That the loan was fully subscribed is not contradicted by the small
fraction of discount soon quoted on the full-paid loan. One could
fully pay the loan, taking the discounts on undue maturities and sell
at a fraction under 95 and still make a profit.

I believe the estimate of an annual English surplus for investment of
$2,000,000,000 per annum is far too low. This figure is upon the basis
that only about 20 per cent of the river of interest, dividends, and
profits flowing annually to British pocket-books is available for
reinvestment.

In the present war stress and with economy practised to-day more by the
capitalist classes than the laboring classes, the amount of money for
reinvestment should be far greater than this.

English finance will cut its cloth according to the pattern. If there
is only $2,000,000,000 per annum of surplus earnings to put into the
war, that money will be spent; and if England has 50 or 100 per cent
more, that money likewise will be spent, but spent so judiciously that
the largest possible sum from it is kept in channels of English trade.
The British Empire will work and finance the fight thus within a
circle, and right on its own base.

The surprising thing is that it can be called upon to extend financial
help to its allies. But everybody except Germany was caught absolutely
unprepared. The war was early on French soil, tying up the resources
of some of the richest provinces of France. Russia had so little
thought of war that, as I have previously explained, she had deposited
from her great gold reserve so that it had been loaned out on time and