New-York tribune., 1918-04-23
R;csest in Worlds History /;
Ronar Law Announces
Tax Increases
Saws Germany Is
Near Bankruptcy
England Self-Supporting;
New Method of Loans
by u. S. Planned

law, CnaNCeliOT VI tHe EACHeQueT, IN
introducing the budget in the House
If Commons to-day, said it was the
largest in the history of the world,
and he desired to present the situa-
ton as briefly as possible.
His anticipations as to the assistance
riven to the Allies by the United
states had been fulfilled. Despite this
assistance, the British loans to the
j Allies in the last year were 95O5, ,OO0,-
1 900 (s2,525, ,O0o,o0o). The United States
had advanced to all the Allies $780,
100000 (s4, $50, ,ooo,ooO).
sit is Only necessary for u.s." said
the Chancellor, "to lean on the United
States to the amount the other allies
- lean on US. In other words, we are self
supporting
Germany, he indicated, was not far
from bankruptcy.
He had been in communication with
! Secretary McAdoo on the subject of
| complicated loan transactions, and with
! Mr. Crosby, head of the financial mis-
| sion to Europe, who was on the point
Of returning to Washington to con-
suit his government.
Burden May Be Lessened
u have made certain suggestions re-
garding advances to the allies" contin-
ued the Chancellor, (which, if adopted,
will lessen our burden considerably
without in any way increasing the
total obligation to the United States. ("
The Chancellor estimated the expen-
ditures in the coming year at S2,972,-
$4,000 (S14,S6O 1886, ,000). He placed the
revenue at e774,250, 900, plus SGT, 100000
TO be gained from new taxation, making
the total of s842 2,050,000. This left a bali
ance OF 92,130,147. 900 (s1O,65O, ,735 ,00Ol
to be covered by borrowing.
Giving the figures of the revenue for
the last fiscal year, which amounted to
E07,2S4565, large increase over the
preceding year, he said that this was
\ yery gratifying, but that the real test
I Of the financial position would come
when Britain ceased to rely upon bor-
rowing.
Inc Chancellor expressed the govern
ments appreciation of the hearty CO.
operation on the part of the Canadian
sovernment in assisting to finance the
war. He considered it possible that
the alteration of the arrangement with
the United States in the method of
making advances would result in loans
70 the Allies being reduced to $780,
e0uU0 and to the dominions e50,OOO,-
wv. de pointed out how small the
advances to the dominions had been
during the war, showing how great was
tle tle desire, not only in Canada, but in
the other domlnions to carry on the
war out OF their own expenditures.
Ihe additional taxation proposed, said
the Chancellor, would ir the full year
De equivalent to Sc per cent of the
snte-5eilunl revenue from taxation.
me financial strength of the country
aver three years Of war was greater
man any one could imagine, and was
ssmazlng testimony to the financial sta
olilty of the nation
Germany's Financial Condition
ar. Bonar Law said trat Germanv's
ssa ssaiy expenditure was G625O, geo (s31,-
1,euuo), practically the same az the
Drltish, but The German total did not
mcluoe various charges borne by the
Sshsfai governments here. The total
uTsrman votes OF credit amounted at
sse, sse pres present time to $4,000. 900, 900
ssSl 900, 100000. '~O''N'N
assuming that the German estimates
,.d ,aoa'd be realized, the total taxation
,ssled S1 by the German government
ss"; "vu.a amount to s365, 900, 900, as
e449st sl,044 100000 in Great Britain,
,.s an.s was not enough to pay the in
IT, Tss ~ on the war debts accumulated
tba uesman balance sheet, reckoned on
VII, sane am pasls as the british, would
IN vi the interest on the sinking fund
PENSIONS pens and pre-war eypenditures he
vW,l;.vsooo'ooo VIZ (s3 900 100000 yearly
VIZ, "Nn an additional permanent imperia]
..sssehue .shue Of 100000, 900 It would make
mn 6 doo TOTAL additional revenue s185..
s'ovo. nrs Ihis amount added to the
n eosr revenue brought the total ur
s,os 1000, 900. showing deficit al
-'ssi2,Voo,000 si1 (sl, 1926 900. 000}.
nd o. mat were. our position" he add
~. ~. ! would say that bankruptcy was
10, lar distant"
sxa,a Inc German taxes had been almos
r~asiiu;as.ively indirect, imposed on com
ussies nsosnI required by the masses of ths
clasp.s. ana rot upon the wealthiel
and VINO control the governmen
afr.;Iu fr upon whom the government i.
M.u az 70 put extra taxation
eaty Of the government to lew lew a. a.
aaeh taxation as could be borne by III,
assion without Weakening IL in th,
,xouct ,sx OF the war. The excess profit
. !, you'd not be Increased, because i
nor ere tnc government would not ge
isn intsnsm money, and might get Tess. IL
IN Ihoso, ,hs.o, however, to stop the leakag,
tn f. Sonar Law introduced new taxa
- .cnemes with the proposal to in