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AUSTRALIA'S WAR LOAN

10 BE RAISED LOCALLY • MR. FISHER EXPLAINS HIS ! SCHEME. In the Commonwealth' Hoi:so of Representatives oil July 21 the Treasurer (Mr. Fisher) moved the second reading of tlio Commonwealth War Loan Bill. As already explained, the object of tb/a Bill is to raise a loan within the Commonwealth of £20,000,000 for war pvtnposcs. The stock and bonds are to be issued 1 ; at par, and tho loan is to bea'r interest at per cent. In the course of his remarks, Mr. Fisher said:-?-A year ago, when most people wore dreaming of universal peace, Germany fell upon Belgium, with, which nation it had n 0 quarrel, and crushed it lw.fch, the. might of its armed forces. This involved Europe and the .world in t.lio greatest war, in history. Great Britain sprang to Belgium's aid, and Australians rushed to the colours before they nero called. Since then there has 1> ?en 110 looking back, nor can, there be, until •tho day our brave soldiers and sailors return with, victory, and assurance 'of a lasting peace.' (Cheers.) It is to 'liastoil that day I present this Bill, / and ask for it a speedy passage. The, Government of the Commonwealth has' raised for active service abroad and i actually to the front a.: toital of troops of all ranks, composed as follows First _ Australian I) £> vision, 18,375; four Liglii Horse' Bci.gados, 7903; four Infantry Brigades, j1.8,195; lines of communication units, '• ,1816; naval and military expedition,; 1522; bridging train, 285; siege hrigadjs, 415; flying corps, 45; reinforcements, •' 26,020. Left Australia to date, 74,57(v There wero in training on the 10th •of this month, prior to embarkation, 1 , troops to tho number of 16,921, making a, total force of 91,4&7 men. ' "Will See It Through.

What these men li.tvo alrefl dy 'done, and what history they have made in the world's theatre; is well knowrn to hou. members. We intend to see the matter through to tlie last man aiic'l the last shilling. (Cheers.) It shoulct bo mads clear at the outset that the -whole cost of our naval and military forces within and without Australia is'home by the Government of tlie • CoMßmonivealth. None of the States contributes anything. Quite a number of people think the British Government contributes to the pay abroad, but it does .aiot. •It is estimated that tho-cost to the Commonwealth Governmeint of these war services to Juno 30 lasii was-

Expeditionary Fruces. % £ Nov® l - 3,399,368 Military] f1 ... 9,469,367 I -— f 12,868,725 Other war services J,,..., 135,106 Total , 1 13,003,835 The estimated cost pen- man landed in Egypt is set down ait £So. Cost per man prior io embarkation, £57. Cost of first issue oil personal clothing and equipment, £38 per man. Cost of maintenance) of clothing for twelve months, £12 per man Cost of clothing and equipment, including both personal and regimental equipment, such'as field and machine guns, ivaggons, mccltanical transport, etc., £50 per man. How Previous (Loan Stands, The Commonwe.iltih Government lias borrowed from the Imperial Government for war purposes up to December next a total of The Commonwealth Governroent has up to date received from the Imperial Govern-, ment:— fl On account of loan of £18,000,000 12,000,000 On account of (additional loan of « 3,600,000 15,600,000 It has yet to receive ......... 8,900,000 J Making a total of 24,500,000 The Commonwealth has loan-' ed to the States . 12,125,000 There is yet to ibe loaned... 5,875,000 ;; - 18,000,000 So that durinfg the sama period • in which the. Commonwealth' Government raised the loan from tlia British Government it has loaned to the States actually more than it itself received from the Government, i.e., of tho £18,000,000 original loan it has received to date £12,000,000, and has loaned to the States With xegard to the additional loan from the Imperial Government of £6,500,000 —which forms the subject of a separate Bill' already in hon. members' hands—l have anticipated authority because of the favourable position of the money market at : tlio time. The position, then is clear up fco December next.

