BRITAIN'S TEST.

Greymouth Evening Star, 12 August 1916, Page 5

BRITAIN'S TEST.

FINANCIAL AND COMMERCIAL

A MAGNIFICENT ACHIEVEMENT.

STATEMENT BY THE CHANCELLOR.

[n.z. press ASSOCIATION—COPYRIGHT.]

LONDON, August 11. In the House of Commons, on the Treasury Estimates, several members adversely criticised the large issue of Treasury Bills. The Chancellor should have issued a loan. Others objected to the raising of the Bank rate. Mr McKenna, in reply, said that he entirely approved of the Bank of England’s action in raising the rate. We were consuming more goods than we produced, and had to obtain supplies from abroad. Our task was not only to make up the deficiency, but also the deficiency in production of »11 Allies, which was really a gigantic task. All questions of internal finance, important as they were, paled into insignificance in comparison with the daily task of financing foreign supplies. They had to pay abroad certainly a million, probably two millions, daily. We were able to borrow abroad cheaper than any belligerent. He was unable to say when he would issue another loan. Mr McKenna estimated that the total indebtedness at the end of March next would be £3,440,000,000, from which might be deducted the advances to our Alies and the Dominions of £800,000,000. The total indebtedness was about equal to one year’s national income. The total national wealth he estimated at £15,000,000,000. “We have,” he said, “a revenueequivalent to 20 per cent, of the whole debt, and will be able to pay out of existing taxation the. interest on the debt and provide a considerable sinking fund, and then still leave a margin to reduce taxes. We have every reason to be proud of the financial position and the way in which British credit had stood the strain.”