BRITAIN PAYING FOR THE WAR

Wanganui Chronicle, Volume 85, Issue 298, 18 December 1941, Page 5

BRITAIN PAYING FOR THE WAR

MILLIONS EVERY DAY FOI RTH Ot CASIO.X TO ASK FOR HUGE SIM Rugby, Dec. 16. The Chancellor of the Exchequer (Sir Kingsley Wood), speaking in the House of Commons to-day said it was the fourth occasion on which he had had to ask approval of a vote of credit for £1.000,000.000 for the current financial year. The vote wits approved. Out of the £3.000.000,000 already voted, said the Chancellor, there was a balance of £252,000 000, and if the expenditure continued at the same late as in recent weeks that balance, with the present vote, would suffice approximately until the end of the financial year. The country had frequently been spending at the rate of nearly £85.000,000 per week, or £11,750,000 per day. Of this £9.000,000 was attributable to the Fighting Services. The Chancellor added that it would appear likely that the final balance to be met from new savings might be somewhat greater than was estimated at the time of the Budget, but it seemed unlikely that the difference would be huge, certainly not in relation to the dimensions ot the figures involved The Chancellor said that, although figures were available for the various form of saving, it was important to remember that much individual saving was not necessarily lent to the Government directly, and he gave as an example regular payments to insurance companies and building societies which might he lent to the Government by those institutions. Inflation Danger. "I appeal to all who influence public opinion to continue to do their utmost to help us in this paramount effort to increase the savings of our country. Inflation is not an economists bogey--it is a danger which, if allowed to develop may threaten the very basis of the material welfare and peace of mind of all of us. Our total expenditure during this year has now reached the colossal figure ot some £8.30(1000,000. We have a long anil hard war before us and it is more imperative than ever that all waste and extravagance must be avoided. All plans and projects not directly concerned with the war effort, but involving appreciable expenditure, must be considered in relation to oil" resources and financial strength." With regard to direct taxation, the Chancellor announced a new plan to help taxpayers who have materially big sums to find, to set aside such sums as profits or incomes accrued. Such an arrangement was likely to be specially helpful to companies liable to excess protits tax. It was also de-

sirable to avoid the piling up of tax money in banks and to encourage a more even flow into the Exchequer. He had, therefore, decided to issue a new special security in units of £25 or multiples thereof which the taxpayer would be able to tender—and earn interest—during a limited period in payment of certain taxes, including surtax, excess profits tax. and the m-iteria; defence contribution. The scheme was expected to be ready before the end of the month.