There was relief among States members following Britain’s endorsement of a new law enabling the raising of a war loan. The £50,000 is required to cover the ongoing cost of Militia mobilisation, which is now into its fourth month.
Since calling out the Militia in the days leading up to the outbreak of war, the cost of defending the Island has been running at more than £1,000 per week. This expense was not in the Defence Committee’s annual budget for 1914 of course.
In recent weeks, as the extent of the shortfall in States’ finances became clear, the Finance Committee, with the full support of the Bailiff, decided to raise additional funds through the issuing of government bonds. But while the States swiftly passed a law enabling such an act, Britain’s Privy Council referred the matter to HM Treasury for scrutiny. The delay that followed was only resolved through a series of high level and increasingly anxious letters and telegrams.
Now that the law has been rubber stamped, it is generally hoped that the loan, which local banks will provide, is sufficient to see the Island through the war.