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Hokitika Guardian, 28 December 1917, Page 2

When Mr. Bouar Law asked the Commons in October last to provide an

,i dd i tional four hundred million to carry mi the war to the end of the year a large House listened with close attention to the financial statement he put forward. He was able to comfort the members with a budget of figures showing that our burden is not nearly so

heavy as Germany’s. The daily aver-

age cost of the war to Britain from April to September had been over six ct nd a half million, and to the end of the

year he estimated a very slight decline :>n these iigures. The national debt of Great Britain at the commencement of the war was seven hundred millions, but at the end of last September it was three thousand seven hundred and forty

millions, a rough (increase of a thousand mil lions a year. Tremendous figures surely. The entrance of the United

States into the war had relieved the financial tension. ‘‘l am glad to take this opportunity of saying how much

we appreciate the very generous way in which the United States have come to our assistance and that of our Allies in financing purchases in that country. It was all open secret that until America came in the method of financing our purchases there and the question of exchange were not only a serious problem but also, so far as I was able to judge,

an absolutely insoluble problem. The United States have given invaluable as-

sistance, at the same time they are incurring military expenditure of their mi at a greater rate than any other of

the Allies.” (Cheers.) "Elaborate figures were quoted to show that our expenditure is not so formidable as the periodic statements issued would seem •a indicate. He estimated that I'l 79,000,000 of our excess expenditure >vcr the Budget estimate is recoverable. Ibis included £100,000.000 advanced to Allies or paid on behalf of our overseas

Dominions, and 74J millions spent on .took, supplies, food, hides, timber, and ships. “These are book-keeping entries. I ho money will come back, though exictly when it is impossible to say. We ire like traders, increasing stocks faster

ban we soil them. The money will not come in any large a'mount until the war is oven and stocks begyi to diminish.” In comparing our financial position with that of Germany, he said our enemy’s Votes of Credit amount to £4,700,000,000, not including advances to her Allies or separation allowances. The whole of this represents additional debt—£l,7oo,ooo,ooo more than ours. The German Government have raised no part of their war expenditure from taxation. At the most they have raised £18d,000,000 of extra taxation, and, as th»' interest on their war debt alone is ££10.000,000, they come short of meeting it hv £55,000,000. (The Austrian Finance Minister in a speech, the report of which was just received, said that England was the only nation paying the interest on its war debt.) “These figures,” said Mr. Bonar Law, “are not only interesting, hut also instructive.” He thought the Germans were afraid to impose new taxation because of the effect it would have on the people’s war views. Moreover any large amount of new taxation must fall upon the well-to-do classes, those who have most influence on the decisions of the German Government, and the Gorman rulers were afraid to subject them to taxation for the war. He recalled one of his own declarations —that “ we cannot bear the strain indefinitely, but it wull not be tho want of money that will prevent us from winning the war. lor we shall be able to boar it longer than our enemies.” “The figures 1 have given, show that that view is right. (Cheers.) “Tf the war ended to-morrow the taxation we now levy would be more than sufficient. without counting excess profits, to meet the normal expenses of the Government. If the war ended to-mor-row. the German Government must either at once float an immense new loan or must put on new taxes, which have been estimated in German newspapers at many hundreds of millions. It would not help us if at the end of '

the war we found Germany hopelessly bankrupt. We must look on our burden by itself. A good deal of exaggeration has been 'used with regard to it. It is heavy, but I do not think it is intolerable- (Cheers.) I have no doubt ive shall ho able to bear a burden relatively no heavier than that which our forefathers bore after the Napoleonic wars.” The nature of the burden and our financial recovery, 'he insisted, would depend largely on the terms of peace. If it be that the objects we sot out to secure arc not secured, if the dread of tlio German army is still before our eyes, if there be still the same competition in armaments, our burden will be hard .indeed. But if tho war ends as we mean it to end—(cheers) —then I think the burden will be one which this country can bear.” (Hear, hear.”) Mr Bonar Law was complimented by an ex-C'hancellor on bis “hopeful speech.” Mr. Asquith corrected “antioptimistie,” and flic correction was accepted smilingly by the House of Commons.