MONEY AND THE WAR.

Taihape Daily Times, 30 January 1918, Page 3

MONEY AND THE WAR.

POWERFUL "SILVER BULLET.",

EMPIRE'S SOUND POLICY.

The views of the Hon. Arthur M Myers, Minister for Munitions ana Supplies, regarding the financial and economic aspects -of the war were expressed by the Minister in an interview on Saturday. In referring to the present evidences of dissatisfaction and unrest in Austria, Mr. Myers said that until authentic information was received it was not possible to express an opinion, but evidently, as was anticipated, the economic position of the Central Powers was now being felt. In addition to the stringent conditions being brought about in Germany and Austria by the rigorous blockade there was another factor, potent and irresistible, working on our side, steadily bringing nearer the day on which the Allies would settle such terms ol peace as would ensure freedom ana safety for the democracy of future

iages. Many references, said the Minister, had been made during the war to tn» power of the "Silver Bullet." As time went on, events only served to confirm one's optimism in respect of the ability of Britain to sustain the gigantic burden entailed by the provision of the funds necessary to prosecute the struggle to a decisive finish. Up to the end of September, 1917, the gross national debt of Britain had risen to some 5000 millions, of which sum, however, 1300 millions would be recoverable from the Dominions, our allies and India, leaving Britain's net national debt at the date mentioned at some 3000 millions, after deducting the amount of debt already incurred before the outbreak of war. At the end of March next Britain would have raised by taxation a sum approaching the unprecedtened total of 2000 millions, so that, to that extent, posterity would be saved the additional burden of debt entailed by the forces of destruction now at work. Germany, Mr. Myers continued, stood in a much less satisfactory position than Britain; her net war debt was very much heavier. Leaving out of account all separation allowances—which, of course, were included in the British total, but which in Germany were paid by the individual States—the known expenditure on the war by Germany to October last was 4700 millions. The interest alone on Germany's war debt was 240 millions per annum, to meet which, it was stated, the Government was raising 185 millions per annum. When, in addition to this great annual deficit, it was remembered that the German war costs were increasing more rapidly—to the extent of 35" per cent —than were Britain's; that the Home Country was able to continue to meet a larger proportion of the cost of the war by taxation each year; also, that'no addition had been made to the British war debt without full provision having first been made for meeting the charges so incurred, it did not take a very discerning mind to decide as to whicn country was the nearer to collapse, both from the financial and the economic point of view In respect to the positio'n in New Zealand, Mr. Myers said that whilst Britain had actually reduced her war debt each year by the amount of taxation imposed and collected, New Zealand had adopted a different method*. At the present time, the Dominion had reserve funds, consisting of surplus revenue over expenditure, amounting to £6,500,000, in round figures. Instead of reducing our war debt each year by the amount of surplus shown in the Budget, we were accumulating the same, and investing it; so that, meanwhile, it was bearing interest, and so increasing in bulk. In the future, as Sir Joseph Ward has stated, this accumulated surplus would be available for the reduction of the liabilities we were* incurring In playing a full part in the fight for all that made life worth living. In regard to Australia, the Minister remarked that, as recently announced, the estimated war expenditure to June, 1918, was £214,880,673, of which £25,83?,-, 916 would be paid out of revenue and £189,045,,757 out of'loan.