The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1914-11-18
ASKS
750,000,000 TO.
FINANCE THE WAR
English Chancellor of Ex-
chequer Speaks in House
of Commons on Cost of
Present Struggle

London, November 17.--tSs5O D. m.)
exchequer. In the House of Commons
to-day estimated that one year OF war
would cost England f450,00o,0OO ts2.-
1000. .00O), the largest amount Grent
Britnin ever has spent on n war ard
more than twice what WINS spent IN
tbc four years. eonfi7ct In South Africa.
To pay this enormous bin the gov
ernment has decided. he said. to raise
loan of f3b0.oO0,00o ($1, 1,750 600, ,o0ol
which would be issued at a5, bear in-
terest at the rate of 31s per cent and
be redeemable at par March 1. 1928.
The chancellor proposed. and the
House unanimously supported him. that
the income tax should be doubled, but
only collected on one third of the in
come this year; that an extra half
penny q cent? half pence should be
levied on beer and an extra three pence
&C cents) a pound on tea.
He explained that the expenditure on
the British troops would be higher in
proportion than that of any other coun-
try. as the pay and the cost Of the army
and navy were greater; there were sep
arate allowances TO the men and their
families, and pensions were on IA larger
scale. Already 100000 were serving.
and another million were in the course
OF enlistment.
Assumes War Will Be Long
1--WE are lighting" said the chancel-
lor, another enemy who cannot offer
any terms that we can accept without a
smashing defeat. Therefore, II there Is
any doubt about the length of the war.
/, as chancellor of the axchequer, must
assume the longer PERIOD"
Taking into consideration the loss on
borrowed for purposes of the war, he
said. he would have to find this year
$50, 100000 and next year $3.50. 100000.
He computed that at least four-fi
OF the money would be expended In
England.
He pointed out that during the war
and the period of reconstruction which
would follow 1t, there would be no
competition In the neutral markets of
that therefore England would COM
mand those markets. He looked for
ward to period of four or five years
when English manufacturers would
have an artificial stimulus because OF
abnormal conditions.
When that period was over the coun-
try would face a serious industrial sit
uation, as capital would be exhausted
and customers crippled and their pur-
cha sing power depressed
He hoped there would be great reduc-
ton In the cost of armaments after the
war. but predicted that even for the first
few years the country must expect heav-
ily Increased charges for interest In this
sinking fund, separation allowances and
pensions.
AS 1t would be easier to raise taxes In
the period of the war, the chancellor said
he intended to commence Immediately.
There was no intention to levy taxes
which would interfere with industry. but
it was necessary to include all classes.
Explains Taxes
He then explained the income tax and
super-tax proposals, which he estimated
would bring In 12500,OO0 (s62, 500, ,000) this
The extra duty on beer would fall on the
consumer, who would have to pay half
penny half pint more for his beer.
As teetotalers did not drink mineral
waters and a tax on those drinks would
fall on the drinkers of spirits and on chill
dren he proposed to raise tax on tea
which total abstainers did drink. to the
amount of three pence pound. This
would produce this year an extra f95.OO0
(s4.75O,0o0) and next year an extra s3,2oo.-
900 (S16.000.000).
This exhausted his range of taxable
commodities and as there still would be
deficiency of f32i, 100000 the only way
of meeting It was by a war loan. On the
terms Of Issue the new securities would
pay per cent and already f100. 900
ernment. while the Bank OF England had
($50c coo 000) had been offered to the gov
agreed to give credit facilities. which
would relieve pressure on the money
mark et and make for security.