1940-10-17 — Page 7

Money For Victory

There are doubtless Frenchmen who think that France might have a tolerable future as junior partner in Hitler's Em-it is true, have pire, sharing its favours, with Mussolini, following its fortunes, waiting on its voice.

substantially heavier called upon to shoulder burdens

than ever

Only Two Expedients

The moment has arrived when vided tax revenues of only, earners might endeavour, every citizen must steel himself £1,234,000,000, leaving more than only

who the supply of goods to the shops. for war sacrifices far beyond any- £1,400,000,000 of his

partial success,' to recoup Steps in this direction have already thing he has yet endured, or pro- expenditure of £2,667,000,000-to manding wage increases, but each but they do not go nearly far en-

estimated their loss in real income by de- been taken by the Board of Trade," bably even contemplated.

be met by borrowing.. Income-tax and surtax payers, i

new wage increase would.....only ough.......... scrve to enhance the viciousness already been

Shops all over the country are of the inflation spiral. The flow of still crowded and being replenish- savings would dry up, since no ed with all manner of objects en- before, but for the broad mass of vealed how for he believed that is always losing its value.

Lord Simon himself never re-lone will save or lend money which tirely unnecessary to a nation bat- war has hitherto remained com- from the genuine savings of the rest to be swept on to this Gada- willy-nilly, and it is for the Gov- tling for its existence. If the pro- the people, the incidence of the sum of this size could be raised Obviously it is to no one's inte-ple cannot buy they must save paratively light.

people. But, if we are to accept rene slope of bankruptcy. If our ernment to see that they cannot the published views economists, £1,000,000,000 may be we must at all costs avoid the dis-

of leading war machine is to run smoothly buy. regarded as the maximum that the orderly rout of inflation, and must Government can hope to obtain by take upon ourselves the orderly discipline of taxation and saving.

measured

Taxation has caused a steep rise How far the revision of in the price of certain staple luxu- the Constitution and theries, such as beer, whisky and tobacco, and prices generally have adoption of Nazi doctrines also risen to a moderate extent. are meant to serve this But even at their present level, as by the (admittedly plan, how far they are de-faulty) cost of living index, prices signed to meet the serious are no higher, relatively to wages, than they were in the peace, down evils of French politics, it to about 1926. Moreover, by far is hard to say.

the greater part of the rise since war began occurred before Christ- it, ce when there has been little perceptible change.

Outlay and Output

-By-

J.C. Johnstone

borrowing from the public and by the realisation of gold and capital

assets abroad,

£1,200,000,000 in all.

Taxation Has Limits

away.

•

:

is this: Since December the Gov- Another point worth mentioning ernment have been spending over £50,000,000 a year to stabilise the price of certain staple foods. Their primary object they have achiev- ed, in as much as the prices of food in general have hardly moved in the past six months.

But in their secondary object, which was to remove any excuse for wage increases, they have failed. Between January and May wages increases were granted totalling well over £50,000,000 &

The munitions we need and are determined to have, can only be got by hard work and unflinching self-sacrifice. Inflation is merely an arbitrary and unjust means of It is difficult to believe

shifting the burden between one that the French people,

section of the community and an with all their proud his-

On this basis there was already other; the burden itself is ines- a shortage of at least £400,000,000, capable.

year -- £50,000,000 towards in- We are faced then with the flation. tory behind them, can be

This comfortable era of some-

even before the recent spurt in necessity of cutting down every with.

This should stop forth- content to become a vas plenty in the midst of the grim-

thing not much below peace-time expenditure which added a fur-form of private expenditure to a

ther £800,000,000, malcing hitherto

Wages should be placed under sal State, lending their mest struggle our nation has ever Government is spending £1,200,- we fall into the deadly grip of property. No variation either up- unplumbed minimum. the same public control as that al- Thus the And we must do it now, before ready established for persons and had to face is at an end. No illu- ancient prestige to the sion can be more foolish than to 000,000 a year more than it is in a inflation, which, in the absence of ward or downward should be per- very forces that Revolu- imagine that we can go on eating position, under present conditions, Draconian measures, cannot be far mitted without Government sanc- tionary France and Ca- and aeroplanes and tanks we need pedients by which the Government the duty of framing new taxation, example, in the case of the recent

our cake and still get all the guns to bring into its coffers. In such

a situation there are only two ex-|

tion, which should only be given No one will envy the Chancellor for some specific reason, as, for tholic France have com- for the Battle of Britain.

The Chancellor of the Exche-can pay its way, bined in denouncing as a

It must either and it is a subject on which no sharp rise in agricultural wages, quer sounded the warning signal resort to a wholesale creation of layman can perform any useful which the Government themselves new barbarism. These when he pointed out that since the paper money. (inflation) or else it service by attempting to offer him decreed in order to attract the

beginning of June the total must combine drastic increases in advice. are dark days, but even Government expenditure has been taxation with measures to ensure Let this only be said. There is to the land.

necessary amount of Jabour back under the shock of the at the rate of £9,500,000 a day, an enormous expansion in the flow not the smallest prospect of his most bitter of the blows than the previous average. This

which is £2,500,000 a day more of public savings.

being able to raise anything like The first of the expedients, in £1,200,000,000 in new

Let People Be Told taxation. that have fallen upon us sudden stepping-up of expenditure volving a runaway inflation, would five hundred millon pounds. One final word. The country most of us will refuse to tion in our aircraft and munitions mean a rapid and continuing rise bly somewhere near the limit.

is due to the tremendous accelera be a counsel of despair. It would spread over, all classes, is proba has unanimously applauded the, recent acceleration in the output. despair of France or to be output, and the more rap'd intake in prices, which would dislocate A second thing adumbrated by of munitions. It is inflexibly re- lieve that she is lost for all of men into the armed forces, every department of the public the Chancellor is the "strict cursolved that nothing shall be stinted At £9,500,000 a day our annual and private economy and render tallment of consumption." It is this in the provision of whatever is time to the cause of liber-rate of expenditure is approxi-all accountancy Impossible.

"strict curtailment of consump-necessary to banish the uncon- ty. The alliance still lives count Simon had allowed in his imately £3,500,000,000. Since Via-

tion" which has got to find the scionable curse of Hitlerism from The Evils of Inflation residuary £700,000,000 and here the face of the earth. There is. in our hopes and our April Budget for a bill

It can be stated with certainty that another £1,200,000,000 to be found £2,667,000,000, the increase faith. Nothing done by amounts to no less than to be subject to frequent revisions will never be achieved without months.

The national budget would have the requisite degree of strictness to meet the bill in the next 12: their present rulers can £800,000,000.

in order to meet the Government's some degree of compulsion at the The nation desires no half-meau destroy British respect or confronts us will be appreciated money, Contracts would have to be self.

The magnitude of the task that, ever-rising costs in terms of Instigation of the Chancellor him-sures. It is ready and anxious to British gratitude for the when it is recalled that this addi-limited to the briefest period to courage of our comrades to deficit of: 600,000,000 is by ivert the bankruptcy of contrac Curb Private Spending in all frankeness exactly how and in the dangers and suffer- tional expenditure in un ordinary munity, living on fixed incomes, One useful way of curtalling Once it is told there can be no ings of the war.

pence year. But that lo by no such as widows and pensioners, consumption is to limit the oppor- question about the nature of thu means all. Lord Simon had pro- would be reduced o penury, Wage-Itunity of purchase by restricting response..

of only

itselt equivalent to our whole nators. Large. sections of the com-jy

know the hard truth, It only nokta. that the Government shall tell it

be where the money, can be found.