BRITAIN'S WAR FINANCES

Dominion, Volume 10, Issue 3146, 26 July 1917, Page 5

BRITAIN'S WAR FINANCES

CREDIT VOTE OF £650,000,000 PASSED

CHANCELLOR'S SPEECH

ADVANCES TO, ALLIES

INCREASED

London, July 24. In tho Houso of Commons, Mr. "Bonar Law, Chancellor of the Exchequer, in moving the vote of credit for said it was larger by .£150,000,000 than any previous vote. Tho average daily expenditure at the last voto exceeded the estimate bv .£1,000,000 daily. Tho estimate was .£5,411,000 a day, whereas during tho 112 days of tho financial year the daily expenditure was .£6,795,000. The increases were: Army, Navy, and munitions, .£500,000; advances to tho Allies and Dominions, .£500,000; and miscellaneous, .£300,000 daily. Ho was somewhat disappointed that, despite tho aid from America, our ndvances to the Allies had increased. Tho Government held throughout that where the Allies wero conoerned monoy spent on them was spent on ourselves. We were not fighting for ourselves alone. He was satisfied tliafc the United States would deal with this question in the same spirit, realising that Britain relied upon receiving from the United States resources what were necessary to pay for supplies of. all kinds for tho Allies. The total advances to the Allies and donations amounted,to .£1,025,000,000, but the total advances'to tho Dominions was only ,£146,000,000. Tart of the increased Army expenditure was due to greater payments made to India because a larger force had been obtained from that country than had heei] expected. The expenditure i:pon aeroplanes had also been increased. Tho daily increase in expenditure, apart from loans to our Allies, and allowing for that which would subsequently be repaid, was .£300,000. The Budget estiniato would be largely exceeded, mainly owing to the advances to the Allies. The total votes of credit since the war began aggregated ,£5,292,000,000. "Now that the country with the greatest resources in tho world has thrown her forces on our side,. it was truer than over that wo would not want money to prevent us from winning." Mr. R. M'Kenna (a former Chancellor) said that tho present position was that our total expenditure was eight millions per day, and the revenue was two millions. If this continued it would mean an addition of 40d. to the income tax, making over eight shillings altogether. That would cripple trade. The remedy was in the curtailment of expenditure. Further labour unrest was certain if prices continued to rise. Tho credit vote was adopted.—Router.