval Reserve from a few hundred to 49,246 men; the average monthly expenditure from $8,000,000 to $60,000,000; the number of ships in commission from a little more than 300 to more than 1,000; the Marine Corps from 344 officers and 9,921 men to 1,197 officers and 30,000 men; the national naval volunteers from zero to 16,000 men.

The special session of Congress-the most memorable in the history of the United States-which ended on Oct. 6, made ample financial provision for the carrying out of the vast war measures enacted since April. Appropriations for the fiscal year ending June 30, 1918, totaled just under $17,000,000,000, but of this sum $7,000,000,000 represented loans to the Allies. The cost of the war to the United States, combined with the ordinary expenses of the Government, amounted for the year to $14,390,373,940. These expenditures were provided for by ordinary revenues, new taxation, and loans. A sum of $2,500,000,000 was expected from the new taxes on incomes and profits, while additional bond issues were authorized for over $3,500,000,000, leaving almost another $4,000,000,000 to

The Second Liberty Loan, announced on Sept. 27, at 4 per cent., but subject to estate or inheritance tax and to graduated additional income taxation, was a greater success than the first loan. When applications closed on Oct. 27 the amount subscribed for was $4,617,532,300, or 54 per cent. more than was asked for by the Government. The bonds allotted to subscribers amounted to $3,808,766,150. The nuraber of subscribers-9,400,000-had never been equaled in history.

While the growth of the army and navy proceeded with very little friction, the nation's great enterprise in building up a mercantile marine occasioned much controversy. The need of ships, it was recognized, was paramount. As the weeks and months went on it became clear that no effort could be too strenuous to produce vessels with the utmost rapidity to transport troops and supplies across the ocean and to provide the Allies with food and materials for their war industries. Bound up with the Government's plans for the building of new ships were other measures, such as the control of existing vessels and of the trade in which they were employed. Thus, a development of far-reaching import was the control assumed by the Shipping Board on Sept. 6 over the chartering of all American ships and over the acts of American shippers. For this purpose a Chartering Commission was established, and through it a system of co-operation between the American and allied shipping authorities came into existence. At the same time the Shipping Board, in conjunction with the Exports Administrative Board, subsequently reorganized as the War Trade Board, obtained virtually complete control over alien tonnage. The Trading with the Enemy act, passed Oct. 6, armed the Government with new powers over trade, and thereby over shipping. On the ground of war necessity the Shipping Board was authorized to commandeer neutral tonnage tied up in American ports, while all American vessels, according to an order which became effective on Oct. 15, were placed under

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Government direction in so far as their deadweight capacity was not under 2,500 tons and they were available for ocean service. The approximate number of vessels affected was 500, aggregating 2,000,000 tons. The ships were turned back to their owners to be operated on Government account under a system similar to that created by the British Government.

A valuable addition to the shipping resources of the Allies was secured by the agreement, announced on Nov. 13, whereby the United States acquired over 400,000 tons of ships belonging to the neutral nations of Northern Europe. These nations were induced to turn over their ships in exchange for foodstuffs which only America could supply.

A building program for a fleet of merchant vessels of from 10,000 to 12,000 tons, capable of sixteen knots or better, was outlined on Sept. 7. The Shipping Board announced on Sept. 26 that there were then under construction 1,036 cargo vessels, aggregating 5,924,700 tons, there being included in these figures 400 vessels, aggregating 2,800,000 tons, of foreign ownership, which had been requisitioned on the stocks. On Nov. 4 the largest single order so far placed by the Emergency Fleet Corporation was awarded to the American International Corporation, operating the great Government fabricating yard at Hog Island, on the Delaware River, in close association with the American Bridge Company. The contract was for seventy 8,000-ton vessels to be built within twelve months at a cost of $100,000,000. The American International Corporation had previously received a contract for fifty 7,500-ton vessels at a cost of $50,000,000.

For various reasons the Shipping Board and the Emergency Fleet Corporation had not been functioning altogether smoothly. There were personal disagreements as well as disputes in regard to policy and method. Reorganization was therefore once more necessary, and on Nov. 12 Charles A. Piez, a Chicago engineer, who had recently become Vice President of the Fleet Corporation, was placed in charge of all construction work, taking over many of the duties which

had been performed by Rear Admiral Capps, General Manager of the Corporation. The goal which was now being aimed at was the production of 6,000,000 tons of ships by the end of 1918.

