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980 phases preparation, assault, and following up. In the preparation the works are so numerous that the utmost care must be taken by the commanding engineer and the general staff that the engineer re- sources are devoted to the most important objects. Then in the assault, the engineers should never be sent with attacking infantry except with specific instructions for definite work for which they can prepare beforehand, e.g. the consolidation of tactical points or opening up a forward communication. Even then they should not follow the leading waves of attack too closely, as they get mixed up with the fighting line, and do not accomplish their actual work. The engineer-commander should retain within his immediate con- trol as much of the personnel as possible for the all-important work of rapidly opening up forward communication during the attack, and also for the disposition of the engineers in the phase following up a successful attack, when the work is similar to that of the encounter battle, viz. securing the fresh objectives gained.

As regards defence there are (l) advanced works in close contact with the enemy the " outpost zone "; (2) the main position of resistance; (3) one or more rear systems. The first of these will ordinarily be carried out by infantry, with possibly some engineer assistance. The main position will be developed by the divisional engineers, with such additional labour from other arms as may be possible to allot. Rear defensive positions will be undertaken, usual- ly, under the orders of corps and army commanders.

In position warfare the engineer duties also include preparation for attack, arrangements for the comfort, security, and efficiency of the troops behind the line, development of communications, and duties in connexion with raids. It is essential that all the engineer units should be under the control of the commanding engineer, and that he should maintain a programme of the necessary works to be carried out, and obtain the orders of the divisional general as to the order of urgency. It must, however, be always borne in mind in this as well as in other defensive work that the responsibility for construction and maintenance of works on any sector of the system rests with the commander of the troops in that sector.

In the case of a forced retreat in the presence of a pursuing enemy the work of the engineers will be mainly the delay of the pursuit by demolitions, and the erection of obstacles, but will include also the preparation of successive defensive positions, and the construction of special communications to allow the withdrawal of troops and guns. The work requires careful coordination and control under great difficulties. As the movements of the engineer-units depend on the localities where the works are required, they will not usually correspond with the movements of infantry in touch with the enemy. The officers of engineers must keep in close touch with the situation, act with initiative and readily assume responsibility, keep their superior engineer-commanders informed of the situation and progress of work, and be ready to respond to any call for assist- ance, provided they are satisfied that such a call is warranted and is relatively more important than other orders.

Efficient liaison is of the utmost importance.

In all operations of war it is imperative that the engineers should have: (i) A close and accurate knowledge of all developments of the tactical situation; (2) a thorough comprehension of the needs of the other areas; (3) definite schemes and estimates of men, time and materials, sufficiently accurate for practical purposes; (4) well-prepared arrangements for materials and for passing informa- tion to other divisions or corps adjutant or in rear. Having de- veloped these, an engineer-commander should be able to furnish the general staff with sound and competent advice on the engineering aspect of the operations, and should be able to utilize to the best advantage the available resources. (G. K. S.-M.)

ENGLISH FINANCE (see 9.458). In the period from 1910 to 1921 English national finance underwent changes of a very far-reaching character.

Pre-War Period. When Mr. Asquith succeeded to the Chan- cellorship of the Exchequer under Sir H. Campbell-Bannerman's administration in 1906 he found that public expenditure had increased rapidly in the previous decade. In 1895-6 the total was 97,700,000; in 1905-6 it had risen to 150,400,000. Mr. Asquith was responsible for the Budgets for the three years ended 1908-9. His policy was one of consolidation and retrenchment, which was necessary in view of the costly character of the S. African War and the gradual rise of expenditure generally. On the whole his record at the Treasury during his period of office was good. He managed to check the growth of expenditure, but his work was chiefly distinguished by successful efforts to reduce the National Debt. In the three years ended 1908-9, he reduced the dead- weight debt by 43,500,000 to 711,400,000.

The social reform programme initiated by Mr. Asquith in the Old Age Pension scheme was greatly developed by Mr. Lloyd George when he took over the reins of finance, and its effects were so stupendous that it affected in profound degree the national finances for the ensuing decade. Mr. Lloyd George's first

measure of expenditure was the National Insurance Act of 1911. In 1911-2 the total expenditure rose to 178,545,000, and in 1912-3 to 188,622,000 or 90,922,000 more than in 1908-9, when Mr. Lloyd George assumed office. The great increase in the Post Office estimates at this period was due to the acquisition of the National Telephone Company's undertaking.

