The Washington herald., 1915-12-19
Britain Foots Bills for All
Her Allies, But Strain Tells
and a Crisis May Be Near
Empires Revenue from Taxation and 81 Day Be
sides Is Going to Russia France and the Others in
Secret Advances Which May Never Be Repaid

sary, in spite Of the withdrawal from
Industry Of l.s50.000 more men OF mill
tary age for the armies or more II the
colonies do not provide the $4,000 addi-
tional recruits asked for to make up
kitchener's new two millions?
On the answer to that question. which
no man living can give, considered In
relation to equally incalculable questions
about the German resources. depend the
outcome and the duration of the war
more than any battles that are to come
unless whole armies are rounded up and
destroyed.
But while the answer cannot be given,
the nature of the problem can be indi-
Gated clearly enough. The resources of
a nation for carrying OH modern war
consist of what il can produce and what
Il can borrow. While the borrowing re-
sources of Britain are not exhausted. u
Is evident that only a small proportion of
the money needed can be obtained from
neutrais. The United States is in fact
the only neutral which has any money to
lend.
Imagine a bookkeeper charged to re-
duce to its simplest forms the British
balance sheet. On the credit side he
would enter the daily production OF the
workers OF the country, which may be
called \. On the debit side would be
three !tems-B. the daily supply Of goods
consumed by the civilian population: {.
the daily supply OF food. clothing and
munitions for the allied armies. and. y
the daily supply Of these things required
for the British armies.
In this illustration A. Il and { may be
regarded as fixed quantities. That il not
literally true. for \, production. is in
creased under war pressure. and y. con-
sumption At home. may be decreased
through patriotic economy. But the rela-
lively small fluctuations in y and B ma Y
be disreRarded. and =. the amount OF
supplies furnished the allies. is presum-
ably constant. being fixed in advance by
agreement; from Mr.. Asquith's estimate
of s. 10000 a day dishursed for this pur-
pose 1t has been deduced that 100000
Russian. French. Belgian and Serbian
soldiers are kept in the field by England.
II will he seen. then. that the size OF y.
the British forces in the field. cannot he
unlimited. for every additional man who
Joins the colors not only increases the
consumption under y. but by withdraw
ing from productive enterprise decreases
A. the output of the country which sup
ports him and his fellow soldiers. the
I. 10000 allied soldiers and the people at
home. And as soon as the total OF goods
required by Il. e and y exceeds the pro-
ductive power o; A. collapse Is Imminent
4 Possible Risk.
Is the government. by indorsing Kitch-
ener's plan to withdraw l.6o01D more
soldiers from industry. and at the same
time promising to continue to supply the
allied nations with money and goods.
running the risk of burdening the debit
side Of the ledger with more than the
credit side will allow? The government
must think not. most of the bankers and
economists with whom ! have discussed
the question are convinced that the gov
ernment IS wrong and that danger lies
ahead.
Sidney Webb. n leading economic au-
thOrity. to whom ! am indebted for the
given above. summed UP in
this way the symptoms which will show
that Britain has ovcrreached herself and
that productive enterprise cannot meet
the demands of the people. the allies
and the empires increasing armies.
Perhaps the FIRST sign would he a
growing scarcity of meat and some other
commodities and Il soaring of Prices sky
high. Note that this point Is already
apparently rea ched in Austria and Ger
many. under different economic circum-
stances. The foreign exchange. especially
financial center for the whole of the
Americas and the Pacific. would 60
steadily more against us: instead of 81. N
to the sovereign. as in normal times. II
might go as low as Sieo. or even less.
There would be a steady export of gold
to all points. which would silently cN-
haust our store. and W. should have 10
call upon the owners OF gold ornaments
to bring them in for melting down. Civ
in Nah hs
hing might even appeal. as was done
in the Prussian war OF 1918. to women to
bring in their wedding rings and take
iron ones in exchange. All this woJ,d
however. not 90 far. and our indisp'nsa-
bile imports would presently fan on. with
the price of bread rising TO the famine
point. The next symptom would perfOrc'
he very serious shortage of supplies
either for the masses nj home or for the
armies abroad. and, consequently. IN
prevent both waste and monopoly, gov
ernment organization of the food supply
Within very short time the whole ma
,ion would he on rations. and diminish
ing rations at that. and the end OF our
ability to maintain the struggle would he
within sight
Women Workers md Economy.
In trying to present clearly and briefly
the dilemma that faces the country.
whether 1t can afford the great armies
its rules are saddling upon il. it has been
necessary I" simplify the clements "f the
problem. The government is introducing
hundreds of thousands of women former
" idle into productive enterprise. and Is
conducting an economy campaign TO cut
down ccnsumption. These two moves will
help but so vast are the sums involved.
as has been shown. that femin;e labor
and economy cannot enable the nation
to increase its armies indefinitely and
at the same time increase its advances
TO its allies Currency initiation would
force prices up at horne and credit down
abroad, and insure speedy collapse. The
liquid wealth of the empire has been
largely consumed by the war loan. The
wealth that remains. in the shape of
land and buildings and business enter
prise. cannot be liquidated under present
conditions Foreign loans and the sale
of American securities can bring In hum
dreds of millions. perhaps a few billions.
but cannot maintain the war on its pres
ent scale.
In view of the gloomy outlook. 1t Is
not surprising that complaints are be-
ginning to he made about the financial
helm given the allies. People who realize.
as few do. that all the taxes they are
groaning under are bringing the treas
ury only two-thirds OF the sum being
used. not to fight the war. but To sub
sidize other countries, are grumbling.
There is an important difference between
the situation now and In the Napoleonic
era Then all loans and subsidies made
tn foreign powers We're granted by vote