WAR AND FINANCE

Dominion, Volume 9, Issue 2793, 10 June 1916, Page 7

WAR AND FINANCE

WASTE BY CONFLICT loss OF CAPITAL AND MATERIAL NATION'S GREAT FUTURE t " "It is impossible to avoid reference to F;V the titanic conflict-'now raging,- because :, t this-war is atlecting the trade, commerce, i: ; ~ industries, .and economic, fabric of the world, and the long arm of its influence ! , .. reaches'into almost every corner' of the :, - civilised globe," said Mr; Harold, Beau- ; ■ champ'yesterday, :when addressing the . proprietors of the'Bank'of-New Zealand ;V ot their.annual meeting. "To-day, fifteen States or countries are in open war,: viz., Britain, France, Riissia, Italy; Belgium, .' ' Portugal, Montenegro, Albania, Serbia, Japan, Egypt, Germany, Austria-Hun- . Gary, Bulgaria, and' Turkey. .."W'ar spells waste. It involves tile de- . • str'uetion-of capital and material,-and tho .' misuse of energy and power. It is the economic aspect of the -war that interests uh most and the amount of capital that • as being dissipated in tho present conflict is to be, reckoned in thousands of millions. The 'Ecoiionlisf (London) recently presented a ta(>le showing tire cost of the war to .;. the -European countries, together, with tho addition to their respective debts, and I the interest per annum involved. The figures are an estimate-to March 31, 1910, and may i be accepted as approximately eorrect. , They are;—:- '• Addition to Interest Directcost National . . :of tho war. . debt. . annum. - ■ - £■■■->■, £ ■ £ ..•Britain ...... 1,550,CCD,CC0. 69,000,000 Franco 1,655,000,000 1,950,000.000 95.CC0.00Q •Kussia. 1,425,0KV00Q 1,5C0,CCt),000 75.000.CC0 Italy 360,000,0C0 : <c0,0c0,000 20,CC0,000 < Belgium .120,000,000 IgO.CCO.OOO 6,C00,0C0 Serbia 1 and Montenegro 100,000,000'.. 100,000,000 . 6,CM,000 'Entente' ..5,210.000,000 5,400,000.cc0 271,000,000 . Germany. ;..,. 2,100,000,000' 5,1C0,000,000 ICS.COOiOOO . Austria-Hun- • . -gary 1,100,000,0C0 1,150.C00,000 66,000,C03 'J Turkey ........ 140.000.K0 100.000.CC0 9.CC0.000 Bulgaria 30,000,000 30.0C0,0C0 , 2,000,000 ' ..' Alliance .3,370,000,000 1 3,«0,000,CC0 182,CC0,000 : 411 helliger- •. . Mts ...8,550,000,CC0 8,830,030,CC0 453.rC0.0C0 "In the above figures' no allowance 13 made for the war debts contracted by the British Overseas Dominions- by Japan, :. and Portugal, or for': the expenditure . necessitated by the war in the case of neutral countries. Holland, Switzerland, Greece, and .Rumania have:iiiobili«ed their : forces, and are on ai war footing; and their expenses,-which they can ill afford, ■ would add a iurther considerable sum to tiie, total. But the actual cost of the war is not:the only financial calamity to bo reckoned with. We must take account of . . the destruction of building, railways, and , . other, works of' national 1 importance;' the ! reduction in agricultural values, 'etc.; the '.-considerable loss of . production in Northern France, Belgium, East Prussia, ,Poland; . Galicia, and Serbia; '. the sinking of .'ships and their I AVAR AND i'TNANCE TWO ? ? ?? j- .. uargoes; . the decrease, in ,'stocks of food,. j* metals..and other raw materials; the tuis- •; . nse of machinery employed in making j- Munitions; the depreciation in'tho prices Df securities, and, in the values of other f . V assets;' the cost, of pensions; the loss of s human capital, as measured by the killed [| aud permanently disabled—all these must •be included in the-reckoning. "Up to-thp ..'-end of last : year,-the numbers killed, died irom -disease, and permanently-.incapaci-tated-for the ten.countries l have named, are assessed at 3,980,000; and the loss'of j human capital at -*£1,585,000,000. ' And the I war is not over, nor is the end in sight, I "With so -large a percentage, of Allied J shipping engaged iii, war services, 'with J every available factory operating in the production of munitions,- and with a large proportion of the adult population engaged in war work, it is not surprising that British trado, as . regards exports, has

shrunk. The trade figures of the United Kingdom for the past five years are as I follow:—. | Exports Re-ei- . Imports, .(U K. Produce), ports. 1911 ... (580,157,527 451,119,2i>8 102,759,134 1912 ... 7-11,640,(131 487,223,43!) ■ 111,737,091 1913 ... 7G8,734,739 525,245,289 109,575,037 1914 ... 090,635,113 430,721,357 95,474,100 1915 ... '853,750,279 384,047,330 98,797,123 "There is, it will be observed, a very large increase in the imports, due to the United Kingdom having to import large quantities of raw material for munitions, also'food-stulfs, and to the enhanced, prices of commodities ruling because of the war. The huge expenditure of the Allies has proved highly beneficial to all neutral countries, and also to many of the belligerent countries. The United States and Japan have perhaps secured, relatively, the most profit ■ out of this orgy of expenditure. ... "Britain has maintained her foremost rank as' a financial Power, as the world's banker, soa-carrier, and insurance under, writer. We may go a step further and say that, while the needs of,the moment, have thus been met, the future has not been neglected. British manufacturers have learned most valuable lessons in organisation, in factory management, and •in co-ordination of effort. They have grown to recognise the supreme value of machinery, and they have also discovered thnt the' British Board of Trade has I.e. come a live institution, and can be utilised lo much advantage by the captains of industry, and commerce. The nation that has accomplished so much in so short a time has truly a great future before it. Britain is to-day better known, and mora j highly appreciated pnd respected by the nations oi the world than ever she was before the war. She is applauded for being faithful to. her friends, true to her word, generous and fair to her foes, scrupulously honest in her business dealings, and actuated, in all things, by a profound desire to- livo in peace and amity with all the world." '