COST OF WAR

Greymouth Evening Star, 16 October 1939, Page 5

COST OF WAR

AUSTRALIA’S BILL. i , SYDNEY. October 4. s A month after the outbreak of wav, Australia is spending at the rate ct £136,986 a day—£s7o7/15 an hour — on defence and wartime preparations. This is a sharp rise on the expenditure of £53,917 a day or £2246/10 an hour at the end of June, 1915 —ten months after the outbreak of the lasi war. Wartime expenditure has now reached £7/3/7 a. head of population. The Commonwealth is now spending in seven days as much as was spent in a j whole year by the States of 1900-01. A . three-year war may cost. Australia £450.000,000. This is an unofficial j estimate based on the cost of the last , war and later developments. Tho ] last three years of the Great War cost ■ Australia £228,000,000, and it is esti- i mated ip Britain that the cost, of keeping each division in the field Ims ■ doubled since then. ' With the rate of Australia’s war ex- ■ penditurc already not tar short of £lOO > a minute, the Commonwealth Govern- 1 ment is investigating all possible me- 1 thods of raising funds. Three courses - will be followed. There will be heavy i borrowing, taxation will rise steeply, and war-saving certificates will be issued to enable small wage-earners to take part in war finance. Over the whole period of the last v.'ar military munitions, supply, and repatriation services cost Austialia £253,841,409, the Navy £35,111,»50, and the R.A.A.F. £265,919—a total of £289,218,678. Budgetary defence provision for this year is £33,000,000, and extraordinary commitments have already reached £16,500,000 a year. This total is substantial, but sharp increases may be expected as the war goes on. At June 30, 1916, war and defence expenditure was £19,555,000, but it advanced to £45,962,000, £66,04->,00., £70,050,000. and £86,980.000 in tho following years. Although war costs have Increased enoromusly, Australia’s financial power lias also increased, and the Commonwealth’s capacity to raise loan numoy has advanced correspomlingly. There is no doubt that the hulk ol the inom-'.' required will bo obtained Irom loan-,. . During the last. war. £342.000.000 was • raised in loans, £250.000,000 in Atm- > tralia, and £92,000.000 in Britain. ■ wartime profits tax will certainly he ■ introduced, but. in view of the strict 1 prices control schemes, proceeds will| ’ bo inconsiderable. During tlie last. 1 war this tax returned a total of less than £8,000.000. Other revenue proposals now under consideration include an increase in income tax and a I super-tax on higher incomes (probu.bl?’ those over £2000). extensions oi the sales tax range, imposition of a postage tnx, increased inheritance duties, k ami additional ditties on liquor, toil bacco. and other luxury gootm