as against £42 for the United Kingdom. Since then the latter figure has increased to 

 £46 and it is hardly open to doubt that the figure for Canada and Australasia has 

 increased in proportion. Let us take it however at £50 per head. If the populations 

 of Canada and Australasia are taken at 8,000,000 and 6,000,000 respectively, their 

 annual incomes would then be £400,000,000 and £300,000,000 respectively. If Giffen 

 is right in assuming that for a new country the income could be estimated at about 

 one-fifth of the capital, then the capital of Australasia and Canada would be £2,000,- 

 000,000 and £1,500,000,000 respectively. 



In truth, the great wealth of the British Dominions over the seas, while potentially 

 of enormous value, is of use in the present war only insofar as it is employed on its 

 objects. And it can be so employed only to the extent that the different parts of the 

 Empire either meet out of their own resources their own cost of the war, or lend money 

 out of those resources to the British Government, or in other words sell them their 

 exports on credit, just as the United States by lending £100,000,000 is selling to France 

 and England its goods to that extent on credit. 



If the conclusions of this article are right, then the great difficulty of England will 

 be to find the means to pay for her purchases of food, raw materials, and munitions from 

 oversea. What greater help could the Dominions give than to advance her for the time 

 being the money wherewith to buy the food and other materials which she can get from 

 them? 



Owing to the great economies in expenditure which she has made, and to 

 her fine harvest, it is probable that Canada, instead of the usual heavy balance 

 of trade against her, will, if her people continue to be economical, have a favourable 

 balance of even up to $200,000,000. Of this $125,000,000 is required for interest 

 on her external debt. But it is quite possible that she could raise by loan in New York 

 an amount at least equal to the latter sum, in which case she would have her whole 

 surplus available to lend to Great Britain. She will in so doing benefit herself as well. 

 She will be merely foregoing the immediate enjoyment of her profits and building up 

 for herself a reserve abroad which will be very useful to her after the war. It would, 

 of course, serve the same purpose if she were to use her surplus to pay off any indebted- 

 ness to England shortly falling due. The more the Dominions were able to lend, the 

 greater naturally would be England's purchases from them of food, munitions, and raw 

 materials — in preference to neutrals. They would thus reap the immediate benefit 

 of their loans. 



It is wise therefore not to shut our eyes to the possibilities of the future. Germany 

 has been forced to live on herself. Whether she can continue to do so indefinitely 

 remains to be seen. We on the other hand have based our whole war policy on our 

 ability to maintain our supplies from abroad. Fortunately there is no reason to assume 

 that we shall not always maintain our power to buy a great deal abroad. Our ability 

 to repay in the long run is undoubted, and it is therefore very greatly to the interest of 

 the countries chiefly concerned to sell us their goods even on credit. If, however, 

 these supplies were to be largely cut off, we should have to alter our policy, and try to 

 make ourselves self-sufficient, or nearly so. That the Empire could do so if every part 

 were ready to make the sacrifices required there is little doubt. But it would involve, 

 on the part of the people of Great Britain particularly, efforts and sacrifices far greater 

 even than any hitherto made. 



It is therefore a matter of the first importance that we should preserve our credit 

 and our buying power. To that end we must devote our whole energies to increased 

 production and simultaneously to the strictest economy in consumption. And not 

 only we in Great Britain, but the citizens of the Dominions too, so that they may, by 

 giving their assistance not only in men, but in money, lend their decisive aid to help 

 their brothers and ours in the trenches, and to carry the Empire victoriously through 

 this great crisis. 



9 



