THE GIBRALTAR OF THE ALLIES

Dominion, Volume 9, Issue 2850, 15 August 1916, Page 5

THE GIBRALTAR OF THE ALLIES

SOMETHING FOR AMERICA TO DIGEST Australian-New Zealand CVible Association, New York, August 13. The Chancellor of tho Exche<juer (Mr. Reginald M'Konna), in a special interview with the London correspondent of tho New York "Times" after referring to the enormous expenditure involved by tho war said: — "Our position is so sound that if wo wore to end the war in March, 1917, the present taxation would provide not only. tho whole peaco expenditure and interest on the .National Dobt, but a Kinking fund which would redeem the . debt in less tliau forty years, and still allow us a surplus which would cnablo us to reduce taxation. The same impulse which brought the young men to tho colours is now helping the mobilisation of. wealth and the restriction of consumption. An important part of the financial mobilisation is that individuals have greatly helped the Government by their willingness to lend American tho amount of which ;is now so great that it has entirely, relieved mo of any fears regarding our ability to provido exchange and meet' expenses in .'America. Wo have kept the value of the pound in Now York at 4761, aud I have every hope it will continue. "Compared with this figure," added the Chancellor, "the history of tho German mark is pitiable. It has fallen lower and lower, and now stands at a discount of nearly 35 per cent. If ' ' Germany wants to make ends meet after tho war she will be compelled to double; her present taxation, which will not be accomplished without, a revolution. . It is noticeable that the Germans' recent boasts , that they will meet their huge bill bv war indemnities Is no longer heard. tJnparalleled taxation has been borne in Britain without complaint. We have learned to.do. without luxuries, which is tho truest test of patriotism. I cannot be sure whether good or bad times will follow a.successful issue of the war—my personal view is that times will not be bad —but, with the strengthening of our national character, we are prepared for either event." REGULATING THE RATE OF ( ' EXCHANGE London, August 13. The scheme for regulating exchange by 'loan to tho Government of securities has been extendod to apply to European neutral, South American, and Japanese securities." WAR DOLLARS FROM AMERICA HOW THE BELLIGERENTS HAVE ' BEEN ASSISTED. . New York, August 13. The New .York ' "Times" states that ii new loan of. 250,000,000 dollars to Britain may be closed this week. This will make the total of loans by Ameri-, cans. to belligerents more than 1,000,000,000 dollars. l The largest loan ' was the bond issue of 500,000,000 dollars to Britain and Franbe. In spite of the neutrality which she had endeavoured to maintainj the United States had played an. important part in financing the war, and tho indications were that the States would be called on for money to provide the sinews of war ■ until the struggle, was ended. . .