New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-22
Resources Now in Hand
Will Last England I'm
til End of May.
WAR COSTS BRITAIN
$22,OOO,OO0 DAILY
Average Eight to Ten Months
Ago Was $14,000,000, Asquith
Tells Members of House.
lRr Cahl. 70 1he TffbunA

lBJ Cabs 10 The 1ffbura
London, Feb. 21.-The House Of Com
mons to-day passed two Notes Of credit,
introduced by Premier Asquith, aggre-
eating S2,10O,00OOO0, easily the largest
sum ever voted in the history Of this or
any other country. The figures have
grown to such stupendous proportions
that the ordinary mind Is no longer
able TO comprehend the size Of Great
Britain's war bill, and tho man In the
street is satisfied TO wait until he
learns what his share will be.
Many rumors are rife as TO the date
Of the next war loan, with best authori-
ties expressing the belief that the gov
eminent will wnit until tho end of the
financial year. II Is possible that the
next loan may be issued free Of income
tax.
To-day's credit, bringing the total
expenditure TO s10.!10,000,000, means
that II borrowed at 4 or per cent the
country must pay yearly interest of
approximately s47o,0oo,0Oo. In the
process Of systematizing the financial
machinery considerable savings have
been made, so despite tho fact that the
Nghting forces are constantly increas-
Z ing Premier Asquith thinks that econ
omies will keep the cost below 2S,Oo0,-
900 daily.
As to American Exchange.
The funds now voted are expected
to carry the war to the end OF May.
Premier Asquith spoke for fifty min
utes in presenting the governments
motion for the new war credits. The
Chancellor OF the Exchequer, Reginald
McKenna, followed with a statement
regarding American exchange, which
he declared, is now as high as the
British government wishes 1t TO be.
al feel the enormous and overwheim-
inc respOnsb ility in asking the House
for this gigantic sum- said the PRE-
mier. land could not do so unless were
satisfied that the government had most
carefully explored the ground, so that
we are not asking for penny more
than the exigencies of our cause ana
the great historic responsibilities
which we have undertaken require, ana
unless We were satisfied that every pos
sible precaution is being taken TO see
that the taxpayers money IS not belng
wasted"
Mr.. Asquith told the House that the
daily expenditure from April ! TO July
II. Of last year. was Si4,OOOOOO; from
July Il to September IL, $l7,5OO,O 900;
from September II TO November D.
S2l .75o 900 from November Z 70 Feb,
ruary 10. 1916, between s2l 100000 and
$22,000,000.
Big Loans - Allies.
Loans 20 Great Britsin's Allies and
TO the dominions on November last
he said. amounted TO 9l5,OOO,OOO.
Between November 7 and February ~
tho amount loaned was S353.0O0,OOO
making a total Of sS44, 500, 600. lie
added that the provision IN the Sep,
/ TENDER budget allotting S2ll5,OOO,oou
/ for loans to the Allies would not be
exceeded.
/ In addition there were advances made
! by the Bank Of England at the request
| Of the government The expenditure
under this head, said the Premier
would probably reach s2,ll0,OOO'OOo
/ The vote of credit for tho remainder OF
| the financial year allowed an ample
margin for contingencies. such az the
purchase Of American securities, ne
added. ooo ooo
raised the total votes of credit for the
war 10 S10.41O.O00.0O0. These figures
! however. do not represent the total cost
Of the war, as large sums turnlshed
! from revenue are also being used to
defray the expenses.
Sl.76 for Pound Sterling.
The Chancellor of the ExcheQuer. in
an optimistic statement regarding the
condition Of British credit. said:
Criticism has been made that we are
not taking proper steps 10 maintain oui
credit, particularly with reference &c
American exchange. merely ask the
House to compare our American eX
| change with that Of any OF the other
| belligerents. Al the present time the
rate is Si.76. and the government does
not wish it higher than that. IL is still
10 cents below normal, but we do not
! wish il 10 20 either up TO or above nor
| NAL, for the simple reason that we are
discouraging imports by keeping Tho
/ exchange a little below par and check
ING the export of gold 10 America.
1T is an absolute marvel that afte'
eighteen months OF war We are still
almost the only open gold country II
the world. Our paper can be exchanged
for gold at the bank. Every sovereign
in paper money has gold back Of II. d
would never have been believed tive
years ago that British credit coul'
stand the extraordinary test 10 which
it has been subjected.
Notwithstanding the gigantic eX
penditures. we have maintained oui
| credit. We have great resources, bu
must husband them with prudence.
have no doubt that a year hence shall
be able 10 show that our credit is still
| f,o1