500 TRANSACTIONS OF SECTION F. 



and insurance of flax were more than the prime cost. These were moderate 

 rates for that war period. Take the case of silk. It cost lOOZ. to bring a bale 

 of 240 lb. from Italy, instead of the previous rate of 61. These figures seem 

 almost incredible, but they are vouched for by Tooke.^ Further, they were only 

 a part of the increased difficulty in transport. The delay was remarkable. It 

 is recorded that on one occasion it took a year, on another two years, to send 

 a parcel of silk from Italy to England. Interest on capital and disarrangement 

 of manufacture during the extra period of transit might Be estimated to add 

 another 30l. to the cost of conveying a bale of silk — that is, 130/. against 6/. ; 

 so that altogether the cost of transport and allied charges increased by more 

 than twenty times the amount paid in times of peace. Such, in bald numerical 

 terms, is the debt we owe to the silent watch and ward of the Navy, which is 

 of equal benefit to our Allies also. 



So far I have discussed questions which relate mainly to organisation and trans- 

 port ; but, in summing up our economic position in the present war, the provision 

 of resources by the various combatants will become increasingly important. When 

 Germany cast the sword of Brennus into the scales of international justice she 

 must surely have forgotten the ultimate influence of the wealth and resources of the 

 British Empire. ' To face the world in arms in shining armour ' may seem heroic 

 to the Teutonic mind, but it is futile provided that the resources of the world are 

 rightly used against her. This it appears to me is at once our opportunity and 

 our responsibility. War has become so complex that to conduct it upon a great 

 scale demands large capital resources. Our past savings, supplemented by those 

 made during the war, constitute the reserve of the credit of the Allies. No 

 doubt, as in the case of organisation, time will be required to make the full 

 extent of the pressure felt, but it is pressing slowly but inexorably upon the 

 enemy, and as the struggle develops it will press with increasing power. Given 

 the necessary fighting strength of good quality, its efficiency depends upon the 

 extent and adequacy of its supplies. If the struggle be protracted, then victory 

 will rest with the side which can best maintain its supplies, and it is here that 

 our wealth is likely to be a decisive factor. But it must be brought to bear in 

 the right way, and in this respect important functions devolve upon the non- 

 combatant. For many years public and private economy has been a forgotten 

 virtue — too often it came near to being regarded as akin to a vice. Now our 

 ostensible leaders of public opinion are preaching economy almost as if they had 

 discovered a new religion. Such missionary zeal, even though belated, Is 

 advantageous. War makes great changes in Distribution ; and changes in Dis- 

 tribution, when the general standard of living has been rising rapidly, are likely 

 to lead to extravagance, more especially in war-time when all conditions favour 

 waste. But economy, necessary as it is, can be no more than a step. What is 

 required is the maximum supply of goods, in excess of the needs of the civilian 

 population, which will maintain and even increase the efficiency of the fighting 

 forces. In the summer attention was concentrated on munitions, and this is an 

 instance of our national habit of concentrating on the more pressing aspect of 

 some highly complex problem. The effectiveness of the gunner on a war-ship 

 or 'of the soldier in the firing line requires the product of the labours of many 

 workers : without the full supply his value as a fighting unit deteriorates. 

 Therefore it devolves upon us to supply such goods both for our own forces, 

 and to a certain extent for some of our Allies also. The effect of public and 

 private economy is to leave more wealth in the hands of the taxpayers, but much 

 of that wealth does not consist of commodities which avail for augmenting the 

 power of the forces. To effect the necessary transformation such wealth must 

 be transferred from the owner of it, either in the form of taxation to the State 

 or in a subscription to a public loan. The Government then arranges for the 

 acquisition of the commodities it requires either by making them here or pur- 

 chasing them, whether in this country or abroad. In some cases it may be more 

 advantageous to acquire the goods we need from foreign countries by exchanging 

 our own products for them. Now, we already import considerable quantities 

 of food and other necessaries, and therefore our purchases outside this country 

 for war purposes constitute an addition to these imports. Against this we have 



^ m^story of Prices, i. ip. 309; Tlioughts and Details of Hii/h and Low Prices, 

 pp. 129, 211. 



