FREE OF INCOME TAX

Dominion, Volume 11, Issue 148, 12 March 1918, Page 6

FREE OF INCOME TAX

MINISTER OF FINANCE AND WAR LOANS

REPLY TO CRITICS By Telegraph.—Frees Association. Gliristchurch, March 11. Sir Joseph Ward made a very lengthy statement to-day in reply to criticisms that- have recently been directed against the obtaining of war loans in Now Zealand free of income tax. In his concluding remarks, Sir Joseph Ward says:—"Why _ are tho various portions of the British Empire, including New Zealand, appoaling for subscriptions for war loans frco of income tax? It is because tho amounts required are excessive, and, at all ovente in the case of New Zealand; beyond anything ever dreamt of as being likely to be asked for. The money is tied up in the war loans -in the first instance for a period of twenty years or more. There . are comparatively few people in the country who can afford to withdraw money individually or from their business without obtaining financial assistance to ennfilo them to do so. If there were not some incentive held out, many who hare loyally and magnificently responded would not in any of the countries have undertaken (in many cases beyond their means) a heavy additional responsibility, 'there is no country beyond New Zealand to which we could at present go and obtain money under 6J per cent., and then with a heavy discount off our loans. In tho interests of financial safety for the country it is impossible for me to adopt the proposals of well-intentioned _ people who are entitled to their own views, but whose advice would bo useless to me as Minister of Finance. If an j unholy mess were made of the finances \ of the country during the war time the ' confident opinions they express would i be no excuse from my standpoint _ for 1 1 yielding to representations of the kind, j T should have greater confidence in ! their judgment if countries like the j United States of America, like Canada j and Australia, like Great Britain, had j adopted such a policy as that they are j now urging, but I am satisfied in my j own mind that, for reasons very simi- j lsr to those which have prompted me, the course which they'have suggested was regarded by experienced men as a dangerous one'upon which to embark."