THE New Zealand Herald. AND DAILY SOUTHERN CROSS. TUESDAY, APRIL 21, 1596,

New Zealand Herald, Volume XXXIII, Issue 10111, 21 April 1896, Page 4

THE New Zealand Herald. AND DAILY SOUTHERN CROSS. TUESDAY, APRIL 21, 1596,

In the present condition of international relations, and in the evident uncertainty attaching to the con-

tinuance of peace, we cannot but feel a distinct interest in everything bearing on the resourcefulness of England against a possible emergency. In this view the announcement which appeared in our yesterday's issue about the extraordinary surplus in the British revenue is full of significance. There is some obscurity in the actual figures as furnished by telegraph, but the Chancellor of the Exchequer has described the year as a " wonderful year." and

stated that, after providing for everything, the surplus on hand was " the largest for fifty years." We have to bear in mind that the expenditure of the year included a large sum devoted to the increase of the Navy, on the basis of the great scheme of naval extension which had been for some years in operation. And over and above all this comes the surplus which has been set aside for the relief of taxation, for the help of the agricultural interests, and for the support of education. For the year now entered upon, all surplus anticipated has been devoted to the navy, this being intended to supplement the scheme of ship building already in operation, by the new and exceptional provision made for naval preparation. England having been fully awakened to the

necessity for maintaining ascendancy at sea is losing no time in putting the navy in the highest state of efficiency, and it must be gratifying to the whole empire to see that the means of doing this are provided to the full measure of requirements, by mere natural growth of the revenue, arising out of the extraordinary growth of the wealth of 'the people.

It has been clear to the whole world for some years past that with the enormous expense attaching to modern armaments of every kind, any great struggle in the future between the nations must be ultimately determined by the possession of the

resources of wealth, and that the richer the nation, the longer will it be able to bear the extraordinary strain, and;the more likely will it be to come out victor in the end. This beiiitr so, it is impossible to view the increasing wealth of the British nation without seeing in it a principal source of strength in any great conflict that may come to pass. For though we might regret for many reasons that the wealth of the nation is not more evenly diffused—and might even suppose that a country like France, where the poor are not so very poor, might have the elements of greater buoyancy, and more powers of rapid recuperation, as was shown after the

Franco-German war-still, the possession of vaso wealth in whosesoever hands in , the nation it may be, is a source of strength to be' drawn on in the most natural way for the defence

of the Empife. This is not necessarily fffim Anything in 'the way of a forced levy, or from excessive taxation evj n in the face of a national emergency but from the fact that these accutnu! i 'luted funds ate eagerly seeking outlets for investment, and that if money were (ranted for an increase of the national 6 -bt, instead of being an embarrass'iflt it would be a Veritable godsend, ' fl 'm the relief which a fresh sale of i c °sols would afford to the congestion ofhoiiey. This accumulation of realised Wealth 16 really a storehouse of p natinal strength, and while we may , Ntoe in hearing of an increase of the , "avj or of the military strength, or ot the laments and muniments of the stron; places and of the outposts of the Ehpii'e, this steady, silent Accum- ' ulatici of the wealth of the people is heapiijr up an inexhaustible supply of 1 the resources of war, which to the last peiny of surplus wealth, will be i gladly and promptly made available for imtijtifll purposes. That vealth we knov Ins been growing to a degree unprectierited in the history of any peopii, or of any period. the in vestlnentsof British capital among foreign nations and in every qusji'ter of the globe, ire now bringing Ji their rich harvests c rom year toyear,Hnd as these 1 are heaping riches upon nches, we are ' warranted in looking m all these | rapidly and vastly accun/ilating stores of wealth in the light if constantly accumulating strength jo the Empire, if ever it is called upon |o defend itself in a prolonged and exhausting conflict. In connection with tiis there was a remarkable comment recently in the London Times. It |s based on an article on The Sinking Funds of the National Debt" in "liurdett's Official Intelligence" for IfflG. That article refers to the fact thjt from five to six millions a year are king paid for the redemption of slacklast year it appears to have be<n eight millions— and it suggests thai the suspension of these payments woald provide interest and sinking fuitl for a loan of £200,000,000 withoit necessitating additional taxation. I The Times goes on to say : - I The fact that the deration of the Sinking Funds is becoming positively inconvenient, indicates our possesion of a vast and instantly available reterve of defensive power. In any national emergency the mere suspension of the Sinkim Funds specified in that articlc at once give* us power to raise a loan of a hundred milling, repayable, principal and interest, in 25 rears, or of 201) millions ii we choose to extent! the period of redemption to 75 years. This reserve, equal to the indemnity paid by France at the close of the war with Germany, can be realised without adding a ainglo penny to taxation, and, as it would appear, with positive benefit to many important financial and social interests. The importance of such large and immediately available financial resources can scarcely lie •ver-estim»ted. They ought not to be drawn upon for any purpose less urgent and important than national defence; but there is no reason in the present condition of affairs why we should hesitate to draw upon them for that purpose to such an extent as circumstances may render expedient. We hear much of the resource for warlike purposes which Germany has in the five millions in gold, stored away in her Treasury vaults, the remains of the French indemnity. But an astounding fact like this shows at once the promptness with which England could meet a national emergency, and the exhaustless stores of military and naval strength which she has in reserve in the vastly accumulated wealth of the people.