standpoint is that the Licensed House is a practical necessity, and that it ought always to be a place to which all classes and all the people can resort without reproach. This organization has secured the control of some 300 Licensed Houses, where during the past ten years it has been computed that more than 11,000,000 persons have been served, and not a single prosecution for drunkenness or any other evil has resulted. The system assumes the indispensability of the Licensed House in some shape or form for the purpose of reasonable refreshment, rest, recreation, and social intercourse. These places sell all kinds of beverages, and all the houses contain rooms which are set apart for the service of meals.

The last Annual Report of the People's Institute of New York has a valuable chapter on Commercial Recreation, in which it is shown that "the saloon is the only form of commercialized amusement which unites the individual with the community." The Trustees of the People's Institute state that "even in the handling of the saloon problem, the Institute has urged the value of constructive rather than repressive measures, the abolition of statutory prohibition, the principle of home rule, and the adoption of a system of discriminating license, in order to encourage the sale of light beverages."

At a recent meeting of the British Society of Medical Officers of Health, Dr. William Robertson, a well-known sanitarian, laid stress upon the need of housing reforms as being fundamental to improvement in the health of the people. The Public House is the second of the evils which Dr. Robertson would correct. He is not advocating prohibition, but the proper regulation of alcohol. He instances the Germans, from whom, he says, it is possible to learn much. "The Germans are very far from abstainers, in fact their capacity for certain alcoholic drinks is a by-word and their consumption of them enormous, but the sensible regulation of drinking robs the public house of its iniquities."

It may be that some of these suggestions will strike you as being a veritable counsel of perfection. I bring them to your attention, however, because it is important that we should be absolutely open-minded in the consideration of these problems, and that recognizing the trend of the times, we should lend our best individual and united efforts to the furtherance of any practical reforms

and the betterment of existing conditions. I am aware of the excellent work that has already been done by the National Retail Liquor Dealers' Association, and by a number of State and local bodies of retailers in my State of Pennsylvania, in the New England States, in Wisconsin, Texas, Ohio and other parts of the country, and I am not belittling for a moment the work that has been taken in hand by a number of our State and local Brewing Associations. For the same reason that every reputable saloonkeeper should be enrolled in the ranks of his organization, it is necessary that the brewers should stand shoulder to shoulder in their local, their State, and their national organizations, for the development of this work. I appeal to you to make it your personal business to see that such reforms are undertaken and carried out, and to accept willingly your own share in the loss that these reforms may, and will necessarily, involve-temporary though they may be both because in the long run they will inure to your benefit, and most of all because they are putting the industry on all fours with the welfare of the community.

Before closing I want to say a word of praise for the enthusiasm displayed by the Heads of all Departments of our Organization in furthering the work in hand. The Chairmen of Standing Committees have been indefatigable in their labor and service in accomplishing the result desired to be obtained. It has been a source of pride and gratification to me to be associated with such willing, conscientious and efficient collaborators, determined to win for their Association a place in the Commercial World, for comprehensive, constructive effort and a high standard of business ethics.

REPORT OF BOARD OF TRUSTEES

THE DECREASE IN BEER SALES

In common with all industries that have not been helped by warorders, the brewing trade has suffered considerable depreciation during the past year. The loss in beer sales for the twelve months ending June 30th, 1915-which constitutes the fiscal year of the Federal Government-amounted to 6,358,744 barrels, or nearly 10

per cent as compared with the previous year. Many other industries that are not exporting war supplies have fallen off from 25 to 50 per cent during the same period, so that the beer trade has stood. the strain very well, especially in view of the fact that the beer business is mainly a city business! When it is recalled that immigration has fallen off 70 per cent, while large numbers of ablebodied wage-earners have gone back to Europe; that the building trades have been stagnant and no new construction work of any magnitude has been going on; that railroad development has ceased and improvements have been checked; that the import trade is demoralized, and that a large amount of capital invested in Mexico has been tied up for two years without any returns, the comparative stability in the beer Consumption is really remarkable, and shows what a popular hold beer has in this country.

NATIONAL SECURITY

The European War has furnished pregnant proof of the interrelationship of all industries. There are no bounds to commerce, which in the long run is the greatest racial harmonizer. But the development and protection of our foreign commerce bring new and complex difficulties and responsibilities to the Government of the United States, while recent events have brought home to us the urgent need of increasing the facilities of the Nation for defensive. purposes.

We believe that the United States is destined to play a most important part in the near future, in promoting peace and order in Mexico and in the progress of all the peoples of Central and South America. Our commerce with the Orient is as yet in its infancy, and we have hardly begun to realize the international importance of the Panama Canal. Altogether, therefore, it seems certain that the United States must be prepared for a much larger share in the Councils of the Nations than it has heretofore had, and must be ready to meet the grave responsibilities that this implies. We cannot exert "moral influence," without accepting the hazards of our convictions!

THE PRESIDENT AND CONGRESS

We have profound faith in the fairness, the sincerity and the