The Daily News. THURSDAY, APRIL 28, 1921. BRITAIN’S FINANCIAL BURDEN.

Taranaki Daily News, 28 April 1921, Page 4

The Daily News. THURSDAY, APRIL 28, 1921. BRITAIN’S FINANCIAL BURDEN.

The figures in this year’s British Budget may well arouse a feeling of wonder as to how the people of the Motherland can continue to bear the enormous financial burden which jhe war imposed upon them. .All the European belligerents expended over the war ihore than they raised by taxation, and having borrowed to meet the deficiency are heavily in debt, mainly to their own nationals, but also to Britain or the United States. Britain owed America a thousand million sterling, but last year the Chancellor of the Exchequer paid off half the Anglo-French loan, at a cost of over fifty-one millions,

and with other repayments re-

duced the American debt by sev-enty-five millions—a truly marvellous achievement —with the result that practically the only debt Britain now has, outside the United States and Canada, is £826,000 due to Sweden. This affords some idea of the gigantic nature of the sacrifice the people in the Old Land are making to reduce the financial liabilities of the country and find the enormous revenue necessary to meet the abnormal expenditure rendered imperative by the war’s legacy. To rightly comprehend the extent of Britain’s financial undertakings in connection with the war it must be borne in mind that the following large loans were made to the Allies and the Dominons:—

British Dominions 171 millions Russia 568 millions France .......... 434 millions Italy ........... 412 millions Belgium 86 millions Serbia ...... 18 millions Other Allies .... 47 millions

Total 1736 millions

Apart, therefore, from the amount borrowed from Amerca, Britain foundseven hundredmillionpounds for those who helped her in the struggle, besides the colossal sum to meet her own expenses. Despite this, her debt weight, on March 31 last, was only £7,573,000,000, while up to March 31, 1919, her

000. Never before in the world’s history lias there been such staggering expenditure, and the way in which it has been met is a glowing tribute to Britain’s greatness and to her people’s patriotism and love of justice. Under the circumstances it can readily be believed that the past year was the most remarkable in the financial history of the country, and that taxation remains unaltered, except for the excess profits tax, which is being wound up. Although there was a surplus of 230| millions after applying 259-J millions for the extinction of debt, the whole of the surplus—and more—will be required to meet foreign and domestic obligations. It is satisfactory to note the menace caused to credit, security, and prosperity by the huge floating debt of war bonds is to be removed by conversion into a £632,000,000 loan bearing interest at three and a half per cent. Such a low rate of interest might be considered as unlikely to tempt the bond-holders to convert, but as they will receive £163 of stock for every £lOO of bonds, and the income will be fourteen shillings a year larger per £lOO, the effort to convert should succeed. The London Times naturally condemns both the Budget and the conversion scheme, as it desires to get rid of the Lloyd George Government, but the wisdom of the scheme is self-evident, while the aim is to cheapen money and advance industrial enterprise. The familiar forecast of drastic curtailment of departmental expenditure is again to the fore, but as Sir Robert Horns'- (the new Chancellor) has decided views on this subject there is some hope that the pruning knife will act vigorously, especially as he is impressed with the great need for cheapening money, an aim that can only be achieved by strict economy, increased production, and industrial peace and employment. It is a great misfortune that the coal strike is causing a large amount of expenditure that is not only a dead loss, but is much needed for urgent purposes, and it is to be hoped that the present wave of turmoil will speedily pass and allow Britain, as well as other countries, to recover their stability and enter upon an era of peace and prosperity.