vernment, and which cost
so many hundreds of thousands of dollars.

Previous to the time Great Britain declared war on Germany the House of
Commons had voted $525,000,000 for Emergency purposes, and within a
couple of days of this appropriation an additional $500,000,000 was
granted by the British Parliament.

One of the things accomplished by war was to bring out the fact that the
resources of individuals are far greater than is ordinarily suspected.
In 1870 Bismarck imposed an indemnity of $1,000,000,000 on France, never
believing that country could meet the great debt, but with the help of
all the inhabitants the debt was lifted within a few months.

When countries are at war the cost of continuing fighting does not stop
with those actually engaged. The trade of the world is affected, and
this means loss in all quarters of the globe. Of the import trade of the
United States more than $500,000,000 was directly with those nations
engaged in the war at the opening of hostilities. This was out of a
total of $1,850,000,000. A great part of this commerce is classed as
among that which yields the greatest import tax, which means that
internal taxes must be imposed on the people to make up for the money
necessary to meet with the yearly loss occasioned during the continuance
of the war.

ANNUAL NATIONAL INCOME.

In the United States there is an annual national income of
$50,000,000,000, the total bank resources being $35,000,000,000, the
individual deposits being $24,000,000,000, with cash held by the banks
totaling $2,500,000,000, total gold stock in the country being
$3,000,000,000, and available additional commercial credits on the basis
of cash holdings totaling $6,000,000,000.

The borrowing power of the American Government does not total less than
$40,000,000,000, from domestic sources, and this does not disturb the
ordinary financial and economical affairs of the nation.

During the first five months in 1917 the Government of the United States
reached a record for expenditures never before equalled in American
history. The total amount expended was $1,600,000,000.

The chief item of the increase--$607,500,000--was the purchase of the
obligations of foreign Governments in exchange for loans advanced to the
Allies. The sum did not represent by approximately $140,000,000 the
total amount authorized in loans. An increase of approximately
$245,000,000 in the ordinary disbursements of the Government, chiefly
due