1920.] Agriculture during Two Great Wars. 229 



assets, the load of new debt was at both periods enormous. 

 No country which is in such a linancial position relative to its 

 population and wealth can hope to escape a period of privations 

 more or less severe. Such a period followed the French war. 

 A similar period is bound to succeed the war with Germany. 

 But the nation to-day is far better organised and equipped to 

 distribute the sulfering evenly. In the last century experience 

 proved that the only remedy was increased production and 

 econom}^ To-day, as then, there is no other way out. W'e 

 must create the new earth before we can inherit the new 

 heaven. 



The burden of taxation must to some extent fall on alL 

 But here a significant change has taken place. During the 

 French war more than half the national revenue was raised 

 by Customs and Excise Duties. This part of the burden fell 

 upon consumers because the indirect taxation was levied on 

 many articles of general consumption, such as salt, candles, 

 soap, malt, and leather. A \\'ar Property Tax of 2s. in the 

 pound was imposed from which incomes under £200 received 

 graduated rehef, and those under £60 a total exemption. 

 Farmers contributed on the basis of profits calculated at three- 

 fourths of their rack rents. Throughout the German war 

 a different policy has been pursued. So far as possible, indirect 

 taxation has been abandoned, and consumers generally have 

 benefited by the relief. Direct taxation has taken its place. 

 Jt has fallen on the richer sections of the community, who have 

 met more than three-fourths of the current expenditure of the 

 ^^'ar. The following figures show the proportions of direct 

 and indirect taxation (including excess profits as direct) : — 



Farmers have contributed on the basis of double their 

 rents, with the alternative of paying on their actual profits. 

 Equally significant is the post-war policy of taxation. In 1815 

 our ancestors aboHshed the Property Tax, which was the 

 principal form of direct taxation in force during the War. 

 In 1920 no reUef is given to the richer sections of the community 

 from direct taxation. On the contrary, the burden is increased 

 and laid on fewer shoulders. This poHcy is undoubtedly the 

 fairest, because the smaller the income the smaller the margin 

 beyond necessaries. But the result is that the man who suffers 



Indirect. 

 Per cent. 



Direct. 

 Per cent. 



Year to 31st March, 1917. . 



2 3*7 

 17-3 

 20-5 

 2796 



1918. . 

 1919. . 

 1920 . . 



