ENGLAND'S WAR FINANCE.

King Country Chronicle, Volume IX, Issue 746, 17 February 1915, Page 5

ENGLAND'S WAR FINANCE.

THE ENORMOUS COST. ONE THIRD STRENGTH IN FIELD. London, Monday. Mr Lloyd George, Chancellor of the Exchequer, speaking in the House of Commons, said the Allies' expenditure to the end of 1915 would he two thousand millionß sterling. Britain was able tn finance the war for five yearfl out of the proceeds of her investments abroad, and Franco for about two and a-half years, 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. Britain would probably spend one hundred to a hundred and fifty millions more than France or Russia, but France bore the greatest strain proportional to her resources. The Chancellor continued that Britain advanced thirty-two millions upon Russia's purchases in England, and had given credit for forty millions ard had also made advances to Russia and France in respect to purchases in France.

Ii was estimated that Russia Would require large purchases outside. She woulrl bo able to export wheat largely, and France and Britain had decided to raise a first loan of £25,000,000 each in their respective markets to satisfy Russia's requirements. British gold accumulations were the largest in the country's history, while the great gold reserves of France and Russia had barely been touched since the outbreak of the war. The Allies had only one-third of their strength in the field, but the remainder would be brought forward at the earliest moment.