The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1915-06-28

l
kinds of drink would then be upor
trial and the issue would be one O
| fact. II temperance were the conse
quence 1t might properly be left with
the individual to make a wise use Of
! life and opportunities.
A Question Of Money.
Utica IN. Y.) Observer: Attention
rs being frequently directed to the
condition Of what is called sterling ex.
change, or foreign exchange, and its
relation to the present war. The
pound sterling sold last week at 4.76A,
the lowest quotation in over a century
This Is discount OF about 21a per
cent and compares with discount OF
about four per cent on French ex-
change, Is on Italian, 16 on German,
and "A on Russian.
1t Is realized that this demoraliza-
ton OF exchange is due to the war and,
OF course, an impairment Of national
credit. Considering the tremendous
character of the operations, it is re-
markable that a greater slump has not
taken place, and 1t seems almost in
credible that the unheard OF expend;
ture can continue for a very much
longer time without seriously shaking
the credit of some Of the nations en-
gagged. However, In considering the
staggering cost Of this war, we un.
consciously compare the expenditures
with those Of other wars and do not
take into consideration the enormous
increase Of wealth. If the war cost
more today than did the wars OF
some years ago, there are many peo-
pie to pay for them, and there has
been cores ponding increase in
wealth. It is probable that this war
will have no greater per capital cost
than did the Napoleonic wars OF a
century ago, and 1t is argued that 1t
will be paid much easier and quicker.
Great Britain's national debt has III
about four billion dollars dur
Ing the year, and is more than double
what it was when the war began. The
struggle has been costing her about
s13C0O,00G day, including the billion
or more advanced to her allies. This
cost will soon be increased Sit, 10000
/ day, or even more, making the ex.
cense for the second year OF the war
something like five billions. The ma
tfonal income Of Great Britain is $780,
)00000,000 a year; she has invest
nents abroad that net her twenty
billions year, and her foreign trade.
which Is now somewhat interferred
With, has been bringing her another
seven billions a year. With all this
7ast income and from the assistance
hat is being freely offered by the
colonies. Great Britain appears to be
n condition to finance the struggle to
whatever end may come. With all
he cost that is falling on Great Brit
~, -,
BADLY hit as some of the other bel
igerent nations. Even the Germans
nave suffered greater, for it is de-
,lared that all East Prussia was laid
waste by the Russians when they
and that a considerable section of
country must be rebuilt. Austra-H Hun
gary has suffered from considerable
devastation. There has been deyas-
tation in a section of Russia The
northern part of France Is literally
riddled with shells and gridironed with
trenches, while almost every house
has been thrown down. Belgium was
terribly SCARED at the first. Britain's
losses have bCen in men and ships
and in a few buildings destroyed by
bombs dropped by air raiders, and
while she has spent large sums. she
has not as yet suffered from impair
ment OF country. Her financial re-
sources are far from being strained,
and 1t seems to be the idea OF finan-
ciers that she will be well able to
continue to the end, as she is exhibit
Ing a strength and skill in financing
the contest that has amazed the world.
AS one of the great financiers of this
country said a few days ago, Nothing
like 1t has ever been witnessed in
history"
The rate Of sterling exchange is
likely to become more and more a
factor In the markets Of this country.
The belligerents are buying vast guam
titles of goods in this country and
they can't pay for them in kind-that
is, they cannot exchange goods for
them. They must, therefore pay in
gold which we really do not want, as
we have full supply. But by paying
in gold, the effect will be to increase
the rate of exchange, making the dis
count constantly higher.