The Daily News. TUESDAY, JANUARY 19, 1915. BRITAIN'S FINANCIAL STRENGTH.

Taranaki Daily News, Volume LVII, Issue 189, 19 January 1915, Page 4

The Daily News. TUESDAY, JANUARY 19, 1915. BRITAIN'S FINANCIAL STRENGTH.

To he capable of hearing the linancial .-.train of a daily expcii-v of between one and two millions sterling, without any ;;.:d:ie .-lre-s. is a position entitling any nation to jus) pride in its resources. It is not surprising, therefore, to lind Mr. Lloyd George, the British Chancellor of (he Kvclieoiior. congratulating his coun-

trymen upon the proof of the nation's linancial strength as cxcinpliliod by tlie successful lloatmg of Liu- greatest loan ell'cctcd ny any (Jovennnent. The case with which such • a great sum as £:!.-)U,(ll!i!,(!im was found attests something more than the immediate linancial superiority-of the Old Country, for it shows that the nation is able and willing to lind, if necessary, the money to carry on the war as long as political and military considerations dictate. The terms on which this three and a half per cent, loan was issued to the public enabled enormous numbers uf small subscribers to participate, especially as the contributions were payable by 10 per cent, instalments fortnightly. The immediate response of investors, small and gnat, was convincing testimony to the linn confidence of the people in the ultimate success of the Allies. Contrast this splendid success with what happened in llermany. There the expenditure is at least twice as great as Britain's, but Germany did not venture to appeal for more than two-thirds of the amount raised in Britain, and had to

oiler a rate of interest exceeding o per cent., while, to enable business men to take up shares, she bad to institute an extraordinary extension of the credit system. It must be remembered that in normal times the total annual savings of tlie I'.ritish people amount to close upon three hundred millions sterling, while the expenditure on what may be deemed luxuries is even more than the sum represented by savings. Even supposing that the incomes will not lie. so large during the war, the reduction would not all'eet to any appreciable extent the ability of the people to find

motley for war purposes. Moreover, Britain is tlie greatest creditor nation in tlie world, possessing Hens upon the wealth of the outside world amounting to sumo, four thousand millions, and the capture of German trade will also prove a factor in enhancing the resources of the Homeland, and in reinforcing those resources at the expense; of tlie enemy. l!y taking a firm hold of the linancial position immediately on the outbreak of tlie war, the British Government" not only prevented a general financial crash, lull inspired confidence Tlie success of the war loan is a convincing proof that the prompt and skilful operations of the Treasury safeguarded industry

and commerce, and justified the bold and resourceful conduct of the Government in meeting a situation that could only be successfully dealt with by unprecedented means. There has, of course, been some loss of foreign trade, but this has to a large extent been offset by the huge expenditure on war material and equipment, causing great activity in many industries, while unemployment has been minimised by enlistment. So far the financial and industrial strength of the nation has been maintained beyond the level of the most sanguine expectations, and there is not the slightest fear as to the future It is at a time like the present that tlie true quality of the British race appears on the surface, anl the proverbial bulldog tenacity of purpose will carry the nation through to the bitter end, and what shreds of former L'lory are left to Germany will be of such minuteness that they will only emphasise the severity of the struggle and fhe desperate condition of the conquered ITuns. j