FINANCES OF BRITAIN.

New Zealand Herald, Volume LVI, Issue 17125, 2 April 1919, Page 9

FINANCES OF BRITAIN.

CRUSHING BURDEN BORNE.

STRICT ECONOMY URGED.

Australian and N.Z. Cable Association. (Seed. 10.60 p.m.) LONDON, Mar. 31.

Lord Faringdon, speaking in the House of Lords, drew attention to the country's financial condition. The burden, he said, was fast becoming insupportable. We were standing on the brink of a precipice. The country expected a more rapid diminution of expenditure, which should be limited to absolute essentials.

Viscount Peel, replying, agreed that strict economy was necessary, but Britain stood first in the attempt, to finance the war out of taxation, which was now £17 per head, compared with £3 10s .before the war. The expenditure had been reduced by £2,000,000 a day since the signing of the armistice. Lord Buckmaster estimated the national capital before the war at between £15,000,000,000 and £19,000,000,000, of which £7,000,000,000 had been lost, and the remainder has depreciated by 60 per cent. The Government should ascertain the maximum financial capacity of the country compatible with existence, forcibly compres3 expenditure within

it. Lord Milner questioned Lord Buckmaster's figures and doubted if the actual loss was in excess of £1,000,000,000. The remainder had merely changed hands. The idea that the country's valuation had depreciated nearly 50 per cent, was completely fallacious. A certain amount of borrowing must continue for the development of productive undertakings, but the watchword must be economy and increased production. The Government realised the gravity of the situation, but it was no use to exaggerate.