INTER-ALLIED DEBTS. An examination of the methods by which the Allies financed the cost of the World War (that is to say, the difference between normal pre-war expenditure and actual expenditure for the period 1914-19 inclusive) can only give approximate results, but it is estimated that of the total war ex penditure 6% was met by taxation, 7 7.2 % by home borrowing, by loans between the Allied Governments themselves and 2.3% by borrowing in other foreign countries. In general the funds placed by the Allies at each other's disposal were utilized, not for internal expenditure by the borrowing country, but for purchase in the lending country of military stores and supplies and, in certain cases, for exchange stabilization and interest pay ments on pre-war external loans. At one time or another during the war all the Allies employed this means of obtaining funds abroad, but only three of the Allied and Associated Powers acted to any appreciable extent as lenders, namely Great Britain, the United States of America and France, the advances made by Italy being comparatively unimportant. It is extremely difficult to ar rive at any accurate estimate of the total sum of these transac tions, as the statements published by the various Governments are computed on different bases. In the cases, however, of Great Britain and the United States all the large debts have been funded, with the exception of those due from Russia, so that it is possible to attempt some survey of the whole question. It was only in 1927 that France began to collect the debts due to her and in many cases the amount of these debts is still in dispute.