COST OF THE WAR.

Taranaki Daily News, Volume LVII, Issue 182, 11 January 1915, Page 4

COST OF THE WAR.

.Ail interesting article dealing with the cost of tin' war appeared in the Christchurch Press 011 Tuesday last. Our contemporary states that the British public first learned the costliness of tile present stupendous campaign when Mr. Lloyd George brought down his budget 011 November 17. Such a budget hail never before been presented to the I louse of Commons. The figures were staggering. The revenue for the year had been estimated at £207,140,000, but owing to the war, the Chancellor expected it to reach only £195, i 90,000. The expenditure had been estimated at £•20(1,924,000. Actually it will amount to .C32S, 1 13,000 more than that, or £535, 307,000. Accordingly, Mr. Lloyd George had to face a deficit of £339,571,000. lie proposed to fill up this huge hole by the following means: JSV.V taxation. £15,500,000; suspension of sinking fund, £2,750,000: and, from existing loans, £91,000,000; aid from the new war loan, £230.321,000. The new taxation appears to be extraordinarily small, but this is due to the fact that the new taxes will not be fully imposed tli is year, while the taxes on beer and tea will be operative only for a small park of the year. Tho Chancellor, whose budget was received with perfect calmness, and subject to a very little and reasonable and friendly criticism, pro-

posed to double the income tax, to add 3d to the beer duty, and to inroad a duty of 17s lid a barrel on beer. This year, however, only one-third of the increased income tax will be levied. The new taxes will yield, when in full operation next year, tne sura of £85,550,000, which will be reduced to £05,000,000 by concessions on license duty. Before the war ends, perhaps, fresli taxes will be necessary, for there is no limit which it is safe to put to the probable cost of running the war. The Chancellor gave some striking figures as to the | cost of wars in which Britain was engag- j led in the. past, 'j ue total cost of the ! Trench wars at the end of the 18th and ! the beginning of the l'Jtli century was .€831,00(1,000, but this was spread over twenty years, making an average of 040,000,000 a year. The total cost of the Crimean war was £07,500,000, and I it was spread over three iinancial years. I Tiie Boer War cost .0211,000,000, spread | ever four financial years. The first full | .Tear of this war will cost, the Chancellor estimates, £150,000,000! Those who I may grow faint at such a lignre, and I may wonder how, and even whether, I Britain cnn pay the bill, ought to reflect upon some very consoling facts. At the ' end of the 18th century, the income of the nation was not more than £250,000,000 a year. To-day it is estimated at £2,300,0w1,000 a year. Mr Lloyd Heorge's taxation proposals are ve?y modest, compared with those which were called forth by the French wars. Everything was taxed in those, days—income, alcohol, food, light, auctions, everything the Chancellor of the Exchequer could think of. Actually, irie Government took from one-fifth to nearly one-third of (lie nation's income for public purposes. As .Mr Lloyd George pointed out, "If we rose to llle heroic level oT our 'ineestors, we should be raising to-day a revenue of between .0-150,000,000 and £700,000,000, and no borrowing would lie necessary." The heroic level of our ancestors, however, is one which nobody in a place of responsibility would dare to aspire. That Britain can carry the war through nobody can doubt, but Mr Uoyd George warned the House that the eli'eets of the war will be felt for many years after peace is signed. At first, he said, there will be an artificial stimulus" to trade when Britain, owing to her unique position, is applied to for the reconstruction of the nations. That period wilT end in four or five year? and, to quote Air Lloyd George, (; we

shall be faced with one of the most xrions industrial situations with which we have ever been confronted. We shall have exhausted an enormous amount of the capital of the world which would otherwise have been available for induftries. Our purchasers, hoi,, here and abroad, will be crippled. 'I heir purchasing power will have been depressed. Let us make no mistake. Great Britain will ue confronted with one of the gravest problems" witti which it lias ever been laced."