BRITAIN.

Taranaki Daily News, 23 February 1916, Page 5

BRITAIN.

THE COST OF WAR. BRITAIN'S HUGE BILL. BeciMveil Feb. 22, 10.23 p.m. London, Fi'b. 21

In the House of Commons, Mr. Asqiiith introduced the vote far -430 millions. In doing so, he said: '"1 will confine myself to the financial aspect. There will bi' two votes—one supplementary for the expiring year, and the other for the new year. This vole credit, will raise the total for 1015-16 to £1,420,001,000, anil the total since the outbreak of the war to £1,782,000,000. The total issued out of votes of credit since last April had been £1,198,000,000. The daily expenditure from April I till July 17 was £2,800,000, and from thence to September £3,500,000; from September to November £4,350,000; and from November to February lit £4,400.000. The army and navy and munitions, from April to February 10, had cost £834.000,000.

Mr. Asquith pointed out that £1,"S2.000,000 was the vote to the end of Dhe 1915-10 year, whereto to-day's vote added £300,000,000 for the next year. This maTJe the total of war votes, up till now £2,082,000,000. The vote was passed.

SINEWS OF THE WAR. THE EMPIRE'S CREDIT. Received Feb. 22. 10.35 p.m. London, Feb. 21. Mr. MeKenna, in the House of Commons, said that British firms had largely paid off pre-inoratorium bills, whit'li the Government had discontinued. Government advances in connection with the Stock Exchange had been reduced to a negligible figure, and whether we would discount post-war German bills would h- decided later. -American exchange was more favorable to us than any other belligerent. We discouraged imports by keeping exchange a little below par. The British credit was marvellous, and after eighteen months war we were still the cnly open gold country in t'lie world possessing gold for every note. Two years s.go it would have been thought impossible to raise such gigantic sums, amounting to over two thousand millions, and still have an open market for gold. It would never have been believed that British credit could stand suc'h an extra test. INTERESTING FIGURES. Mr. Asquith continued: Our loans to t.hc. Allies to date were £IfiS.OOO,OCKI. and since November the expenditure on the army, navy, and munitions had increased by £400,000 daily. It was still uncertain what sums must be spent before the end of t'he financial year in tl'.e purchase of American securities. It was also desirable to repay substantial sums to the Bank of England. He was therefore asking for £120,000,000 to the end of the financial year. The total already voted for the financial year was £1,300,000,000, t ; ho total sum issued out ot the votes since April being £1,198,000,000. The Treasury had £102,000,000 in hand, and this would carry on the pubhe service until March 10.

There were unspent balances amounting to £05,900,000. Three committees, whereof two were presided over by Cabinet, were examining the expenditure on the army, navy, and munitions, and rigorous steps would be taken to see that the money was effectively applied. The liability to the Bank of England was £98,000,000. Loans to the Allie= and Dominions, which were £98.000,000 in November, were now £108,000,000. The cost of food supplies had increased by £0,000.001). and now amounted to £30,450,000. This gave a total of £1,132,000,000.

The average expenditure of the army, navy, and munitions departments was over £3,000,000 a day, but if we deducted the normul peace expenditure this leaves a net expenditure on war services of £2,780,000 daily. ADVANCES TO THE ALLIES. Mr. Asquith said he thought lie could assure the House that the item of £423,000,000 on account of advances to the Allies and the Dominions, as mentioned in the Budget statement, would not be exceeded.

Turning to future expenditure he said: On .the basis adopted of five million pounds daily, 105 millions will be required for the present financial year. It is probable that tbe rate will rise above five millions daily. Turning to the question of economy, the. House would reasonably require definite, positive, and categorical assurances that In expenditure of these enormous sum 6 adequate precautions were being taken against extravagance and waste. For some time, in t!ie three great spending departments—the army, navy, and ministry of munitions—committee? bad carefully been watching in order that there would be no avoidable waste. He Hid not believe they could have better machinery, and from personal observation be could assure t?ie House that very substantial economies bad been effected. He felt the enormous and overwhelming responsibility of asking tbe House to assent to the vote, and he would not have done so unless he bad first carefully explored the ground. He was not asking Parliament to vote one penny above exigencies. The great historic responsibilities required .from the Government the duty to set

that the taxpayers' money flowed fully and exclusively into the channels whereby they would attain their great object. Having satisfied themselves on those two thi'ngs, they would be false to the trust that the nation and parliament repose in tliein if t'liey refused to shoulder this additional loan.

He was confident in the justice of the cause and the necessity for sacrifice, and confident, also, if the country, as he was cirlain it would, respgnded to the call, that our just cause would prevail. A DISAPPOINTED EX-MINISTER. CRITICISES THE DERBY SCHEME. Sir Jc'hn Simon criticised the waste in the. War Ofiiee, which, he said, in direct defiance of the Act appointed men wh» had been medically rejected, and were not liable to compulsion under the Act. But there liad been widespread misrepresentation, and as a result these men were induced to believe that they were compelled to come forward. Such a course of action was unfair and inexcusable.

Sir John Simon continued: It is impossible to believe this is going on without the Knowledge of t'he War Office. It was surprising that these men had been bustled, bullied, and deluded into the army. He cited instances.

Mr. Tennant said he was surprised to hear of these cases, and promised an inquiry. Colonel C. E. Yate urged the formation of a smaller Cabinet. Our allies, 'he said, do not realise that we are in earnest, as while the Cabinet is supposed to be conducting the war it is also attending to administrative duties, ana red-tape officialdom is rampant. Mr. McKenna, in response to an inquiry about financing German bills, said that at the outbreak of war the Government gave temporary relief in connection with bills that had been accepted by English firms, tile Government guaranteeing discount, and undertook a heavy temporary liability, which already had been largely discharged.