New-York tribune., 1915-02-16
Only Third of Strength
Now in Field, Chan
cellor Says.
ENGLAND'S FINANCES
ENOUGH FOR 5 YEARS
France Can Easily Meet
Expenses for Two or
Three Years.

| Turkey up to the present time have
thrown only q third Of their strength
into the field. To maintain this force
and to bring the remaining two-thirds
into action will cost $4,000, 100000
(sl0,000,O 0,O00,000) during the current
year.
This announcement was made in the
House Of Commons to-day by David
Lloyd George, Chancellor of the Ex-
chequer, who gave the British public
close view of the machinery behind the
great struggle.
Mr.. Lloyd George was cheered when
| he referred to loans to countries which
he said he expected TO throw in their
lot with the Allies. These countries
the Chancellor did not name. 1t was
the first time that a reference was
made in Parliament to such expecta-
tions. He gave the details OF the finan-
cial arrangement Of the Allies as they
were decided on at the Paris confer
ence Of the British, French and Rus
sian ministers of finance. He gave
pledge that the Allies would stand by
Belgium financially until the time for
the settlement came.
The Chancellor's Statement.
The Chancellor of the Exchequer, in
his statement before the House OF
Commons, said:
"For the year ending December 81
next the aggregate expenditure OF the
Allies will not be far from 100000
900 $4,000 ,000,000). The British En-
pire will spend considerably more than
either Of our two great Allies, prob
able from fl00,000,000 to fl50,0O0,0OO
more than the highest figures spent by
the other two great Allies.
1--WE have to recruit a new army; we
have to maintain huge navy; we are
paying liberal separation allowances;
we have to bring troops from the end
Of the earth; we have to wage war not
merely in Europe, but in Asia, IN
North, East and South Africa.
1--WE could pay for our huge expendi-
ture on the war for five years, allow
ing substantial sum for deprecia-
ton, out Of the proceeds of our in
vestments abroad. France could carry
on the war for two or three years at
least out of the proceeds Of her invest
ments abroad, and both countries
would still have something to spare to
advance to their allies.
"This Is q most important consider
alton at the present moment. The
Allies are fighting the whole modified
strength Of Germany, with, perhaps,
less than third of their own
strength. The problem of the war 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 entirely,
question of finance.
Situation in Russia.
Russia is in a different position
than either Great Britain or France.
She is a prodigiously rich country in
natural resources, food and raw ma
/ terial. She produces practically every
commodity. She has a great and grow
ing population Of virile and industrious
people. Her resources are overfiowlng
and she has labor to develop them in
abundance. Russia has since the war
began enormously increased her re-
sources by suppressing the sale of all
alcoholic liquors. BY that means alone
she has increased the productivity of
her labor by something between 80 and
30 per cent.
"The peculiar difficulty with Russia
is that although she has these great
national resources she has not yet
been able to command the capital with
! in her own dominions to develop them,
even during the time Of peace; and IN
times Of war she has additional diff
culties. She has difficulty in exporting
her goods, and, in addition, her pur--
chases abroad are enormously increased
in consequence of war.
France also has special difficulties
81 am not sure we realize the strain
upon this gallant country" the Chan
cellor of the Exchequer continued.
"She has had larger proportion Of
| her men in the field and the enemy in
| occupation of the richest part of her
! territory. Nevertheless, the confidence
| of the French nation strikes every Wis
| itor to Paris. There is to be seen a
calm and sincere courage supposed to
| be incompatible with the temperament
| of the Celt, and one hears the general
! assurance that the German army has
as much chance of crushing France as
Of overrunning the planet Mars"
Each ally must bring it's resources
into the common stock, Mr.. Lloyd
| George continued; war cannot be made
under the limited liability principle.
The conference dismissed the idea Of
joint international loan, which
would have frightened every Bourse,
and it has been decided that each
country should raise the money 1t
needed within its own territories, so
far as conditions allowed. But II help
were needed for purchases abroad, those
who had means would help TO the best
Of their power. The only joint loan
would be with respect to the advances
made or to be made to the smaller Of
the allied states.
Russia Can Secure Money.
With regard to Russian purchases,
the Chancellor said that it had been
decided that the first f50,000,000
! (s250, 900, ,00o) for this purpose should
be raised in equal amounts on the
Paris and London markets.
Russia need not hesitate TO place
orders for fear Of any difficulty in the
matter of obtaining money to pay for
them, the Chancellor OF the Exchequer
then declared. Russian treasury bills
TO the amount Of fl0,000,000 (s50,000,-
000) issued in London in the last few
days had been oversubscribed.
The speaker then declared there was
q satisfactory amount of gold in Lon
don. "If, however. our gold reserves
fall below a certain point-a pretty
high point-the banks of France and
Russia will, come to our assistance"
Mr.. Lloyd George said. Russia had
agreed to facilitate the export of the
products required by the allied coun-