COST OF THE WAR

Dominion, Volume 8, Issue 2558, 4 September 1915, Page 9

COST OF THE WAR

• ■» —-— EXPENDITURE INCREASING Ji'- ' - .- : j GREAT BRITAIN'S SHARE, 1 London, July 9.- j The cost of the war increases, the i longer the conflict lasts. . This is par- , 1 ticularly the case.with Great Britain. ? At the'commencement of the war: the 1 average daily, expenditure by Great Bri- : - t-ain was less tliaii that of any other -1 Great Powers engaged in. the conflict, j but now it is. the. largest of ■ them - all. -i When the war ■ broko, out' Great 1 Britain ■ ; had "only a small-army: ready for the :-j field,. but, now the British troops in i the " field in. various parts of the world, ! and in training at home, number near- ! ly 3,000,000.- Great Britain is waging ' : j war not only -in Europe, but also in i Asia,. South Africa and East -'Africa.' • -; The' British soldier is : i>aid at a higher! • rate than any of the other soldiers who -■ i 'aro fighting, ' and in, addition,: the al»- ! lowance paid by the British Govern- . . ment to the wives and dependents of ' soldiers is comparatively liberal. Bri-' ' tain's financial burden is increased by, - the: fact that she s)as the the largest navy in the.world to maintain; and 1 - it costs more to keep a ' navy! afloat ready for action, than to keep' in tho ■ > field .an army equivalent in numbers to the sailors'in the Navy.'"ln : Feb■riiary last, Mr.; Lloyd George, who was :: then Chancellor of : tlie Exchequa-, esti- ■ , mated that the -'aggregate' war : expen- -:: dituro of Groat Britain, Francoand -. Russia for seventeen months of warj" v up to December, 1915, would not bo far snort -of £2,000,000,000,- -and' ,: British- share of this expenditure would • exceed'by £100,000,000 to £150,000,000, tho share of the nation second on the , list. '"- ; ■' ■ -vV; : The. first four months of the war cost ; Great ■ Britain £102,000,000, including the'eost of mobilising the army..-: In: - .tho!;riext' four, months the'-'expenditiire rose to £177,000,000. For tho third four,: - months .the'daily expenditure has -averaged, almost:-£2,000,000, making a total cf £240,000,000. .' To this expenditure must bo added temporarily the money, lent. by, Great ; Britam to some of her -. Allies, 'and to ithei overseas Dominions for-war expenditure, as well as - the millions spent in the State purchase, of sugar, wheat;.and other, commodities, to prevent speculation, in them, and for®- . ing the publio to pay high prices.: The >... expenditure in"! these direotions. has averaged £500,000 a day since the outbreak of war, and is likely to. increase, but of course most of this money 1 will i, eventually bo ropaid to tho Bntish tax- ■, payer. Including -this expenditure, tho • average daily cost of the war to Great ..... Britain is -now £2,660,000, and, accord-- . v ing to the British. Prime Minister, the total expenditure during the .ensuing months will not bo mudh.- less than £3,000,000 a.day. . -' ,'i In spito of the enormous expenditure . which tho war entails on the belligcr- ■ eiits,| there is as yet no-sign ,on .either side, of financial collapse, i - On the contrary, cach side talks of . a war , of ex- • haustion, and regards -the crippling of the : resources , of- ,-tlio other -.m.i men, - ; rather than in money, as deciding: . factor. It;seems:to be assumed, that ,- as" long' as the men can bo found for, the prosecution of the war, the monej( , l !t will be forthcoming. Great Britain and France are the two' wealthiest nations - in the world-and will bo: able. to give Russia Whatever, financial assistance may he.necessary. ' Germany, which _ia ~. not a Very ; wealthy country, has built up since the war began a financial sysr . tem which has evoked'as .much admira-. bioii among" German -.financiers, as the : achievements of the German army have evoked among the.German people. This system is. founded upon, paper money, Eut as long as the, German people aro ' confident that they will; win ..the war, and that, their enemies will have to pay. : Germany's expenditure as well as their 1 own, Germany's financial- credit, among ' herown people will .be: maintained. -The < fact tliat '-Germany's foreign- trade has been almost entirely'.cut, off since the ' outbreak of .war. is!aii actual help to ■ - Germany's war. finance. . She has not to pay iin gold for the excess-of imr ports over exports, like Great Britain- - and France, have.lto.,do. Tho .gold", ia. Gtermany, has been oollectcd by the Im- - perial Bank, and "all internal payments in Germany are made in paper. The cir-. , culation of paper,; money , has -increased ' - from £70,000,000 .before the outbreak of war !.to 'nearly ; V; , ' amount. A natural effect of watering .the currency :in this,,way is .that-.-thQ : prices of • commodities . have , gone,: up.- : . Price's: will continu.e , to' .rise with. ,tho : : issue of more paper money. _ .When tho, German people begin to realise-that de- . feat and not victory is to bo tho end of . the conflict, as far as they, aro concerned, the'financial system will col- ilapse, and the paper miney will heoome .- almost, valueless, .'for it' is doubtful if . the German Government would be' ablo to 'redeem it. But the military collapse will precede .the financial collapse. ■ TheGerman Press is so rigorously-control-led by'the : Government that the people will continue.to be fed with false newa : from 'the, ; front, -. until. the.i situation •; :. comes so desperate that ;it is.,impos- ~, ' siblo to delude the people,-Then .the. v. financial collapse will set m with a. , rush. —Melbourne "Age..'-' . :