This

brought their priceless manuscripts. western migration of knowledge helped greatly to awaken Europe from the intellectual lethargy in which the ignorance of the Dark Ages had plunged its inhabitants.

With Constantinople in the hands of Mohammedan masters, the shortest trade route towards the east became a closed passage to the Christian sailor. The maritime intercourse of the Italian cities with the Levant declined, and the discovery of a new short passage to the Indies was stimulated. Hitherto Genoese and Venetian galleys sailing through the Dardanelles had conveyed their precious burdens to harbors on the Asiatic coast of the Black Sea whence traffic was directed overland in a southerly direction often reaching as far as China. The forced abandonment of this road gave added impetus to westerly exploration and this probably led to the discovery of America at an earlier period than might otherwise have been the case.

Today Constantinople's importance is not due to the city being an outlet of the Balkan penninsula. As outlets Salonica, Dedeaghatch, Varna or Constanza are equally important for their respective rearlands. But Constantinople stands alone as a station for the trade between the Mediterranean and the Black Sea as well as between inland Europe and southwestern Asia. It is possible to divest temporarily into new paths the traffic of both these great trade channels. In the long run, however, Constantinople's position is bound to

assert itself because the city's advantage is a natural one.

Neither is it unreasonable to imagine that the absolute control of the Dardanelles region by the Turks has contributed powerfuly to the downfall of Russia. The healthly life of all southwestern Russia depends upon the freedom with which its commerce is allowed to cross the straits. The shutting in of the Black Sea stifled South Russia commercially. The country's insufficiently developed railway system was not adequate to compensate for the loss of sea trade. This natural relation will prevail in the future just as it has made itself felt in the past. Whether Southern Russia will become independent or will become part of a reunited Russia, its dependence on the Dardanelles will be the same.

The truth is that every country having an outlet on the Black Sea coast is affected by the status of the straits. Rumania and Bulgaria are involved as much as Russia. Rumania's position is especially important, 55 per cent.. of its agriculture production was exported before the war as against 20 per cent. of Russia's. Moreover, in the case of Rumania, 95 per cent. of the country's agricultural exports were routed by way of the Bosporus-Dardanelles straits. Thus in all eastern problems Constantinople and the straits region remain the keyposition. Here amid the rounded cliffs rising at low heights on either side of the narrowing waters, is offered one of its most perplexing problems to students of international affairs.

NR

O more appropriate date could have been selected for the initiation of the third Liberty Loan than April 6, the anniversary of the entrance of the United States into the world war.

And this campaign undoubtedly will surpass in energy, scope and effectiveness any previous effort of the kind. Consequently the third Loan should, and will, be a greater success than either of its predecessors, which hardly more than scratched our immense resources of wealth.

The second loan was more successful than the first because the first had educated the people to the necessity and advantage of lending their money to the Government. The second Loan has advertised its successor by proving what our vast means are capable of, and has set the pace for the third Loan.

Furthermore, behind this drive will be the tremendous motive power of a nation thoroughly aroused to the grim task before it. During the two previous campaigns we were only preparing for war. Now we are actually in it, although we are just beginning to fight in the sturdy, determined, American way. But our national temper is rising with every despatch from France which tells of our thin line contending bravely and successfully with the enemy, whose atrocities and bad faith forced us into the conflict.

So, just as there was a rush to the recruiting stations on the day we learned of the sinking of the transport Tuscania, there will also be the greatest patriotic response in our history, or in that of any other nation, to the next Government Loan. There were more than 9,400,000 subscribers to the second Liberty Loan; it is reasonable to expect that there will be at least 12,000,000 subscribers to the third Liberty Loan.

THE SPIRIT OF THE PEOPLE

The spirit of the people has been strikingly attested by a noteworthy incident in the Middle West. A conference was held recently in a State famous for its popular authors and practical politicians, at which it was decided to declare a political truce during the drive for the third Liberty Loan.

