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about a reconstruction of the British Ministry. A coalition Ministry was formed, in

which a number of Conservative leaders,

such as Sir Edward Carson, Mr. Balfour,

Mr. Bonar Law, and Lord Curzon were

given office. Mr. McKenna became Chancellor of the Exchequer in place of Mr.

Lloyd George, and the energetic Welshman,

whose management of financial affairs

was fast making him a hero even to his

bitterest enemies, became the head of a

new department, that of Munitions. Mr.

Balfour succeeded Winston Churchill as

first Lord of the Admiralty, the latter

taking a nominal position, which he resigned after the failure of the Dardanelles

enterprise. Sir Edward Carson also retired

about the same time.

It was becoming more and more apparent

that the war was largely a matter of

machinery and of vast supplies of munitions and that, thanks to their preparations

and superb organization of industry, the

Central Powers were far in the lead in

this respect. Hundreds of millions of

dollars worth of munitions had been

ordered by the Allies in America, but

these came in too slowly to redress the

balance. Great Britain was compelled

not only to provide equipment and ammunition for her vast new levies, but also

in part to supply Russia, Belgium, and

Servia. France was better equipped at

the outset than was Great Britain, but

France was badly handicapped by the

fact that a large part of her industrial

machinery and mines had fallen into the

hands of the enemy. Deficiencies could

not be remedied in a few days, a few weeks,

or even a few months. Not only had guns

and shells and rifles and aeroplanes to

be made, but, to a considerable extent,