£430,000,000 CREDIT VOTE PASSED

Dominion, Volume 9, Issue 2702, 23 February 1916, Page 5

£430,000,000 CREDIT VOTE PASSED

MR. ASQUITH REVIEWS THE EXPENDITURE ENORMOUS SUMS FOR THE GREAT CAUSE By TeloßraDli—Press Association—Copyright (Bee. February. 22, 10.25 p.m.) London, February 21. ii- i, . House of Commons Mr. Asquitli. tlie Prime Minister, introduced the War Credit Vote of £430,000,000. He said: "I will confine myself to the financial aspect. There will be two votes—one supplementary, for the expiring year, and the_ other for the new year. This vote of credit will raise the total vote to"" 1915-16 to £1.420,000,000, ami ilio total since the outbreak of the war to ~1,782,000,000. The total amount issued out of votes of credit since last April 7, as P eell £1)198,000,000, and the daily expenditure from Anril Ito July 17, £2,800,000; from then to September, £3,500,000;« from September to November, £4,350,000; from November' to -February 19, £4,400,000. The Army, Navy, and Munitions expenditure from April to February 19 totalled £834,000,000. He pointed out that £1,782,000,000 represented the vot-e to the end of the period 1915-16; to which to-day's vote added £300,000,000 for the next year; thus, the total of the war votes was now £2,032,000,000. Loans' to AlliJs and Dominions. "Our loans to our Allies to date.total £168,000,000. Since November, the expenditure on the Army, Navy, and munitions has increased by £400,000 per day, and it is uncertain what sums must be spent before the end of the financial year in the purchase of American securities. It is also desirable that we should repay substantial sums to the Bank of England. We are therefore ■ asking for a credit of £120,000,000 to the end of the financial year (March . 31). The total already voted for the financial yoar is £1,300,000,000, the total sum issued out of votes sinco April being £1,193,000,000." The Treasury, he added, had £102,000,000 in hand, and this sum would carry on the public services until March 10. There were the unspent balances of £65,900,000. Three committees, two of which were presided over by Cabinet, were examining the expenditure of the Army, Navy, and munitions, and rigorous steps were being taken to see that the money was effectively applied. Our liability to the Bank of England totalled £98,000,000, and loans to our Allies and the Dominions, which totalled £95,000,000 in November, now totalled £168,000,000. Our food supplies expenditure had increased by £6,900,000, and now amounted to £30,400,000. This gave a totaloor'f r ' £1,132,000,000. The average expenditure on the Army, Navy, and munitions was over £3,000,000 per day, but if we deducted the normal peace expenditure that would leave a net expenditure on war services of £2,780,000 per day. He thought ho could assure the House that the item of £423,000,000 on account of "Advances to the Allies and Dominions," mentioned in the Budget statement, would not be exceeded. Future Expenditure. Turning to future the Premier s\iid that on the basis of expenditure, adopted—five millions daily—£los,ooo,ooo would be required for the present financial year. It was probable that the rate of expenditure would rise above five millions daily. Turning to the question of economy, ho said, that'the House might reasonably require definite, positive, and categorical assurances that in the expenditure of these enormous sums acleqaiate precaution was being taken against extravagance and -waste. For some time in the three - great spending Departments—the Army, the Navy_, and the Ministry of Munitions —committees had been carefully watching in order that no avoidable waste was going on. He did not believe that they could have better machinery, and from his own personal observation he could assure the House that very substantial economies had been effected. He felt an enormous and overwhelming responsibility in asking the House to assent to this vote, and ho would not have done so unless they had first carefully explored the ground. The Government was not asking Parliament to vote one penny above > the exigencies of the case. These great and historic responsibilities required of the Government a duty to see that the taxpayers' money flowed fully and exclusively in these channels whereby we could attain the great object. Having satisfied themselves on those two things, they would bo false to the trust which the nation and Parliament reposed in tliein if they refused to shoulder . this additional loan, being confident in the justice of our cause, and the necessity for sacrifice, and confident also that if the country, as lie felt certain it would, responded to the call, our just cause would prevail. Ex-Minister, on War Office Waste. Sir John Simon (late Home Secretary) criticised the waste at the War Officc, which, lie said, was in direct defiance of Act of Parliament. Men who . bad been medically rejected wore not liablo to compulsion under the Act, but there had been widespread misrepresentation, with the result that these men were induced to believe that they would be compelled "to-coino forward. Such a course of action was unfair and inexcusable. _ Sir John Simon coutinued: "It is impossible to believe that this lias been going on without the knowledge of tlie War Office. It is surprising that these'inen should have been bustled, bullied, and deluded into the Army." The speaker cited instances. Mr. Tennant (Under-Secretary to the War Office) said that he was surprised to hear of such cases, and promised an inquiry. Colonel Yate urged a smaller Cabinet. Our Allies, he said, did not realise tluit wo were in earnest. While Cabinet Ministers were supposed to be conducting the war they were also attending to their administrative duties. Ited tape and officialdom were rampant. German Bills, Mr.'M'Kenna (Chancellor of the Exchequer), in response to ail inquiry on the financing of the German bills, said that at the outbreak of the war tho Government gave temporary Telief in connection with bills accepted by English firms. The Government, in guaranteeing the discount, undertook a heavy temporary liability, which has, already been largely discharged. British firms bad largely paid off the pro-moratorium bills, which the Government had discontinued'. The Government advances in connection with the Stock Exchange Tiafl been reduced to a negligible figure. "Whether ive discount the post-war German bills will be dccided later," he said. "The American, Exchange is more favourable to us than to any other belligerent. Wo have _ discouraged imports by keeping the exchango a little below par. The British credit is marvellous! After eighteen months of war we are still the only open gold (Country in the world possessing gold for every note. Two years ago it would have been thought impossible to, raise such gigantic sums of over two thousand Millions, and still have an open iparket for gold. It would never liavo been believed -that British credit coiil3 have stood such an extraordinary fes't." Tlie vote was^passed.