THE COST OF WAR

Wanganui Chronicle, Volume 83, Issue 244, 16 October 1939, Page 2

THE COST OF WAR

AUSTRALIA’S BILL METHODS OF FINANCE RELIANCE ON MJAN ABILITY SYDNEY, Oct. 4. A month after the outbreak of war, Australia is spending at the rale of £136,986 a. day—£s7o7 15s an hour—on defence and wartime preparations. This is a sharp rise on the expenditure of £53,917 a day or £2246 10s an hour at the end of June, 1915—ten months after the outbreak of the last war. Wartime expenditure has now reached £7 3s 7d a head of population. The Commonwealth is now spending in seven days as much as was spent in a whole year by the States in 1900-01. A three-year war may cost Australia £450,000,000. This is an unofficial estimate based on the cost of the last war and later developments. The last three years of the Great War cost Australia £228.000,000, and it is estimated in Britain that the cost of keeping each division in the field has doubled since then. With the rale of Australia's war expenditure already not far short of £lOO a minute, the Commonwealth Government is investigating all possible methods of raising funds. Three courses will be followed. There will be heavy borrowing, taxation will rise steeply, and war-saving certificates v'ill be issued Io enable small wageearners to take part in war finance. Over the whole period of the last war military munitions, supply and repatriation services cost Australia £253,841.409, the Navy £35,111,350, and the R.A.A.F. £265,919—a total of £289.218.678. Budgetary defence provision for this year is £33,000,000, and extaordinary commitments have already reached £16,800,000 a year. This total is substantial, but sharp in- | creases may be expected as the war goes on. At June 30, 1916, war and defence expenditure was £19,555,000, but it advanced to £45,962,000, £66.043,000, £70,680,000, and £86,980,000 in the following years. Although war costs have increased ’ enormously, Australia’s financial . power has also increased, and the ! Commonwealth’s capacity lo raise ! loan money has advanced correspond- I ingly. There is no doubt that, the ' hulk of the money required will be ; obtained from loans. During the last war. £342.000,000 was raised in loans, ’ £250.000,000 in Australia, and £92,000,- I 000 in Britain. A wartime profits tax j will certainly bo introduced, but, in view of the strict prices control ■ schemes, proceeds will be inconsider- 1 able. During the last war this fax returned a total of less I han £8,000,- >)(). Of her revenue proposals now! under consideration include an increase in income tax and a supertax on higher incomes (probably those oxer £2000), extensions of the sale.fax range, imposition of a postage lax. increased inheritance duties, and a<idilional duties on liquor, tobacco m other 'luxury goods.