THE WAR LOAN

Dominion, Volume 11, Issue 155, 20 March 1918, Page 5

THE WAR LOAN

W BIG RESPONSIBILITIES MUSI HAVE MONEY i SPEECH BY SIR JOSEPH WJED The Minister of Finance (Sir Joseph Ward) made his first speech on the .War Loan, at a meeting of business people in the Chamber of Commerce yesterdav. He had intended to speak in the open air at the Bank of New Zealand corner, but the weather was so bad that this idea was abandoned. Sir Joseph Ward said that tho responsibility resting on this country of providingthe money required for our part in this great war was a very heavy one, but every 'thinking man and Woman in New Zealand must realise that our part could not be carried on unless we had the money required. None of the other patriotic work that had ; , been done for the soldiers would bo of ' the slightest avail unless the money wero provided for war purposes. The men who had returned from the front could tell something of the gigantic proportions of this war. But however great the demands the country must not fail to meet,its obligations, and he was certain that New Zealand would 1 until the end provide all the money re- ; quired for her part in the big fight. The Finanoial Shirkers. u There were compulsory clauses in the law designed for those people who wore unwilling to do their share by giving of their wealth to keep this country a free land for themselves and for their ■ children to follow after. If there should be those that failed in their I duty in this respect tho clauses would be -put into operation. He was not saying this by way of an empty threat —the occasion was too serious for that. Unfortunately, there, were financial shirkers as woll as military shirkers in the country, and it would he unfair to allow any man to withhold his money now from this loan in'the hope of getting more interest for it after the war or in some other channel of'investment; Personally he thought it would be a ' very unpleasant duty to have to disclose the names of such men as might refuse to do their duty, and for this and other reasons he hoped that they would all do their duty voluntarily, ; and so make the application of the ] compulsory clauses unnecessary. War Loan Certificates. • Referring to what had been already '"done in the matter of the raising of i money for war purposes, he wished, he said, to draw attention to the magniii- ' i cent result of the issue of War Loan Certificates through the Post Office. '. The purchase of War Loan Certificates [ by the public showed how large a sum '■might-be' raised by sma 1 ! individual effort. War Loan Certificates wero i first offered to the public in August, 11916. They wero specially designed to imeet tho requirements of those who in J the ordinary sense cannot be called vestors, tho interest upon them being •computed at A\ per cent., compounded and payable at the end of the term of five years for which they were originally issued; Up to the end of February last the amount of cash received by tho Post Office for the sale of War Loan Certificates reached a sum of 110 less , than £2,900,340. Last year a further ■ innovation was made by issuing certificates with a ten years' currency. These are sold at 13si for every £1 face value, and the interest is computed at 4J per cent., compounded at , .the end of ten years, the public receiving £1 for every-13s. paid in. For_ the five-year certificates the public received £1 for every 16b. paid in. A special issue of Post Office War Bonds was made in 1917. Sales ■ wero limited to \£soo to cach'holder, arid the interest was fixed at-5 per cent. This was to meet tho requirements of those who, having a small amount of capital, : could not affprd to postpone the receipt of interest until the period .of the loan expired, the Post Office War Bonds providing for payment of interest halfyearly. This scheme, proved a very . great success, the sales tip to the end ' of February reaching the sum of ■ £1,510,465. War Loan Figures, He gave also the' following figures ■relating to War Loans generally:— r' Total .authority granted by Parliament for raising 'War Loans,, •£56,000,000. Total amount raised up to February ■ 28, 1918, £46,000,000, of which '£19,500,000 was borrowed in London and £26,500,000 was-borrowed in New Zealand. • Total war expenditure to February 28, 1918, £40,000,000. This includes r outstanding Imprest Accounts. In addition to this expenditure thero were several months' contributions at the rate of £650,000 per month in arrear to the Imperial Government for maintenance of troops. The total amount borrowed since the commencement of tho war for all services amounts to £52,000,000, of which £19,500,000' was' borrowed in England • and £32,500,000 was borrowed in New Zealand. Minor issues. These were tremendous sums for a small country like this to accept responsibility tor, but he believed that Mew Zealand would be ready to tako iipon its shoulders responsibility for • ' double or treble the amount if it should be required to win the war. • (Applause.) He wished to say to those peoplo who persisted in discuss- • ing whether it was wise to borrow these large sums at 4£ per cent, freo of income tax that it seemed to him that tho people who had most to say about ■ what should be done were the peoplo who had least to give, and. who gave nothing. If by any mischance tho loan should fail, and.these peoplo wero 4isked to help out, most of them would not'be able to find more than about twopence halfpenny .in coppers.' The ■ very men who wore being asked to provide the bulk of this loan money were those.who would bo called upon to pro- ■ vide most of the taxes after the war for the ordinary needs of the Dominion, as thoy were thoso who had to . find tho taxes now to enable New Zea-1 land to pay her way. We must have this monoy, and the method we wore adopting'of getting it was tho method that had been adopted by the United Kingdom, the United States, Canada, . and Australia, all countries which had bigger population strength than New Zealand'. • And we must got this money for ourselves. It was useless to think that wo could get it from .Britain, which already had to borrow at tho rate of £2,000,000,000 a year. Our duty at this time was to close our ranks up, and not to continue with this bickering as to the methods to be adopted in getting the money which all must agree was necessary for the prosecution of tho war. ■ The Revenue. Sir Joseph Ward stated that the revenue for th,o eleven months ended Fobrtiary 28 showed an increaso of £2,515,138 over the corresponding period of last year, and tho expenditure during the same period had increased by £771,398.' Tho net increase of revenue was £1,743,740. He reaffirmed that the position at tho end -of the year would bo very satisfactory, but that all the increased revenue would be required. He was glad to be able to state again for the information of the public that thero would bo no increase in taxation during 1918-19. No Makeshift Peace. Whatever differences raiirht occur in tho personnel of the British Covorn-

ment or in the House of Commons, the people of the United Kingdom were determined that they would not have a makeshift peace. If they wero to agree to such a peace they might just as well not have fought this terriblo war, because thoy know that Germany would prepare for another war, and it might happen then that England would have to fight her without the assistance of "the powerful Allies slid now had. It was doubtless truo that the secession of Russia would causo difficulties, but whatever they were we must carry on. The British Empire would never allow its people to bo put under the heel of an oppressor. Samoa. Some people were urging that wc should bo prepared to restore to the enemy the'islands of tho Pacific which had been taken at the beginning of the war—those islands whose very shadow was over these lands. If they were to be given back to Germany they would serve her as a 'base for submarines, for aircraft, and as coaling stations. This was not to be thought of. He appealed to tho people not to raise these issues, hut to be united. (Applause.) "'■ A Pledge of Support. Mr. Harold Beaucharcp moved the following resolution:—"That thismeeting pledges itself to do all in its power to assist tho Minister' of Finance in raising tbo loan'for which ho is now asking, and further emphasises the inflexible will of this Dominion to assist in prosecuting this war to a victorious end." The motion was seconded by Mr. F. W. Mantbn, and carred unanimously. At the conclusion of the meeting a note was handed to Sir Joseph Ward to inform him that the? Alliance Assurance Company would contribute £25,000 to the loan. "That is the kind of news I want to hear," said Sir Joseph Ward.