New-York tribune., 1918-03-18

appeals made, the increase in the
sale of bonds is accounted for part
ly by the reduction in rates of in
terest of treasury bills and the re-
duction deposit rates. 1t appears
that the purpose of reducing the
rate on treasury bills was to induce
the public to buy national war bonds
instead of treasury bills.
Aid From
America
One of the factors that eased Bri-
tain's financial situation, enabling
It to fix the rate Of interest in which
it borrowed in the local market, was
the nations borrowings in the
United States, which eliminated the
need of larger borrowing at home
and the expectation of gold in order
to make settlements abroad. Up to
February /, 1918, the total credit
given by the United States govern
ment to Great Britain was said to
be $3.50, 100000. Parenthetically,
it should be observed that, despite
the curtailment Of interest, the sale
of treasury bills has held it's own,
while the sale Of war savings certif-
icates as we'll as war bonds was
augmented several fold.
The 5 per cent national war loans
are ISSUED at discount, bringing
their yield up, at issue price, to 5.33
per cent. The per cent national
war bonds, being free from the nor
NAL income tax, which is equivalent
to Is per cent, are issued at par
and are equivalent to gross yield
Of 5.33 per cent, subject to the nor
NAL income tax.
The unhalted piling up of debt in
Great Britain perpetually challenges
the query, What will her financial
condition be after the war? In
March, 1917, estimates placed the
probable budget after the war, pro-
vided it ended in year from that
time, at about 945O,O00,OO0. And,
assuming the war would end in
March, 1919, it is estimated that the
additional debt service would
amount to 99O,O00,000, if the pres
ent rate of increase of the national
debt continues. On this basis the
budget of Great Britain after the
war would approach 2540,000,o00,
compared with the budget of $751;
100000 before the war.
For the fiscal year which ends on
March 81, 1918, it is estimated that
the revenue receipts for the fiscal
year will reach s638, 100000. This
fact stimulates the inquiry into
whether it. will be possible for the
country to bear as heavy a tax bur-
den as will be necessary. If the
national income be placed at 93,O00,-
100000, as some authorities think
it soon will, it appears that the
estimated budget will take about 18
per cent of the total income of the
nation.
According to these estimates, the
average tax increases would be
about "a times what they were be-
fore the outbreak of the war. Of
course the largest increase in the
postwar over the pre-war budget
will be in the interest and sinking
fund for the public debt created by
the war.
The After
War Test
To combat this higher cost of run
ming the nation after the war will
be the tremendous energy which will
be released from war activity to the
pursuits of peace. If the experi-
ence of previous wars is repeated.
many of the soldiers, instead of re-
turning to their quiet ante-bellum
occupations, will look for new fields
/ to conquer in the world of business
and affairs. Moreover, most OBJ
servers believe that many of the
thousands upon thousands of Brit
lsh women who have thrown them
selves into industry while the men
are in the field will remain at work.
Thus the possibilities of an expan-
sion of the national income appear
At any rate, years Of burdensome
taxation loom ahead. British vigor
will be called upon to meet the test.
Jumping over the Channel to
France, the observer of war finance
finds the same amazing revelation
of the economic staying power of
the leading belligerents. The whole
situation may be epitomized bv a
comparison. of the ante-bellum and
estimated post-bellum budgets. Be-
fore. the beginning of hostilities the
French budget was about 5000. .O00-