When the United States entered the war the scale of its operations became so stupendous that its daily war expenditures soon far exceeded those of any other belligerent. In the second month of the war the average daily expenditures for pure war purposes were $15,000,000 and little over a year later they had risen to almost $50,000,000. By the end of 1918, the daily average war expenditures reached the staggering figure of $64,500,000.
The Economic Conference in Paris
Mr. Bonar Law talking with M. Clementel (Minister of Commerce) and M. Doumergue (Colonies) in the garden of the foreign ministry.
If, now, we attempt to present the statistics of the total cost of the war we must be mindful of the difficulties mentioned above. The figures are not entirely accurate, and cannot be made entirely accurate for the following reasons: In the first place, the last date in the official return differs from country to country. They are, however, all subsequent to the armistice, with the exception of Russia, where we have no trustworthy figures after the advent of Bolshevism. In the second place, we do not know, except in the case of the United States and Great Britain, whether the figures comprise the total expenditures or only the purely war expenditures. Even making allowance for these differences it will be seen that the total war expenditures amount to over $232,000,000,000. In Japan and some of the minor belligerents, there were virtually no war expenses. Inasmuch, however, as most of the countries will continue to have expenses attributable to the war for some little time in the future, it is probable that the total war expenditures will amount, by the end of 1920, to almost $236,000,000,000. From this must, however, be deducted the sums counted twice, because advanced to their allies by the United States, Great Britain, France and Germany. Making allowance for this, it is safe to say that the total net war expenditures will be about $210,000,000,000.
| WAR EXPENDITURES OF ALL BELLIGERENTS | ||||
|---|---|---|---|---|
| In Millions | ||||
| From entrance into war | To | |||
| Great Britain | August 4, 1914 | March 31, 1919 | £ 8,601 | $41,887 |
| Australia | August 4, 1914 | March 31, 1919 | £ 291 | 1,461 |
| Canada (inc. Newfoundland) | August 4, 1914 | August 31, 1919 | 1,545 | |
| New Zealand | August 4, 1914 | March 31, 1919 | £ 76 | 365 |
| South Africa | August 4, 1914 | March 31, 1919 | £ 33 | 243 |
| India | August 4, 1914 | March 31, 1919 | £ 119 | 584 |
| ——— | ||||
| British Empire | $46,083 | |||
| France | August 3, 1914 | March 31, 1919 | fr 169,000 | $32,617 |
| Russia | August 1, 1914 | October 31, 1917 | ru 51,500 | 26,522 |
| Italy | May 23, 1915 | October 31, 1918 | li 81,016 | 15,636 |
| Belgium | August 2, 1914 | October 31, 1918 | fr 5,900 | 1,387 |
| Rumania | August 27, 1916 | October 31, 1918 | 907 | |
| Serbia | July 28, 1914 | October 31, 1918 | 635 | |
| United States | April 15, 1917 | June 30, 1919 | 32,261 | |
| ———— | ||||
| Entente Powers | $156,050 | |||
| Germany | August 1, 1914 | October 31, 1919 | mk 204,268 | 48,616 |
| Austria-Hungary | July 28, 1914 | October 31, 1919 | kr 119,504 | 24,858 |
| Turkey | November 3, 1914 | October .., 1919 | 1,802 | |
| Bulgaria | October 4, 1915 | October .., 1919 | 732 | |
| ——— | ||||
| Central Powers | $76,008 | |||
| Total | (In Millions) | $232,058 | ||
HOW MONEY FOR WAR WAS RAISED
The question now arises as to the steps taken by the various countries to meet these stupendous outlays. Of the older expedients, such as war treasures, or the sale of public property there was naturally no question. In only one country, viz., Germany, was there a war treasure; but this was so small as to be well-nigh negligible. The only two available resources were accordingly taxation and borrowing.
When we compare these two expedients, we are struck not only by the great difference in the theories of war finance followed by the various countries, but also by the diversity in the economic conditions which largely influenced the choice. In a general way, it may be said that all countries were compelled to rely to an overwhelming extent on public loans, but that Great Britain and the United States raised a far greater share by taxation than did other countries. Italy was able to raise by new taxation only just about enough to pay the interest on the new loans; Germany accomplished this only in part; while France was not in a position to defray any of her war expenditures from additional taxation. The same is true of the other belligerents, with the exception of the British colonies.