Page:EB1922 - Volume 30.djvu/1038

982 included a Customs and Excise Duty on matches, which was increased two years later. In 1918 the stamp duty on cheques was increased from id. to 2d., despite considerable protest from bankers and others that it would produce very undesirable con- sequences. A still more important change affecting the customs of the people was the abolition of the id. postage on letters. In 1918 the minimum charge for letter carrying was raised to ijd., and that for postcards to id. In 1920 the minimum postage for inland letters was raised to 2d. for a weight not exceeding 3 oz., an extra d. being charged for every additional ounce. For inland newspapers the charge for postage was fixed at id. for weights not exceeding 6 ounces. Inland parcel rates were raised to gd. for weights up to 2 lb., and is. for weights between 2 and 5 pounds.

In the three financial years ended March 31 1918 indirect taxation actually diminished, the yield in the last of these years being smaller than in the first. In 1915-6 the produce was 1273 millions, in 1916-7 134! millions, and in 1917-8 n8j millions. But direct taxation, which in 1915-6 yielded 1313 millions, gave 348 millions in 1916-7, and no less than 473 millions in 1917-8. In the 1918 Budget indirect taxation was screwed up. The duty on spirits was raised from 145. gd. to 305., while the beer duty was increased from 255. to 503. per standard barrel. Tobacco duty, which was raised by is. iod. per lb. in 1917, was increased from 6s. sd. to 8s. 2d. in 1918.

In 1916 there was much criticism of the Government's financial methods. Bank Rate was raised to 6%, and Treasury Bills were put " on tap " at 6 % discount. Six per cent Exchequer Bonds were also put on sale. But the payment of these high rates for money (see MONEY MARKET) at a time of active inflation when money was abundant met with severe criticism. It was ostensibly designed to attract foreign money to London, but eventually it was decided to abandon the " dear money " policy and to offer a special rate, above the domestic rate, for foreign moneys. The year 1916 witnessed a new innovation in borrowing. What was described as the " continuous loan " principle was introduced in that year namely, the daily offering of war securities instead of the flotation of fixed period subscription loans of the old fash- ioned variety. At first this type of borrowing was not very suc- cessful, but with the introduction of modern publicity methods in 1917 the continuous loan plan became a very remarkable success.

The following are the aggregate figures for the British financing of the war from Aug. i 1914 to Nov. 16 1918, five days after the Armistice was signed:

Total expenditure 8,656, 198,215 Balance. . 6,141,062

Yield of revenue 2,220,235,719 Net borrowings 6,442,103,558

iotal

.8,662,339,277

Total

. 8,662,339,277

In the tables below and on the next page are shown revenue and expenditure for the 12 years ended March 1920-1.

An important feature of English finance during the war period was the borrowing of money abroad, especially during the period of actual hostilities. The first loan was raised in the autumn of 1915, when the British and French Governments jointly and severally issued a loan for 500,000,000 dollars in New York. The position of Great Britain's foreign debt on March 31 1921 is shown below:

Foreign Debt, 1921.

Debt to :

In Currency.

In Pounds Ster- ling at Par of Exchange.

U.S.A. Government Total to U.S.A. Canadian Government Total to Canada Sweden ... Straits Settlements. Mauritius. Allied Government.

$4.196.818,000 4,733,214,000 132,326,000 257.326,000 Kr. 12,500,000

Rs. 8,071,300

862,362,000 972,704,000 27,190,000 53.339,000 826,000 7,656,000 538,000 126,500,000

The total foreign debt, expressed in pounds sterling at the par of exchange, was, on March 31 1921, 1,161,563,000, a decrease of 117, 151,000 on the total as on March3i 1920, and of 23,287,- ooo from the highest point reached on March 31 1919.

The figures of the deadweight debt, which included the foreign debt, were as follows in each of the financial years 1909-20:

1909-10 1910- I

I9II- 2

1912- 3 . 1913- 4 1914- 5

713,245,000 685,232,000 674,744,000 661,474,000 651,270,000 1,108,817,000

1915- 6 . 1916- 7 . 1917- 8 . 1918-9 . 1919-20 . 1920- i.

. 2,140,749,000 . 4,011,446,000 . 5,871,851,000 7,434.949,000 7,829,000,000 7.573,000,000

The amount of advances and loans to the Allies on March 31 1921 was made up as follows:

Russia .... France .... Italy.

561,400,000 557,000,000

Belgium (war). Belgium (reconstruction) Serbia .... Portugal, Rumania, Greece

nd c

ther


 * s

94,400,000 9,000,000 22,100,000 66,200,000

TOTAL

1,786,900,000

Loans to the Dominions were made up on the same date as

follows: Australia. New Zealand. Canada S. Africa. Other Dominions TOTAL

90,000,000

29,600,000

13,800,000

7,500,000

3,100,000

144,000,000

Further tables show income-tax rates, and the yield for total direct taxation, 1910-21.

Revenue 1910-21 (ooo's omitted).

1>)(X) I<>

1910-1

1911-2

I9I2-3

I9I3-4

I9H-5

1915-6

1916-7

1917-8

1918-9

1919-20

1920-1

Cus'o.ns

30,348

33,HO

33,649

33,4*5

35,450

38,662

59,606

70,561

71,261

102,780

149,360

134,003

Excise ....

31,032

40,020

38,380

38,000

39,590

42,313

61,210

56,380

38,772

59,440

133,663

199,782

Motor Vehicle Duties.

-

7,073

Estate, etc., Duties

21,766

25,452

25,392

25-248

27.359

28,382

31,035

^1,232

31,674

30,262

40,904

47,729

Stamps (exclusive of Fee &

Patent Stamps)

8,079

9,784

9,454

10,059

9,966

7,577

6,764

7,878

8,300

12,438

22,586

26,591

Land Tax ....

150

1,220

750

700

700

630

660

640

665

630

680

650

House Duty ....

560

3,080

2,130

2,000

2,000

1-930

1-990

1,940

1,960

1,850

1,960

1,900

Property & Income Tax (inc.

Super Tax) ....

13,295

61,946

44,804

44,806

47-249

69-399

128,320

205,033

239,509

291,186

359,099

394,146

Excess Profits Duty

140

139,920

220,214

285,028

290,045

219,181

Corp. Profits Tax.

650

Land Value Duties

520

481

455

715

412

363

521

685

664

663

20

TOTAL ....

105,230

175,162

155,040

154,753

163,029

189,305

290,088

514,105

613,040

784,278

998,960

1,031,725

Postal Service

18,220

I9,22O

19,650

20,300

2I,I9O

20,400

24,100

24,350

25,260

29,400

31,000

36,100

Telegraph Service.

3,090

3,175

3.105

3,100

3,080

3,000

3,350

3.350

3,500

3,800

4,850

5,200

Telephone Service Crown Lands (Net Receipts)

1,720 480

i,955 500

2,945 530

5,775 530

6,530 530

6,250 545

6,450 550

6,400 650

6,600 690

6,800 760

8,300 680

8,200 660

Receipts from Sundry Loans,

"

etc. ....

1,269

1,234

1,281

i,4i9

1,580

1,277

2,432

8,056

'6,05-6

11,679

14,952

30,771

Miscellaneous.

1,688

2,604

2,539

2,925

2,304

5,917

9,797

16,517

52,148

52,303

280,829

313,329

TOTAL REVENUE

I 51,696

203,851

IT,(K)

188,802

198,243

226,094

336,767

573-428

707,235 | 889,021

1,339,571

1,425,985