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.