take up the heavy work abandoned
by the men,--something they would have refused to do in all ordinary
times. On the whole, the output of this concern and its efficiency
were materially increased, not diminished, by the war.

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