ECONOMIC STRENGTH

Manawatu Standard, Volume LIX, Issue 265, 9 October 1939, Page 7

ECONOMIC STRENGTH

BRITAIN v. GERMANY

COMPARISONS IN BUDGET

REVEALING EIGURES

(United Press Association.—By Electric Telegraph.—Copyright.) (British Official Wireless.) Received October 9, 12.5 p.m.* RUGBY, Oct. 8. The value of a statement in the German newspaper Berliner Borsen Zeitung that “the British economic and social structure will break if the war continues” may be gauged in the light of comparative figure's taken from a single factor of the nation’s economic structure.

The annual income from British foreign investments exceeds £200,000, * 000 in gold, whereas Germany has no foreign exchange, and a smaller gold reserve than in 1918.

The Budget expenditure is £2,000,000,000 at present, but if half the national income be devoted to war expenditure Britain can easily spend double the present expenditure on war effort.

In taxation, income tax on the lower income ranges is less than one-fifth of the lower ranges in Germany, where a married man pays a tax on income over £65, while in Britain he does not pay until it is over £225.

While there is a German labour scarcity, Britain has 1,500,000 men on whom to draw. Rationing has not yet been introduced in Britain, where there are ample food stocks, and, in addition, control of the Atlantic leaves available the vast resources of the Dominions.

FAYING FOR THE WAR.

BRITISH AND FRENCH FINANCES. NEW YORK, Oct. 7. The New lork Journal of Commerce cites the monthly letter of the National City Bank as showing that Britain and France are in a better position to pay cash tor wartime purchases from the United States than they were in 1914. It points out that the current British and French gold holdings amount to 5,225,000,000 dollars, besides large additional holdings which would bo received from South African and other t mines. The British and French hank balances in the United States are estimated at 855,000,000 dollars, compared with the combined gold and foreign exchange resources of 2,815,000,000 dollars in 1914.

GERMANY’S FUTURE.

NEAV FEAR OF COMMUNISM

BRITISH AIMS.

LONDON, Sept. 27. The most compelling feature of the war, as a result of Russia’s advance into the heart of eastern Europe, is tiiat diplomatic and political activity, at least at present, is assuming a far greater importance than tlio actual military activity. Russia’s advance not only gave the world a general surprise by its suddenness, but it has also raised many considerations in political circles. Among these considerations is the view that, since the Empire agrees with Mr Winston Churchill’s statement in the House of Commons that to persevere is to conquer, a military victory over Germany is merely a matter of time.

Secondly, in view of the destruction of tile bulwark that Roland constituted against the Communist flood, will not Germany, which may take three years to defeat in the field, tend in that period to become a theatre for Communist revolution, owing to increasing internal weakness?

Thirdly, if the destruction of Hitlerism is indeed the aim of the Allied Armies, is it not high time that an official definition of Hitlerism was incorporated n some document announcing the Allied wav aims; and, if Hitlerism can be described as overmastering nationalism, should not the question be asked whether an internal revolution in Germany, which may be expected to mark the last phases of the present war, may not produce something as bad, if not worse, than Hitlerism—say, Communism P RIPENING FOR REVOLUTION. Questions of this kind are being asked in all the capitals of Europe, and tlieir answers may have a vital bearing on tlie length of the war. The Berlin correspondent of the Swiss newspaper National Zeitung, ol Basle, in prophesying, that Berlin official circles are making all preparations lor a new and large-scale peace effort, declares: “Well-informed 'circles at Berne are wondering if Herr Hitler is really scared by his Russian partner, and will now make a desperate attempt to pacify his western enemies before a long war and blockade ripen a German Red revolution.'"

The correspondent adds: “Herr Hitler is well aware of opinion in Britain and France, but he will try to convince those countries that the situation has changed because Russia took such a big part in the operations in. Polandj and got ail enormous ‘slice of cake without the Western Powers protesting.” Apart from the excitement created by Herr von Ribbentfop’s visit to Moscow-,- and also by the talks between Turkey and Russia, there is considerable diplomatic activity in Paris and Rome, and at the Vatican, besides among all the diplomats representing the Baltic States in Paris and London. Commentators attach the greatest -weight to the Russo-Turkish talks, which they believe—if successful—will not only block German aggression in the Balkans, but also replace German economic domination by Russian economic domination.” DREAM OF CZAR IST DAYS.

Russia’s old dream of the • Czarist days of establishing what amounted to a Slav confederacy from the Adriatic to the Black Sea is undoubtedly behind Russia’s diplomatic moves in the Balkans. It is also thought that the Russo-Bulgarian talks may be intended to pave the way for a removal of the obstacles that have made Bulgaria reluctant to join the Balkan Entente— Greece, Yugoslavia, Rumania, . and Turkey., A Turkish guarantee of neutrality in the event of a war in which Russia was ■‘attacked and a guarantee that the Dardanelles would not be openedj to foreign warships seeking to enter the Black Sea to operate against Russia is regarded as one of Russia’s chief aims.

It would further strengthen Russia’s position if any such guarantee was backed by a Balkan bloc pledged to

neutrality and including Hungary and Bulgaria. Some observers doubt whether Italy would join Russia in a Balkan pact, but agree that, if she was left out in the cold, the effect of the formation of a Balkan bloc pledged to neutrality would greatly impede Italy’s activities in the Eastern Mediterranean should she be drawn into the struggle on Germany’s side.