The Wanganui Herald. [PUBLISHED DAILY.] TUESDAY, MAY 14, 1912. THE SINEWS OF WAR.

Wanganui Herald, Volume XXXXVII, Issue 13680, 14 May 1912, Page 4

The Wanganui Herald. [PUBLISHED DAILY.] TUESDAY, MAY 14, 1912. THE SINEWS OF WAR.

Speaking at the Bankers' Association dinner in Loudon last week, the British Prime Minister deplored the gigantic expenditure ou the Navy, and said that if •some day it could be diverted to more fruitful channels it would rel i ve the world of an incubus, but while the world remained in its present temper Britain could uot negelect defence againt aggression, lie added that while Britain had decreased her national debt since 1906 by .£65,000,000, Germany had increased her.s by £83,000,000. Point is given to Mr Asquith’s comments by Mr \V. R. Lawson in a book be has recently published entitled “Modern Wars and War Taxes.” It seems that when the dreaded European war breaks out, the citizens of every participating nation will have to he squeezed ruthlessly by their respective Governments in order that the money necessary for carrying on war on the great scale may be obtained. On this subject Mr Lawson remarks that the proper financial question to ask about the next great war is not now how much it will cost, but how much the belligerents will be able to raise for it. ’Hiey might spend ad infinitum if they could get the money, but fortunately their will he limits to their financial resources. "There are no definite limits,” writes Air Lawson, "to the number of men who could be put in the field or to the number of warships that could be sent to sea in some shape or other. Neither are there limits to the quantity of powder and shot that

could be fired or the number of human beings who could fie killed. The one strictly limited article on the programme is the purchasing power of the combatants. finance will be the governing factor.” This author's studies lead him to believe that the next great war will be won by that nalion or group of nations which has the most money. The borrowing and taxing power of a nalion is nowadays the final test: of its military strength and endurance. It has been calculated by Herr Rebel that for Germany to mobilise her 5,000,000 troops would cost .£2,500,000 for every day they are in the field. Mr Lawson, thinks this estimate—llls per day per man—too high. He is of opinion that it would only cost Gs or 7s per day to keep a German soldier'in the field, but, he says, it would cost twice as much for British troops. Mo reason is alleged other than “the financial incapacity which has always characterised the British army,” As no financial scheme has been arranged by the British Government for war purposes, according to this author, we are obliged to get what guidance we can from the German plans. Mr Lawson announces that the German Government has drawn up a long list of financial decrees, which would he immediately issued on the outbreak of war. Among them, he says, would Vie one forbidding withdrawals of bank deposits until further notice. In order to deaden the shock of such an order, the Government would assume responsibility for one year’s interest on the impounded balances. A Gorman banker named Warburg, at a bankers’ convention at Hamburg, examined the chief German proposals for financing a war on a scale that may be anticipated. These proposals were six, namely : (1) To suspend publication of the weekly returns of the imperial Bank; (2) to appropriate either partially or wholly the gold held against Imperial Bank notes; (5) to levy forced loans; (A) to issue forced currency ; (5) to establish loan offices with right of note issue; <(>> to declare a general “moratorium.” A certain under-secretary named Von Mayer suggested that, with a view to the forced loans, a roll of all propertied persons should he prepared in time of peace and pigeon-holed along with the plan of campaign 1 If Germany is compelled to resort to such drastic measures, what about England? The forecast of this author is that in the eVent of war the British Government would fie compelled to issue a war loan of ■£100,000,000 at once, giving the Chancellor of the Exchequer time to arrange for taxation, which would include 50 percent, death duties, and probably an income tax of 2s in the £. Mr Lawson quotes the late Sir Robert Giffeu, who urged that the Government should establish a war chest or else maintain a greatly increased gold reserve. Sir Robert Giffen, who was a cautious man, not given to exaggeration, considered that immediately on the outbreak of war there would te a stoppage or great contraction of exports and imports. Bills coming due in London could not therefore lie met, and interruption of the regularity of trade would mean widespread ruin to merchants and bankers together. Secondly, there would he a run for cash and withdrawal of deposits from hanks, which would also tend to bring about general failure and bankruptcy. Thirdly, Hie troubles arising from ext, ,i----sive want of employment would constitut ■ another kind <■'{ mischief. Fourthly, biGeorge Giffen anticipated that economic disorders might impede the Government in directing the naval and military forces, especially if the Government’s hands were tied by general unemployment, civil tumults, and the necessity of issuing inconvertible paper. Truly this is a catalogue of horrors. Apparently the average loyal British subject will have to face the prospect not only of being killed by the enemy but also .of being starved, and having bis pockets emptied to the last shilling as well. Mr Lawson analyses the public debts of all the great military Powers of Europe,

, and draws some sinister conclusions. The combined debts of the German Empire, it : seems, arc £676,0(10,01(1, upon which interest to the amount of <£27,521,000 has to be paid annually. The author refers to ‘the really ominous and uncomfortable feature of the German-I’rns.sian debts, 1 namely, the terrible rate at which they both appear to be growing.” "Why should the Imperial German Government be borrowing at the rate of <£10.000,000 a year and the Prussian Government at the rate of £14,000,000 a year.- Have they not soldiers enough and guns enough and warj ships enough to allow them to sleep peaceably in their beds!-’’ Mr Lawson asks the ,; question, but he does not suggest an I answer. This is a book which contains many figures, and the deductions which the author makes are anything but re- , assuring, liven if his anticipations are j greatly ( xaggeralcd, there is abundant 1 evidence that the outbreak of a great war j would test the fortitude of the British people to Lie utmost, and that—contrary j to the experience of all former wars—the ordinary citizen would be subjected .o losses and hardships which at present can ■ scarcely be imagined.