British Government's Advice. Here I draw attention to an important matter. His Majesty's Government on July 6 last, made it known to the Government of the, Commonwealth that it would be very agreeable to it if tho Commonwealth could raise the money to meet the war of its own forces. Such a communication demanded immediate attention, tho result of wMich is the present Bill. (Hear, hear.) It is difficult to attempt to Veckon the sacrifices that it is my duty to invite the country to make meet the expenses of the war. Mucli will depend upon its duration. Tho time has come when we must supplement the efforts 'we have already made to meet our expenditure. But assuming that the war lasts to the end of the financial year, it is estimated that our requirements, for war purposes only, during Wilis'financial, year, will ho not less than £40,000,000. In these circumstances the Government felt that it devolved upon them. to talce immediate steps to : appeal to the . people of 'Australia to I provide the Commonwealth 1 with a loan of £20,000,000. to be used for war. purnoses only. . The people of 'Australia have conducted themselves with admirable courage in most difficult and trying circumstances, and we feel sure they will riso to tho occasion now. (Hear, hear.) I understand the States would have much preferred that we liad consulted them more, but time was theessence of tlie contract. We could not go on the market to raise money for any purpose except war, and therefore the States could not have been lielped bv any discussion. v The People Called On. Tlieir soldier sons liave borne themselves with undiminisliing bravery ■: in face of unparalleled dangers, and have won' the admiration of the world. • Tlie Government feels that such a people will "not fall short of their expectations: that thev will respond to the call of duty, and that tliey will gladly provide tbe sinews of war, which are absolutely essential to our success in this creat struggle. Tlie Government lias availed itself of tho best advice obtainable. 'The banks havo generously agreed to cliargo neither commission nor esehango in connection with the subscription' to the loan. Terms or Loan. . It is intended to raise an amount of £20,000,000 for war purposes only, at per cent., issued at pa.r. It will not be underwritten. Tlie term of the loan will he ten years. The loan will be is&uid in Ittstitlisrtntsi 'and , italant will be of £8,000,002, -Tw

Subscription lists will close on August 31. 1915. Nominally tho amount asked for in tho first instalment is £5,000,000. But tho full amount subsoribed will he necopted by tho Government. ■ If, on the first issue, wo are offered £10,000,000—at which I would not bo surprised —wo will bo glad to accept it. (Hear, hear.) Interest will be payable half yearly.

Mr. Sampson (V.); What if more than tho whole nmount is subscribed? 111 the shape of inscribed stock or Treahappyl (Laughter.) But I don't expect moro than £10,000,000. If we get ft record harvest this year, as we hope, the raising of the balaiico of tho loan should be very easy. (Hear, hear.) It is estimated that fully three-fourths of the war expenditure will bo in Australia. The loan may bo taken up either m the shape of inscribed stock or Treasury bonds, and at tho option of the holders ono form of security may be exchanged for the other. Tho minimum amount of stock .will bo £100. Tho smallest bond will bo £10. its regards bonds, I hope to be able to mako arrangements for their safe keepins at a nominal charge. Mr. ,W. Maloney (V.): A splendid idea 1

The Treasurer: I feel sure there are large numbers of people in Australia who would readily subscribe to this loan n smaller amounts if they had a place of safe keeping for their bonds. 1 feel rather proud of the idea, if I may put it that way. ■ All bonds and all transfers of inscribed stock will be free of Commonwealth and State stamp duty, and interest will he free' of Commonwealth and State income tax. The At-torney-General informs mo that IsThe law; the States cannot tax it. Sir Wm Irvine (V.): Will it be free from Commonwealth taxation? Tho Treasurer: I cannot say off-hand. But I should think that would' bo an. undue inducement. Bonds and inscribed stock will be accepted at par in payment of probate and succession duty' due to the Commonwealth., The States of New South W r ales, Victoria, Queensland, Western Australia, and Tasmania have agreed to legalise the investments by trustees in their respective States. South- Australia is still considering the matter, but I feel sure tho result of its deliberations will load to its agreeing to that course. I beg to move tho second reading. (Cheers.) Mr. cook on the Position. Mr. Cook (N.S.AV.) complained that the Prime Minister had not informed the House of the ways and means of financing tho Commonwealth during the next twelve months. They had been told that £40,000,000 would be required. Tho Government proposed to borrow £20,000,000. How was' it to get the other £20,000,000? Tho more they spent, however, and tho greater the vigour they displayed in bringing the war to a successful conclusion, the bettor would bo their position when peacew as declared. He was glad they wero about to linaiico themselves, for lie had ' always felt their contribution to the Empire was not adequate. Tlioy were able to look to their own financial resources as far as tho immediate future was concerned. The flotation of the loan should not be a difficult thing, for the annual production of the Commonwealth was worth £230,000,000. There were £95.000,000 in the savings banks, and another £170,000,000 in tho private banks. ■ A loan of £20,000,000 would not interfere with the financial stability or tho exchange of this country.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/DOM19150804.2.25

Bibliographic details
Ngā taipitopito pukapuka

Dominion, Volume 8, Issue 2531, 4 August 1915, Page 4

Word count
Tapeke kupu
1,654

AUSTRALIA'S WAR LOAN Dominion, Volume 8, Issue 2531, 4 August 1915, Page 4

AUSTRALIA'S WAR LOAN Dominion, Volume 8, Issue 2531, 4 August 1915, Page 4

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