Money, as you know, is "the sinews of war." Without money, and a great deal of it, armies and navies cannot be arrayed, or kept in the field. The British Empire, according to the statement of the Prime Minister, has a yearly income of £4,000,000,000. This sum is vast, but so was the cost of the war. In March we were spending five millions of money a day. If you work out a little sum, you will see that one year of war at this rate uses up not far short of half the total money earned in a year by the whole British Empire. Of course, in war time the Empire cannot produce as much wealth as it can in times of peace. Large numbers of men are taken away from their work, and, instead of being producers, they have to be kept and fed by the nation. Thousands of factories are engaged in making war material for the Government, and they do not, therefore, add to the national wealth at all. Our overseas trade falls off greatly, because we need many of our merchant ships for transport and supply, because we cannot produce such large quantities of goods for export, and because we cannot trade with enemy countries at all. In time of peace the goods which we get from other countries are paid for by the goods which we send to them, by the money which we receive from foreigners for carrying goods to all parts of the world, and by the interest which comes to us from money which we have invested abroad. Usually these three items not only pay for our imports, but give us a large profit as well. In time of war, however, we are in quite a different position. At all times we must import much material from abroad. We are always obliged to import the greater part of our food and the raw materials for our factories. During the present war we have also been obliged to import large quantities of machinery and munitions from the United States. Our imports of goods always exceed our exports of goods in value, but in time of war the imports soar up to a great height, while the exports sink. For example, the excess of imports over exports during the first nine months of 1914 was 99 millions, while for the same period of 1915 it was 256 millions. Thus you see that, while the war lasts, our exports, the profits on our shipping trade, and the interest which we receive from foreign investments are not sufficient to pay for our imports. In order to make up the balance, we must either draw on our national savings or run into debt. If we draw on our savings, we shall have so much the less money left for the expenses of the war. If we run largely into debt, we shall find ourselves heavily burdened when the day of peace arrives.