By Lloyd George, British Chancellor of the Exchequer

That there are “also other States preparing for war,” and that financial arrangements had been made for their participation against Germany by the allied Governments of Great Britain, France, and Russia; moreover, that Russia would be enabled within a few months to export considerable quantities of her grain and do her own financing—­this statement preceded the bombardment of the forts in the Dardanelles, probably to clear the way for Russia’s commerce—­are the outstanding features of the speech by Lloyd George presented below, foreshadowing a new phase in the war.  The speech was made in the House of Commons on Feb. 15, 1915, to explain the results of the financial conference between the allied powers to unite their monetary resources, held in Paris during the week of Feb. 1.  It may be regarded as one of the most momentous utterances of the war.

PARLIAMENTARY REPORT.

The Chancellor of the Exchequer, (Mr. Lloyd George,) who was called upon by the Speaker, said:  I shall do my best to conform to the announcement of the Prime Minister that the statement I have to make about the financial conference in Paris shall be a brief one, but I am afraid my right honorable friend assumed that we are all endowed with the extraordinary gift of compression which he himself possesses. [Laughter.] The arrangements that were made between the three Ministers for recommendation to their respective Governments commit us to heavy engagements, and it is, therefore, important I should report them in detail to the House, and find some reason why we should undertake such liabilities.

This is the most expensive war which has ever been waged in material, in men, and in money.  The conference in Paris was mostly concerned with money.  For the year ending Dec. 31 next the aggregate expenditure of the Allies will not be far short of L2,000,000,000.  The British Empire will be spending considerably more than either of our two great allies—­probably up to L100,000,000 to L150,000,000 more than the highest figure to be spent by the other two great allies.  We have created a new army; we have to maintain a huge navy.  We are paying liberal separation allowances.  We have to bring troops from the ends of the earth; we have to wage war not merely in Europe, but in Asia, in North, East, and South Africa.  I must say just a few words as to the relative position of the three great countries which led us to make the arrangements on financial matters which we recommend to our respective Governments.  Britain and France are two of the richest countries in the world.  In fact, they are the great bankers of the world.  We could pay for our huge expenditure on the war for five years, allowing a substantial sum for depreciation, out of the proceeds of our investments abroad.  France could carry on the war for two or three years at least out of the proceeds of her investments abroad, and