FALSE PROSPERITY

Dominion, Volume 10, Issue 3197, 22 September 1917, Page 8

FALSE PROSPERITY

WARNING BY ME. BONAR LAW,

Mr. Bonar Law recently repeated a warning to the people of the Old Country not to be misled by the false prosperity of wartimes into misjudging; our linancial position. "It cannot bo imagined for a moment," he said, "that a country can go on. spending money in war at tho rate we aro doing without serione disadvantage. The disadvantage will be realised more completely when the war comes to an end. As long as wo aro raising money by loan, and money is being spent and industry is going on. we are living in a false atmosphere. It will only lie when fh'at comes to an end that wo shall reali6O what the position will be, and it will be a position which will require all the sßill and wisdom which this Houso and the Government can exercise to prevent a very serious situation arising even if-and I assume that, of course—we havo won this terrible -war. "In tho meantime we have to finance tho war in the way which will do least harm. I, for one, would have liked to raiso moro money by taxation. Considering tho expenditure and the length of tho war, (ho credit of this country has been wonderfully maintained, and that, I believe, is due first to the willingness with which fho people have submitted to taxation, and, secondly, to the readiness with which they hivvn lent money. It is all very well to say that people who havo lent to tho Stato have got a good investment, and are thinking only of themselves. That is not true. I know that some firms wont to very great lengths, not only inconveniencing themselves, but also taking risks, in order to help the country. If the occasion comes for another loan no one will dream of getting tho same amount ns Inst time, but I am convinced that we shall gel. the same generous response, so far as their means allow, from, tho people with monoy to lend."