Huge Cost Of War Preparations

Northern Advocate, 5 October 1938, Page 7

Huge Cost Of War Preparations

LONDON, October 4,

The cost to the British taxpayer of last week’s war preparations was £44,000,000, the “News Chronicle” estimates. Nearly £13,000,000 was sanctioned for air raid precautions. Many local authorities incux’red big liabilities, and are now . demanding that the Goveniment pay the whole of their expenditure, because it is impossible to meet the cost from rates. France’s Plans. M. Daladier’s plans for- financing France’s mobilisation costs, yhich were between £55,000,000 and £00,000,000, are not certain. The Paris correspondent of the “Daily Express” points out. that the monetary situation has deteriorated since Saturday, and it is believed the Government must secure further advances from the Bank of France, entailing inflation, or find a solution in the direction of exchange control; but the former is more likely. Financial quarters believe the Government may devalue the Bank of France’s gold stocks, increasing the value of ’yhe reserve by over £200,000,030. Elsewhere it is suggested that M. Daladier may ask for plenary powers, which is most unlikely to be supported by the Socialists and Communists.

Thousands of French families are pouring back frorh the country, and air raid trenches are being refilled in the parks. The banks are receiving deposits.