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 £2,000,000,000. The British Empire will be spending considerably more than either of our two great allies--probably up to £100,000,000 to £150,000,000 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 both countries would still have something to spare to advance to their allies. This is a most important consideration, for at the present moment the Allies are fighting the whole of the mobilized strength of Germany, with perhaps less than one-third of their own strength. The problem of the war to the Allies is to bring the remaining two-thirds of their resources and strength into the fighting line at the earliest possible moment. This is largely, though by no means entirely, a question of finance.