LONDON NEWS.

Hawera & Normanby Star, Volume LXXI, Issue LXXI, 23 February 1916, Page 5

LONDON NEWS.

f MILLION WAR VOTE PASSED. THE FINANCIAL ASPECT REVIEWED. ERAGE DAILY EXPENDITURE OVER FOUR MILLIONS. MARVELLOUS BRITISH CREDIT. A TREMENDOUS TEST. LONDON, Feb. 22. In the House of Commons, Mr Asjuith introduced the vote for 430 millions-. In doing so, lie said: 'T will ionfine myself to the financial aspect. There will be two votes—one supplementary for the expiring year, and the other for the new year. This vote credit will raise the total for 1915-16 bo £1,420,000,000, and the total since the outbreak of war to £1,782,000,000. The total issued out of 'votes of credit since last April had been £1,198,000,000. The daily expenditure from April 1 till July 17 was £2,----800,000, and from thence to September £3,500,000; from September to November, £4j350,G0a; and from November to February "19, £4,400,000. The army and navy and munitions, from April to February 19, had cost £834;000,000. i~Mr Asquith pointed 'out that £1,782,000,0000 was the vote to the end of the 1915-16 year, to Tyhich today's vote added £300,000,000 for the next ;year. This made the total of war votes up till now £2,082,000,000. ' The vote was passed. j I .Mr "McKenna, in the Bouse of 'Comhnons, said that British firms had Flargely paid off pre»moratorium bills, which, .the Government had :tßscourited. Government advances in connection with the Stock Exchange had been reduced to a negligible figure, and whether we would discount post-war .German bills would be decided later. American exchange was more favorable to us than any other belligerent. We discouraged imports by keeping exchange a little below par. The British credit was marvellous, and after -eighteen months of war we were still the only open gold country in the world possessing gold for every note. Two years ago it would have been -thought impossible , to raise such gigantic sums, amounting to over two thousand millions,; and still'have an open market for gold. It would never have been believed that British credit could *stand such r«n "extra - test. Mr Asquith, in'his speech, said: Our' loans to the Allies to date were £168,000,000, and since November-the expenditure on the army, navy and snu- i nitions-had'increased by £400,000 dally, j It was still uncertain what sums nnsst j be spent before the end of the financial year in-the purchase of Amerieam ( securities. It was also desirable to repay substantial sums to the Bank of, England.. "He was therefore asking £120,OOG<t)00 to the end of the financial year. The total already voted for the financial year was £1,300,000,000, the) total sum issued out of the notes since April being £1;19S;000,000. The Treasury had £102,000,000 in hand, and I'fchis would carry on the public service j sntil March W. 'There were tmspent balances amounting to £65,900,000. Three committees, whereof two were presided over "by Cabinet, were exa-aiining the expenditure, on the army, -navy, and munitions,, and vigorous steps would be taken toil see tlnit the money w-as effectively applied. \The liability to the Bank of England . Loan* -io -the Allies and DtNmiiiiions, which were £98,000/000 iti ."November, were now £168,000,000.. Th(f cost o?- food supplies 'had iiihy £6,900,000, and now jiimot*nted to £30,400,000. This gave a ! total .of £1.132.000.000. The average expenditure of the army, jnavy ar*& munitions departments was over £3,0G0,000 a day, but if we deducted the .normal jpeace expenditure this leaves a ne£ expenditure on war services of £2,780,6000 .daily. Mr Asquith .said he thought he ceuld assure the House that fhs item of £425,000,000 on account of advances to the Allies and the Dominioit.s, as mentioned in the Budget statement, woul*l set be e??f?e?dec!.

Turning to future expenditure he said: On the basis adopted of five million pounds daily, 105 millions will be required for the present financial year. It is probable that the rate will rise above five millions daily. Turning to the question of economy, the House would reasonably require definite, positive, and categorical assurances that in expenditure of these enormous sums adequate precautions were being taken against extravagance and waste. For some time, in the three great spending departments—the army, navy, and ministry of munitions—committees had carefully been watching in order that there should be no avoidable waste. He did not believe they could have better machinery, and, from personal observation, he could assure the House ,that very substantial economies had been effected. He felt the enormous and overwhelming responsibility of asking the House to assent to .the vote, and he -would not have done so unless he had first carefully explored th© ground. He was not asking Parliament to vote one penny above exigencies. The great historic responsibilities required from the Government the duty to see that the taxpayers' money flowed fully and exclusively into the channels whereby they would attain their great object. Having satisfied themselves on those two things, fhey Tvoiild be false to the trust that the nation and Parliament repose in them if they refused to shoulder this additional loan. He was confident in the justice of the cause and the necessity for sacrifice, and confident, also, if the country, as he was certain it would, responded to the call, that our just cause would prevail. Sir John Simon criticised the waste in the War Office, which, he said, in direct defiance of the Act appointed :en who ;had been, medically rejected, and were not liable to compulsion under the ' Act. But there had been widespread misrepresentation, and &s & result these men were induced to believe i-hat they were compelled to come forward. Such a course of action was unfair and inexcusable. Sir John Simon continued: It is impossible to believe this is going on without the knowledge of the War Office. It was surprising that these men had been bustled, bullied, and -deluded into the army. He cited instances. Mr Tennant said he was surprised to hear of these cases, and promised -.an enquiry. Colonel C. E. Yate urged the formation of a smaller Cabinet. Our Allies, he said, do not realise that we are in earnest, as -.while the Cabinet is supposed to be conducting the war it is J also administrative duties, and red-tape officialdom is rampant. IMr McKenna,'in response to an enquiry about financing German bilk, said that at the outbreak of war the Government gave temporary relief in connection -with'hills that had been accepted by "English firms, the Government guaranteeing discount, and undertook a heavy temporary liability, •which already 'had been largely discharged.