The Washington times., 1916-03-22
BRlTAIN's INCOME GROWING

omist as Sir George .Paish Is author
ity for the statement that Great
Britain's aggregate income has ac-
tually increased since the war be-
gan. He calculates that it was $12,-
600, 900, 900 when war started, and is
s15, 900, 900, 900 now.
OF course, this need not neces-
sarily mean all that it seems to
mean. Measuring national income in
terms of cash is dangerous business.
To double the nominal national in
come it is needed only to double the
price Of everything-of labor, and
Of labor's products. Thus the show
ing would De made of nation earn
ing twice as much, and yet it would
not be producing any more.
Sir George, however, goes farther.
Not only does he find that the ma
tional income has increased by three
billions, but he declares that produc-
ing capacity has been approximately
maintained at the former standard
despite the withdrawal of four mil
lions of men. This is an entirely
different matter. The national in
come could easily enough be in
creased, in terms Of money, by mark
ing up prices all around. But if in
fact prices were marked up, and then
the producing capacity were devoted
to making things that are immedi-
ately burned up or shot away, the
country might be impoverishing it
self at q rapid rate. while seeming
to be getting rich.
To a certain and considerable cx-
tent this is just what is happening
to Great Britain. But it is happen
ing in that country to a far less ex-
tent than to any other in the war.
The general opinion is that France
is, among the major combatants,
suffering most severely, and that
Germany comes next. France for
tunately for itself can stand the
strain better than Germany, because
France has a much greater surplus
of wealth available for liquidation
than Germany possesses. Also,
France, despite the great drafts Of
men from its normal productive ac-
tivities, has been able to continue
much of it's normal trade relation
ships with the rest of the world; it
has been earning good share Of a
normal income.
Britain, because Of its control of
tho seas and of maritime shipping,
is making more profits from war
prices than any other country ac-
lively in the contest. Her indus
tries have been kept operating in a
manner truly wonderful considering
the Withdrawals of workers. 1t is
universal testimony that there is
less unemployment in the kingdom
than ever within the period Of ac-
curate statistics on the subject. Sir
George says that if allowance be
made for the new gold stock the ma
ton would be found to have ap-
proximately met the wars cost out
of current income.
British-owned and controlled mines
produce the greater share of the
worlds gold; but it is expensive to
produce gold; it is not all profit,
any more than anything else is that
represents human effort. Control of
the new supplies Of gold is one of the
greatest advantages the allies pos
sess; but it is rather a means to
meeting financial difficulties than a
gain in economic productiveness.
Gold is the life-blood of the economic
system. Germany can. get no new
gold out of her ground; Britain can.
There is a tremendous advantage
here; one that may easily decide the
result of the war. One thing that
Sir George failed to mention, or at
, least that the cabled reports of his
address did not report, is of much
greater Importance than the control
Of new gold supplies. This is the
ability to take toll of the whole
worlds trade in shipping rates
These have advanced, as everybody
knows, to figures that before the wal
would have been quite unbelievable
Britain owns and sails under it's owr
flag about half the mercantile ma.
rine Of the world. In addition, Brit,
ish investors have vast sums invest.
ed in the shipping of other countries
This has been part of British pol
icy for, many years. So the mer
chant marines of Sweden, Norway
Japan, Denmark, and other coun