Greymouth Evening Star. AND BRUNNERTON ADVOCATE. WEDNESDAY, FEBRUARY 21, 1940. WAR COSTS.

Greymouth Evening Star, 21 February 1940, Page 6

Greymouth Evening Star. AND BRUNNERTON ADVOCATE. WEDNESDAY, FEBRUARY 21, 1940. WAR COSTS.

‘T'HERE is no real doubt, in the minds of the Allied peoples, that they will win the Avar against Germany,—this result may not be so easy, nor so soon as some declare, —the main anxiety being how long can Britain and France continue to spend so lavishly as they are iioav doing.'-. There is’-a limit to even the great resources of the Anglo-French, and the possibility of economic exhaustion must not be ignored. True, Germany is in far worse plight, and is already undergoing privations the Allies have not yet approached, but the brutal policies of forced labour and confiscations give her some financial advantage. It is announced, to-day, that the House of Commons is to be asked to vote Avar credits and grants, for various Service Departments, without being given the usual details of the proposed expenditure. The abnormal reticence is an encroachment on Parliament’s rights, but the opposition is likely to be negligible, seeing the reason given is that valuable information would be given to the enemy, as well as to the House, if ordinary practices Avere followed. Moreover, the sums dealt Avith noAvadays, are so huge, it is doubtful if Parliament and people realise just lioaa t much is having to be spent. Netv loans and taxation are already heavw, but the prospects are that still greater of such burdens Avill be necessary. It is Avell to be prepared to accept this strain so that it will be felt less, Avhen the demands are made. Some interesting figures relating to the cost of the war, were recently published in the Bulletin of International Ncavs. It stated that in the 1914-18 Avar, the total cost of the British Army worked out at about £340 per man. In the present campaign, the Chancellor of the Exchequer estimates that the cost of equipping a division and maintaining it in the field has been almost doubled, the cost of the Army to-day being about £6OO per man. Basing its estimate on similar figures for the last Avar, the Bulletin puts the total cost of the Royal Air Force today at £2,500 per man per year, and of the Navy at about £650 per man. The gross national income of the United Kingdom in the last year of high activity—l 93—was estimated at £5,742,000,000. The Bulletin estimated that about 45 per cent, of the gross national income assumed to remain at the level of 1937, could be devoted to Avar purposes. That gave a possible war expenditure of £2,580,000,000 at 1937 prices. Many suggestions have been made to encourage people in Britain to lend money to the GoA rernment for national defence purposes.

Savings certificates have already netted large amounts, and loan proposals have been launched, or are in preparation. An issue of .premium bonds as an addition, or alternative, to National Savings. Certificates and Defence Bonds was urged in a letter from Mr. George Gibson, a member of the Trades Union Congress General Council, to the Chancellor of the Exchequer. The letter stated: “There can be no ethical objection to premium bonds since the Government has permitted the reopening of football pools and greyhound racing tracks. The union would be willing to buy a large number of bonds, and organise the drawing for interest among its members.”. New Zealand is, or will soon be, interested in the question of meeting her own costs. The special addition to the current income-tax demand rates is but a beginning. According to Mr. Nash, consideration is being given to the issue of a war loan. Probably, even more consideration is being given to what extra taxation will be necessary to Kelp pay New Zealand’s own war costs.