£5,790,000 A DAY.

Gisborne Times, Volume XLVIII, Issue 4473, 14 February 1917, Page 5

£5,790,000 A DAY.

WHAT THE WAR COSTS BRITAIN FINANCIAL POSITION REVIEWED. • NEW CREDIT VOTES INTRODUCED. MILITARY OUTLOOK BRIGHT AND PROMISING.

(Reuter’s Telegram.) (Received Feb. 13, 6.45 p.m.) LONDON. Feb. 13

In the House of Commons Mr. Bonar Law, in introducing votes of credit for £550,000,000 sterling to cover war expenditure to May 31, said the total votes of credit for the current financial year would he £1,950,000,000. The expenditure on the army and navy and munitions had increased by a million daily as compared with the first 63 days < f the financial year owing to increased expenditure on munitions/ and food. The dealings with the dominions had recently been much less than toe average for the year. The dominions were still able to finance themselves very largely. The increase of munitions was as continuous as ever, and the smallest increase in any kind of shell as compared with the first year of the war was twenty-eight times. Britain’s advances to the Allies and the dominions up to March 31 would total £890,000,000. He was confident' in the future. He did not know whether the new war loan would be a success, but the applications would be certainly more numerous, and he believed the amount applied for would be greater than ever before. Referring to Salonika, he stated that the Anglo-French commanders believed that in the event of a Ger-mano-Bulgar offensive their danger from an attack in. the rear would be nothing like what.it was a few weeks ago. thanks to measures decided fin at the Rome conference and later. As a fruitful instance it had been arranged that supplies for Salonika and also large quantities of coal should be sent overland, thus saving shipping and avoiding submarines. Mr. Bonar Law stated that the troops actually engaged in fighting at the front were fourteenfold the number engaged at the outbreak of the war. They were not only superior to the enemy man for man. but their equipment was superior, and the results shown by the ' constantly successful raids, which were impossible half a year ago, gave good reason to hope for most satisfactory results when more important operations were undertaken. He said the total daily expenditure on all services was £5,790.000, and the total voted for the war was £3,732,000,000. "With ordinary expenditure, the debit at the end of the financial rear was between £4,800,000,000 and £4.900,000,000, the bulk of which would not be a burden to the United Kingdom when the war was won.

Mr. Bonar Law added that this expenditure could not continue indefinitely, but Britain could bear the strain longer than her enemies. ‘‘"We will not be forced into a disastrous peace for financial reasons,” he stated. ! ‘Our predecessors imposed new taxation estimated to give three hundred millions for the current year. 1 believe this amount will be exceeded. If it becomes necessary to maintain the peace taxation at the same level we shall have the means, even when the excess profits tax ceases, with which to pay interest and meet sinking fund payments for wiping out the burden in a comparatively short time. There is a most difficult road ahead, and many more sacrifices, but neither as regards finance, courage or endura nee shall we go back till we reach the end we have set ourselves.” Mr McKenna emphasised that none would grudge the expenditure, but tlie best use should be made of our resources. Our effective man-pover could be better employed in campaigns near home than in distant ones. Mr. "Walton urged stopping waste and getting something like value for the money. He said that if the war loan did not produce a hundred millions there must be another in a >?w months, probably compulsorily. Mr. Ramsay MacDonald said he supported a compulsory loan. He said the cost was now the chief theatre. The Germans were beaten m the West, and the only question was to drive them homewards. It was difficult to know bow the enemv would be dislodgeable from the Middle East except bv negotiation. , , The vote was unanimously adopted.