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France, in that it was based chiefly on military considerations. The moment the armistice was signed; all draft calls were cancelled and drafted men en route to mobilisation centres were, so far as possible, returned to their homes without having been mustered in. Certain classes of troops, starting with the Development Battalions and including the conscientious objectors, the industrial furlough men, the Students' Army Training Corps, the Officers' Training Schools, the Spruce Production Division, the railway troops, depôt brigades, and replacement camps, were designated for immediate discharge. The return of troops was begun at once, many transports being turned back in mid-ocean.

The General Staff set as the maximum rate of demobi lisation, to be attained as soon as possible, the return from over-seas of 310,000 per month, and the discharge of 30,000 men per day, until the army should be reduced to a temporary force of 500,000 men. By Jan. 1 over 670,000 men had been discharged, and 123,000 of the expeditionary forces had been returned to the United States. At the end of six months more than a million men had returned from France, and a total of 2,101,000 men had been discharged.

In order to mitigate such industrial disturbance a might arise from the rapid release of so many men variou measures were taken. In the first place, men (such a coal-miners) urgently needed in industry or required to relieve distress in their families were given priority in discharge. On the other hand, men who had no employ ment in sight were allowed to refuse discharge unti such time as they were assured of positions. A bonu of $60 was paid to each man upon leaving the service and he was allowed to retain and wear his uniform. 0 especial importance, however, were the efforts of the Federal Employment Service in the Department o Labour, aided by the Council of National Defence, th State Councils of Defence, and municipal agencies, t secure employment for discharged soldiers. Specia employment bureaus were established in industria centres, and representatives of the Federal Employmen Service were maintained in all the demobilisation camps where they rendered direct and effective aid to the mer about to be discharged. Thousands of men who had lef

heir positions but a short time before the armistice were ble to return to them, the Federal Government, in this espect, setting the example by reinstating former embers of the classified Civil Service. Efforts were

Iso made to provide 'buffer' employment. The Governent on Nov. 19 ordered all work on Federal buildings o be resumed; and the States, counties, and municipalies took up again the programmes of building and conruction that had been interrupted by the war. In this ay the winter passed without developing an alarming tuation, although in January and February unemployent increased over a rapidly extending area.

The demobilisation of war industries and of war aterial proceeded even more rapidly than that of the med forces. All Sunday or overtime work on Governent contracts or in Government-controlled plants was once stopped. The War Industries Board immediately moved or modified the restrictions that had been placed a great variety of materials, especially those used in ilding, construction, and agricultural operations. The ar Department had outstanding thousands of contracts gregating over $5,000,000,000, and a huge accumulaon of supplies and materials which would not be eded after the cessation of hostilities. In order to rminate the contracts without disturbing conditions ey were grouped in three classes: those that should be rried through to completion, those that should be pered off, and those that should be cancelled at once. ntractors were called upon to prepare statements owing raw material on hand, work in process, finished ticles ready for delivery, and special cost items. These tements were checked by the War Department's ntral Boards of Contract Review, and were then ferred to the local or district boards, composed of presentative business men, engineers, and legal and st experts, whose function it was to reach a fair tlement with the contractors. In case of disagreement ween a local board and the contractor, the latter ld appeal to the Board of Contract Adjustment of o War Department in Washington, and in case of ther disagreement he could have recourse to the ited States Court of Claims. Provision was made immediate payment to the contractor of seventy-five

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per cent. of the minimum agreed upon, in case such payment was necessary to enable him to switch his plant over to peace work. By the end of May over ninety per cent. of the contracts had been terminated.

On the whole, it must be acknowledged that the transfer from war work to peace work took place with a minimum disturbance of labour conditions, notwith standing the large amount of unemployment during the winter months already referred to. The Federal Employ ment Service acted for those discharged from war work as it acted for those discharged from military service During January and February it referred nearly a million workers to positions, and most of this number were definitely reported as placed. The fact that the winter was one of the mildest on record, with a corre spondingly early spring, facilitated the process. Many factories, notably those of the automobile makers, which had been turned over very largely to war work, switched at once to peace work, and were in urgent need of labou to enable them to deal with the large accumulation o private orders.

