of a century, her population has increased by about TO per cent and since, on the other hand, the value of her national currency, in which these figures are expressed, was reduced, in September 1936, by about 3o per cent. The decline of Switzerland's foreign trade is in no way to be regarded as the direct consequence of the World War, as in the years preceding the crisis of 1929 her foreign trade figures had exceeded by nearly one half those of 1911-13. The decline in exports began in 1929 and took on truly catastro phic proportions in 1932, when total exports fell in value to less than half of the total imports. This obliged Switzerland dras tically to restrict the entry of foreign goods by tariff and by quota measures. With the depreciation of the Swiss franc in September, 1936, which of course had a similar effect while slightly stimulat ing exports, about the same trade balance was reached as before the war, although on a very much reduced basis.
If we analyse Switzerland's import statistics, we shall find that, as before the war, her five principal suppliers are Germany, France, Italy, Great Britain and the United States: Whereas Germany has usually been Switzerland's most impor tant customer, Great Britain, which had long occupied second place as a market for Swiss goods and, from 1920 until 1926 and again in 1931, even first, suddenly in 1932 dropped to third. The drop which was disastrous for Swiss industries when it occurred —Swiss exports to Great Britain from 1931 to 1932 fell to less than a third of their former value—was later partially recovered thanks to the depreciation of the Swiss franc and favourable trade arrangements. (W. E. R.) The Swiss Confederation is made up of 22 small States, differing from each other in nearly every point—religious, political, social, industrial, physical and linguistic ; yet it forms a nation the patri otism of whose members is universally acknowledged. History
alone can supply us with the key to this puzzle; but Swiss history is very intricate and very local. A firm hold on a few guiding prin ciples is therefore most desirable, and of these there are three which we must always bear in mind. (I) The first is the connection of Swiss history with that of the Empire. Swiss history is largely the history of the drawing together of bits of each of the imperial kingdoms (Germany, Italy and Burgundy) for common defence against a common foe—the Habsburgs ; and, when this family have secured to themselves the permanent possession of the empire, the Swiss League little by little wins its independence of the empire, practically in 1499, formally in 1648. (2) The second is the Ger man origin and nature of the Confederation. Round a German nucleus (the three Forest districts) there gradually gather other German districts; and it is not till 1803 and 1815 that its French and Italian-speaking "subjects" are raised to political equality with their former masters. (3) Swiss history is a study in federalism. Based on the defensive alliances of 1291 and 1315 between the three Forest districts, the Confederation is enlarged by the admis sion of other districts and towns, all leagued with the original three members, but not necessarily with each other. Hence great diffi culties are encountered in looking of ter common interests ; the Diet was merely an assembly of ambassadors with powers very strictly limited by their instructions, and there was no central executive authority. The whole constitutional history of the Con federation is summed up in its transition to a federal State, which, while a single State in its foreign relations, in home matters main tains the more or less absolute independence of its members.