THE WAR LOAN

Dominion, Volume 11, Issue 177, 16 April 1918, Page 6

THE WAR LOAN

COMPULSORY CONTRIBUTIONS . A question in regard to the actual effect of the compulsory clauses of the new Finance Act in regard to the War Loan was put to the Minister of Finance in the House of. Representatives last night by Mr. Pearce. Sir Joseph Ward replied that the compulsory clauses applied to the ,£9,500,000 loan now being and also to tho new loan of ,£20,000,000 that was authorised in the present Bill. The prescribed maximum of six times the airioant of the land and income tax payable, as stated in tho compulsory clauses, was merely intended as :>n indication to subscribers of the. amount, that they were expected to contribute. ;ilr. Pearce nsKed whether subscriptions to tl>e previous loans would be taken into account,

Sir Joseph Ward said that he <licl not think that subscriptions to tho first ■War Loan-that of be taken into account, but »übscriptiojis to the first portion of the loan of i2»,(XW,000 authorised last j ear would Uβ cpnßidurSed. It would not be reasonable to apply tho compulsory clauses in regard to the .£9,500,(100 loan to persons wuo. had (subscribed four and a half'times tho amount oijthrnvtax-tolast year's loan. Btit people*"Vlid Contributed something to-the first loan might also have to 'outribute something to tho present loan and the next one also. Consideration, however, would be shown to those who had subscribed to the first nortion oE the present loan. ''.. . Mr. Parr: How long will bo money lost? '. . ■'

. Sir Joseph Ward said that tHe ltould suffice until the end of July or perhaps August. Any excess that was subscribed would form a vuctlou of the new j)2O,(H)p,OW) loan. "We probably will go en without stopping," he added. It would not he possible, to eliminate those who had subscribed to the first or second loans 01 to the present loan from subscriptions to the netv twenty million loau.

Mr. Pearcc: But you will give t'nem eotrit. consideration*

Sir Joseph Ward: If it -were a mit'.ler of choice with thejtflnlster of Finance tn to wffat he wouid or coulfl do r.uch persons ftf course would receivo t:he greatest consideration. But the matter doea hot rest with him. We have got to get the money. There is no auestion about that.