ECONOMICS OF TMF. WAR. lO/ 



At the outbreak of war, the Ttahan debt was i522.000.000. 



All Italian securities, since the beginning of hostilities, have 

 shown a very heavy drop, and her credit is only fair. To meet 

 war ex]:)enditure,. Italy is now raising an internal loan. 



Italy exports £100,000,000 per annum, and imports 

 £145,000,000. Thus another important nation is now diverting 

 her energies from productive channels to unproductive war 

 expenditure. 



Turkey. 



Turkey's position, either economically or financially, has 

 never been good — the second being the result of the first. The 

 Ottoman Bank, just prior to the outbreak of war, refused to 

 pay out coupons except in Constantinople. Turkey's finances 

 have gradually drifted to the control of the German banks, and 

 the present position is obscure. 



It is to be hoped that, in the case of Turkey, the strain 

 of war may tend to the development of sounder principles in 

 Government. 



I have briefly reviewed the position with regard to the 

 principal belligerent nations, and it is not possible, in a paper 

 of this short extent, to make much reference to the smaller 

 communities afifected by the war. I may mention that our 

 ally, Japan, spent just over £5,300.000, which was paid out of 

 surplus revenue. 



It will thus be seen that the principal steps taken bv the 

 nations involved have been : — 



I. — To encourage the issue of notes of small denomina- 

 tions in order to divert gold to the public Treasuries, 

 so that an ample reserve is maintained to settle 

 the large balance of imports over exports necessi- 

 tated by the consumption of war material. 



2. — Raising of enormous internal loans to provide for the 

 payment of troops and provision of munitions. 



3. — The mobilization of all industries with a view to 

 insuring that, as far as possible, the requirements 

 of the Government shall be met within the State. 

 The importance of this step has only recenth^ been 

 appreciated in England. 



4- — Public appeals to the country to reduce the consump- 

 tion of luxuries and loyally support the Govern- 

 ment in the prosecution of the war by avoiding 

 all internal trade disputes. 



As I have previously stated, the cost of the war, including 

 the loss of life, the decrease in production, and the destruction 

 of property, is not immediately felt. The bill will have to be 

 met eventually, and it is necessary now to review the cost. 



To try and ascertain what the economic result of this 

 gigantic war means, we have to realize that practically every- 



