The Daily News. WEDNESDAY, FEBRUARY 28, 1917. FINANCING THE WAR.

Taranaki Daily News, 28 February 1917, Page 4

The Daily News. WEDNESDAY, FEBRUARY 28, 1917. FINANCING THE WAR.

The striking success of the British "Victory" war loan affords conclusive testimony of the determination to win the war. To have raised over a hundred millions of new money in a few weeks, is an achievement that was not considered possible, and yet there is still more available when needed. Britain, when entering into the war, had 110 conception of the gigantic financial liability involved, but even if she had, it would have made no difference. At the same time it is gratifying to know how magnificently the people have respondeu to the call, and the same spirit will continue till the end. Britain is noi only paying her way, but is helping the Allies to do the same, while Germany is financing on paper. No one can read Mr Bonar Law's itatament ftppeur

Ing ill to-days' cable news without feeling proud to belong to an Empire -which can show such magnificent patriotism and such strength of purpose in defending the rights of the smaller nations. It is at this period worthy of note that Germany's anxiety for. peace has of late liad the effect of modifying public statements as to the demands the Teutons are prepared to make upon their enemies. Britain has 110 . thought of an indemnity, but Germany's whole system of war finance is based on the certainty of redeeming her paper pile bv means of indemnities. The chief .security for the German war loans has always been tlib indemnities to be squeezed out of the conquered Allies. The Germans began Die war with complete faith in this security. That faith must now be sadly shaken, hut the Minister of Finance is still asking the German people to rely upon indemnities to save the Empire from bankruptcy. Thj/s is only another proof, if such were needed, that by their December overture, so unhappily supported by President Wilson, the German Government meant 110 more than a peace upon such 'terms as they cared to impose. The Allies are quite aware of Germany's financial hopes, but they arc not interested therein. The disillusionment of Germany will be part of her punishment, for bankruptcy is inevitable. All that concerns the Allies now is winning the war, and the elToryj they are making in that direction, regardless of cost, are bearing good fruit, with a certain promise of final victory. There is urgent need for economy in every department except the naval and military, but there is 110 doubt as to the result.