The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-06-27
BRITAIN EQUAL TO
FINANCIAL BURDEN
Lord Rcvelstokc Says Nation
Can Supply Huge Sums
Needed for War.
"NO JEALOUSY OF L. S."

tne Iact tnat Parliament recently voted
another billion and a half dollars for
h prosecution of the war. and that
Great Britain's daily war bill is now
nearly twenty-five millions. British
politicians say they view the financial
outlook confidently. DO the business
men Of the Empire share this View"
Here Is the answe of Lord Revel-
stoke. active head OF the great inter-
national merchant banking Arm of
Barring Brothers, a director Of the
Bank Of England and probably the
n man In England best qualified to
speak with authority on the subject,
given in an interview to-day.
"The country is proving that II can
cope with such an expenditure. SO
long as our military authorities re-
Quire money to carry on the war we
shall shrink from no sacrifice in order
to provide 1t. The civilian community
IL Just as fully and firmly resolved on
victory as the armies which are fight
ing our battles in the field. and It en-
tertains as little doubt as to the ulti-
mate result"
Lord Revelstoke was quite wiling
to talk to an American correspondent
about Great Britain's present economic
position. provided the discussion were
limited to the financial and commercial
situation as II appeared to a banker
and merchant without official status.
Credit Centres Unprrparrd.
London" said Lord Revelstoke.
like other credit centres. was unpre-
pared for the crisis which accompanied
the outbreak of war. Whatever may
have been the ease in Berlin. English
bankers at least had no foreknowledge
OF the calamity that was to strike t.u-
rope In August. 1914. But after nearly
two years OF n war waged in a tanner
far more eXhausting han any nation
had anticipated. the editiCe of credit in
London stands firm and the delicate
banking machinery works smoothly.
For this the world has chiefly to
thank the courageous policy adopted
BY the Cabinet and the Treasury De-
partment during the first months Of
war"
Emphasizing the fact that this poll
Icy had been justified 10y results. Lord
Revelstoke explained:
"London's credi, is MT like Per-
Inns. II is being tested every day ny
the standards of other countries over
Seas. and II II were found wanting the
world would quickly know it. London
ID the centre Of the sensitive network;
OF nerves which constitute the foreivr
exchanges. Banks and merchants ali
over the world have credits in London
on which they may draw at any mo-
ment. London has attained its pres
ent position owing largely to the vol
ume OF foreign trade 10 and from the
shores of England.
WAL tends to cripple Exports be-
cause II turns productive workers into
soldiers. Imports in turn have to le
restricted as far as possible to the
necessaries Of war.
h London stands specially to
lose by Il reduction In the volume OF
world trade, because this reduction
makes the processes of world finance
harder to carry through. But despite
these disadvantages. London remains
the worlds financial clearing house.
Maintains Export Trade.
1.-THE key to the position has been
The maintenance Of an export trade.
Exports have been possible. to an ex-
tent beyond expectation. partly owing
to the sound financial policy " the
Government and partly to the use OF
the great reservoir Of labor previously
untouched here. women and men viva
did no work before having taken the
places of those who have gone to the
trenches.
But chiefly the successful mainto-
nance Of exports is due TO the British
navy. No small part of the navy's
effort has consisted in the protection
OF the worlds sea borne mmerre
which has enabled financial London 10
do its share in the great %strugSl,.
Notably II is the avy which has made
II possible for the Allies to obtain from
America free shipments of food and
munitions; and although the ord l :
placed in America have had the effect
OF creating a trade balance adverse TO
the allied countries. measures have
been aiken to arrest II control the
tall in the American exchange.
Il refer. of course said Lord Revel-
stoke, ito the mobilization of neso-
table securities and to the restrictions
on certain imports. In these matters
h Chancellor OF the Exchequer has
found the business community a ready
c%Oadjutor. and II the necessity for
more energetic measures for the pro-
lection Of u trade balance arises as
time goes on, there is little doubt
that a substantial and hitherto I'M
touched reserve could be made avail
able by a stricter regulation OF our inn
ports and a greater economy in their
distribution.
London has been able to meet all
claims on herself, has been able 10
borrow abroad, when necessary, on
reasonable terms, and in other cases 10
meet in gold all obligations abroad to
those who prefer that form of pay
ment. Nor has the financial COM
munity any doubt but that the free
dom Of London's gold market can be
maintained in the future"
Confident Of Future.
Turning then to Britain's capacity
Tor ~shouldering the financial burden of
the war In the future. Lord Reve!stoke
spoke In a manner quietly confident.
N serious business man." he said,
VIII be inclined to underrate the ma
ture OF an effort which costs the coun-
try $4,000. 900 a day. Such figures
speak for themselves. The spirit which
you VIII come across In the business
community is the same spirit which
the rest of England. one Of
earnest determination 10 prosecute the
war, OWpyer long n may Last IA ,