THE LOAN BILL

Dominion, Volume 10, Issue 3154, 4 August 1917, Page 8

THE LOAN BILL

IN COMMITTEE

LABOUR MEMBERS DELAY IT

The War Purposes Loan Bill was comnutted. Br. A. K. Newman asked what proposal tho Government had for conscripting the loan. It did not appear to be in the Bill. Sir Joseph Ward: It will come down in the Taxing Bill. Mr. T. JE. AVilford raised the question of whether it was not proper for the Government to consider eoine scheme of taxing men over military age—men who stayed behind because of age or health and drew their good salaries or earned their good profits, while less fortunate men of military ago forfeited their civilian positions and their civilan incomes to go to tho war. Sir Joseph Ward promised to give consideration to tho point, but he said that ho would not undertake that anything would bo done. The Income Tax. On Clause i of the Bill, Mr. J. M'Combs made another protest against the remission of income tax on loan interest. Sir Joseph Ward traversed again the arguments in favour of remission. He admitted that there was an inequality between rich men and poor men investors in the loan, but these inequalities were inseparable from the difference of condition of rich men and poor men. They could not be smoothed out in one Act of Parliament. The country could get the loan and charge tax on the interest, but it would have to pay a much higher rato of interest than *i per cent. In his opinion it would be necessary to pay at least CJ per cent, for the loan. It was just possible that the Government would not get the money at i§ per cent. The job was "a mighty difficult one," and ho would be well pleased when the money was secure. Mr. J. Payne made a speech in general opposition. He said the rato was too high, and that tho Government ought to eet about gotting money from capitalists not by offering attractive terms, but in the 6amo way as they took men for tho fighting services. . He protested against the proposal that members should go round the country to induco people to subscribe to the loan. That was not the method by which men were taken, for the war. Mr. Anderson: AYo tried voluntaryism first. Mr. W. H. Field asked the Finance Minister whether it was desired by the Government that men with property but without free cash should sell all or a portion of tlioir property in order to invest in the loan. Mr. J. Payne pointed out that this would be a futile proceeding. If a property was sold for JJSOOO and the seller put the money into tho loan it would bo no better than for the buyer to refrain from buying, and to put the money direct into the-loan. Mr. Payne and Mr. M'Combs exhausted their right to speak, each taking four turns. Mr. Walkov and Mr. Craigie also spoke on the clause. Mr. Craigie repeated his advice to the Finance Minister to tako the money. Sir Joseph Ward said that tho monoy was absolutely necessary, and he knew of no better or cheaper way of getting the money than that proposed in tho Bill. If he knew a better way ho would have proposed it in the Bill. Mr. Payne called a division on Clause i (providing for the remission of income tax on loan interest). Tho clause was carried by 40 votes to 5. The fivo mombers who voted against tho clause were: Messrs. Payne, M'Combs, AVnlker, Wright, and Dr. Newman. Brokerage to Banks. Tho Labour membors protested against the last clause of the Bill, proposing 'to validate the payment of commission of 1 per cent, to banks and institutions guaranteeing portions of tho last loan. Mr. Payno eaid the scheme was "barefacod robbery." Sir Joseph Ward eaid that .the payment was a legitimate one for services rendered by the banks, and it was given to ensuro the subscription of a largo sum of money. The banks undertook to supply a cortain amount of money, and tho banks had to find this money whether thoy succeeded in getting tho amount from other people-customers of the bank —or not Tho loan was not being floated at ii discount. Tho British Victory I-oan was issued at 5 per cent, discount. , Mr Pan , asked whether tho clause was not merely a validating clause to mako legal tho payments made for these services in connection with the last loan. Sir Joseph Ward said that this was so. 'Power to pay commission for the loan shortly >to bo issued was taken m an earlier clause of tho Bill. Tho Bill was reported at 7.30 without amendment.