The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-07-15
Silver Bullets.

thS ""h as
August there were two probable con.
trlbutions Of superiority which Great
Britain could make TO the of
the Allies against Germany and Aus.
tria. One was the British navy. The
other was the power Of the British
purse, and the success Of the second
war loan just floated In the United
Kingdom, actually the first under the
plan adopted last month for financing
the war, testities that the most effec-
tive u Of the empire. the III
innate sinews of war. are being mobil.
lied to the fullest possible extent.
The British public has taken to
heart the meaning Of LLOYD GEORGES
declaration that victory would be won
in the war by the side able to shoot
the last silver bullet. The military
significance of the gigantic operation
in war finance which the British Gov
eminent has completed will not fail
of appreciation anywhere, even in
Government circles at Berlin. any
more than It's general economic sig.
nifcance will fail Of nding
In the banking world.
On June 81 the House OF Commons
drew a blank check" for the cost OF
the war in favor Of the British Treas
ury. The Exchequer plan which the
Commons then authorized was ingen.
ious and courageous. II has been re-
warded by an astonishing response
from the British pocketbuok. Part OF
the Exchequer's plan called for ST.
2jO,0CO.o0U Of new money. The sub.
sCription list closed Saturday and in
little more than a fortnight 5000.
100000 Of new money was offered for
the AZ per cent. wal bonds ~ 9sa..
The second German war loan Of
per eel bonds al 9Sls finally brought
in about S2,2JO,OOO,O 600 of subscriptions
after two months or 81 OF effort. with
the aid OF all the expedients which
German finance has devised in the
form Of paper %currencies and paper
systems Of crolit To lessen the pres
ent burden OF war costs at the in.
evitably dreadful expense of the fu-
ture. The British financial achieve
ment. with little novelty Of additions
10 traditional banking machinery and
monetary facilities, makes a porten,
tous contrast. "
The Chancellor Of the Exche1uer.
REGINALD MCKENNA. in his speech
moving the resolution TO authorize
the Treasury to borrow the sums
now required, said that the Gov
ernment's objective was not only
ITO carry on the war but 10 maintain
financial prominence after the war"
Great Britain Is peculiarly situated
among all the belllgcrents in that Its
a~nte-bellum financial ascendency is
at stake. In addition II Is bearing a
heavy burden of undertaking to sup
port the finances Of its allies.
IL was something of a novelty fol
the British people to have offered to
them 50 attractive a Government OBJ
legation MS a bond Of fixed maturity
bearing A.. per cent. interest. Even
subject 10 the stiff eNactlons of an in
come tax which must increase. the
new bonds were sure 10 make a wide
appeal, and all the more was this likely
to be the case because the Exchequei
showed cleverness as we'll az boldnes,
in devising a loan intended to b.
popular.
Shares in 1t were available as low
as five shilling participation certifi
Gates. bearing > per cent. interest
Apparently the Government tool
thought of the redistribution of wealth
which is going on in the transfer OF
the incomes and principal Of the in
veStment classes to the pockets OF
wage n through the hectic slim
ulus which the wal Is giving to in
dustry. If any material portion o1
the wages which are 10Y being dis
bursed on account OF the war wen
into the Government ioan instead o.
into ex%travagant consumption of good
and commodities some waste of CAPT
tai would be averted.
1t is manifest that Great Britain
has AT last taken the financial meas
ure of the war, just as the recen.
Cabinet reorganization and the cru
SADIE to rouse industrial activity t.
a greater production Of war munitions
showed that on the political and mill
tnry side the dimensions and slgnif
canoe of the war were being gauge,
in the United Kingdom.