The almost astronomical figures recorded elsewhere of the cost of the war to Britain—an estimate for the financial year ending next March of £3,466,790,000 against a revenue of £1,360,000,000—are an indication of the great strain upon the national resources which is being imposed by the present: fight for freedom. It would be idle to deny that to meet bills of this dimension the utmost effort and sacrifice will be called for from the peoples of the British Empire. And it must besexpected that the costs will increase rather than diminish, in spite of the fact that a proportion of the figures quoted must be put down to the rearmament programme which was decided upon before the outbreak of war. Not all of the expenditure is unproductive, for some of it goes in pay for the services and wages to worker, which find their way back into circulation quickly. But a very great part of it must be reckoned as the price of raw materials necessary for purely war purposes, and such purchases necessitate expenditure of foreign exchange which can only be compensated by increased exports to a limited market. With the change over from peace to war economy and the concentration of industries for export, which was slow at the beginning of the war, being speeded up, the foreign exchange situation is rapidly improving, and it may soon be confidently predicted that this particular drain on Britain's resources will be reduced to a minimum, Even though this export drive is still in its initial stages, the eminent st, Mr. J. M. Keynes, who is noted for his fearless presentation of the truth, no matter how unpleasant it is, broadcast on September 23 that, after a year of war, Britain remains richer in national wealth than at the beginning of 1937, He saw no significant signs of inflation, and he pointed out that it had not been necessary in the first year of the war to ask for serious economic restrictions. In spite of the terrific drain on Britain's wealth, he saw no reason to fear that there would be a lowering in the standard of living of the people after the war. In short, without minimizing the seriousness of the situation or the weight of the calls which the British people must meet, he was cheerily optimistic. From an economist of Mr. Keynes' reputation such an estimate can be taken to mean precisely what he says. Mr. Keynes has been critical of the Government's financial policies in the past; he is the advocate of a system of compulsory savings to safeguard the nation's financial power. But he himself admits that the Government is meeting the present demands adequately, and that there is no immediate need for compulsory savings, as he seemed to think there might be when he put forward the scheme in the very early stages Qf the conflict, Great though the sacrifices which the future holds in store may be, there seem to be no signs at present that Britain will not be able to stand them. Does the same apply in Germany? Germany, it should be recalled, has been under almost war strain for five or six years. How much longer can it last?
Text read from the printed page and cleaned; old type leaves the occasional error.