For such countries nothing remained but reorganization.

They could not continue their method of producing surpluses.

The capitalistic system, so far as they were concerned, had hopelessly broken down.
The reorganization of these countries took the form of revolution.
It was a time of confusion and violence.

Everywhere institutions and governments were crashing.

Everywhere, with the exception of two or three countries, the erstwhile capitalist masters fought bitterly for their possessions.