ECONOMICS OF THE WAR. 105 



effect a thorough niobihsation of its industries, and there has 

 been, so far, no hint of any hitch in organisation. 



France has the sea open to her, and her suppHes of war 

 material and food are only limited by the freight difficulties which 

 now exist. 



Russia. 



Russia has increased her note circulation from a normal 

 amount of 50 millions to 222 millions. Her holding of gold is 

 171 millions, as compared with 160 millions ; she has, however, 

 exported eight millions of gold to England. 



Russia has raised internal loans of £200,000,000 on a 5 per 

 cent, basis, and in addition to this the British Government lent 

 her 12 millions to pay the coupons on her debts maturing in 

 December last. 



The Russian budget has been seriously aft'ected by the pro- 

 hibition of the sale of vodka, which brought in a return of 40 

 millions. It is, however, a country of enormous resources and 

 a population of 170 millions. It is anticipated that they Avill 

 have no serious difficulty in arranging their finances, although 

 it is probable they may require further help from their Allies 

 until their resources are better organised. 



Her foreign trade, particularly her grain export, has been 

 seriously aft'ected owing to the closing of the Dardanelles and 

 Baltic. It is thought that operations now in progress in Gallipoli 

 will eventually release the grain ships and adjust this position. 



Russia is estimated to have actually in the field an army of 

 five million men. The provision of ef|uipment and munitions 

 has, however, been a very serious problem. Reliable information 

 on this subject is not obtainable, but there are indications that 

 the Russian retreat in Galicia has been mainly owing to the lack 

 of munitions. This difficulty will no doul)t be (Overcome in time. 



Great Britain. 



Great Britain has partly met the position by the issue of 

 Treasury Notes, but to nothing like the extent of her Continental 

 neighbours. The total did not exceed £50,000,000, and although 

 the gold holding of the Bank of England has increased to 56 

 millions, this amount is quite uniniportant when the country's 

 commitments are examined. 



During the first eight months of war the revenue was 

 £226,700,000, the exi:)enditure was £560,500,000. The deficit of 

 £330,800,000 was met by the loan of 350 millions at 4 per cent., 

 issued in November last year. 



^Ir. Llovd George, in his Budget speech, disclosed the 

 following estimates for the year April ist. 1915, to April ist, 

 igi6. on the assvmi])tion that during the whole of that period 

 we should be engaged in war : — 



Revenue £270,000,000 



Expenditure £1,132,600.000 



Leavino- a deficit of £862.600.000 



