WHAT THE WAR HAS COST THE ALLIES

Dominion, Volume 8, Issue 2387, 17 February 1915, Page 5

WHAT THE WAR HAS COST THE ALLIES

ODE GREAT FINANCIAL STRENGTH STATEMENT BY THE BRITISH CHANCELLOR Br Telegraph—Press Association—Oonyriglit (Rec. February 16, 10.50 p.m.)

London, February 16. The Chancellor of the Exchequer (Mr. Lloyd George), speaking in the House or Commons, said that tho Allies' expenditure at the end of 1915 would be two thousand millions. Britain would probably spend from £100,000,000 to £150,000,000 more than France or Russia, but France bore tho greatest strain in proportion to her resources. . Britain would be able to finance tlie war for five years out of the proceeds of her investments abroad; France for about two years and a half with something to spare. Russia, though prodigiously rich in resources, was a borrowing country; therefore Britain and France had given guarantees to help her to prosecute the war. ' , Continuing, .the Chancellor said: "We have advanced thirty-two millions to the Russians on purchases here and given her credit for forty millions. We have also made advances to Russia and 'France in respect to purchases in France. It is estimated that Russia, will require to make large purchases out•j j She is a-ble to- export wheat large ly, and France and Britain have decided to Taise the first loan aggregating fifty millions in their respective markets to satisfy Russia's requirements. Our gold accumulations are the largest in the country's history, while Franco and Russia's great gold reserves have barely been touched since the outbreak of the war. After emphasising Russia's undeveloped resources, the Chancellor said that the suspension of the alcohol traffic had increased the productivity of her labour from thirty to fifty per cent, it was as if she' had added millions of labourers without increasing the expense of maintaining them Franco also had special difficulties. Tho British people did not quite realise the strain this gallant country was undergoing. She had the largest proportion of men under arms, aad the enemy was occupying some of her richest territory. Yet the French nation possessed wonderful confidence, and' were assured that Germany had lost its tide, and had no more chance of crushing I< ranee, than of over-running the planet Mars. ° ■ _Britain's special difficulties were due to the fact that two-thirds of her food was purchased abroad,-and Had to create enormous credits. The only thing was for all the Allies to bring all their resources to a common stock, lhe country with the most money must bring it. Tho collapse of the rebellion in Sold assist if Britain's stock fell below a Si 0 - : ?, supply °5 £ old > and lfc was »""til Africa had ensured a largo and that French and Russian bankers wouanged at the rcconfc l'aris Conference certain pomt. HELPING THE SMALLER STATES, There were a number of small States looking to their greater Allies for financial support. They must see that Belgium did not suffer when the period of restoration and compensation came. Servia was fighting her third war within three years with force,"courage, und brilliance, but without wealth revenue, exports, or manufactures. Also, other States which ivere preparing for war, obviously in our interest, should be well equipped. ° Britain, France, and Russia would contribute proportionately to every loan to tho small States, and later a joint loan would be floated to cover the advances. the Paris Conference also arranged that France should havo access to our-markets in respect to Treasury bills issued in France, and initiated arrangements to help to restore tho exchance in respect of the bills held in Bntam against Russian merchants. We proposed to accept Russian Treasury lulls against bills of exchange due from the Russian Government, and which in return would facilitate the export of her produce to the Allies if required Mr, Lloyd George added that Britain's expenditure was due to tho recruiting of the new Army, her huge Navy, liberal separation allowances, tho bringing of troops from the ends of the earth, waging war in Europe, Asia, and North South, and, East Africa. The conference discussed the suggestion of a joint loan, and concluded. that it would be the very worst way of utilising our resources ; it would frighten every bourse, and attract none. . Asked if the interest paid would be the interest at which we were able to raise money, or the rate France and Russia would raise the money, Mr Lloyd George said: "If we paid the high rate we could never raise more money at a low rate. We therefore decided that each country should raise the money for its own needs in its own market." "The three days' conference face to face," added' Mr. Lloyd George "had cleared up misconceptions and misunderstandings which otherwiso would hare taken weeks to remove."

