AMERICA'S WAR FINANCE

Dominion, Volume 11, Issue 55, 28 November 1917, Page 4

AMERICA'S WAR FINANCE

PREPARATIONS FOR A FIGHT TO A FINISH. Writing to Mr. T. G. Serjeant, 6? Rolleston Street, Wellington, under date October 22, Mr. G. G. I/utlvy, of Peoria, Illinois, U.S.A., says:'"Prices of all articles in this country still remain high, although it is the opinion that the crest has been reached and that prices will show a tendency to decline a trifle. About two or three months ago this country issued a two billion dollar Government bond called tho First Liberty Loan. These 'bonds beiir 3i per cent, interest, and wero quickly subscribed. The second issue has recently been put out, and' is now being offered to the public. This issue amounts to three billion dollars, and the bonds will bear 4 per cent, interest. The subscription closes on November 1, and at that time it is expeoted that tho issue will besubscribed, if not oversubscribed. This is called the Second Liberty Loan. The first bonds bearing 3\ per cent, are interchangeable with any later bonds, that may be issued bearing a higher Tate of interest, so that these 3J- per cent, bonds can he exchanged for i per cent, bonds. Tho first issue was free of nil tax, but the second issue, that is, the present one, is not entirely free of tax. This will make five billion dollars of war bonds that have been > issued. It is tho intention of tho Government, it has been publicly announced, to issue nine billion dollars more in bonds before June 1, 1918. Stocks and bonds of all kinds hare dropped in value on account of these Government issues. Our new War Revenue Bill is now a law, and wo have all kinds of additional taxes. The Government intends raising something like a billion or two billion dollars a year in additional taxes. For example, wo ho-a; pay a special tax of .1 per cent, on the net selling price of all the manufactures sold. In addition to this wo must pay a heavy tax on our profits. However, we are in the war and are in it for h finished fight, and wo are all willing to stand the burden that this war imposes on us. It is the general desire and wish that it be a finish fight, so that tho thing will be ovpi - for evpr. Wo do not have much hope in this country concerning Russia, and it would seem that the burden is going to devolve upon Englnnd .111(1 the colonies, France, and tho United States. About 500,000 men have already been conscripted and drawn, and have been sent to training camps in various parts of this country. The second lot of 500.000 men has not vet been called."