It is figured that troops at the front mean an expenditure of one pound per man per day, and that English troops in training mean an expenditure of not less than ten shillings per man per day.

The war expenses of Great Britain must thus be above one million pounds per day and steadily increasing.  Indeed, the best economic estimate I have of the cost of the war to England is 500,000,000 pounds the first year.

While the English declare that they are fighting for their children and their grandchildren, they are not willing to leave to them the full load of the war-cost, and gladly do they assume all possible burdens in the present time.

The income tax, which began in 1842 at two pence in the pound, has now been doubled from one shilling and three pence to two shillings and six pence in the pound.  This is on the average, and takes nearly one eighth of a man’s income.  There are very great variations in this tax.  The rate I have given is the rate on dividends.  Upon wages and salaries the tax is somewhat less.

The income tax is also apportioned over a three years’ average.  The supertax raises the contribution of the wealthy to one fourth of their incomes, although on the average it is figured to take only an eighth.

It is expected that the income tax may be further increased, possibly doubled, next year.  I was not surprised therefore to find American millionaires with houses in London returning to New York and making sure of their American citizenship.

Every penny in the pound in the tax rate produces 2,500,000 pounds sterling, or $12,500,000, nearly one half the national income tax of the United States for 1913.  Indeed, the English income tax for the year ending March 31,1915, is estimated to produce 75,000,000 pounds sterling, or about twelve times the income tax of the United States and from less than half the number of people.  In other words, the income tax of Great Britain per capita is this year twenty-five times that of the United States.

But still the United States is really in no need either of income tax or of war-machinery.  It is too late for the United States to prepare for any contest with the one nation that goes to war over tariffs—­Germany.

After this war and a settlement of the Mexican situation, warships will be for sale at fifty cents on the dollar.  Germany will have no navy of consequence, and England will reduce her present navy by at least one half, since her expansion of late years has been forced entirely by Germany.

CHAPTER XIII

GERMAN RESOURCES

The Food-Supply—­War Expenses—­The Copper Supply—­The Call for Gold—­No Outside Resources—­The Human Sacrifice.