THE COST OF WAR.

Lyttelton Times, Volume CXVII, Issue 17099, 23 February 1916, Page 7

THE COST OF WAR.

A BIC VOTE. COMMONS GRANTS £"420,000,000. THE PRIME MINISTER ON WAR . EXPENDITURE. TOTAL VOTE NOW £2,082,000,000. By Telegraph—Press Association—Copyright. (Received February 22, 10.2 q p.m.) LONDON, February 21. In the House of Commons, Mr Asquith, introducing a vote of £420,000,000, said: "I will confine myself to tho financial aspect. There will bo two votes, one supplementary for the expiring year and the other for the new year. This credit vote will raise the * total for 1915-16 to El 120,000,000, and the total since the outbreak of war to £1,782,000,000. The total issued out of votes of credit since last April is £1,198,000 000. The daily expenditure from April 1 to July 17 «as £2,500,000'; from July 17 to September, £3,500,000; from September to November, £4,350.000: and from November to February. 19, £4,100,000. Tho \rmv, Navy and munitions from April* to February 19 cost £834,000,000. •• Our loans to our Allies to date amount to £168,000,000. Since November tho expenditure on the -Army, Navy and munitions increased by £4OO OOOdailv. It is uncertain what sums must, be spent before the end of tho financial year in the purchase of American securities, audit is also desirable to repay' substantial sums to tho bank of England. Wo are, therefore, asking for £l2O 000,000 to the end oi the nuiiicial Year. The total already voted "or the'financial year is £1,300 000,000. The total sum issued out of votes since Vm-il beino- £1,198.000,000," The Treasury had £102,O0O,0(}O .in hand, and this would carry on the public services until March 10. There wore undent balances amounting to V&VJOO.OOO. Three committees, ot which two were'presicnjd over by the Cabinet, were examining the expenditure on the Army- X»*y and " U ' Ul ; t'ions, and rigorous steps were being taken to see that the money was efSctirely appfbd The the Bank of England was £US,WI',<JW, cue 1 ,7ns to the Allies and dominions, The expenditure on food supplies had mcreased bv £6,900,000, and now mounted total of £1.132.000,000. Th* ivoraao expenditure on tno Army N'avy and munitions was over £3006,6C0 per day. but if the> normaj peace there was lef• daily . H e House that thc.itom of £«B,«W.OOU o« account of advances to the All'- * and dominions, .mentioned i» ' tn statement, would not bo «£™ ac b ; Turning to the future which said that on the basis adopted, «« neh en. year, and it va? 1 £5.000,000. ho said that tbfi House night roa o> caution was heing taken against extravagance and waste. For some hme in the three spending depart-ments-the Army, Navy and Mintftty of Munitions--committees had been carefully watching in order that there

should I>© no avoidable waste. He did not believe that the country could have bettor machinery, and from personal observation lie 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 the ground. Ho was not asking Parliament to vote a penny above .the sum which the exigencies causing the great, historic responsibilities required. It was the Government's duty to see that the taxpayers' money flowed fully and exclusively in the. channels through which the country could attain its great object. Having satisfied themselves of those two things, the Government would be false to the trust that, the nation and Parliament reposed in them if they refused to shoulder this additional loan. Being confident in the justice of the etiuse and the necessity for the sacrifice, he was confident also that if the. country, as lie was co ■fain it would, responded to the call, Britain's just cause would prevail. THE DISCUSSION. SIR JOHN'SIMON'S CRITICISM; Sir John Simon criticised the waste in the. War Office, which ho saicl was in direct defiance to the Act of Parliament. Men who had been medically rejected were not liable to compulsion under the Act, but there had been widespread misrepresentation, with the result that these men had-been induced to believe that they wore compelled to come forward. Such a course of action was unfair and inexcusable. Sir John Simon continued: "It is impossible, to believe that this is going on . without the knowledge of the War Office, and it is surprising that these men are bustled, bullied and deluded into the Annv." He cited instances.

Mr Tennant said that he. was surprised to hear of the cases and promised an inquiry. • Colonel C. E. Yato (Unionist) urged that a smaller Cabinet should' be.adopted. The Allies would not realise that Britain was in earnest while the members of Cabinet supposed to be conducting the war.wore also attending to administrative duties. Red tape and officialdom were rampant.

STANDING THE TEST. ' BRITAIN'S WONDERFUL CREDIT. Mr M'Kenna, in response to an inquiry as to the financing of German bills', said that at the outbreak of war the Government gave temporary relief in connection with' German bills accepted by English firms, the Government guaranteeing to discount them. Tno Government undertook a heavy temporary liability, but already it had been largely discharged. Britisli firms had largely paid off the pro-moratorium bills, which the Government had discounted. The 'Government advances in connection with the Stock Exchange had boon reduced to a. negligible figure. -i Whether we discount post-war German bills will be decided later. The American exchange is more favourable to us than to any other belligerent. AVo have discouraged imports by keeping the exchange a linle below par. The British credit is marvellous. After eighteen months of war wo are still the only open cold country in the world possessing gold for every note. Two years ago we would have thought it impossible, to raise such gigantic sums, over .£2,000,000,0(30, and still have an open market for gold. We never believed that British credit could stand such an extraordinary test."

Mr Asquith pointed out that th« £1,752,000,000 was the vote to the. end of the 1915-16 year,.to which the Vote

before tho House had to be added, and the £300,000,000 for the next year. Tims the total war votes woiild now be £2,082,000,000. Tlie vote was passed.