FINANCING THE WAR

Southland Times, Issue 17664, 23 February 1916, Page 5

FINANCING THE WAR

Britain’s Colossal Task NEW VOTE OF £430,000,000 Brings Total to £2,082,000,000 MR ASQUITH S STATEMENT RIGID SUPERVISION EXERCISED. THE VOTE PASSED, LONDON, February 21. Received February 22. 10.25 p.m. Mr Asquith, in the House of Commons, introduced a vote of £430,000,000. He said; I will confine myself to the financial aspect. There will be two votes, one supplementary for the expiring year, and the other for the new year. This vote of credit will raise the total for 1915-16 to £1,420,000,000, and the total since the outbreak of war to £1,782,000,000. The total issued out of votes of credit since last April is £1,198,000,000. TEE DALLY EXPENDITURE from Ist April to 17th July (was £2,800,000; from 17th July to September, £3,500,000; from September to November, £4,350,000; from November to 19th February. £4,400,000 per day. The Army, Navy, and munitions, from April to 19til February cost £834,000,000. Mr Asquith pointed out that £1,782,000,000 was the vote to the end of the 1915-16 year, to which to-day’s vote would add £300,000,000 for next year. Thus THE TOTAL WAR VOTES were now £2,082,000,000. Mr Asquith said that our loans to the Allies to date were £168,000,000. Since November the expenditure c/i the Army, Navy, and munitions had increased by £400,000 daily. It was uncertain what sums must be spent before the end of the financial year in the purchase of American securities. It was also desirable to repay substantial sums to the Bank of England. We are therefore asking for £120,000,000 to the end of the financial year. The total already voted for the financial year Is £1,300,000,000 the total sum issued out of votes since April being £1,198,000,000. The Treasury had £120,000,000 in hand. This would carry on the public services until 10th March. There were unspent balances of £65,900,000. Three Committees, of which two were presided over by Cabinet, were EXAMINING THE EXPENDITURE on the Army, Navy, and munitions, and vigorous steps were being taken to see that the money was effectively applied. The liability to the Bank of England was £98,000,000. LOANS TO THE ALLIES AND DOMINIONS, which amounted to £98,000,000 in ember, were now £168,000,000. , Food supplies had increased by £6,900,000, and now amounted to £30,400,000. This gave a total of £1,132,000,000. The average expenditure on the Army, Navy, and munitions was over £3,000,000 a day, but if we deducted the normal peace expenditure it leaves a net expenditure for war services of £2,780,000 daily. He thought that he could assure the House that the item of £423,000,000 oh account of advances to the Allies and dominions mentioned in the Budget statement would not be exceeded. Turning to FUTURE EXPENDITURE he said that on the basis adopted of five millions daily, £105,000,000 would be required for the present financial year. It was probable that the rate would rise above £5,000,000 daily. Turning to the question of economy the House would reasonably require definite, positive, and categorical assurances that in the expenditure of these enormous sums adequate precaution was being' taken against extravagance and waste. For some time in the three great spending departments, the Army, the Navy, and the Ministry of Munitions, Committees had been carefully watching in order that there was no avoidable waste. He did not believe we could have better machinery. Ifrom personal observation he could assure the House that very SUBSTANTIAL ECONOMIES had been effected. He felt the enormous and overwhelming responsibility of asking the House to assent to the vote, and would not have done so unless he had i first carefully explored the ground. He was not asking Parliament to vote one penny above the exigencies of the occasion. These great HISTORIC RESPONSIBILITIES required the Government as » duty to see that the taxpayers’ money flowed fully and exclusively into channels whereby it would attain the great object desired. Having satisfied themselves of those two things they would be false to the trust that the nation and Parliament reposed in them if they refused to shoulder this additional loan. Being confident of the justice of their cause and the necessity of the sacrifice he was confident also of the country, as he was certain it would respond to the call and that our just cause would prevail. MARVELLOUS BRITISH CREDIT. THE IMPOSSIBLE ACHIEVED. LONDON, February 21. Received February 22, 10.35 p.m. Mr McKenna stated that British firms had largely paid off their pre-moratorium bills, which the Government had discounted. Government advances in connection with the Slock Exchange had been reduced to a negligible -figure. Whether we shall discount positive German bills will be decided later. American exchange was more favourable to us than to any other belligerent. We had discouraged imports by keeping the exchange a little below par. British credit was marvellous. After eighteen months of war we were still the only open gold country in the world, possessing gold for every note. Two years ago it would have been thought impossible to raise the gigantic sums of over £2,000,000,000 and still have an open market for gold. He never believed that British credit could stand such an extraordinary test. SOME CRITICISM. LONDON, February 21. Received February 22, 10.35 p.m. Sir J. A, Simon criticised waste in the War Office, which lie said was in direct defiance of Hie Act of Parliament. In regard to men who had been medically rejected and were not liable to compulsion under tlie Act, there had been widespread misrepresentation, and as a result these men had been induced to believe they would be compelled to come forward. Such a course of action was unfair and inexcusable. Sir J. A. Simon continued that it was impossible to believe that this was going on without tlie knowledge of the War Office. It was surprising that these men tiad been bustled, bullied, and deluded into the Army. He cited instances. Mr Tennent said he was surprised to hear of such cases, and promised inquiry. Colonel Yate urged tlie necessity for a smaller Cabinet. The Allies did not realise that we were in earnest. While Cabinet Ministers were supposed to be conducting the war and also attending to their administrative duties, red tape officialdom was rampant. FINANCING GERMAN BELLS. LONDON, February 21, Received February 22, 10.35 p.m. Mr McKenna, in response to an inquiry as to financing German bills, said

that at the outbreak of war the Government gave temporary relief in connection with bills accepted by English firms. The Government, in guaranteeing to discount them, undertook a heavy temporary liability, which already had been largely discharged. Tlie vote was passed. peace cey in Germany. LONDON, February 21. The Daily Mail correspondent at Copenhagen states that 500 prominent business heads, senators, and shipowners of Hamburg, Lubeck, and Bremen have petitioned the German Government to begin peace overtures in order to end the war in three months, otherwise the Hansa States would be totally ruined. The Daily Mail discounts the seriousness of these proposals. SUPPLIES FOR GERMANY. DANISH MERCHANTS PINED. LONDON, February 21. The Danish Merchants’ Guild, who are administering the Anglo-French commercial agreement, fined three merchants from 19,168 to 134,000 kroner on charges of attempting to sell cocoa and coffee to Germany. Copenhagen officials have approved of these severe penalties for end.ing this smuggling.