During this conference Mr. George H. Dunscomb, of the Federal Reserve Bank of Chicago, remarked:

"This meeting is one which will be memorable in the history of the country, because here the Republican and Democratic parties have agreed to disregard all differences, in order that by united efforts they may obtain the greatest measure of co-operation and unity in the righteous cause for which our nation is fighting.

"A subordination of party aims and ambitions at this time is an expression of the higher patriotism and an evidence of the loftiest ideals. With the great political parties working as a unit in the interest of the Liberty Loan, far-reaching results will be obtained that otherwise would never be realized."

This attitude, which is general, will contribute immensely to the many factors that will lessen the strain of the present campaign. Another important element is the strong position of our banks, which, of course, reflects the sound financial condition of the nation.

OUR GREAT FINANCIAL STRENGTH That the United States is now the dominant banking power of the world was shown in the annual report of the Comptroller of Currency, presented to Congress on January 30. The Comptroller estimated the banking power of the country at $37,529,000,000, an increase of

Workmen in the Morse Dry Dock and Repair Company, Brooklyn, subscribing to the Third Liberty Loan

more than $14,000,000,000 since 1912. In 1890 the banking resources of the world were computed as being only $15,558,000,000. Thus the increase in the United States during the last five years nearly equaled the world's combined banking power twenty-eight years ago. And British financiers have freely conceded that in the Federal Reserve system we have the strongest and largest banking system in the world.

The sound state of our banks is the best possible evidence of the country's unparalleled prosperity, which is further accentuated by the fact that the general stock of money in the United States on March 1, according to estimates made by the Treasury Department, totaled $6,351,548,056, as compared with $5,146,178,093 a year ago. Money in circulation on March 1 amounted to $5,092,530,682, as against $4,583,695,870 a year ago that date.

The per capita circulation at the beginning of March was placed at $48.37. On March 1, 1917, it was $44.26. Just before the outbreak of the European War, namely, July 1, 1914, the per capita circulation was $34.35.

The official estimate of the total wealth of the United States for the year 1912, the latest available tabulation, was $187,739,071,090. That we have been creating and storing up great riches since then is well known. Today our national wealth is estimated to be between $225,000,000,000 and $250,000,000,000. Our per capita wealth in 1912 was $1,965, now the average is considerably in excess of $2,000 for each individual.

The year 1917 was one of marvelous expansion industrially and commercially for the United States. Our exports aggregated more than $6,000,000,000 and our imports were valued at $3,000,000,000. The crop yield of all cereals excepting wheat exceeded all previous harvests, and was worth $21,000,000,000. Bank clearings totaled unprecedented amounts, while both deposits and loans surpassed all

previous records. The Government during the last year borrowed $5,805,000,000 by selling its bonds in the two Liberty Loans. We loaned approximately $4,000,000,000 to our Allies.

A NEW AND BENEFICIAL HABIT

And, fortunately, the American people as a whole changed their money habits in 1917 by buying bonds on a colossal scale. The Treasury Department has learned where and how to find the money it needs to finance our part in the struggle for world freedom. It has built up, through the splendid and unstinted co-operation of business interests generally, but through banking institutions and bond houses in particular, the greatest bond-selling organization that has ever been known. Not only has the public acquired the habit of lending but, more important, that of saving in order that it may lend more.

But if we are to win this war we must realize thoroughly that a slacker dollar is on a par with a draft dodger or a shirker of work.

We should remember in this connection that when we buy Liberty Bonds we are really allocating a certain amount of labor to the country's service. By purchasing these bonds. we are temporarily surrendering to the Government invaluable labor, receiving compensation for its use with the assurance that the right to the use of that labor will be restored to us at a specified time a few years hence.

Every one who appreciates that his own selfish welfare as well as the nation's most precious interests are literally at stake in this war unquestionably will do his full duty in the third Liberty Loan campaign. The American people understand as never before that this is their war and that they are supporting it with their lives, their fortunes and their honor. The complete collapse of the Russians has aroused us to a realization of how much depends upon us if the world is indeed to be made safe for democracy.

Then away, away to the westward, No longer to linger and roam,