The Dominion TUESDAY, FEBRUARY 22, 1916. A LESSON FROM FRANCE

Dominion, Volume 9, Issue 2701, 22 February 1916, Page 4

The Dominion TUESDAY, FEBRUARY 22, 1916. A LESSON FROM FRANCE

Ever since the beginning of the war British statesmen have been urging the British public to practise economy; to reduce expenditure on luxuries and to cultivate the virtue of thrift. But it is to be feared that the appeal has largely fallen on deaf cars. High wages are being earned, and they are being spent at high apeed. The people of France are an example to us in this matter of private economy. They know that thrift makes for victory, and arc willing to refrain from extravagance for their country's sake. A significant sentence in the rerv.nl; speech of the French Finance Minister (M. Ribot) reveals the fighting value of this very practical form of patriotism. "The thanks for the success of the war loan," he says, "is due to the people of the country for their readiness to deposit a Jargc part of their savings with the Treasury." It is estimated that in normal times the monthly savings of France amount to between £8,000,000 and £12,000,000, but since the commencement of the war the saving has been at the rate of about £40,000,000 a month. This is a splendid record, which becomes more impressive when we remember that the industrial life of the people has been thrown out of gear, and that a big Blice of French territory is in the enemy's hands. The "loan of victory" referred to by M. Ribot was a striking demonstration of the financial stability of France, and the unwavering confidence of the people in the triumph of their just cause. The number of subscribers to the loan was about two million, .in view of the number of men mobilised, and the number who have suffered through the invasion, no one can dispute the claim of a Paris financier that this is "an enormously large participation of the people," and that it is ah unmistakable sign that Frenchmen arc "lending their savings to their country, with the same readiness that they have lent their sons to ensure victory over Germany, and final freedom from the German yoke." Stress lias been laid on the fact that the money subscribed was not to any large extent drawn out of current accounts at the banks, and there were practically no sales of foreign securities. The loan was raised out of moneys which tho people had accumulated in their homes. The Paris correspondent of the Morning Post asserts that he haa excellent authority for stating that so far French loans have been financed through the savings that the people have b6en able to make since war was declared. "In other words, while Germany has been largely living on capital, or rather on credit, France has so far borne the strain to a very large extent either on current revenue or genuine savings." Taking all things into consideration, the financial position of France is wonderfully sound. Her economic reserves have not yet been drawn upon to any large extent, and when the struggle is over the French will probably be able to resume their ordinary industrial activities with _ surprising quickness. Though Britairi is in \ a iir.:ch sponger financial position than any of the other,belligerent* nations, the calls that are being made upon her wealth are so great that the practice of thrift now occupies a leading place among the patriotic virtue's. This fact Is strongly emphasised, in the appeal of the War Savings Committee to the British public "to save every possible shilling in order to bring auQut an early victory." The committee points out that the stoppage of waste and extravagance would save millions and enable much labour to be put to better use. The financial strain of the war is not tho only reason for economy. Present thrift will to place the nation in the best possible position to make a. full and speedy recovery from the effects of the tremendous conflict in which it is now engaged. Sir George Paish, the editor of the Statist, recently made a lucid statement _ regarding this' aspect of the question. He said the war has involved practically no destruction of Britain's accumulated Wealth. The loss is mainly in the wealth the country fails to create. The .people are making more shells and not building houses; they ar6 building battleships and hot railways. They are, to sum the matter up, failing to make further savings, but are not destroying what they have.'The main loss arises from failure to make reproductive expenditure, and this is about £400,000,000 per anSir George gods on to say that if the people would live econom-' ically during the war they might not need to meet the great war expenses by realising their capital. This eminent financial authority takes a hopeful view as regards the economio position of the country after the war,

In consequence of tlie war (he says) taxation will be doubled, but it ought to be remembered that: this taxation will merely transfer income from the whole community to that part of it Which has been ablo to subscribe the war loans, and which will be entitled to interest on these lonna. The more drastic taxation is now tho easier things will he after the war. I havo no donbt that the wealth of the country, will grow as rapidly after the war as it did before the war. Sir Leo Criozza Money and Professor Chapman, the well-known jiolitical economist, hold views similar to those expressed by Sir George Paisk. The forhier authority disagrees with those who contend that the restoration of peace will bo followed by a great trade slump. Processor Chapman holds that the pessimists have been answered by accomplished facts., and asserts that "we can ldok forward to the resumption of peace with complete confidence that the country is not going to pieces through a very bad tinie." He believes that "many things will happen to ease the period of transition." 5t is satisfactory to have such assurances from leading authorities, but other experts are not by any means so optimistic. It is quite impossible to 'speak with certainty as to the economic conditions which will prevail after the war, but we may be quite certain about one thing, and that is that the period of transition will be a trying one, and that tho practice of thrift at the present time will tend to fcase it.