Nelson Evening Mail. FRIDAY, OCTOBER 5, 1917. AMERICAN RESOURCES IN THE WAR.

Nelson Evening Mail, Volume L, Issue 175, 5 October 1917, Page 4

Nelson Evening Mail. FRIDAY, OCTOBER 5, 1917. AMERICAN RESOURCES IN THE WAR.

THE statement of the Chancellor of the Exchequer at the luncheon given to Mr M'Cormick, and American politician, appears somewhat startling. He said, what he would have refused to say before America became an ally, that without her aid "the financial position of the Allies would have been most disastrous.' It is a big statement even now, but it has been clear for a long time past that the United Kingdom was carrying a very heavy load in assisting those who were financially weaker. Up to March last that assistance had drawn upon the Imperial Treasury to the extent of £1,000.000,000,- and the amount is now considerably greater. England has had to provide them extensively with munitions, food, clothing, and money besides, and, even so, Russia has gone under financially, and the depreciation in Italy is heavy. There is no denying the ,I'act that America has relieved the British burden materially in that respect, and that the relief was neeued Mr Bonar Law now admits, says the Telegraph. It would be impossible for any country to go on providing £8,000,000 a day indefinitely. Faster, ever faster, as the war lengthens, the hundreds and thousands of millions or money poured into the vortex are swallowed up, never to be disgorged. Roughly, the first year cost the nations four thousand millions of pounds, the second year six thousand millions .and the third year eight thousand millions, while the fourth year is safe to exceed ten thousand millions. The British war costs alone this year bid fair to reach £2,700,000,000, and since America entered the lists she is striving to outdo even the British nation. She has already raised and disbursed many hundreds of millions, and within the past few weeks Congress has endorsed a Loan Bill for £2,365,000,000 including £800,000,000 tor advances to Allies. Great Britain and America are committed to. more than one-half that 'ten thousand millions and the American contribution is enormous for a country not yet six months in the war. More and more the question is forced upon us as to how long the expenditure can be kept up. Germany, the cables tell us, is asking for a half-yearly contribution of £500,000,000, and it is significant that the sum is not an increase, as her loans for the past two years have* all exceeded that amount, "is that any indication that the pace is becoming too great? It may be so. Prior to the war most people would have doubted the possibility of maintaining such outgoings even for three years, but then the world had never had'the experience of operating in thousands of millions .sterling, and evidently it can be done, and for a considerably longer period than' three years—because some nations are doing it. As for the supplies of funds in the Mother-country tne British Government goes on raising not far short of £2,000,000 a day in revenue and £6,000,000 a day out of loans ,and the evidences of such gigantic operations are comparatively trifling. It is in reality a daily operation. The British Treasury rnises" no more than sufficient to cover the daily outgoings, and the funds are immediately disbursed back to the people, who, as a whole, provided them. It is a wonderful record in financeBut America comes fresh upon the scene of the conflict. Her wealth is enormous, and she has recently been piling it up at a faster rate than ever. Rightly she is relieving those Allies which have borne the burden of the war hitherto, and there is no doubt that the financial assistance she is providing comes at an opportune time. It renders the Allies secure in that respect, and in regard to their of munitions until the ■Central Powers have become exhausted. America is doing much more than this, for her, programme is to place two millions of soldiers at the front and in training by the end of her current financial year —June next. That contribution " of fresh troops will mean "much in turning the scale against the decimated and war-worn legions of Germany and Austria, and the assurances of Mr Lloyd George and the War Officer, were hardly needed to convince us of the fact. The Russian collapse has been a- serious blow, and that country is practically in a bankrupt condition. Her financing of the war has been to to issue paper monev, which is in circulation to the extent of £1,250,000,000 and to secure credits from Tier Allies — ! the whole of it being drafts upon I futurity. But the entry of America into the war, with her enormous re- , sources in men and monev, far outweighs in significance the Russian deI back, and it is clear thai for a long

time past the Russian assistance has been nominal only. Her practical desertion of Servia, Montenegro, and Roumania, as well as of the British forces in Mesopotamia, prove that beyond question. Financially, Russia has alway been a drag, while America is a tower the best use of that strength into the of strength .and she is evidently making bargain.