BRITAIN'S UNCHALLENGED POSITION AT SEA "THE NAVY IS AS SOUND ASA BELL." (Ecc. February 16, 10.30 p.m.) , r London, February IG. Mr. Winston Churchill, First Lord of the Admiralty, stated in tho Honso or Commons that only sixty-three vessels, exclusive of mine-sweeping trawlers, had been losr since tho war began. Britain's situation in every soa was 1111challeuged. Iho losses of personnel in the Navy were s>ioo ofiicei's and men killed, but we had killed an equal number. Ihe command of the sea had enabled us to carry, <n routes throughout tho world, a million of men without accident or loss of life. ihe I'alkland Islands victory hud almost- entirely freed the outer seas. TIIO Dogger Lank action was ot immense value and significance, as throwing light 011 rival s.ptems of design and armament. The Navy's'new loin, gun was equal to the 13, in. in quality, but was vastly more powerful and destructive. Hegarding the German subnianne attacks 011 merchantmen, Mr. Churchill said: \\o will take reprisals, becauso Germany could 110't bo allowed to adopt a system of open piracy and murder. T| lo restrictions placed on German trade will be increased litlierto we have not attempted to stop foodstuffs. A lurtlier declaration will promptly ]n . lde applying the full force of naval pressmc upon the enemy. Ilm >ara ! V siiitx force which the Navv exerted could alone decide the issue ol the war. .. Tho n: » lle ndded "is as sound us a boll. Tho Allies, he added, bad only onc- u , ird of t)u , ir et ,. on ft'h in the field; the . wmauidor would 20 iorwaxd nb tno car?.^.

NEW SHIPS COMING FORWARD. Mr. Churchill emphasised the efficienoy of the Navy at the outbreak of war. The fleets were fully mobilised, the reserves of ammunition and torpedoes were far above the regular quantities, there was ample fuel and oil, and 'an immense programme cf new construction was now being matured to roinforco the Fleet. A prearranged system of accelerating new construction wns yielding surprising results. • , The Navy's oil consumption had been greatly above the estimate, but not a single oil-ship had been lost, and the price was lower than when ho last addressed the House. The Naval Training School was full, to the brim, and thus-he would'be able to man tho ships which were coming on in Buch great numbers. Replying to a suggestion'that there should bo a court-martial on every 6bip which was lost, Mr. Churchill pointed out that the novel conditions of warfare presented to naval officers problems of incomparable hazard and difficulty, and a court-martial would frequently bo inappropriate. The Admiralty deprecated anything tending to make officers afloat or at the Admiralty) play for safety. The Admiralty had chartered about one-fifth of the mercantile marine. "We are supplying across the soa an army almost as large as Napoleon's Grand Army, and vastly more complex. He was unable to hold out hopes of an immediate reduction in the tonnage the Admiralty required. "There were 4465 British arrivals and 3600 sailhgs during the last three months. Only nineteen were snik by above-water craft," he added. "Between the years 1793 and 1814 we lost 10.871 merchantmen. Ever, after the Battle of Trafalgar we lost five hundred ships yearly. It is really marvellous how few the losses have been. _ Steam and. the telegraph have enormously increased the efficiency of superior power." GREAT WAVE OF OPTIMISM IN ENGLAND WAR EXPECTED TO END IN TITS AUTUMN. London, February 15. A wave of optimism is spreading throughout England regarding the duration of the war. A few months ago tho prevailing opinion, based on Lord Kitchener's estimate, was three years. Nowadays, all sections of the people speak of the finish by the autumn. The "Daily Mail," in a leader, warns the people against optimism, and maintains that far from there being a financial and economical collapse in Germany, Berlin is probably making a deliberate effort to readjust its ideas from a short to a long war. On the othor hand, the big banking authorities hold that an economic war will inevitably follow the military war. The Russian markets in future will be closed to Germany in favour of the trada of France, Belgium, and Holland.. This will mean to Germany a,n annual loss of £05,000,000. RUSSIAN TREASURY BILLS OVERSUBSCRIBED. (Rec. February 16, 8.50 pjn.) mi. r, ™ tv,i • ii, London, February 16. The Russian Treasury Bills issued by the Bank of England (£10,000,000) have been largely over-subscribed.