The Birmingham age-herald., 1915-02-16
English War Leader Gives House of Commons Close View of Machinery Be- hind Great Struggle
S1O,0OO, ,OO0, ,OO0 ASKED
 TO MAINTAIN WAR
 DURING THIS YEAR
Great Britain's Resources Will Last Five Years and
 Frances Three Years, Declares the Chancellor

London, February l5.-The coun- tries fighting against Germany, Aus tria and Turkey thus far have only a third of their strength in the field. To maintain this force and to bring the remaining two-thirds into action will cost sl0, ,000, ,OOO, ,OOO during the current year.
 This announcement was made In the House of Commons today by David L1oyd-George, chancellor of the ex- cheauer, who with Winston Spencer Churchill. first lord of the admiralty. gave the British public perhaps d closer view of the machinery behind the great struggle than had been afforded since the outbreak of war
 MT. Churchill declared amid cheer ing that Great Britain finally had de- Cided to clamp on every ounce of sea pressure to choke off Germany's food supply in retaliation for the German submarine policy. while MT Lloyd George drew additional cheering when he spoke of loans to countries expect ed to throw in their lot with the al lies These countries, the chancellor did not name.
 The announcements of the govern .ments decision with relation 10 Ger manys food supplies came almost CO., incidentally with the receipt of two dspa tches from the United States, one saying that Count Non Rernstortf. the German ambassador had informec the Washington government that Germany was willing to abandon her rubnar rine policy, provided Great Britain ceased interfering with cargoes of foodstuffs and the other saying that he again had advised neutral shipping to avoid those waters which Germany had declared would become a dangerous military area three days hence.
 Financial Arrangement
 MT. Lloyd George detailed financial arrangement the allies decided on at the Paris conference and put into round figures what heretofore had been guessed--the remarkable increase In ihe pIOouctiNity ana eHlc1ency or the Russian people by prohibition of the sale of vodka This productivity and efficiency he placed as high as 50 per cent.
 Great Britain, the chancellor said. lad resources which would las. for five years and France perhaps sufii cient for three years.
 MT Lloyd-George paid tribute to the burden that France Is bearing and gave r ( tl. Belgium financially until the time for the settlement came
 MT. Churchill disclosed for the first time the total naval losses in the war. These. he said, were upwards of 5000 off cers and men, most of them victims of submarines.
 MT Churchill outlined what Great Britain purposed to do as a counter to the German policy. In view of what he styled piracy and murder Mir. Church. i'll said it was incumbent on Great Brit ain for the first time to apply the full force. of her naval power. A formal declaration to this effect, he added, would be made forthwith
 The chancellor of the exchequer, David Lloyd-George. in statement before the house of commons, said:
 For the year ending December 3l, next, the aggregate expenditure of the
 
 (sl0,oo0, GOO o00l. The British empire will spend considerably more than either of our two great allies, probably from one hundred to one hundred and fifty million pounds more than the highest figure spent by the other two great allies.
 We have to recruit a new army; we have to maintain a huge navy: we are paying liberal separation allowances wa have to bring troops from the end of the earth; We have to wage war no. merely in Europe, but in Asia, in north, east and south Africa.
 We could pay for our huge expendi- ture on the war for five years. allowing q substantial sum for depreciation, out of the proceeds of our Investments abroad. France could carry on the war for two or three years at least out of the proceeds of her investments abroad, and both countries would have some- thing to spare to advance to their allies.
 Important Consideration
 This is most important considera- tion. The allies are fighting the whole mobllized strength of Germany with, per haps, less than one-thrd of their own strength. The problem for the allies Is to bring, the remaining two-thirds of their resources and strength into the fighting line at the earliest possible moment, and this is largely. though by no means en- tirely. a question of finance.
 Russia is in different position than either Great Britain or France. She Is prodigiously rich in natural resources, food and raw material. She produces vir- tually every commodity. She has great and growing population of virile and in- dustrous people. Her resources are over flowing and she has labor to develop them in abundance. Russia has enor- mousy increased her resources by sup pressing the sale of all alcoholic liqlors. By that means alone she has incres sed the productivity of her labor by some- thing between 30 and 50 per cent.
 ',The peculiar difficulty with Russia Is that although she has these great na- tional resources she has not yet been able to command the capital within her own donlinions to develop them. even during the time of peace; and in times of war she has additional difficulties. She has difficulty in exporting her goods. and. in addition, her purchases abroad is enormously increased in consequence of the war.
 France also has special difficulties
 ..The enemy are within 6S miles of her