The Savannah morning news., 1901-04-20

ENGLAND'S FINANCIAL CONDITION.
The statement which Sir Michael Hicks
Beach. the British Chancellor OF the Ex-
chequer. made 70 Parliament on Thurs
day. was we'll calculated 10 NIL the minds
Of the British people with gloom. In the
course Of his remarks he said: 4 think
the House will see that the war has
brought the country to the verge of ruin. -
If the Beers have not already made up
their minds to continue the struggle for
independence they viii likely do so now.
II it be true that the British empireNis
on the verge Of ruin on account Of the
war. the Beers have but to continue the
fighting for year or two more to get
their Independence OF course they are
badly off themselves, and may not be in
a position to hold out long enough TO
cause Great Britain to cease her efforts to
conquer them, but if they can continue the
war a while longer the outlook for them
Will be much brighter than it y at pres
ent. 1t is not TO be supposed that Great
Britain will risk financial ruin in order
to establish her rule over two little South
African republics.
But Is it not remarka bic that such a
little war as that in South Africa should
bring Great Britain to the verge of ruin?
What sort OF a chance would she have for
success in a war with the United States
or Russia? 1t is true a very large army
has been sent to South Africa, but the
war has been in progress less than two
years, and the enemy with which Great
Britain has been and still is, contending
has not been able to put in the field at
any time more than 5000 men
The fact Is that Great Britain is 50
deeply in debt that she is no longer a
great war Power Her strength IS great
on the sea-at least it is believed to be.
1t might turn out, however, that If she
were to get into trouble with a naval
Power her navy would be found to be
as inefficient as her army has
shown itself to be- As a matter of fact
if her war office had been efficient the
mistakes that have made the South Afri-
can struggle such costly one would not
have occurred in all PROBABLE 1t IS
now known from official publications that
AliF AiE ullilE AObEE VI AAlN ASCEAD SANHt-
~ underestimate. and there was ignor-
ance of the most incomprehensible and in
excusable kind relative to the prepare
lions of the Beers for war.
It appears from the Chancellor's state
ment that the expenses of the govern
ment for the present year are estimated
at Ssls. 600 600. and the revenues. on the ex-
listing basis of taxation, at 1851 275, 600,
leaving a deficit OF s275,0OO.OOO The Chan
ceIlor does not intend to make this up
by taxation. He proposes to make up a
part of It by an additional tax on in
comes. already extremely burdensome, a
tax on sugar and an export tax on coal.
His purpose is to borrow the balance
and let posterity take care OF the debt
1t is probable that Parliament will ap-
prove his pan. In fact. the House al
most Immediately authorized the sugar
and coal taxes.
Although England is very rich she has
about as heavy debt as she can carry
with any degree Of comfort. She could not
carry on a war with a great Power for
any considerable length of time without
bringing upon herself the gravest finan-
cisl troubles. Her consols are now below
par, and 1t would not require q very
much greater financial strain to cause the
holders of them to lose confidence in her
financial strength, and then she would
not be able to borrow money at rate of
interest she could afford to pay.