has exercised on their producing power, and, in the case of France, the complication added by the uncertainties of the position in Russia, in which French investors are so deeply interested, one cannot feel sure that they will be able at once to make interest payments.  Much will depend on the sums that they are able to recover from Germany against their bill of damages, on which more anon.  But in any case it seems likely that a general scheme of interest funding, as between the Allies, may have to be adopted for some years to come.

As to the other assets that we have to set against our gross expenditure during the fighting period, they were enumerated by the Chancellor in his Budget speech last April in the following terms;—­

Balances in agents’ hands, debts
due, foodstuffs, etc L375 millions. 
Land, securities, buildings and ships 97 "
Stores in Munitions Department
(cost price 325 millions) taken at 100 "
Additions this financial year 100 "
Arrears of taxation 500 "
—–­
Total[1] L1172

[Footnote 1:  Parliamentary Debates, Vol. 105, No. 33, pp. 698-699.]

It will be remembered that in his Budget speech the Chancellor was proceeding on the assumption 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.]