BRITAIN'S EXPENDITURE

Evening Post, Volume LXXXVIII, Issue 122, 19 November 1914, Page 7

BRITAIN'S EXPENDITURE

CHANCELLOR OF THE EXCHEQUER'S ESTIMATE TWO MILLION MEN UNDER ARMS ' T1 Jr , LONDON, 17th November. Mr. Lloyd beorge, Chancellor of the Exchequer, stated that the estimated year's expenditure was £206,924,000, in addition to £328,443,000 of war expenditure, and the probable deficiency would be £339.571,000. The first year of the war would cost at least £450,000,000. The largest sum ' Britain had previously spent on a war in a single year was £71,000,000. The beer duty would be increased by a halfpenny per half -pint ; the tax on tea would be increased by threepence; no extra whisky tax would be levied. .. The British expenditure was in higher proportion than that of any other country. Britain already had at least 25000,0002 S OOO,OOO men under arms, and he confidently anticipated that the number would reach 3,000,000 in a few months. Separation allowances alone would then cost £65,000,000 a year. SERIOUS INDUSTRIAL SITUATION TO BE FACED (Received November 19, 8 a.m.) LONDON, 18th November. In his speech m the. House of Commons, the Chancellor of the Exchequer, Mr. Lloyd George, said that during the war industries would be enormously occupied. The Country would then lace the most serious industrial situation it had ever confronted. It would have exhausted an enormous amount of the world's capital. " Our purchasers at home and abroad will be crippled. It ' is, therefore, de&irable to raise as much taxation as possible during trade inflation. The Government will not levy taxation which will interfere with any productive industry. We are fighting, an enemy which, unless it is subjected to a smashing defeat, will not submit to the terms which we would prudently accept." He hoped the chief result of the war would be an all-round reduction in armaments. The Chancellor was generally cheered throughout his speech, and the proposals were carried. NEWSPAPER APPROVAL LONDON, 18th November. The newspapers generally approve the War Budget, and declare tkat the burden is well spread. TERMS OF THE LOAN (Times and Sydney sun Services.) (Received November 19, 8 a.m.) LONDON, 18th November. A conference of bankers has decided the terms of the war loan. The Treasury expects the loan to be taken up at from 3£ per cent., but the. issue price and the time of redemption have been so fixed as to yield 4 per cent to investors. s Mr. Asquith stated that it was not proposed to charge Belgium and Servia interest on their loans. The Government will see how to deal with the matter at the end of the war. Besides twenty million drachmae (j6792,750) raised in Paris, England has advanced the Greek Government forty million drachmae (£1,585,500) lto pay for warships to be constructed in Great Britain. GREAT PUBLIC DEMAND FOR PROSPECTUSES (Received November 19, 11 a.m.) LONDON, 18th November. There is a great public demand for prospectuses for the war loan, but no rush, as prospectuses are obtainable at every bank and money-order office. The principal banks have subscribed £100,000,000, irrespective of their customers. WHAT THE BANK OF ENGLAND WILL DO (Received November 19, 10 iv.m.) , hl . , LONDON, 18th November.' The Bank of England has agreed— till March, 1918— to lend on the wai 1 loan, at issue price, without margin, at 1 per cent, under the Bank rate. This means that the stock will not fall below £95. LAST WEEK'S BILL _„,.,.,.„ ' LONDON, 17th November. Britain's war bill last week cost £12,755,000, the highest yet recorded. I