The Dominin WEDNESDAY, JUNE 23, 1015. FINANCING THE WAR

Dominion, Volume 8, Issue 2495, 23 June 1915, Page 6

The Dominin WEDNESDAY, JUNE 23, 1015. FINANCING THE WAR

The British Chancellor of the Exchequer (Mr. M'Kbnna), in presenting his Budget to Parliament, appealed to the patriotism o£ the people to ensure that the gigantic financial resources of_ the country will be at the disposal of the Government to enable it to carry the war to a successful issue. The appeal is not likely to fall on deaf ears. From the outset of the war Parliament and people recognised that the Government must have all tho money it' requires, and _ enormous sums havfl been voted without a voice being raised in opposition. Mu.. M'Kenna's proposal to make provision for the sale of £5 bonds, and up to £25, through the Post Office, and for tlio investment of small sums from five shillings upwards in war loan .vouchers, is a departure which may be expected to evoke a prompt and hearty response. It will givo those people who cannot fight for their country an opportunity of helping in another, and' - -a very practical, way. People of limited means- will be ablo to invest their savings in a way i that will materially assist the nation in defeating its enemies. It will increase the general sense of _ responsibility, and its effect is bound to be good. It will encourage thrift among the people, combined with the spirit of "sacrifice, and when the conflict is over normal conditions will be restored more quickly than would otherwise be the case. It is a tremendous task to finance a war which is costing nearly £3,000,000 a day, but the resources of Britain are gigantic, and the nation knows that its all is at stake. A few days ago tho Parliamentary correspondent of the London Times predicted that Mr. M'Kbnna's Budget would be the "most terrific instrument" in Britain's financial history. No reasonable man could expect anything else, for the "most terrific" conflict the world. has ever known cannot be maintained without tho expenditure of colossal sums of_ money. In explaining the position in May last, Me. Lloyd George, who was then Chancellor of the Exchequer, estimated that the expenditure for the current year (1915-16) would be no less than £1,132,654,000. In looking out on "a financial vista at which Pitt. Gladstone, and the other greas masters of national finance of bygone years would have turned giddy,to quote the words of a London newspaper, Mr. Lloyd George "talked of the prospective billions which he may be called upon to find without a quiver of emotion; and' the grim-faced business men of Great Britain who sat contemplating the prospect of heavy sacrifice being gradually unrolled before them heard him without a murmur. ' This is what we are pleased to regard as the typical dogged British way of facing a national crisis. No tumult, no hysteria, no boasting. Without wincing or whining, tho business men of Britain have seftheir teeth, unflinchingly resolved to see the struggle through to the end at all costs, well knowing that a bill will have to be paid of such magnitudo that in comparison with it all previous war bills will dwindle into utter insignificance. The following figures giving the revenue and for the past three years give some idea of (lie meaning of the"war from the financial point of view: — 1013-14 (Last Full Year of I'eacr). Tlei-emie JEIBS.SIi.OfIO Kv|i*iiililurp. Awnlus ' u .'' \*i! '•'

litU-15 (including Eight Jlonllis of War). Revenuo 1122(1,001,OOU Exnenclituro IMicit met by Loans .... .Ull.l!!,780,00(1 1!) 15-!(> (on BaMS of l'nll Year of War). iievemie J:270,!i;i2,0f10 Expenditure .£ 1,1.' 12 (ifi 1,000 Deficit 8(12,1122,000 Mil. Lloyd Guohob states the actual cost, of the war during the first eight months as under: — l-'iivil lour months .0102,000,000 Second funr months U77,000,000 Advances to Dominion. 1 , ami Allies LTi2,:i70,000 I'urdiases of wheat, meal. etc (Not stated) Total for months .. .l';i'i!l,7S(i,(lfi() Average daily (twt of war X2,100,0(10 The National Debt at the commeiicomcnt»of tho eoullict was .IwOT.OijI.OOIJ. On Mitrcli 111 last it stood at JKI, 165,802,000. Is what wo are lighting for worth the expenditure of nil this treasure, and the lives of thousands of the best of our young men / This question is best answered by another: Is the Empire worth these sacrifices? All that we possess and all that the British Empire stands for is at stake. Indeed, not the British Empire only, but the freedom of tho world depends upon the result o£ this war. If wc lose wc lose honour, independence, and everything elto wo hold dear, and the world will cower under tho iron tyranny of the brutal Teuton. To save themselves and others from such a fato tho British taxpayers ancl Britishers in all parts of His Majesty's Dominions are fully resolved to spend their last shilling, if needs be. In the matter of finance ( Britain is in a much stronger position than her enomies, yefc, as Mil. Lloyd George has pointed out, the financing of the gigantic.sum needed to carry on the struggle must be a grave operation; but wo have the satisfaction of knowing that Germany must be feeling tho strain much more severely. Nevertheless the task of the British Chancellor of the Exchequer is a stupendous one, for ho has not only to raise money for Britain herself, but also for those of our Allies who are less fortunately placed. Mr. Lloyd George holds that the only straightforward, reliable course that will not have a bad effect after the conflict is over is to depend more largely iipon the incomo of the country. In peace time this amounts to the great sum of £3,400,000,000, and it is probably higher now, as an enormous amount of borrowed money is being spent while men are earning good wages and profits are higher. It should also he borne in mind that Britain's trade is going on all the time, She is thus earning the money towards paying the war bill, whereas the overseas commerce of Germany has been annihilated. Britain's financial problems undoubtedly provide ample scope for all tho financial skill at the disposal of the Government. Mb. Lloyd George tells us that they are "full of difficulty and perplexity, but they are not insuperable to a nation which has the temper and tho necessary unity to face them."