The disposal of nearly 2,000,000,000 dollars' worth o surplus supplies and materials was undertaken by th Surplus Property Division of the General Staff, create for that purpose. Vast stores of surplus supplies wer sold to foreign Governments; large amounts, especiall of building materials, were requisitioned by other depart ments of the Government or were sold to State an municipal institutions. Such materials and supplies & were placed on public sale in the United States were after conferences with the industries or businesses mos concerned, offered in such quantities and under suc conditions that they were readily absorbed withou having an unfavourable effect upon the market or upo production. By the end of May one-eighth of the surplu had been disposed of at prices representing eighty-eigh per cent. of the cost.

Restrictions and regulations of all sorts affectin daily life, business and manufactures were removed & speedily as possible. A week after the signing of th armistice, the food and fuel regulations respectin wheaten bread, sugar, and 'lightless nights' had bee withdrawn, and the voluntary press censorship agreemen

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ad been terminated. Inasmuch as these regulations ere those that most directly affected the average tizen in his daily life, their withdrawal marked sharply he transition from active war to presumptive peace. Of ore importance, though less apparent to the multitude, as the removal or modification of restrictions on manuctures and business. Restrictions on non-war products, specially building and construction materials and imlements, were removed immediately. By Nov. 20 ractically all priority ratings had been revoked; and y the end of December the War Industries Board disppeared, such of its functions as were appropriate to eace times being transferred to permanent departments. The regulations of the War Trade Board respecting aports and exports were modified more gradually; very week lists of articles that might be imported or ported without licence were published; but the blockade ontinued in force, and the Government still needed much nipping and cargo space for the supply of the forces verseas and for their return to the United States, as well as for food shipments to the hunger areas in Europe. onsequently control over ocean-borne commerce could ot be relaxed at once.

The Capital Issues Committee, whose function it had een to decide upon issues of securities by industrial and ther corporations in order that the investment power f the nation might not be diverted to non-war enterrises, was disbanded at the end of December. Numerus other war boards or committees ceased to exist ithin a few weeks of the signing of the armistice; and e Fuel and Food Administrations reduced their staffs o a minimum and greatly narrowed their various ctivities. Price-fixing agreements or regulations were or the most part terminated by the end of 1918, although ter an unsuccessful effort was made, under the auspices the Department of Commerce, to fix the prices of asic commodities in order to facilitate the resumption buying. By June 1 the process of demobilisation, both ilitary and economic, was rapidly approaching comletion, and the resumption of normal activities was ell under way.

With the signing of the armistice the country began

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to give earnest if somewhat belated attention to the problems of readjustment; and there at once began a series of reconstruction' conferences and congresses. Most of these were held under the auspices of various civic bodies, such as the National Municipal League, the United States Chamber of Commerce, the American Academy of Political Science, the American Public Health Association, the National Popular Government League, in which were discussed every conceivable problem of readjustment, political, economic, and social, as well as a multitude of reforms for which the times were believed to be propitious. The conference which attracted most attention was that of the Governors and Mayors, which was held at Washington, in March, upon invitation from the Department of Labour. The sessions of this conference were marked by striking differences of opinion, but in the end some ten conclusions were agreed upon, the more important of which were these:

Aliens advocating or plotting the overthrow of the Govern ment should be deported.

The Government should expand and improve the railroad systems while they are under its control.

There should be no price-fixing by the Government, but instead the publication of full information respecting fair prices.

There should be no reduction of wages or of standards of living.

The Federal Employment Service should be continued. The holding of natural resources by speculators should be prevented.

The agency of the national Government which has devoted most attention to readjustment in all its phases is the Council of National Defence, which, shortly after the armistice, organised a Reconstruction Research Division, the purpose of which is not to formulate policies but to analyse and investigate the problems of readjustment and to secure all possible information relating to them. One of its most helpful activities in is the preparation of a bulletin entitled 'Daily Digest of Reconstruction News' which it distributes to govern mental agencies. In general, its function is to facilitat co-operation among the various departments and office

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