The policy of the Liberal administration, which at first was economy, was turned by the pressure of political events into a policy of growing expenditure and taxation. In the period from 1909-10 to 1913-4, the expenditure on the navy rose from 35,- 807,000 to 48,833,000, on the army from 27,236,000 to 28,346,- ooo, while that of the Civil Service jumped up from 40,010,000 to 53,901,000- Original estimates of the cost of Old Age Pensions were hopelessly wrong, and the total in 1913-4 had risen to 12,- 600,000 or double the cost as estimated in 1908. About 2,500,- ooo of the increase was due to the amendment of the law in 1911. Part of the excessive outlays on pensions was attributed to absence of compulsory registration in the first half of the igth century. A large number of people in the rural districts were able successfully to claim the right to the pension, not because the claim was correct, but because the pension officers were unable effectually to contest the claim.

The policy of social reform to which the Liberal administra- tion was committed produced, in 1909, a Budget, which will rank as famous in English financial history on account of the con- stitutional changes which it produced, and because events showed that Mr. Lloyd George's programme of land taxation, based upon an alleged appreciation of Henry George's theories, proved to be unworkable and fallacious. The Finance bill of 1909-10 was read a third time in the House of Commons on Nov. 4 1909, and was rejected by the House of Lords on the 3oth of the same month. The Budget statement anticipated a revenue of 162,500,- ooo, or about 11,000,000 more than in the previous year. It actually produced 131,696,000, largely because on the Lords' rejection of the bill the collection of income tax and tea duty was suspended. After the general election in Jan. 1910 which kept the Government in office, the Finance bill of 1909-10 was reintroduced on April 20 1910, and the Lords passediton April 29.

The principal features of this Act were that it made the estate and inheritance duties much heavier, that it raised income tax from is. to Is. 2d. in the, abolished the abatements granted to those resident out of the country and imposed a super-tax (an additional rate of income tax) of 6d. in the on incomes over 5,000, the first 3,000 being excluded from the assessment to this duty. But the big novelty of the Budget was the land value duties, which were chiefly responsible for the conflict with the second chamber. Four duties were imposed: the increment value duty of 20% on the increase in the value of land sites payable on land changing hands, the undeveloped land duty of Jd. in the pound on capital value; the reversion duty of 10% on benefits accruing from the termination of a lease of land; and the mineral rights duty of Is. in the on mineral royalties, way leaves, etc. Agricultural land was excluded from the land value duties. The bill naturally involved a valuation of all land in the United Kingdom.

In the end the land duties were found to be very difficult to collect, and the advanced political assumption that there was something wrong about profits derived from the appreciation of the value of land had some extraordinary consequences. It certainly led to the break-up of big estates, but it wholly failed to produce revenue. The land value duties were originally estimated to yield 600,000 in the first year and a great deal more in future years. But these forecasts were woefully wrong. In 1910-1 the yield was 520,000; in 1911-2 481,000; in 1912-3 455,000; in 1913-4 715,000; in 1914-5 412,000; in 1915-6 363,000; in 1916-7 521,000; in 1917-8 685,000; in 1918-9 664,000; in 1919-20 663,000; and in 1920-1 20,000. Their abandonment in 1920 was the inevitable result of their disappointing yield. Of course the yield of the duties depended a great deal upon the valuation of land establishing a datum line for the duties, and that could not be completed for many years. In 1920-1 it had not been finished. Meanwhile the larger proportion of the land value duties was derived from the mineral rights duty. The growth of mechanical transport, following the introduction of the internal combustion engine, led to the imposition of duties on motor vehicles, a part of the proceeds of which was allocated to a Road Development Fund, established in 1909. At the same time a development fund was set up for the purpose of promoting, by Government Departments, colleges, institutions, or persons not trading for profit, by means of loans or grants, agriculture, forestry, drainage, harbours, fisheries, transport by experimental work.