The San Francisco call., 1901-11-07
THE BRITISH DEBT.

OIR MICHAEL HICKS-BEACH, Chancellor of
the Exchequer of Great Britain has warned the
- taxpayers of the country that they must expect
an increase of the national debt and increase Of
taxation next year by of the enormous expen-
ditures required for the in South Africa and the
increase of the navy. Mr.. John Morley, Liberal
member of Parliament, speaking about the same
time has pointed that the annual expenditures Of
the Government have increased during the last ten
years by and that the suspension of the
sinking fund be counted the increase has amounted
to 100000.
These and similar statements made by hnanciers of
all parties show that the British people have begun
to take very serious view of the financial situation
of the empire. From the close of the Napoleonic
wars down to the last year two the British bore
their huge public debt without anxiety In fact they
developed theory that public debt is public
blessing and they looked upon the loans of the Gov
ernment with satisfaction rather than dismay There
were many reasons for that attitude of the public
mind toward the question. The debt was being di-
minshed, industry and trade increasing, Great
Britain was becoming the creditor of the whole
world, the burden of taxation required to meet the
expenditures of the Government was becoming
lighter and the savings of the people invested in the
postal savings banks rapidly absorbing the
debt
recent review of the history of the British ma
tional debt shows that it at its highest in the
year 1886, when it amounted to the enormous sum of
f853,oooooo. From that point onward the effort was
made take steps toward reducing this national OBJ
legation. There were years in which this effort was
unsuccessful but on the whole the attempt was cred
itaby held to, that in the year 1900 the national
debt of the United Kingdom had been reduced to the
1Off f67eO OOOO- &c IT. jot>4
two-thirds of century had been reduced by more
than ST 1000, 100000.
That showing highly gratifying to the tax
payers. They looked forward to the speedy coming
of time when the public debt would be virtually ex
tingushed In fact the directors of the postal saw
ings banks began to complain that there were no
funds in which to invest the deposits SO as to pay in
terest them Very different is the situation now
In spite of the heavy increase of taxation the rev.
fall far short OF the expenditures and the Gov
ernment has had to borrow money to carry on its
operations. Moreover while the debt is increasing
the industrial and commercial supremacy of Great
Britain is passing away. British fnanciers therefore
have awakened to the dsagreeabIe truth that while
their expenditures are growing the means of meeting
them are diminishing They perceive that there is
real danger ahead of the empire and one that
be evaded. 1t must be met. The British taxpayer
must prepare himself to pay heavier taxes even
though the income from his business may have de-
cned
1t is curious illustration of the way in which
seemingly small produce great results, that a
against petty people in the wilds of South
Africa should have brought the richest empire the
world has ever seen to a condition that threatens
something like bankruptcy OF course the British
pay out, and that without having to bear such
onerous taxation rests upon the people of Cont
mental Europe, but the less their debt is going
to trouble them in more ways than one.