THE New Zealand Herald AND DAILY SOUTHERN CROSS. THURSDAY, OCTOBER 22, 1914. RESOURCES OF THE FIGHTING NATIONS.

New Zealand Herald, Volume LI, Issue 15746, 22 October 1914, Page 4

THE New Zealand Herald AND DAILY SOUTHERN CROSS. THURSDAY, OCTOBER 22, 1914. RESOURCES OF THE FIGHTING NATIONS.

The long-drawn struggle in France makes it clearer than ever that, as Lord Kitchener foresaw from the beginning, tho great European war will be one of attrition. Germany hoped that, it might be won by a sudden coup, by a swift, shattering blow, but that hopo was doomed to failure. The-sudden blow-was checked by Belgium, and parried by France, and the Homeric contest is resolving itself into one of endurance and resources. In this the doom of Prussian militarism is written. Germany has not the stored wealth of France to meet the expenses of a long war, neither has she the reserves in men or resources commanded by Britain and Russia. Her armies have already, been swollen to their maximum by tho inclusion of youths and old men, and they must diminish in size as each day takes its toll. But tho armies of Britain and Russia are increasing all the time, one by the addition of trained men from the United Kingdom, the Dominions, and India, the other by the arrival at the<front.of legions who have traversed vast distances in a country where railways aro few. Under certain circumstances a nation with a large standing army may beat a nation with a smaller army but richer in resources, but if the war becomes one of attrition, the state with the greater resources must win. In a modern campaign the silver bullet plays a prominent part, and when the resources of one side are superior to the resources of the other in men, money, trade, and production, there can be only one conclusion to the issue, provided always that the human factor is not defective. If population be the test, the superior position of the allies is at once apparent. The British Empire, according to the most recent returns, numbers 416,318,665 persons, of whom over 45,000,000 are resident in the United Kingdom. The populations of the principal Dominions and colonies are as follows:— India ... <- ~ ••• 314,955,210 Australia 4,449,483 New Zealand ... ... 1,050,000 Canada 7,081,869 Natal - ... 1.191,958 Cape Colony... ■- - 2,563,024 Transvaal _ 1,676,611 Orange River Colony ... 526,906 Rhodesii 1,780,871 Uganda ... 3,503,564 Northern Nigeria 8,069,671 Southern Nigeria 7,836,189 A fairer comparison, however, may be obtained by taking the white populations of the states at war, and for this purpose the white population of the British Empire may lie set down at well over 60,000,000. The comparison of population, then, is • British Empiro ... ... 60,000,000 France 40,000,000 Russia ... ... 171,000,000 Belgium 7,600,000 Total ~ 278,500,000 Germany »« 65,000,000 Austria 49,000,000 Total 114,000,000 ' If the war be won by the silver bullet, then victory must certainly go to the Allies. When war was declared the "war chests" of the principal Powers were stated to be £ Great Britain 40,000,000 France ... 189,000,000 Russia 174,000,000 Total ... .. £403,000,000 £ Germany ... ... ... 64,000,000 Austria 17^K)rt,000 Total £101,000,000 Austria had to pay 7l per cent, interest on New York Treasury bills, because she was boycotted by the Powers of the Entente, at a time when French and British consols were finding buyers at 3 per cent. But tho strength of the British financial position does not lie in her " war chest," The smallqesa of the

British gold reserve is made possible J by the fact that Great Britain is the greatest creditor country in the world. Her income from investments abroad is now about £190,000,000 per annum, and the earnings of the British banking, mercantile, and insurance houses in connection with the finance and trade of the world exceed £50,000,000 per annum. Theoretically, therefore, if Great Britain ceased exporting'she would still receive about £350,000,000 per annum from foreign debtors. The commercial resources of the British Empire arc impressively recorded in the figures giving the value of its trade. These are as follow for 1011 (the last year available) Trade of the British Empire .with loroim Countries— Imports 732,90-4,000 Exports 619.638.000 Total foreign t,ratio £1,352,512,000 Trade, of the United Kinudom with other parts of tho British EmpiroImports = 215,540,000 Exports 192.371,000 Inter-colonial trado— Imports ... _ (6,608,000 Grand total ... £1,837,064,000 If a comparison be sought which can fairly be applied to the nations engaged in the European struggle, the following statement of general and special trade for 191 may be given General Special Trado. Trade. £ £ United Kingdom 1,237,036.000 1,031,517,000 Franco ... 712,88.1,000 565,708.009 Russia ■ - 267,128,000 Germany .» 912,077,000 875,762,00 Austria ... ••• — 233,167,000 But in this war of attrition the advantage must rest with the Allies sooner and more completely, because of the ignoble isolation forced on Germany by the silent 'Navy of Britain. The drain and wastage of war are fearful enough to a country which can produce wealth in its normal manner.' But what of a country which has suffered economic isolation, in whose commercial system the life-blood has ceased to flow, which is cut off from the vital world It has been calculated that the British Navy is at the present time saving the people of the United Kingdom £9,000,000 a week by keeping the prices of food normal, the calculation being based on the assumption that if the Navy had been less efficient, panic alone would have sent the prices of food up by 50 per cent. But this service rendered 'by the Navy is fractional compared with that of isolating Germany, and so preventing her from augmenting her resources. In a war of attrition sea power is the final factor.