The Project Gutenberg eBook, War-Time Financial Problems, by Hartley Withers

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Title: War-Time Financial Problems

Author: Hartley Withers

Release Date: July 29, 2004 [eBook #13045]

Language: English

***START OF THE PROJECT GUTENBERG EBOOK WAR-TIME FINANCIAL PROBLEMS***

E-text prepared by the Project Gutenberg Online Distributed Proofreading Team from images provided by the Million Book Project

WAR-TIME FINANCIAL PROBLEMS

by

HARTLEY WITHERS

Works by Hartley Withers

THE BUSINESS OF FINANCE. 6s. net.

Second Impression.

"He treats of the subject mainly in its relation to industry, and smooths the path for those who find the way rather thorny. Timely and instructive."—Financial Times.

OUR MONEY AND THE STATE. 3s. 64 net.

Second Impression.

"It should be read at once by every taxpayer. Mr. Withers' latest book can be most heartily commended,"—Morning Post.

STOCKS AND SHARES. 6s. net.

Fifth Impression.

"It is a good book, it is sure of its public."—Morning Post.

THE MEANING OF MONEY. 6s. net.

Eighteenth Impression.

"Will supersede all other introductions to monetary science; a safe and indispensable guide through the mazes of the Money Market."—Financial News.

MONEY CHANGING. 5s. net.

Second Impression.

"Mr. Withers makes the topic interesting in spite of its obvious and irrepressible technicality. Occasionally he renders it really amusing."—Financial News.

POVERTY AND WASTE. 6s. net.

Third Impression.

"Views its subject from the advantageous position of an impartial observer, the respective cases for capital and labour, rich and poor, being brought to the reader's attention in a convincingly logical manner."—Financial Times.

WAR AND LOMBARD STREET. 6s. net.

Fourth Impression.

"Nothing could be clearer or more enlightening for the general reader."—The Times.

INTERNATIONAL FINANCE. 6s. net.

Third Impression.

"We heartily commend a timely work dealt with in popular and simple style, a standard financial work."—Morning Post.

LOMBARD STREET, 6s. net.

Third Impression.

A Description of the Money Market, by WALTER BAGEHOT. Edited with a new Preface by HARTLEY WITHERS. "There is no city man, however ripe his experience, who could not add to his knowledge from its pages."—Financial News.

  "Blest paper credit! last and best supply!
  That lends Corruption lighter wings to fly:
  Gold imp'd by thee, can compass hardest things,
  Can pocket States, can fetch or carry Kings;
  A single leaf shall waft an Army o'er,
  Or ship off Senates to a distant Shore;
  A leaf, like Sibyl's, scatter to and fro
  Our fates and fortunes, as the winds shall blow;
  Pregnant with thousands flits the Scrap unseen,
  And silent sells a King, or buys a Queen."

POPE, Moral Essays.

PREFACE

At a time when Finance is of greater importance than ever before, it is hoped that this small volume may be of interest and value to the public, and help the application of war's lessons to the problems that face us in peace.

The contents, with the exception of the last article on "Money or Goods?" (which appeared in the Trade Supplement of the Times for December, 1918), have already been published in Sperling's Journal, from September, 1917, to March, 1919; they have been left as they were written, except for a few verbal corrections.

I desire to express my thanks to the Editors of Sperling's Journal and of the Times for their kind permission to reprint the articles.

H. WITHERS.

June, 1919.

CONTENTS

I
THE OUTLOOK FOR CAPITAL
The Creation of Capital—The Inducement—War and Capital

II
LONDON'S FINANCIAL POSITION
London after the War—A German View—The Rocks Ahead—Our Relative
Position secure—Faulty Finance—The Strength we have shown—The Nature
and Limits of American Competition—No other likely Rivals

III
WAR FINANCE AS IT MIGHT HAVE BEEN—I
Financial Conditions in August, 1914—No Scheme prepared to meet the
Possibility of War—A Short Struggle expected—The Importance of Finance
as a Weapon—Labour's Example—The Economic Problem of War—The
Advantages of Direct Taxation—The Government follows the Path of Least
Resistance—The Effect of Currency Inflation

IV WAR FINANCE AS IT MIGHT HAVE BEEN—II The Changed Spirit of the Country—A Great Opportunely thrown away—What Taxation might have done—The Perils of Inflation—Drifting stupidly along the Line of Least Resistance—It is we who pay, not "Posterity"

V
A LEVY ON CAPITAL
The Objects of the Levy—Its Origin and History—How it would work in
Practice—The Attitude of the Chancellor—The Effects of the Scheme in
discouraging Thrift—Its Fallacies and Injustices—The Insuperable
Obstacles to its Application—Its Influence on Production—One of the
Tests of a Tax—Judged by this Test the Proposed Levy is doomed

VI
OUR BANKING MACHINERY
The Recent Amalgamations—Will the Provinces suffer?—Consolidation not
a New Movement—The Figures of the Past Three Decades—Reduction of
Competion not yet a Danger—The Alleged Neglect of Local
Interests—Shall we ultimately have One Huge Banking Monopoly?—The
Suggested Repeal of the Bank Act—Sir E. Holden's Proposal

VII
THE COMPANIES ACTS
Another Government Committee—The Fallacy of imitating
Germany—Prussianising British Commerce—The Inquiry into the Companies
Acts—Will Labour Influence dominate the Report?—Increased Production
the Great Need—Will it be met by tightening up the Companies Acts?—The
Dangers of too much Strictness—Some Reforms necessary—Publicity,
Education, Higher Ideals the only Lasting Solution—The Importance of
Foreign Investments—Industry cannot take all Risks and no Profits

VIII
THE YEAR'S BALANCE-SHEET
The Figures of the National Budget—A Large Increase in Revenue and a
Larger in Expenditure—Comparison with Last Year and with the
Estimates—The Proportion borne by Taxation still too Low—The Folly of
our