The Crisis over in Canada — The situation has been recognized in Great Britain, 

 but it has not been so fully recognized in Canada. When the war began we were forced 

 by the shutting off of borrowed capital into a measure of public and private economy. 

 That was so much to the good. But we were economical not because we recognized the 

 need for it — that need was not recognized even in Great Britain at that time — but because 

 we were forced to be. Now our situation has changed. Thanks to the tremendous 

 harvest and enormous war orders, money is abundant, and we have nearly got over our 

 local economic crisis. We have the same apparent prosperity as Great Britain. Do 

 not let us repeat her mistake. We cannot afford it, if we are to do our share in the win- 

 ning of this war. 



A Better Situation — The question will be asked — Can we afford to supply goods 

 on credit, and to what extent? We could not afford it six months ago, because we had 

 to meet our own current debts abroad. But that situation has now changed. We have 

 cleared off our current obligations, and for the future we have only to meet our operating 

 expenses. Everything above that will be profit, and we need not insist on immediate 

 payment. 



Canada's Opportunity — It will appear from the above that if we are willing to 

 observe, during the remainder of the war, from choice, the same economy in public and 

 private expenditure that we have observed during the past year from necessity, we shall 

 be in a position to extend to Great Britain and to our Allies an assistance that will be 

 even more valuable than sending our soldiers to Europe; and that this assistance will not 

 only cost us nothing, except to abstain from the pleasure of spending our money as fast 

 as we make it, but will turn to our own great advantage. 



All money that is spent in these days on superfluous comforts and luxuries, whether 

 in the shape of goods or in the shape of services, means the diversion of energy that can 

 be better employed in the national interests, either in supplying the needs of our fighting 

 forces in the field, or in making commodities for export which will go to reduce our 

 indebtedness abroad. And : on the other hand, every saving we make by the cur- 

 tailment and limitation of our productive expenditure increases the resources which can 

 be put by our people at the disposal of the State for the triumphant vindication of our 

 cause." — Mr Asquith. 



"To meet the costs of the war it is necessary that our savings should be doubled; 

 and this will mean the exercise of economy to an extent which is not yet appreciated by 

 the bulk of the people. The alternative to drastic economy is drastic taxation. . . . 

 It is not yet clear that Local Authorities have realised the fundamental change that 

 has taken place in their financial position and the pressing necessity that exists for 

 retrenchment and economy. . . . The public must realise that the era of extrava- 

 gance has passed away, and that for many years to come a policy of the strictest economy 

 must characterize the administration of the local as well as the national government of 

 this country." — Quarterly Review. 



"The question of personal expenditure is a difficult and delicate one It is easy to 

 lecture other people, but what is more important is to make every man understand 

 that he should examine his own expenditure, to see how much he can cut it down in the 

 national interest. It is for the men who benefited from additional income derived from 

 the war to show why this expenditure should not be postponed until the war is ended." 



— Hon. A. J. Balfour. 



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