Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-11-18
GIGANTIC cost
OF WAR SHOWN BY
LL0YD-GE0RGE
Chancellor Of ExcheQuer Says
Expense TO Great Britain
for One Year viii Be Over
Two Billion Dollars,
=, 4onsns loyrr.l rrrcl.l ls.s.o U,.si

London, Nov. II $500 u. MI
David Lloyd George. chancellor of
the exchequer, in the house of COM
mons today estimated that the cost
Of one year Of the war for this coun-
try would be ff5O,0oO,0o0 tS2.250.-
i0oO. 0O0). the largest amount England
has ever spent ON a war and more
than twice what was spent In the four
years. conflict In South Africa.
To LAY this enormous bill the gov
eminent has decided he said, to
raise loan Of rs5o,000.0 600 (si, $780,
600. 000) which would be issued at
e5, bear interest at the rate OF 8 Y per
cent and be rcdcemablc at par, March
/. 1928.
The chancellor proposed aud the
house unanimously supported him,
that the income tax should be dou-
bled. but only collected on one-third
Of the Income this year; that an extra
half penny q cent?, per half pin.
should be levied on beer and an ex-
ira thrcc-pencc &C cents), per pound
on tea.
Where the Money Goes.
He explained that the expenditure
on the British troops would be high
err in proportion Than that OF any
other country in the world az the
nav and the cost OF the army and
navy were greater there were sepa-
rate allowances 10 the men and their
families, and pensions We're on
large scale. Already 100000 We're
serving and another 100000 We're
in the course of enlistment
1--WE are lighting said the chan
cellor, IAN enemy who cannot offer
any terms. that we can accept with
out smashing defeat. Therefore. If
there Is any doubt Of the length of
the war, |. as chancellor of the ex-
chequer. must assume the longer
period
Taking into consideration the loss
on interest and the revenue on money
borrowed for purposes of the war, he
said, he would have TO find this year
iS0,000,0 900 and next year f25O. 0Oo,-
900. The greater part Of the money
will be spent In this country. He
computed that at least four-f'fths OF
that raised would be expended here.
Markets for England.
He pointed out that during the war
and the period of reconstruction
which would follow it. there would
be no competition in the neutral
markets of the world except from
America and that therefore. England
would command those markets. lie
looked forward TO a period of four or
I'VE years when the manufactures OF
Great Britain would have an artificial
stimulus because of the abnormal
conditions.
When that period was over the
country would be faced by the most
serious industrial situation it ever had
to face, as capital would be exhaust
ed and customers crippled and their
purchasing power depressed. -'c
hoped there would be great redue-
ton in the cost of armaments after
the war. but predicted that even for
ine first few years the country must
expect heavily increased charges Tor
interest in the sinking fund. separa-
ton allowances and pensions.
AS 1t would be easier TO raise taxes
In that period of the war, Chancellor
Lloyd-George said he intended to
commence Immediately. There Vas
no intention to levy taxes which Moilld
interfere with industry, but Il Was
necessary 20 include all classes Of the
community.
How to Iiaisc Money.
lie then explained the income INK
and super-tax proposals which he
estimated would bring In ls,ouo,VvV
pounds sterling (sG2, O,00oD, TINS
Year and 4a,750,O0o pounds sterling
23,750,000), next year. The extra
duty on beer had been so arrangeu
that Il would fall on the consumers
as il has been found Impossible TO
obtain small income tax from those
people whom a tax on beer Wouiu
reach. The consumer would iherc-
fore be called upon to pay a nan
penny half pint more for his peer.
As teetotalers did not drink mineral
waters. and tax on those orlilhs
would fall on the drinkers OF spirits
and on children. he proposed TO raise
tax on tea. which total abstaniefs
did drink, to the amount OF three
pence. This would produce TINS yeuI
an extra $4,000 pounds steriihs
ts4.75O, OO0). and next year an eN-
ira $4,000 pounds sterling 'slo'-
000,OO0)
This exhausted his range Oh 'an
able commodities and as there SUI
would be a deficiency Of S2o'ooo,oV'
odd pounds. the only way OF mee''ns
ii was by war loan. On the terms 2,
issue the new securities would pay
per cent and already loV,Voo'V'V
pounds ts50O,000, O00), has been Of
fered to the government, whiie Wy
Bank of England had agreed TO eNe
credit facilities which would reheVe
pressure on the money market anu
make for security most valuable 70
the financial and mercantile eomihu-
nitv