THE COST OF WAR.

Taranaki Daily News, 14 April 1916, Page 5

THE COST OF WAR.

WHAT BRITAIN PAYS. ' London, February 24. Mr. Asquith did his best to temper tbi freezing financial blast to the short* shorn lamb known as the British taxpayer,,when on Monday, last he aqked the House of Commons for another little vote of credit—a mere matter of 420" million pounds—l2o millions just to tide us oyer the remnant of the current financial year, and 300 millions to cover our expenditure during the first two months of the ensuing financial year, i.e., to the end of May. These items,' be it noted, raise the total amount voted since wa: began to £2,082,000,000. In the piping times of peace our normal naval ind military expenditure combined is about £22o,uuu a day, but-isr-Asquith told us last Novembei that we were spending, and expected to.costume to epend, something like 5 millions per day, and seeing how the theatres of operations seemed likely to increase, in ' number, many of us were-prepared for revelations of an uipleasant charaoter in connection with the financing of the war—possibly a six million a day expen- , diture reached, or foretold. It Was In. this connection that the Prime Minister was able to temper the wind. He told tie that instead of the five millions a day expenditure with which he had threatened us,,wo were now only spending-about £4,400,000; moreover, he hinted that there was a prospect that the present rate of expenditure would not be exceeded. Hence we may hope that the amount decided upon, as necessary, |p> carry ut over to the end of May-will be found to sufflco for the needs of June us well. It should, perhaps., be pointed out that the whole of t.<i.e £4,400,000 has not been': spent by Britain alone. She hit had considerable ''help" in spending. Tie actual expenditure on our Army and Navy and munitions is just over three millions per day, the balance being covered by loans to oui friends. 'Xheie loan* * fit"~mt in TfiO millions or thereabouts, without taking into aceouftj tjie direct advances made on Brifwh Government account by the Bank «tf England. By |he end of the current financial year—March 31—the , total amount lent to our Allies and oversea* Dominions will not fall far short of £423,000,000. This is a matter that mmt be kept m view, as it is a fairly .respectable, item to deduct from the totals of war expenditure already given. .These loans'should prove a very valuable investment. They must exercise * considerable effect on our financial positioftv after the war, arid must have important political consequences. The immense lending to our friends ought to more than balance the foreign investments we have been obliged to sell Moreover, though enemy-inspired whispers that Great Britain is doing less than her share do not appear to be finding attjireal credence among the Allied' nations, it is well for the world to kno»; ihe extent of the help we are happily ahta to give our friends, in addition to tnei efforts we are making ourselves. The knowledge will not make Germany love England any better than she professes to do, but it is not at all unlikely to produce quite favorable impressions and effects in say, Greece and Rumania. ECONOMIES EFFECTED. ' It was not within the province of MA Asquith's task to say anything as to the way in which huge sums that have to be found are to be raised. That is a duty devolving upon the Chancellor of the Exchequer, and is a matter on which we shall hear quite soon enough. Even no*, however, it is, of course, perfectly clear that in addition to further large loan operations the country will have to be prepared for a great increase in taxation. And of that taxation is sensibly and skilfully applied, u.e nation will be quite ready to show once mpre that it is determined to withhold no sacrifice which shall aid in the vigorous prosecution of the war. The Prime Minister recognises that the nation is ready to pay, but that it demands "definite, poai« tive, categorical assurances that adequate provision is made against extravagance and waste." Committees of independent business men are now cheeking the outgoing of the spending departments, and Mr. Asquith stated substantial economics have already been made. The names of the members of these committees should be published.. The country docs not begrudge the price of victory, but-it wants value for it* money, and if we know who aro the people's auditors, we should be in a better position to weigh up the chances of getting it. At present most of us Who , have any knowledge of the ways they have in the Army are fully aware that preventive waste on n very large scale is still going on in every soldier's camp in the kingdom, and that thousands of pounds are being squandered daily because of departmental adhesion to »y«f terns and routine that have little beyond tradition to commend them.

BRITISH CREDIT Al. .1 • During the very desultory debate till . ■ preceded the passing of the vote of credit for the biggest amount ever asked ( for in the world's history, an inspiring' - declaration of the stability of British ■ , credit after Hie terrifiic strain of a yea 6 A and a-half of war was made by Mr. J McKennu, Chancellor of the Ejcchequsr, "J Ho said:—"Comparing our exchange, i rate with that of Germany'or Austria; .j it will be seen how British credit ha* \ i been maintained. It ia an absolute i marvel that after eighteen months of > war, we are still almost the only open ] gold country in the world. Our paper j money can be exchanged for gold at thtt >\ Bank. It never would have been believes J that British credit could stand the M> 1 traordinary test to which it Has been J subjected. Notwithstanding the gigantid 'i votes of credit, we have maintained our j credit. We have great resources, and tt J we husband them with prudence, 15iav«>' | no doubt that a year hence I, shall be | able to show that wo usvo still ffi*l£u 1 Jkt&wA ovt wediV -- *r ** J