Evening journal., 1916-12-18
I I.

Secure in the possession OF these
elements OF economic strength, Great
Britain is financing this great war.
Taxation and economy summarize
her pla n and direct methods.
Their keynote consists in making
provision for the payment OF every
liability at the time OF It's creation
There are the normal expenditures
for the admin stratlon of the Govern
ment. the class OF pre-war outlays
Concurrently there are the expendi-
lures represented by the interest and
sinking fund on the obligations that
have been issued for the conduct OF
the war.
Upon liberal estimate the total
debt OF the United Kingdom in August,
1917. Is placed at 2O.0O00O0,O00 Of
dollars, without creeit.ng her with
$4,000 100000 OF advances which she
has made to the allied nations. At
per cent. average interest and 1 per
cent. sinking fund this indebtedness
would call for the payment of 1.200,-
900 600 OF dollars per anaum, at least
until the adoption of fund ng basis
has reduced the charge To this de-
mand there should be added the ordi-
nary expenditures Of the Government
at the rate prevailing In 1918 and
calling for 100000 900 OF doltars.
These total annual requirements OF
2.2O0, 900 900 OF dollars are fully pro-
vided by tax receipts for the current
fiscal year.
No country furnishes a standard for
measur ng the facility with whi h
Great Britain can NEE these revenue
demands. Her annual savings, to-
gether with her income from accum-
ulated investment, realize $1,000
600 600 each year. During the war
permanent improvements practically
cease and current investments are
absorbed mo My by Governmental
securities. These gigantic income
I funds and their increnents constitute
, the main tax sources OF a surnlus Of
s4OO 600 900 in the British Treasury
| for the present year.
This fi1cal result is favored by the
distrlbut on OF incomes among their
owners. enhancing their desirable
character as producers OF revenue.
Britain is pre-emlnently the land OF
! mooerate fortunes as we'll as of large
estates. Decades UPON decades OF
prosperity have produced a mass OF
recipients OF unearned and fairly sub
stant!al Incomes, numerically far be-
yond this element in any other Eu-
ropean country Their owners cen
easily part with a large proportion
OF these receipts upon the call Of
the nation. merely by docking expen-
ditures for superfiuities. estimated
at $4,000 OOO. 900 Of d sbursemen' S
each year. This condition, r~ favora-
bic for the taxing power. is illustra-
ted by the fact that the British Treas
ury receives 40 per cent. OF the IN
colre taxes rr~m unearned incomes
Tw .nty-nine thousand taxpayers de-
I yer to the oxchaquer 81 900 0o0000
which exceeds TIE total tax receipts ol
the Government for the year bef re
the war. The average rate levied
rpcn income f. five ehi.llngs n TIC
round It's broad application g ef.
fected b. starting at low rates pro-
due ng 5000 OcO 600 from small n
comes and progressing TO 40 per cent
graduated intensively upon income.
exceeding $40 900. From the entirety ot
incomes two-thirds OF the rect wal
taxes OF Great Britain are derived
Thus they Justify the historic tradition
from time OF Pitt 10 the time OF Glad
store that this ever flowing unit o'
wealth Is the fiscal bulwark OF th'
United Kingdom.
Indeed, the proposition was recent
" made in the House OF Commons
that fifteen shilhngs in the pound h
levied on the great body OF substau
tial unearned incomes. This PHI
would have probably obviated the ne
got alton OF Government loans, but 4
would have been unjust to those IN
come holders 10 concentrate the en-
tire taxing power upon them. Besides
Il would undulv impair the resources