ASSETS IN HAND 245

cent.; but let us follow the ex-Chancellor's example
and take loans to Allies, which we will estimate at
^1480 millions up to November gth, as good for
£740 millions, and loans to Dominions at £220
millions up to the same date, a total of ^960 millions,
to be deducted from gross war cost. Concerning
£740 millions of this sum, however, there is a certain
amount of doubt. No one questions for a moment
the solvency of France and Italy, but in view of the
pressure that the war has exercised on their producing
power, and, in the case of France, the complication
added by the uncertainties of the position in Russia,
in which French investors are so deeply interested,
one cannot feel sure that they will be able at once to
make interest payments. Much will depend on the
sums that they are able to recover from Germany
against their bill of damages, on which more anon.
But in any case it seems likely that a general scheme
of interest funding, as between the Allies, may have
to be adopted for some years to come.

As to the other assets that we have to set against
our gross expenditure during the fighting period,
they were enumerated by the ChancellorMn his
Budget speech last April in the following terms :—

Balances in agents' hands, debts

due, foodstuffs, etc....... -£375 millions.

Land, securities, buildings and ships 97 „
Stores in Munitions Department

(cost price 325 millions) taken at 100 „

Additions this financial year ... 100 „

Arrears of taxation ...... 500 ,,

« *Total ...... £1172

* Parliamentary Debates, Vol. 105, No. 33, pp. 698-699.

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