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Hawke's Bay Tribune, Volume VII, Issue 213, 2 July 1917, Page 4

In view of our Government’s coming proposals with regard to the financing of the war, involving both a big internal borrowing and the imposition of further taxation, it. is of interest to turn to a table provided recently by the London “Times” showing the proportion of Imperial expenditure during the war that has been met out of revenue, and more especially out of taxation revenue. And in this connection it will be well to remember for comparison that in the last complete peace year, 1913-14, the Imperial expenditure was 197 millions, the total revenue 198 millions, and the tax revenue 163 millions. The following table

shows the figures in million pounds for the subsequent years, those for the current - ear being the estimates given in Mr. Bonar Law’s latest

It will be noticed that both the total revenue and the tax revenue, as estimated for the current year, show a higher proportion than last year, and much higher than in 191516. As 1914-15 was only half a year of war, no proper comparison with it can be made.

Commenting on these figures the “Times” goes on to say that they are not really the fair ones to adopt when a statistical comparison is made on the question of the proportion paid out of revenue. They include the advances made to the Allies and the Dominions, and these are not properly expenditure, but investments. “We will add, therefore,” says qur authority, “a second calculation with those advances excluded from our yearly expenditure. The two years 1914-15 and 1915-16 must be taken together, since we have not the figures for the advances made in each separate year, but only as a whole. For those two years combined our expenditure was really 1,746 millions, the total revenue 562 millions, or 32 2 per cent, and the tax revenue 479 millions, or 27.4 per cent. For 1916-17 the expenditure was 1,604 millions, the total revenue yielding a percentage of 35.7 and the tax revenue one of 32. For the current year, as estimated, the expenditure stands at 1,890 millions, the total revenue showing a percentage of 33.7 and the tax revenue one of 30.1. On this basis, the current year would not be so satisfactory as last year, though better than the results of 1914-16. But We may remark that Mr. Bonar Law is generally considered to have underestimated his prospective revenue. It may be added that the increases both in the national expenditure during the war (from 197 millions to 1,890 millions) and in tax revenue (from 163 to 569 millions) are so enormously greater than anything known during the Napoleonic wars, that any comparisons to our supposed disadvantage with the proportions in those days are quite misleading-” If our Minister of Finance purposes follow- ( ing even at a considerable distance, the example given him by the British Chancellor, it will be readily understood that he must have in view some fairly drastic proposals in the way of taxation.

Saturday’s later cables and those that have been received since show that Sir Douglas Haig’s troops operating immediately to the south of Lens are working slowly but surely eastward in the face of strong opposition, and it would seem as if it is from this quarter that it is hoped to throw the town-into such a salient position that it will ultimately become untenable. Although the British reports say little about it, however, the German communiques, if we may rely upon them, show that there .is considerable pressure being exercisd north of the town- also, but so far apparently without any marked result in the way of ground gained. The Germans, speak of British attacks being repelled between Loos and the Lens-Levien road, and alto further north at Hulluch, and even quote the canal running east and west through La Bassee as the northern limit of a zone of marked British activity stretching southward to the Scarpe. It may be remembered that it was from the enemy’s reports that we first got an inkling of the previous northward extension of the Arras offensive, and perhaps we may accord some value to the news we. are now getting from him suggestive of a further expansion towards La Bassee. There is little, if any, news from the Ypres-Armentiere® offensive lines, where reorganization is doubtless going on preparatory to a further push forward, perhaps upon a longer front. Amsterdam still persists in its stories of civilian, evacuation of the country occupied by the Germans on the Belgian coast, and speaks of an early enemy withdrawal to new lines running inland from Ostend. It is always as Well, however, to accept Dutch forecasts with some amount of mental reservation.

Budget:— 1914- 1915- 1916- 191715. 16. 17. 18. Expenditure 563 1.559 2,198 2,290 Total Revenue 226 336 573 638 Percentage of Expenditure 40.1 21.5 26.07 27.8 Tax Revenue 189 290 514 569 Percentage of Expenditure 33.6 18.6 23.4 24.8