THE SINEWS OF WAR.

Wanganui Herald, Volume LI, Issue 15132, 29 January 1917, Page 2

THE SINEWS OF WAR.

BRITAIN OVEEFLOWNG WITH MONEY. (Australian and N.Z. Cable Association). LONDON, January 27. Sir E. H. Holden, at a meeting of the London City and Midland Bank, said the country was overflowing with~money. Lhe credit at the Bank of England before the war was forty millions. This had increased to 145 millions at the end °f 1 91 6. It was essential that all holders of Treasury bills should convert at least half of them into the War Loan. This would mean that five hundred millions sterling would not become payable, which would be equivalent to subscribing five hundred millions new money. Large profits were being made in consequence of the high price of commodities. Much of the profits should be used to purchase Treasury Bills. These large sums would not bo required after the war" It wouW' be impossible to find remunerative employment for the banks’ large holdings of deposits. Then money would flow out of the banks and go in securities, which would rise in' price. The speaker, continuing, said German notes totalled 801 .millions, while British notes issued totalled 165 millions. Germany’s percentage of gold was 15.7, and cure waS 22. During the war we had sent to America 215 milions in gold. The American banking system was required to fix a reserve of Ip per cent, to cover loans. On that basis we were entitled to a loan of 1,400,000,000. of which the Allies had received 430 millions.

CONSCRIPTION OF WEALTH. FAVOURED BY LORD RHONDDA. (Australian and N.Z. Cable Association.) LONDON, January 27. Lord Rhondda, in a. speech at Newport, said lie considered the Government would be justified in. enforcing conscription of the entire wealth and property, as well as the manhood, of the country. This was unnecessary at present, but it would only be avertable by voluntary contrbutions to the loans.