The Daily News. THURSDAY, MAY 25, 1916. BRITAIN'S FINANCIAL STRENGTH.

Taranaki Daily News, 25 May 1916, Page 4

The Daily News. THURSDAY, MAY 25, 1916. BRITAIN'S FINANCIAL STRENGTH.

John Bull is generally regarded as a pretty slow old customer, too conservative to get out of the rut, and too sleepy to grasp the opportunities within his reach. But in some things lie is fairly alert and strong. So far as finance is concerned, for instance, he seems tobe as sound as a bell, and is firing better in the present titanic struggle than any of the other warring natidns. His burden is stupendous, but he is carrying it without a groan; indeed, he is shouldering more and more of his Allies' load, and not complaining about it, either. Take the last Budget. y Before the war he taxed himself to the extent of about a couple of hundred millions a year. Last year he increased it to £331i,767,000. Under the present proposals the taxes will be £509,000,000! The figures are hard to grasp. The country has to meet an expenditure of £1,825,880,000, which includes loans to the Allies and colonies, so that not far short of a third of this year's war burden will be paid off within th« year. This is sound finance, and places Britain in a particularly strong position. Before the war Britain's national debt amounted to £051,000,000. The position this time next year, assuming the war continues till'then, as is likely, wilj he:— £ Total indebtedness .. 3,440,000,003 Advances Allies, and l Colonies 80O,O00F0 Net debt .' 2,640,000,0".) Interest and Staking Fund 145,001,000

With an income of five hundred million, or more, a year Britain will be able to carry the burden without difficulty. Already she lias raised £300.000,000 out of taxes towards the cost of the war. Germany, on the otlicr hand, has raised less than £24,000,000. She is expecting, of course, the Allies' indemnity to pay the cost. Vain hope! To ifciee five hundred million necessitates «; good deal of courage on the part of the people of Britain. Take the income taxes. Here are some details that speak for themselves of the sacrifice demanded of the people:—

This is economy by cowpulsion. Ex. cess war profits are increased from 50 to GO per cent. According to the Chancellor, this means that many of the biggest armament Arms will be paying 77 per cent, of their total excess profits, when income-tax and super-tax are taken into consideration. Excess profits are estimated to be worth £86,000,000 to the Treasury this year. One is not inclined to disagree with the comment of the Times when it says that the financial position leaves no doubt whatever about the stability of British finance. Its solid foundations are laid well asd true, as they always have been, and for every pound borrowed there will be provided the traditional British security, with a large margin over. Incidentally, John Bull's financial operations provide his daughter dominions with some striking lessons which they would be all the better for taking to heart. I | i

Vncorao. Earned. Unearned £ £ 9. (1. £ s. <1. 131 , -14 9 1 13 0 200 BOO 12 0 0 20 ", 0 27 O 0 400 31 10 O 4!) O 0 500 45 O O 70 0 0 COO 62(10 0 100 0 0 800 100 0 O 160 0 0 1000 125 0 0 200 0 0 1500 ..-. 225 O 0 337 10 0 2000 ........ 366 13 4 450 0 0 2500 S41 13 4 025 0 0 Luxury is heavily taxed. Motor-cai fare as follows: — • Horse-power Duty. Not over 6% £ s. d. 4 4 0 fi'/a to 12 ... 8 6 0 12 to 10 .... 10 to 20 ... 18 18 0 20 to 33 .... 25 4 0 ' 33- to 40 -... 31 10 0 40'to 00 ... 03 0 0 1 60 126 0 0