Internal War Loans Belligerent Countries

Internal War Loans of Belligerent Countries
General Analysis
AT the outbreak of the present war it immediately became
evident that the financial operations would be
nearly as important as the conduct of the actual military
campaigns. As early as September, 1914, Mr. Lloyd
George made the following pertinent statement in regard to
war financing:
"In my judgment the last few hundred millions may
win this war. The first hundred millions our enemies
can stand just as well as we can; but the last hundred
millions they cannot, thank God. Therefore, I think that
cash is going to count more than, possibly, we imagine at
the present time. We are fighting a very tough enemy
who is well prepared. He will probably fight to the very
end before he will accept the only conditions upon which
we can possibly make peace. That is where our resources
will come in, not merely of men but of cash. We
have won with silver bullets before. We financed Europe
in the greatest war ever fought and that is what won."
The advantage of banking resources greater than those of
the enemy is well appreciated to-day after nearly four years
of war conducted on a scale hitherto unknown. The possession
of "silver bullets" is not only essential, but their utilization
along sound financial lines is imperative.
It is the purpose of this review to analyze in a brief impartial
manner the internal war loans of the various belligerent
nations and explain the unusual features which have been
introduced. A study of internal war loans is particularly interesting
and instructive at this time after our own Government
has recently completed the sale in a most successful
manner of its Third Liberty Loan. '
The necessity for extraordinary expenditures by a Government
under war conditions is too well known to require more
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