The Dominion. MONDAY, JULY 21, 1919. WAR FUNDS

Dominion, Volume 12, Issue 253, 21 July 1919, Page 6

The Dominion. MONDAY, JULY 21, 1919. WAR FUNDS

»—- — Most people who have given the matter attention will no doubfc agree that some aspects of the administration of war funds in, this country would bear elucidation,' and that the New Zealand Returned Soldiers' Association is justified in demanding tho immediate appointment of a Royal Commission to investigate the whole question. In a policy statement on the subject which was published last Thursday, r.he executive- of the association mentioned, amongst other things, that an an outcome of the examination or balance-sheets by its 'members it had directed the attention of the Minister of War Funds to "certain items and also to notably defective statements which it could not regard without concern and upon which it desired the Minister's comment." There is here an obvious suggestion of the need of further inquiry in icgarcl to tho particular matters touched upon, but a comprehensive examination of the state of war funds and consideration of the uses to which they may best be devoted is desirable in any case on broader grounds. The amount of money in question is 'considerable. 'Now Zealand has a good record in the matter of patriotic funds, as in other forms of war effort; and a late estimate puts the amount still unexpended from funds collected for war purposes at about £1,700,000. Whatever local or special conditions may attach to expenditure of portions of this total, it is of national concern that the whole amount should be economically administered and disbursed to the greatest possible advantage of the soldiers and dependants of soldiers for whose benefit it was raised. It will hardly bo doubted that much may be accomplished on these lines by orderly inquiry and consideration. The existing position arose largely out of hasty organisation and a wide division of activities, and it ought to bo to th's benefit of all concerned ■to work out uniform methods of dealing with and disposing of the funds. ■ As matters stand, various authorities exercise control over war funds. Only a fraction of the total amount in hand is being administered by the War Funds Council, which was constituted under an Act of 1915 "for the purpose of securing the efficient administration and control of war funds," and empowered to undertake the control and administration cf any war fund on being requested to do so by not less than three-fifths of its trustees. The prevailing disposition thus far has becnto insist upon local control and administration of the various funds. Whether or not this attitude is to be maintained it is obviously desirable that future policy should bo_ based upon a dispassionate examination of the facts, and rhat every effort should be made to secure economical administration and the maximum benefit to soldiers and their dependants. It is of some importance, in this connection that there arc no official records showing definitely to what district a soldier belongs. Particulars of attestation, ncxt-of-kin, and regiment, are all inconclusive in this connection.' Apart from the difficulties that are to be overcome in administering assistance from patriotic funds on a district basis, it is manifestly desirable that the scale of assistance should be as nearly as possible uniform throughout the Dominion. One obstacle hitherto to progress in this direction has been an apprehension in some quarters that _ the Government mighi seek to divert war funds to other purposes than those for which they were raised. For instance, it was suggested,at the conference of the Returned Soldiers' Association in Christchurch in May last that tho Government might attempt to use war funds for tho orection of sanatoria for consumptive soldiers. To this, the Hon. G. W. Russell (Minister in Charge _of War Funds) made the following rejoinder: —

(1) I emphatically deny that the Government has any desiro to collar or otherwise interfere with patriotic, funds. Its only responsibility is to eeo that they aro expended under the War Funds Act for the purposes i for which they wero raised. (2) No suggestion has been made by me that "patriotic funds might be used for sanatoria . . ." Even if no such explicit assurance had been' given, it should be a simple IL>fitter, in approaching a more economical administration and more uniform disbursement of war funds than is now possible, to institute eltcctivo safeguards against any diversion of the 'money from the objects for which it was subscribed. While the bulk of the money included in war funds was raised under conditions which leave the balances still available for the benefit of soldiers and their dependants, a considerable sum unexpended was collected for specific objects which largely disappeared with the termination of hostilities and the clearing of the New Zealand hospitals in France and England. Regarding funds in the latter category, Me. Russell stated not long ago that the time might come, and that very soon, when some of the funds whose objects had ceased might be brought under review by the Supreme Court with a view to determining what should be done with the money in hand. It seems very desirable that a systematic inquiry into the state of war funds as a whole should precede the allocation of these special funds to new objects. On all grounds there is a dear case for instituting sucu an inquiry^and while , the Returned Soldien' Association is well advised in urging that the order of reference of the proposed commission should t>c the broadest possible, the most important of the detail snbi'icts for investigation it specifies is. undoubtedly: "The best uses to which remaining funds should Uα devoted, with particular reference to the liquidation of assets, and to the most efficient means of administration for any war work which may still be necessary." Tho essential object of the inquiry would be simply to detormine how a very considerable sum of money may bo disposed of under the best conditions and with the greatest possible

benefit to soldiers and their dependants To these considerations all others ought as a matter of course to be subordinated. It goes without faying also that returned soldiers, as well as those who are now doing useful public service in administering war funds, ought to be, represented on such a commission as ig advocated.