The greatest difficulty which confronted the Shipping Board was the shortage of labor, both skilled and unskilled. More than 300,000 additional workers were reported on Oct. 26 as necessary for the construction of tonnage needed at once, and it was far from easy to secure this new labor force because of the withdrawal of 2,000,000 men for the army and navy and the demand by every kind of industry which had been stimulated by the war.

Government control of food was rapidly extended by the exercise of the powers conferred on the President and the Food Administrator. Through the United States Grain Corporation, which was capitalized at $50,000,000, the Food Administration made its first appearance in the wheat market on Sept. 5. Government agents at central zone offices throughout the country went into the market at the opening of the business day and took possession of the wheat in the elevators at the basic price of $2.20 a bushel. From that day onward every bushel of wheat on sale in the United States passed through the Grain Corporation on the way from the elevators and terminals to the mills. This was the first large application of Government control to foodstuffs.

To save the millions of bushels of grain used annually in the manufacture of whisky, the provision of the Food Control act which prohibited the making or importation of distilled liquors was made effective on Sept. 8. Of the 100,000,000 bushels of grain which had previously gone to the distilleries each year, it was calculated that about 40,000,000 had been used to make whisky and other distilled liquors.

The people were made to realize the necessity of conserving food by the institution, late in September, of "meatless" Tuesdays and "wheatless" Wednesdays in public eating houses. The food situation now reflected war conditions, since the enormous quantities of food exported

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to the allied countries had created a shortage and sent up prices to about two and a half times those prevailing on the outbreak of the war in 1914. Only the fact that employment was at a higher mark than at almost any time in the history of the nation, and that wages had risen considerably, though not high enough to keep pace with the increased cost of living, limited the growth of popular discontent.

The extraordinary condition of socalled "war prosperity" was fairly well diffused among all classes, and if profiteering was rife, the people were not greatly disposed to raise objections or make them grounds for agitation. The organized labor movement, as represented by the American Federation of Labor, was committed to a policy of co-operation with the Government for the successful prosecution of the war, and so 2,500,000 workers, who could have constituted themselves a formidable opposition, remained satisfied.

Another branch of the labor movement, embracing for the most part unskilled and nomadic workers, and inspired by ideas of class warfare, was not so quiescent. These men either belonged to or sympathized with the organization known as the Industrial Workers of the World, more popularly known as the I. W. W., whose leader was William D. Haywood, and whose agitation against the war was carried on chiefly in the Western States. One great feature which made the United States Government regard the I. W. W. as a menace was the advocacy by some of its members of sabotage and the suspicion that acts of violence and destruction were in contemplation. Early in September, therefore, Haywood was arrested by the Federal authorities, and documents found at I. W. W. offices throughout the country were seized. Many more I. W. W. leaders and agitators were arrested and with Haywood indicted on charges of sedition and conspiracy. Meanwhile a special labor commission, appointed by President Wilson, was investigating conditions in the States where the I. W. W. doctrine was spreading, and discovered that, however reprehensible the views of the agitators, employers

were also responsible by refusing to concede the reasonable demands of the workers and taking up a generally unsocial attitude. It was the President's policy to try to establish smoother relations between employer and employed, so that there should be no interruption to industrial activities which would militate against national efficiency for war pur

poses.

RUSSIA'S AFFAIRS

Russia was now rapidly moving toward the culmination of one of the most extraordinary developments in modern history. The political revolution in March which had destroyed Czarism was but the prelude to a newer revolution, such as Marx and his followers had advocated for nearly seventy years, namely, the revolution which would destroy not merely political autocracy, but the power of the propertied classes as well. In other words, a war of the classes, bourgeoisie and proletariat, was begun by the Bolsheviki, the left wing of the Social Democratic Labor Party, led by Lenine and Trotzky. The Provisional Government, in which Kerensky was Prime Minister and Terestchenko directed foreign affairs, was branded by the Bolsheviki as a bourgeois Government, and the demand was made that all power be transferred to the Soviets, the councils of Workingmen's and Soldiers' Delegates. The Bolshevik secured the support of the soldiers by their program of an immediate general peace, of the peasants by proposing to expropriate the landowners without delay, and of the workingmen by proclaiming that they should control industry. Here, then, were the beginnings of the first attempt since Marx had formulated his ideas to put them into practice.

