WAR FINANCE CRITICISED.

New Zealand Herald, Volume LII, Issue 15964, 8 July 1915, Page 8

WAR FINANCE CRITICISED.

BURDEN ON POSTERITY. MORE TAXATION URGED. BANKRUPTCY OF EUROPE. London, July 6. The House of Lords is discussing Lord Middleton's motion urging a reduction of civil expenditure. Lord Middleton declared that the Government had made as little financial preparation for the war as military preparation.

Earl St. Aldwyn, who as Sir Michael Hicks-Beach was Chancellor of the Exchequer in two Conservative Administrations, said that he was disappointed that the Civil Service Estimates did not show a great reduction. Out of nearly £1,300,000,000 of war expenditure only £68,000,000 was being raised by taxation. We were deliberately casting the whole burden of the war on our successors. It was a bad policy. It was unfair to the country and a disgrace to the present generation. The Government was blameworthy in not proposing additional taxation at the outset of the war. Lord Haldane said that the House was not looking in the face the formidable fact that they had to meetthat this would be a different country after the war because it would be a poorer country and deprived of many advantages which had given it a unique position in commerce and industry. Earl Loreburn said that .if wisdom did not come to the councils of Europe we were going straight to European bankruptcy in a comparatively short time. The Marquis of Lansdowne said that, the financial position was a cause ot anxiety before the war It was now regarded with the gravest! attention. It was not likelv that the war expenditure would decrease j It was therefore imperative that the Government should not accept new and unnecessary liabilities. .