The canvassers used all their powers of persuasion to get men of military age and sound health to enlist in one or other of forty-six "groups," which were arranged according to the ages of the men, and whether they were married or unmarried. Men were permitted to enlist in their respective groups, and remain in civil life until their own particular group was called up. Courts were set up, before which enlisted men could appear and ask to be "starred" or transferred to some later class. Only those persons without whose services the business of the country could not be properly carried on could claim to be "starred." While the canvass was in progress the Government gave notice that unmarried men would be called up before married men, and that if the unmarried men did not come forward in sufficient numbers, they would be compelled to do so. The canvass was successful—it resulted in the enrolment of very many recruits; but whether compulsion could be staved off by this system remained to be seen. Late in November it was said that Britain would have four million men in arms by the following March.
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.
By the end of May the Government was seriously considering the all-important question of money, and before long was urging on the people the necessity of being as thrifty as possible, and of saving every penny that they possibly could. Speakers went to and fro pointing out that householders must avoid waste and stint themselves of foreign goods if the nation was to have sufficient money with which to carry on a long war. Those who saved money, and gave up the use of such things as had to be imported from abroad, were doing a patriotic service, and were casting the "silver bullets" with which the war was to be won. In many thousands of homes these wise words were taken to heart; but, on the other hand, many people who were earning high wages showed but little desire to save. Something was also done to lessen the enormous sums wasted on strong drink in this country every year, by restricting the hours during which public-houses might be kept open, and by confining the sale of spirits to certain fixed times. The King set a splendid example, which was largely followed, by banishing strong drink from his table altogether.
Probably you think that all this talk about exports and imports, and the necessity for saving, is very dull, and you are eager to hear of stirring deeds by land and sea. We shall come to them in good time; but I must claim a little more of your patience before I begin the story of the year's fighting. Always remember that when the money which a nation possesses, or can borrow, gives out, it must cease to fight, and must make peace with its foes. That nation wins which has money to continue the struggle when the resources of its opponents are exhausted.
How do we obtain money with which to carry on the war? There is only one place where it can come from, and that is from the pockets of the British people. In time of peace the money for carrying on the government is raised by various kinds of taxes. People with incomes above a certain sum per year have to pay to the Government so much money for every pound which they earn or receive from investments. Those who have a lesser income do not pay what is called income tax, but you must not suppose that they go scot free. Spirits, beer, tea, coffee, tobacco, sugar, cocoa, dried fruits, and other things have to pay a duty—that is, a certain sum is added to their price, and this sum goes to the Government.
In time of war, when the expenses of the Government are much greater than they are in time of peace, the old taxes are raised and new taxes are imposed. In September 1915, for example, the taxes were raised some 40 per cent. Money is also raised from the savings of the people. They are asked to lend money to the State at a certain rate of interest, with the promise that the sum which they lend shall be paid back again in full at the end of a certain period. Of course, this interest has also to be provided by the taxpayers. Three hundred and fifty million pounds were borrowed in November 1914, but by June 1915 it was found necessary to borrow more money, and a loan of nearly six hundred millions—"far and away beyond any amount ever subscribed in the world's history"—was placed at the disposal of the Government. One feature of this loan was the attempt to get persons of small means to participate in it. Vouchers for 5s., 10s., and £1 were issued, and working men, and even school children, were encouraged to buy them. Unfortunately only about five millions were raised in this way, and later in the year other arrangements were made, in the hope of bringing in more money from the savings of the working classes. In September the people of the United States lent the British and French Governments one hundred millions, and this money was used to pay for some of the munitions and other things which we were buying from America.