er or more calculated to make progress, and the changes after
the war which will come, sound and steady than widely-spread,
democratically-subscribed loans. These vast debts will have to be
paid by the ability, productiveness and work of all, so it is in the
highest degree desirable that the money and interest to be paid back
should go out to every class of the community--and not only to small
sections. It is well to remember, too, that the country that goes
to the peace table financially sound is in a position to make better
terms.

[Illustration: ONE OF THE POSTERS RECENTLY ISSUED BY THE NATIONAL WAR
SAVINGS COMMITTEE]

But the purely financial side of war savings is not the most important
one. We talk in terms of money but the reality is not money but goods
and services. The problem before our Governments and the problem
that cannot be left to our children (though the debts incurred in
securing the credits may be) is the problem of finding every day over
$30,000,000 worth of material and labour for the struggle. War savings
among the people is not only essential to secure the money needed--it
is far more essential from the point of view of securing the cutting
down of the consumption of goods and labour by our peoples.

Economists in peace time argue over what is termed "luxury"
expenditure, the wasteful expenditure of peace. War expenditure may
be correctly termed wasteful to a very great extent, and no country
can carry both of these expenditures and remain solvent. Luxury
expenditure should be entirely eliminated and the material and labour
which was absorbed by it should go into the war. If this could be
done completely, little damage would be done to the nation's economic
position. The thing to be clearly realized is that all the productive
effort of the nation is needed for three things--the carrying on of
the war--the production of necessaries and the manufacture of goods
for export. Every civilian who uses material and labour unnecessarily
makes these tasks harder and goes into the markets as an unfair
competitor of the Government. Every man and woman who saves five
dollars and lends it to their country give their country what is far
more important than the five dollars. They transfer to the Government
the five dollars worth of material and labour they could have used up
if they had spent it on themselves and that is its real value. This
means the needful purchases of the State are substituted for, instead