'The heavy expenses of mobilization and re lief work necessitated emergency loans and in creased taxes. At first business was disorgan ized. Stock exchanges closed, and a limited moratorium was declared. Many industries, like the diamond-cutting of Amsterdam, were paralyzed. Later readjustments resulted in some war prosperity, but the profits were not widely distributed. It was especially difficult to secure raw materials, food and fuel, to control re-exports to belligerents and to maintain trade relations with the Dutch East Indies. The government at different times took action to prevent the export of necessities, to fix prices mid to ration the food supply. Poor crops (1915) and floods (1916) increased the food difficulties. Much discontent was caused by the government's failure to solve all these problems satisfactorily. The question of im ports was largely solved by the formation in November 1914 of the Netherlands Overseas Trust, an organization of Dutch importers who were allowed by the Allies to receive goods on their guarantee that they would not be re exported to Germany, or used to replace Dutch goods so exported. While some srnuggling continued, the great flow of goods to Germany was checked. In spite of food shortage at home the Dutch managed to export some meat, fish and dairy products to both Germany and England in return for coal and other necessi ties.
Holland was naturally keenly interested in peace, and through Dutch intermediaries occa sional informal attempts were made to initiate discussions. Pacifist groups, like the Inter national Congress of Women (April 1915) ccnvened in Holland to denounce the war and to demand peace. Holland did much to relieve suffering. Besides caring for her own poor and unemployed, and the families of her sol diers, Holland supported over a million Belgian refugees, though many of them returned home later. Through Holland there went great quantities of mail and food packages for pris oners, particularly English prisoners in Ger many. English-German exchanges and repa triations took place largely through Holland.
Switzerland.— Of the Swiss population .of nearly 3,800,000, about 2,600,000 speak German, 800,0M French and 300,000 Italian. While the Swiss were patriotically united in their de termination to resist attacics from whatever quarter, their sympathies were divided roughly along the lines of language. Some German speaking Swiss, however, were alienated by the invasion of Belgium and by the whole German conduct of the war.
Although the neutrality of Switzerland had been guaranteed, the Swiss citizen army was promptly mobilized, and the larger part of it kept on guard throughout the war, in spite of increasing protests from the radical labor lead ers. Occasionally alarming rumors were cur rent that one side or the other planned a flank ing movement through Swiss territory; but if such a plan was ever seriously considered the prospect of determined resistance, the moun tainous character of the country, the moral disadvantage of an unprovoked attack and the doubtful military value of the step prevented its being undertaken. On several occasions when
Allied or German aviators flew over 6wiss ter ritory apologies were made. The government tried to maintain a strict neutrality, censonng press expressions that might cause trouble. In 1916 anti-German riots at Lausanne were sup pressed and an apology tendered. In January 1916, much excitement was caused by the trial of two Swiss officers accused of betraying Swiss and Allied military information to the Central Powers, but they were acquitted.
The government early (1914) protested against Allied interference with Swiss imports, particularly grain. Protests were also made against the German submarine blocicade, though at first it purported to allow shipments to Switzerland through a French port, Cette. Switzerland keenly felt the loss of the profit able tourist trade. Industry also suffered Un employment was for a tifne serious, calling for government action. Normally Switzerland im ported chiefly foodstuffs, silk, coal and cotton, and exported manufactures of cotton and silk, watches and clocks, cheese and chocolate. The chief trade was with Germany. Much difficulty was encountered in securing these imports and in keeping industry going, neither group being willing to help Switzerland to help its ene mies. In October 1915, the Swiss Surveillance Society was formed, corresponding to the Netherlands Overseas Trust, and in general agreements were concluded guaranteeing that manufactured goods should not be sold to the enemies of the country furnishing the coal, raw materials and machinery that produced them. In spite of an increased use of clectridty pro duced by water power, and the use of low grade Swiss peat, Switzerland had to depend on Germany for coal, and in September 1916 ob tained a supply in return for cattle, cheese and aluminum. In May.1918 Switzerland offered timber to the Allies in return for food conces sions. Soon afterward cattle were again ex changed with Germany for coal. France objected. The food question became increas ingly serious. At the outset the government forbade food exports, and later there devel oped constant negotiation for supplies from out side, regulating prices and controlling distribu tion. By 1917 the Swiss were on compulsory rations. The Swiss were almost entirely de pendent on the United States for grain, which was allotted to them and sent through in spite of submarines which sank it when possible, even in Spanish ships.