tion that the war would last till March 31st
next--the date at which our financial year ends--and would then be
convenient enough to stop. Happily for us, the valour of our soldiers
and those of our Allies, the splendid success of our Fleet and our
merchantmen In bringing over American troops and their food and
equipment with astonishing speed, and the straightforward diplomacy
of President Wilson, combined to achieve victory nearly five months
earlier than the most sanguine had dared to expect. With the very
pleasant result--though it is a small matter when compared with the
end of the killing of the best of our manhood--that the financial
position is very greatly improved. With regard to the figures given
above, it should be observed that the "debts" are advances to
Dominions, but on quite a different basis from our loans to them,
being money owed by them against goods and services supplied.[1] They
and the balances in the hands of agents are both as good as gold.
Concerning the others, one is entitled at first sight to feel a good
deal of scepticism, since such articles as land, buildings, ships and
stores, bought or built by Government during a war, are likely to find
an extremely sluggish demand when the war is over. However, Mr Bonar
Law assured the House that his valuation of these amounts had been
arrived at on a conservative basis, and, what is better still, in his
Vote of Credit speech on November 12th, he was able to state that
revised estimates had shown that their value would be "far greater"
than he had previously expected. So perhaps we are entitled to take
them at L1300 millions.

[Footnote 1: Parliamentary Debates, Vol. 105, No. 33, p. 698.]

If so, we get the following results for the cost of the fighting
period:--

Total Government expenditure,
August 1, 1914, to November
9, 1918 L8612 millions.
Less estimate of normal peace expenditure 860 "
-----
7752 "
Less Loans to Dominions 220 millions.
Less Loans to Allies
(half face value) 740 "
Realisable assets 1300 "
----
2260 "
----
Net cost of period L5492 "

If war cost would be good enoug