COMPULSORY LENDING

Dominion, Volume 10, Issue 3180, 3 September 1917, Page 6

COMPULSORY LENDING

Sir,—Everyone wishes to do his share in the present tremendous crisis cheerfully and without vexatious criticism, but there is one phaso of the Government's financial proposals which hardly seems sound business—l mean the com-, pulsory subscription to the War Loan. New Zealand farmers as a class are in debt, and this must to a great extent always be so, because, if, as no doubt should be.the case, a man gets clear to-, wards tlio end of his life,, when- division amongst his children comes to be made it all lias to begin again to meet probato, building new homos, etc. Knowing that the war excess profits were not legitimate gain and would bo called for, sensible men did the only thing they could under the circumstances, that is, they temporarily reduced their overdrafts. _ Now that the money is required, it i 6 undoubtedly right to call for it, and to whatever lengths the direct taxation proposals go nobody worthy of the name of "Briton" will "squeal," so long as they fail in equitable proportion to. people's ability to pay. When, however, it comes to compulsory lending to the State, as distinct from paying to the State, the following points crop up for consideration:—The Government can borrow on better terms than the individual, and the difference between the prices at which the money can bo obtained by the former and the latter respectively is lost to both and goes into the pockets of tho moneylender. If a farmer borrows at 0 per cent, in order to lend to the Government at per cent., it must tend to weaken his power to meet the future calls which must inevitably come. One is unable to avoid a mild and diffident wish that tho Government, while taking all that is required, even ;f that exceeds the present direct taxation proposals, would leave that which is not'required in tho hands of its nominal owners in the meantime, and not compel them, pos. sibly just at the end of their lives, to throw their affairs into confusion. —I am, * tC " A CASE IN POINT.