During the financial year preceding the outbreak of the war, the total expenditure of the Government of Great Britain was $987,464,845. The hostilities have imposed upon the United Kingdom vast expenditures. "For that period"—again quoting the War Cabinet Report—"from the 1st April, 1917, to the 1st December, 1917, the total Exchequer issues for expenditure (including Consolidated Fund Service and Supply Services) were £1,799,223,000,—($8,796,115,000) representing a daily average for that period of £7,344,000 ($36,720,000)."

At this rate of expenditure, the total for the year equals at least $13,500,000,000. But the financial charges entailed by the war being constantly on the increase, they can be calculated at a daily average of no less than $40,000,000 until the close of the conflict.

England has not only incurred very heavy financial obligations, met both by an enormously increased taxation and the issue of large National loans, to pay the cost of her own war expenditure, but she has also generously helped her friends whose financial resources were not so abundant as her own. To the 1st December, 1917, she had made advances to the Allies amounting to no less than $5,930,000,000. In addition to this large amount, the advances she had made to the Dominions for the same period summed up $875,000,000.

Achievements of Dominion, Colonial and Indian Troops.

Under the above title, the War Cabinet Report concludes a general review of the past year's effort by paying high tribute to the value of the services rendered by the whole British Colonial Empire, in the following elogious terms:—

In the above sketch of military operations during the past year, it has not been possible to distinguish between the particular services rendered by the various nations and nationalities of the Empire. But it must not be forgotten that during the war the forces of the Crown have become welded into a true Imperial army, representative of every part of the world-wide British Commonwealth, and a brief note may be included as to the special services of the various overseas forces.

The share of the Australian, New Zealand, Canadian, South African and Newfoundland contingents in the successes of the 1917 campaign are well known. The capture of Vimy Ridge in April, the prolonged and bitter fighting around Lens during the whole summer and autumn, and the capture of Passchendaele were carried out by the Canadian Corps, which has thus proved itself as excellent in offensive as its splendid defence of Ypres in 1915 had shown it to be in defensive fighting. The New Zealand and Australian contingents have corresponding achievements to their credit in their share of the battle of Messines and in the long sustained and bitterly contested fights in the Ypres salient from July to November. The South African brigade sustained the brilliant reputation which it won last year at Delville Wood by the devoted services it rendered on the battlefields of Arras and Ypres. Finally, the Newfoundland Regiment took a glorious and costly part in the same two battles. The troops of all the Dominions have shown themselves throughout the campaign of 1917 to have maintained the historic standards of the British Army and have been worthy rivals of the United Kingdom troops in every military effort and achievement.

This testimony to the services rendered by the Dominions would not be complete without some reference to the part played by South Africa in German East Africa, where her troops have borne, under the brilliant leadership of General Van Deventer, a conspicuous share in a peculiarly arduous campaign.

The smaller Colonies and Protectorates have naturally been unable to play so great and conspicuous a part in the World War, but in their own spheres they have contributed their full share to the military effort of the Empire. Labour and fighting troops were freely drawn upon for the Mesopotamian and East African theatres. West Africa, British East Africa, Uganda, Nyasaland and Rhodesia have all sent contingents to fight in German East Africa. 16,000 men from the West Indies have been sent across the Atlantic; and labour corps from the Eastern Colonies have been sent to the Mesopotamian and East African fronts, and, despite unfavourable conditions, to the Western theatre. A large number of individuals from overseas possessions, such as the Malay States and Hong Kong, have also joined the Imperial forces.

Finally, India's contribution, both in man-power, material and money, has steadily increased throughout the year. India has taken a very important share in the victorious campaign in Mesopotamia. The great majority of the troops in this theatre of war are Indian. They have fully sustained the high reputation of the Indian Army for gallantry and endurance. India has been responsible for much of the supply, medical and transportation system by water and on land. Indian forces have also rendered conspicuous service in France, Egypt and East Africa. The question of the supply of officers, especially medical officers, has been solved; commissions have been granted to Indians, and a voluntary Indian Defence Force is now being organised and trained. Special mention should be made of the loyal and effective assistance of the Indian ruling princes and chiefs, from the smallest to the greatest.