REVIEW OF FINANCIAL SITUATION.

Sun (Christchurch), Volume III, Issue 872, 25 November 1916, Page 2

REVIEW OF FINANCIAL SITUATION.

GREAT BRITAIN IN STRONG POSITION. GERMANY'S PROBLEM AFTER THE WAR. A. and N.Z. Cable Association and Renter. (Received November 25, 11.40 a.m.) LONDON, November 24. In an interview Mr Me-Xinnon Wood (Financial Secretary to the.Treasury), on ; the financial position, said:—"Britain followed a policy of openness, and Germany one largely of concealment. • Dr Helfferich's last Budget was admittedly a bogus Budget, in which war income and expenditure were not, stated. "The British expenditure has been clearly published. It will probably amount, from the beginning of August, 1914, to the end of March, 1917, t0.£3,883,000,000, including large advances to the Allies and Dominions, repayable after, the war. "The nation has reason to be proud that Great Britain has borne her burden with cheerfulness and goodwill, betokening the stern determination of the whole peopie. t Since the beginning of the war we have raised in taxation £1,011,000,000. The Germans, on the contrary, gambled upon the expectation of huge indemnities from their conquered enemies. The success of Germany's loans was largely due to paper money, which she herself had created. This method can be repeated indefinitely. "It is true thai Germany borrowed wholly at home, hut the British borrowings from the JJnited States were very small, and intended only to maintain exchange. The present state of foreign exchange reflects the judgment of the world. Regarding the financial positions of Germany and Great Britain, when peace comes, Germany will have to face enormous difficulties, and German financial writers fullv recognise this."