The Evening Star FRIDAY, SEPTEMBER 29, 1939. FINANCING THE WAR.

Evening Star, Issue 23384, 29 September 1939, Page 6

The Evening Star FRIDAY, SEPTEMBER 29, 1939. FINANCING THE WAR.

Britain will prosecute her war effort until Hitlerism is destroyed. If anyone wants convincing of this point he has only to read the statement made by the Chancellor of the Exchequer on taxation to meet present and future emergencies. The occasion demands a tremendous call to sacrifice in life and treasure. It is deplorable that such should be the case, but there is no alternative. All parties in the House of Commons are agreed on the stand that has been taken, and this time at any rate they represent what is the will of all the people of the Motherland, endorsed in the farthest posts of Empire. Britain has to-bear the brunt of the struggle, not only financially and in the actual fighting, but in the nerve-racking ordeal endured by the people in apprehension of raids over cities and countryside by Germany’s immense air force. The heroic example set to the dominions and colonies should find its response in a willingness to contribute to the cause in men and money to the full extoift of their powers and resources. There should be no hesitation. To use Sir John Simon’s words, if the price of victory is high, it is a price well worth paying, for on the issue hang the liberties of the world. What we have to be thankful for is the wisdom that has guided the British Government up to the present stage. The defence forces are well equipped for the struggle, and the resources in every field of the national life are mobilised to give the best results. Sir Archibald Sinclair, the Liberal Leader, discussing Sir John Simon’s taxation proposals, gave the encouraging assurance that they do not bring the Motherland even remotely within the range of the limit of the financial strength of the country. Contrast this with the position of Germany, which in the last four years has strained its resources to the limit in carrying out its vast rearmament plans. As Sir John Simon pointed out; the German mark at present has no position in international currency, and is likely rapidly to lose its value in internal currency, with the further development of the inflationary tendency under war conditions. When delivering his Budget in April Sir John Simon said: “ We must take some proportion of the increased expeiflßiture on our shoulders by increasing taxation now. By doing so w© shall reduce opr difficulties hereafter, and we shall show the world that this country does not quail when it faces the Burden of expenditure.” That principle is re-emphasised to-day. Britain will not quail. The new taxation adds to an already staggering burden. A comparison of the income tax rates in recent years is revealing. In 1901, amid much grumbling, it was fixed at Is. That marked the beginning of a rapid rise. Last April it was advanced by sixpence to 5s 9d. Now it is to be raised to 7s fid. As will be seen from the Chancellor’s statement, every source of revenue has been explored, and the endeavour has been to spread the burden evenly with the least disturbance to trade that is possible. ________