Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1914-11-18
ONE YEAR OF WAR
WILL COST BRITAIN
2,25O,OOO,0OO
David Lloyd George, Chan
cell0r of Exchequer,
Makes Estimate.
PROPOSALS RECEIVE
UNANIMOUS SUPPORT
Taxes Will Be Doubled. but Only
Collected on One-Third of
Income This Year.
MUST RAISE TREMENDOUS LOAN
Following Reconstruction Period,
Country VIII Face Serious
Industrial Situation.
MUST RAISE TREMENDOUS LOAN
Following Reconstruction Period
Country VIII Face Serious
Industrial Situation.

LONDON, November II $3.50 p. M).-
David Lloyd George, Chancellor OF the
ENcheQucr in the House of Commons,
to-day estimated that one year of war
would cost England f450.000,OOo ts2,-
29o.00o.o00). the largest amount Great
Britain ever spent on war. and more
than twice what was spent in the four
years conflict in South Africa To pay
this enormous bill. the government has
decided, he said. TO raise loan OF
t35o.ooo.ooO HI.75o.ooo .ooo). which
would be issued at e5, bearing interest
at the rate OF 31-a per cent, and be
redeemablc ut par March /, 1928.
The chancellor proposed. and the
taxes should be doubled. but only COL
lccted on one-third Of the income this
year; that an extra half-pennv Il cent?
a half pint should be levied on beer.
and threepence SC ccnts) pound
on tea He explained that the OK
penditnres on the British troops would
any other country. as the pay and the
cost OF the army and navy were
greater: there were separate allow
anccs to the men and their families
ana pensions We're on larger scale.
Already. 2.o00.0o0 were serving. and
another 100000 were in. the course OF
enlistment.
CANNOT. ACCEPT TERMS s
WITHOUT SMASHING DEFEAT
I'VE are fighting" said the chan
cciior. another enemy who cannot Of
fer any terms that We can accept with
out smashing defeat Therefore, IL
there Is any doubt about the length of
the war, I. as Chancellor of the Ex-
chequer. must assume the longer
period
Taking into consideration the loss on
interest aud the revenue on money bor-
rowed for purposes OF the war. he said,
he would have to lind this year $780,
100000. and next year s25O.0oo.Ooo He
computed that at least four-fift of
the money would be expended i'm Eng
land. He pointed out that durin, the
war and the period of reconstruction
which would follow il, there would be
no competition in the neutral markets
OF the world. except from America, and
that therefore. England would COM
mand those markets. He looked for
ward TO period of four or 1--WE years
when English manufacturers would
have an artificial stimulus because of
abnormal conditions.
When that period was over, the coun-
try would face serious Industrial
situation, es capital would be cx-
hausted and customers crippled and
their purchasing power depressed.
He hoped there would be IL great re-
duction in the cost OF armaments after
the war. but predicted that even for
the first few years, the country must
expect heavily Increased charges for
interest In thc.sinkin fund.- separating
allowances and pensions.
COMMENCE TO RAISE
TAXsS IMMEDIATELY
AS IL would hc easier to raise taxes
in the period of the war. the chan-
cellor said lie intended to commence
Immediately. There was no intention
to levy taxes which would Interfere
with industry, but it was necessary to
include all classes.
Tic then explained the income tax
and supertaX .proposals. which he csti-
mated would bring in t1e.5Oo.o00 (S62.-
5o0.oo0) this year and f+!,I5o,0o0 (S223,-
io0.QOQ) next year
Tho extra duty on beer would fall
on tho consumer. who would have to
pay II half-pcnny half pint moro for
his beer.
As tectotaiers did not drink mineral
waters, and tax on those drinks
would fall on the nondrlnkcrs Of spirits
and on childrcn, he proposed TO raise
tax on tea, which total abstaincrs
did drink, to the amount of 3 pence
pound. This would produce this year
an extra fa50.00O (s4,75O,Oo0), and next
year ali extra f3,200,000 ts16,0 600. .oOo).
This exhausted his range of taxable
commodities, and as there still would
be deficiency of fS2l,0oO.0oo. the only
way of meeting it was by n war loan.
ON the terpls OF issue the new securi-
ties would pay 4 per cent. and already
s1OO000,000 $500, 900. 0OO) had been Of
fcred to the government. while the
Bank OF England had agreed to give
credit facilities which would relieve
pressure on the money market and
make for security.