WAR COSTS.

Northern Advocate, 7 December 1916, Page 1

WAR COSTS.

BRITAIN'S SOUND POSITION,

Australian and N" Z. Cable Association. LONDON, December 5. Mr Mackinnon Wood, Secretary to the Treasury, in an interview, compares the financial positions of Germany and Britain. He says:—"The financial position is that 'Britain has followed a policy of openness, and Germany largely of concealment. Heli'ferich's last budget was admittedly a bogus budget, wherein war income and expenditure were not stated. The British expenditure has been clearly published, and will probably amount, from the beginning of August, 1014, to the - end of March, 1917, to t:3,883,----000,000. This includes large advances to the Allies and Dominions, repayable after the war. We have national reason to be proud that Britain has borne the burden with cheerfulness and goodwill, betokening the stern determination of the whole peoples. Since the beginning of the war we have raised in taxation £1,011,000,000. "Germany, on the contrary, has gambled upon the expectation of huge indemnities from conquered enemies. The success of her loans is largely due to the paper money which the Government itself has created. This method can be repeated indefinitely, it is true that Germany has borrowed solely domestically, but the British horiowings in the United Slates have •■)ce:i very small, and intendi. J only to maintain the exchange. Foreign exchange reflects the judgment of the world on the financial positions of Germany and Britain. When peace comes Germany will have to face ■anormous difficulties. German financial writers fully recognise this."