The course of events favored the plans of the Bolsheviki. No sooner had Korniloff addressed the Moscow conference at the end of August than he hurried away to his headquarters to initiate an armed movement against what he believed to be the disloyal trend of affairs at Petrograd. On Sept. 9 he sent a message to Kerensky demanding the surrender of all power into his hands. The bearer of this mes

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sage was Vladimir Lvoff, brother of Prince Lvoff, the first head of the Provisional Government. The full story of the differences between Kerensky and Korniloff and of Vladimir Lvoff's part as intermediary is not yet known, but in his appeal to the Cossacks Korniloff charged actual treason on the part of some members of the Provisional Government. Kerensky refused to accede to Korniloff's demands, and at once found the workmen's, peasants', and soldiers' organizations rallying to his support. Korniloff, after failing to receive adequate support from either the army or the civil population, and after advancing some distance toward Petrograd with comparatively a handful of men, admitted defeat, and on Sept. 14 submitted to the Provisional Government.

The belief that a counter-revolutionary attempt had been made frightened the people, and the propaganda of the Bolsheviki began steadily to exert an evergreater influence. Although Kerensky took immediate steps to safeguard the results of the revolution by proclaiming a republic on Sept. 15 and summoning the Constituent Assembly to meet in December, his handling of the Bolshevist menace was weak, and the masses rapidly lost confidence in him. On Sept. 27 a Democratic Congress met in Moscow, and in addition to other important resolutions adopted one demanding that without its consent no coalition should be formed; and another that a pre-Parliament, to be called the Temporary Council of the Russian Republic, be set up to act as an advisory body until the Constituent Assembly should meet and decide the form of the future Government of Russia. Again Kerensky's influence with the moderate Socialists, his temporizing, and the pressure of the bourgeois interests had results which were to prove fatal to the Provisional Government. The representation of the Soviets in the Council of the Republic, as originally agreed upon, was reduced and that of the bourgeois interests increased; while the opposition of the Democratic Congress to the formation of a Coalition Cabinet was flouted, as was seen on Oct. 7 when Kerensky announced

the names of the members of the new Government. Eleven days later the Bolsheviki took the decisive step which led to Kerensky's downfall.

The Bolsheviki, with their demand that all power should be in the hands of the Soviets, had opposed the establishment of the Council of the Republic, but they were represented at its first meeting in Petrograd on Oct. 18. Trotzky, speaking on their behalf, once more stated the Bolshevist program, and then, with his followers, withdrew from the council in a body. The Constitutionalist-Democrats (Cadets) and moderate Socialists who were left behind realized what the withdrawal of the Bolsheviki would mean in creating new conditions of insecurity and disorder, and in vain tried to induce them to come back and take part in planning for Russia's future. But the Bolsheviki were determined to pursue their own course, since they now had reason to believe that the great majority of the peasants, workmen, and soldiers would support them. For three weeks the Council of the Republic continued to exist, endeavoring in its last days to frame measures to solve the land question and to initiate a movement to bring about peace. That Kerensky was well aware of the impending climax was shown in a statement he made to a press correspondent on Nov. 1 in which he declared that Russia was worn out and that the Allies should shoulder the whole burden of the

war.

The issue on which the clash came between the Bolsheviki and the Provisional Government arose from the demand of the Revolutionary Military Committee of the Workmen's and Soldiers' Delegates to control all orders of the General Staff in the Petrograd district. This was refused, whereupon the committee appointed special commissioners to undertake the direction of the military forces and invited the troops to observe only orders signed by the committee. At the same time the committee moved machine-gun detachments to the Workmen's and Soldiers' headquarters and made other military preparations for the overthrow of the Provisional Government.

The blow fell on Nov. 7. The Petro

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