CONSCRIPTION OF WEALTH

Dominion, Volume 11, Issue 113, 30 January 1918, Page 6

CONSCRIPTION OF WEALTH

Sir,— My object in addressing you on this subject is not to deal with the justice or otherwise of penalising portions who have accumulated wealth by industry and thrift, but, from the public economic point of viow, to state why I beliove conscription of wealth to be unfeasible The utterances of tyros in finance, or even of theoretical financiers, might provoke no comment, but the airy manner in which the difficulties were set aside in tho September number of the "Bound! Table" (page m) surprised me, and Mr. Bonar Laws statement last week to the effect that the British Government were taking no steps in the matter seemed quite fitting. Tho "Bound Table" suggests that holders of mortgaged property could raise-ouc-fourth further of the values of their equities as prior mortgages, and, on paying the sum so raised to the Government, be entitled to reduce the orieinal mortgage by half the amount of the payment. Aside from the morality of this, or whether the original mortgagee could with his reduced income and deferred position maintain his credit, pay his taxes, and support his family, thn question at once arises in the mind of one trained to finance-, "With conscription of wealth prevalent from whore would the money come ior raising fresh mortgages on properties all round?" Let us see how, without repudiation by tho State, conscriptipn of wealth could be attempted in New Zealand. It will take the surplus of exports over imports for the presmt financial year to meet the new government War Loan whien the Minister ol Finance has foreshadowed. The capitals, reserve, and deposits of the banks of issue are already, excepting the barely necessary coin and liquid funds, advanced to-the public or invested in Government securities. The deposits m the Government and private savings bnnks are similarly invested. All funds of companies, firms, nnd private individuals are employed one shape or another—in properties, ships, stocks, loans, or deposits. Aiw wholesale callins: up or realisation of these deposits, advances, properties, or stocks, with bf-nefit to anyone whatever, is unthinkable. From where, then, could tho money come? —I am, etc., PRACTICAL ECONOMICS. •January 29, 1918. ..., '