GENERAL ARTICLES

$4,702,968,368

Canadians have paid $4,702,968,368 as their share of the cost of the last war, and we are still paying at the rate of $158,000,000 a year

GRANT DEXTER September 1 1936
GENERAL ARTICLES

$4,702,968,368

Canadians have paid $4,702,968,368 as their share of the cost of the last war, and we are still paying at the rate of $158,000,000 a year

GRANT DEXTER September 1 1936

$4,702,968,368

GENERAL ARTICLES

Canadians have paid $4,702,968,368 as their share of the cost of the last war, and we are still paying at the rate of $158,000,000 a year

Canada's Bill for the last War S )lUl('I lot al Annual Direct War Soldiers Ct~ l War Sit lenient (`cist inYear penditure Pensions l~e-csl abt ishnient ( raves ad iii ii st at uiii III I('I'('St (`1 iii ng itt (`I 1915 $ 60,750.476 $ $ $ 2,126,268 $ (12.876.744 1916 166,197.755 307,572 . . . 0.862.976 175,368,303 1917 306,488.815 2.447.375 . . . 22.520.060 331,456,250 1918 344.836.802 7.795,295 .. 11.774.728 394,406,825 1919 447,019.439 17,869.274 18,618 214.752 til;.5€3,858 531,685,939 1920 346,612,954 25,506,703 47.230.903 93.683 3.102,396 80.830,629 503,377.268 1921 16,997.544 36,761,161 36.268,716 378.963 3.757,661 96.142,995 190.307,040 1922 1,544,250 35,414,743 17.781.803 522,115 2.282,713 99,077.822 156,623,446 1923 4.464.760 32,118,374 13.365,135 378.442 1.819.825 101.737.295 153,883,831 1924 446.083 32,443,502 10.312,947 371.785 1,615,006 102.001.913 147,191,236 1925 506.931 33,841,537 8.981.199 446,896 1.412,900 102,176.158 147.365,621 1926 191.393 36,103.084 7,734,840 472,519 1,237.421 104.417.382 150.156,639 1927 64.485 36,745,754 7.005,838 799,767 1,250,787 108.841,680 154.708,311 1928 1,860.985 38.460,659 6,991.019 573,419 1.386.446 109,079.200 158,351.728 1929 119,848 40,047,757 7,901.957 573.698 1.441.951 111,533,376 161,618,587 1930 59.702 40.406.565 8.454.121 1,362.122 113,997.218 164,279.728 1931 61,889 45,965.723 10,123,442 1,300,328 116.812,336 174,263,718 1932 75,471 48.686.389 11,510,867 1,035,475 119,816,438 181,124.640 1933 51,500 45.078.919 10,409.713 818.~5 120.076.411 176,434,868 1934 47,571 43,883.132 9.475,476 810,420 115,013,407 169.230,006 1935 48,000 41,953,036 10,125.140 800,000 106.556.324 159.682,500 1936 71,000 42,870,000 11,328,000 200.000 800,000 103,506,140 158.575.140 $1,698,517,653 $684,706,554 $235,019,732 $4,811,287 $26,448,528 $1,953,464,614 $4,602,968,368 The loss on soldier settlement which, with interest, amounts to $100,000,000 has to be added to the total shown above. This brings the total cost of the war to date to $4,702,968,368.

GRANT DEXTER

WITH THE international armament race resumed on a vaster scale than ever before and Europe, according to many observers, balancing dizzily on the brink of war, it is timely to survey what the last war cost this country.

Wars are the super-destroyers of life and wealth, and their immediate cost is but a fraction of the ultimate cost. To the present generation, the Great of what happened before it. No atten calculate the cost of the small wars ago. Yet only in 1929 did we stop pa Raid, and the Northwest Rebellion wtui has stayed a sizable item in the taxpa years. Pensions to Rebellion veteran between 1916 and 1929 and still cost annually, although it is fifty years sounded. The Boer War has al ended, hut the British taxpayers dians who served in South A I Canadian soldiers. The Br pension office at Ottawa casualties and does so o~'

Canada entered the (~ h an insignificant public debt and emerged a war bill which has grown ever larger. Indee , so large today that the figures are astronomical; without real meaning to the aver age person. It is customary to count the war cost as about two billions of dollars, but this figure is pathetically made quate. Careful study of the public accounts and statistical abstracts issued by various departments proves that the total cost of the Great War, principal and interest thereon,

up to March increasing at say, every about $15 per almost eighteen will go on paying of war debt is grc of the burden of will scarcely be ` .968,368. And the cost is 000 per year. That is to in Canada is paying .ch ended victoriously y and their descendants come. The dead weight t the gradual lightening `s' re-establishment

ontinue? S OMETHING the war has had on thr pocketbooks o ried from these facts: In 1914, eight ni ns owed in the Dom inion debt about $5 of them paid interest of $2.52 per year. illion Canadians owe $363 per head in the nd the interest charge is about $16 for each `~ them. In this inter val the national debt, teed, has risen from $431,996,850 to $4,00~

Of the increase, the exclusive of interest on war expenditures, a $2,750,000.000. The actual cost of maint~' litionary Force was less than two billions, the post-war cost. But in addition to this t on war expen ditures now totals $1,953, this interest has been paid out of current r . But a large part of it has been capital rrowed money. Through interest charges ` allowances and the like, it keeps on dcv In the next six years it will eat up anor [ars, and so into the future. Only repudiation and the abandon ment of the war casualties-an unthinkable act--could put an end to the drain of war on the national pocketbook.

The detailed story is told in the table which appears on this page. The figures are not available at Ottawa in a correlated form. Each item has been drawn from the blue books, and care has been exercised to avoid duplication. In calculating the interest on war expenditures, it is impos sible to be strictly accurate, as the Government has never kept a record of how borrowed money was expended. This being so, the average rate of interest paid on the public debt has been used. This method undoubtedly errs on the side of understatement, hut it is the only practicable one to follow in the circumstances.

These figures are necessarily in abbreviated form. The direct war expenditures include, for example. the $6.(~)0,0O0 spent repairing Halifax after the explosion of 1917-18. That items under this heading continue, is due to adjust ments between Canada and the allied governments.

The re-establishment item covers pension administration, hospitalization, vocational training, compensation (other than pensions), loans to veterans, appeal boards, gratuities, grants to the Canadian Legion, La4 Post Fund and so on. The interest calculation is made each year on the cost of the war to date. The interest is not compounded. It is assumed that the interest has been paid out of current revenue, while the actual cost of the war has been paid out of borrowed money.

One additional item completes the record. For obvious reasons it cannot be recorded year by year. The Govern ment invested $128,000,000 in soldier settlement. Of this, $76,190,201 admittedly has been lost, and further losses are regarded as inevitable. This loss has nothing at all to do with the administration costs which have been set out in the foregoing table. The loss of $76,190,201 with interest would now amount to slightly more than $100,000,000, and this item should be added to the total cost of the war as shown in the table-The End.