Greymouth Evening Star. AND BRUNNERTON ADVOCATE. MONDAY, MARCH 1st, 1920. BRITAIN'S CREDIT.

Greymouth Evening Star, 1 March 1920, Page 4

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. MONDAY, MARCH Ist, 1920. BRITAIN'S CREDIT.

The attempt of Wall Street to make New York supersede London as the world's financial centre is not meeting with the success anticipated. The American financiers considered that the war had given them, a magnificent opportunity of carrying into effect their long cherished plan of making J\ T ew York the hub of the financial world. The silver dollar was to eject the golden sovereign. The struggle has been a determined one, and for a time it seemed as if the Wall Street magnates would succeed. English grit has once more pulled the country through, and it would now seem that the Americans are likely to be hoist with their own petard. The rate of exchange is not working in favour of American trade. British buyers are confining their operations to their own markets'or to others where they can buy on favourable terms. They strictly eschew America, where all purchases must be made at a disadvantage owing to the depreciation in value of the pound sterling. Britain's war expenditure was on a colossal scale. She poured out money like water. Her sole desire was to win the war, and Mr Lloyd George recognised that "silver'bullets" would be the dominant factor in bringing about the desired.result. All the Allies received financial assistance from Great Britain, and it is doubtful whether much of the loan money will ever be retrieved. In spite of, her great expenditure and the strain imposed thereby, . Britain

lias made a most wonderful recovery,' and, it is estimated that her total wealth is now 50 per cent, greater than it was in 1914. The cost of living is decidedly high and shows no signs of decreasing, but it is lower than it is in any other country that participated in the war. Moreover, the English pound while at a discount in America is at a premium in any country" in Europe. British financial exnerts are confident that, even without a levy on capital, the nation can pay off every penny of her war debts within fifty years. There are, however, schemes on foot, to clear all obligations' 1 long before that. The Board of Inland Revenue has submitted a proposal for taxing war fortunes which; it is estimated, amoiint,to>£s.2s'o,-000.000. Tins sum on a sliding scale is computed;: to realise This represents fully, three.times the agsrefirate income of : the people of Great Britain pricir to i iMfe : TW fact" tßaf it : is possible ;

to collect £1,000,000,000 yearly from war fortunes' without seriously interfering with private interests goes to prove conclusively how.the wealth of the country has advanced in a few years and at a time when the nation was engaged in a struggle for very existence. Americans are now thoroughly convinced of the financial stability of Great Britain, and financiers from the United States have now gone to England to arrange for a combine to assist Europe financially to throw off the effects of the war. J. P. Morgan and other prominent American financiers are behind the proposal, and we may take it from that that it is good business. We may therefore expect an early adjustment of the exchange rate between Great Britain and America. In her efforts to win the war, Great Britain did not 'attempt fco spare herself at the expense of her friends. Many of the measures adopted were of the" heroic order. It is noteworthy that during the whole war period Britain's receipts were always in excess of her expenditure. This seems extraordinary when we consider the enormous outlay that took place. There were, of course) large' recurring deficits which had to be met out' of loan money, but the receipts rose from £198,243,000 in 1014 to £842,050,000. Seveneights of the" latter sum came from taxation. In spite of all this further calls are to be made upon the people, and the Chancellor's next Budget is certain to contain measures for increasing taxation. It is hoped that by this means the country will be so far able to reduce her,Avar indebtedness that it will be jiossible to redeem the securities pledged to America as guarantees for the loans obtained by her, either-for herself or on behalf of her Allies. A confiscation of a substantial percentage of the war fortunes would meet with general approval. Those wh6 amassed fortunes while the nation was fighting for very life

do not command any sympathy. and there would be no protest if the Government took the whole of the war profits instead of only a small percentage. The "profiteer" is an object of intense hatred, and any measures suggested to make him disgorge his ill-gotten gains are sure to receive cordial support. The big profits amassed by the firm of Coats are hard to understand. The Government could not be watching very closely to permit such things to be. All kinds of excesses .are now beinp" made, but none of them are at all convincing. No one,can c av that the profits amassed were fair and reasonable. The people of Britain are now aware that there were sorcalled English firms, who welcomed the war and the sufferings of millions of men and women, simply because it gave them an opportunity of making big profits.