The Dominion. SATURDAY, MARCH 25, 1916. WAR RESOURCES

Dominion, Volume 9, Issue 2729, 25 March 1916, Page 4

The Dominion. SATURDAY, MARCH 25, 1916. WAR RESOURCES

Purely military motives are easily to be found for the terrific efforts the Germans have lately made to win a decisive victory over the Allies in France. But it is quite certain that these are not the only motives which have induced them to base their hopes upon action, even though it be terribly costly action, instead of playing_for time and looking to the' .exhaustion of their enemies in a protracted struggle. Motives vhich are no less calculated-than the progressive exhaustion of their reserves of men to spur on the' Germans and their Allies to forlorn-hope action are brought to light in a statement by Sin George Paish, the editor of the Statist; which figures in the cablegrams to-day. Sir "George Paish, it is true, does nothing more than set forth in its leading features the economic and financial position in which Britain is now placed and may be expected to stand in the immediate future. But to the Germans this is one side of a picture which is to be completed by adding, in gloomy .contrast, the essential features of their own economic circumSo completed the picture is one which no instructed German can possibly regard without forebodings. We have not tho same exact information in regard to-, economic conditions in Germany, as is available in the case of Great Britain, but it is known and not disputed that Germany is gambling upon this war as if no other outcome than the victory of the Central Empires were , possible. In the remorseless drain upon German national resources for war purposes one paper security has been piled. upon anothor in a fashion which makes an ultimate ruinous collapse inevitable. It is impossible to see how such a collapse could be averted after the war, even if Germany obtained the gigantic indemnities which she is destined never to collect. We are not dependent for knowledge of Germany s financial state upon such information as leaks out through neutral channels in spite of official precautions; or even upon the way in which exchange has turned decidedly and significantly against Germany in the jufutral markets of the world. The essential fact's have been admitted by her own statesmen, most recently by the Imperial Treasurer, when he laid his Budget before the Reichstag little more than a week ago. ' Dr. Helfferich said on that occasion that England was endeavouring to cover a considerable portion of her war expenditure by taxes. Germany, he added, had a more just conception of the financial claims of the war, and would not follow in England's wake. Used though they are in a. bluffing attempt to boost the current German war loan, these sentences contain a plain confession of financial weakness—an admission that Germany is solely dependent upon loan money in continuing the war, and depends upon indemnities to restore a position radically unsound when tlie war is over.

The figures cited by Sik George Paish, particularly those which relate to expenditure upon the war and to present and prospective indebtedness, are staggering in their magnitude, but tney nevertheless hear striking testimony to the immensity of the resources Great Britain is bringing to bear upon the war. Even when allowance is made for the inflation of priccs duo to the war, the fact that Britain's annual income has been increased by six hundred millions since the outbreak of war bears eloquent testimony to the reservo power of the nation. Still better evidence to this effect is presented in the statement that the nation has nearly succceded-in maintaining its productive power, despite the withdrawal of approximately four million men from industries, This

marks a truly wonderful achievement, for which credit belongs above all to tho women of Great Britain— who have filled tile places vacated by men in shops and factories, and on farms—but more vigorous and effective work by the civil population in general has played its part. ■ The essential fact brought out by Sin Geokgg Paisii is that after nearly twenty months of war, in which she has not only met her own charges but advanced enormous sums to her Allies and to her own Dominions, Britain still occupies an economlu and financial position of enormous strength. Instead of being compelled like her chief enemy to rely solely upon loans, she is in a position to all but double her income from taxation. Total taxation for the year now ending was estimated at £265,674,000. \According ,to Silt George Paish, tho income from taxation for 1916-17 will reach the enormous total of £450,000,000. Even with' the heavy contribution from revenue to tho cost of the war which this amount includes, the public indebtedness is mounting at a rate which not even British resources could bear indefinitely. According to Sir George Paisii, the total debt, if tho war continues for another year, will be not far short of £4,000,000,000. To meet such a burden Britain would need an annual income of £500,000,000. Interest and sinking fund on the debt would account for £200,000,000, pre-war annual expenditure for an equal sum, and pensions for £100,000,000'. The position is modified, however, by tho fact that loans to the Dominions and to the Allies account for a part of {he annual burden which Britain is incurring. The expenditure set down for 1915-16 totalled £1,590,000,000, and of this amount £423,000,000, more than a quarter of tho whole, represented loans to the Allies and the Dominions. Making tho allowance thus called for, it is still impossible to consider thc-se figures without realising sharply that there is a very definite limit to the strain it is possible to impose upon even such resources as Great Britain is bringing to bear upon the war. Lord Inchcape has said that the nation mighi bear even a debt of £5,000,000,000, efltailing for the time the necessity of finding ■an annual income of £600,000,000. Such a prospect cannot bo called inviting, but while there is a limit to British resources the exhaustion of German resources is certainly in much closer prospect. Britain is still able to turn to sources of vast additional revenue; Germany, a£ Lord luciicape has said, is .eating herself up. There is little doubt as to what the outcome will be. Britain's position is sound, and will remain sound under increasing burdens unless she is weakened by improvident waste or lack of energy in production. A'manifesto was issued in December last'by the leading English bankers and men of business which stated in the first place that Germany's hopes of victory depended upon a short and swift war, and that these hopes had been completely dispelled, but appended to this optimistic statement was an urgent warning that only by thrift, coupled with energy in production, could Britain hope to win through. .

No one call realise the vastness of tho task beioro tho nation (the manifesto stated) without becoming keenly conscious that it demands the strenuous co-opera-hon ot evory man and woman, youth- and maiden, in the country; thatnthe nation's energies must be completely concentrated upon tho production of really essential tilings; and that tile production of all non-essentials must be wholly stopped. Moreover, not only must tlio nation avoid the consumption of all non-essentials, but must even restrict tho consumption of essentials to the limits of efficiency.

The facts supplied by Sir George Paisii indicate that warnings of this character' have not gone wholly unheeded in Great Britain, but our cable news of late has .shown that the Government consider that still further economies are necessary. These are being enforced by shutting out altogether certain imported luxuries and by discouraging g?oduction of others. The absolute need of wasting less and producing more has certainly been better realised in the Mother Country than in New Zear land. It is our duty nevertheless to economise iand to stimulate production as well as to send soldiers to the front. Waste and extravagance now will come home to roost when the war is over and a dearth of loan money compels us to rely upon our own resources.