RECUPERATION

Dominion, Volume 11, Issue 273, 7 August 1918, Page 6

RECUPERATION

.; —* AFTEH WAR FINANCIAL PROBLEMS

DEBATE IN THE HOUSE OF LORDS

(Eec. August 7, 1.15 a.m.) London, August 5. In the Houso of Lords, Lord Inehcape drew attention to the financial situation. Ho said that the high income tax ietarded the development of the country's resources. Germany's finances after tho war would bo worse than ours, but that was small comfort, lie estimated that if the war euded next March our debt •■ would bo at least six thousand millions, necessitating an annual payment of 330 millions, making the total expenditure seven hundred millions. But the war must bo' continued until the enemy accepted the Allies' terms. We were now • living in a fool's paradise. The nation • mint produce and export more, and consume less. Though the country possessed gro.it recuperative capacity, lie feared that we must go through a long period of >" self-denial and sacrifice. Lord Faringdon said that if the nation were to remain solvent many contemplated after-war schemes must be set i aside. Any attempt to- penalise wealth, to interfere with the sanctity of capital, would be disastrous.. He concluded: "Tho Bolshevik repudiation of the Russian debt .ended in the Starvation of the Buseiaiv people." Lord Uurzon said he was afraid it would ba unwise to attempt to go forward too.fast with too ambitious an nfter-war programme, but hs expresscji the opinion that the Government of tho day would bo swept off its feet by a pereisient demand for rebuilding the shattered world.—A-iis.-N.Z. Oiblo Assn.