The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. THURSDAY, DECEMBER 3, 1914. FINANCE AND WAR.

Stratford Evening Post, Volume XXV, Issue 288, 3 December 1914, Page 4

The Stratford Evening Post WITH WHICH IS INCORPORATED THE EGMONT SETTLER. THURSDAY, DECEMBER 3, 1914. FINANCE AND WAR.

Though, it may never have been definitely decided that the question of finance has stopped a war in the world’s history, it is certainly admitted on all sides that it plays a very material part in the ultmate success of the parties to any conflict. Military and naval services are so enormously costly in . these so-called civilised and enlightened days that more than ever at this time finance must play its part, and both finance and commerce are heavily on the side of the Allies. England has easily floated the biggest loan the world has yet seen, while Germany and Austria are at their wit’s end to raise money on any pretence, while their currency is seriously depreciated. Britain’s great loan will enable the Allies to finance the war for several months at least, and on that score a big victory is certain. It is shrewdly pointed out 'that there may be those who may wonder how England, or any other Government, could be supplied with £350,000,000 at one operation. The answer is given that in .spite of the gold in the Bank of England having been doubled since July, there is still only £72,500,000 of it, or , scarce I}' 1 }' more than one-fifth of the loan now to be subscribed. Nevertheless the loan may be covered two or three times over, and the subscriptions, although expressed in gold, are really in accumulated and marketable wealth, and of that the country possesses very many times the amount of the loan. In reality, it may be taken for granted that the loan will be paid up by a series of instalments to meet the requirements of the Treasury, and will be paid out as it is paid in, and the requisite gold accumulation will be comparatively small. Credits will be transferred from the people to the State, and back again to the people, and thus the war will be financed. Of course, the people must be in a position to transfer those credits, and their bank deposits, their other accumulations, and accruing interest on capital will be found ample to meet such demands, and others on top of them. As a writer in the Sydney Telegraph points out, England is not only financing her own share of the war expenditure, but much else besides. and it is a revelation as to her financial strength which will not bo lost upon-either the enemy or neutral nationalities. There has been no announcement that England lias as yet assisted Russia financially, but it is quite likely that there will bo such an outcome before the war is over. Another point in connection with the great war loan is significant. At the outset the expenditure was

met by a- succession .of issues of Treasury bills, which was a temporary expedient. The' recent great loan is a confirmation of the fact that British finance has recovered from the shock which the outbreak of the war inflicted, and that the requirements of the Imperial Government may be placed upon a permanent footing. {