OUTLOOK FOR THE FUTURE

Dominion, Volume 12, Issue 303, 18 September 1919, Page 3

OUTLOOK FOR THE FUTURE

• NEW ZEALAND'S FINANCES WEALTH FROM THE LAND "From a financial point of view tho Kaiser's will to war will have cost us over eighty millions sterling, which, added to our debt, will bring our indebtedness to something like 170 millions sterling," remarked Sir James Wilson in the course of his presidential address to the conference of the Now ZeaZealand Farmers' Union. "Interest charges have lo bo wet, besides the cost of pensions and allowances—in, all, tlioso will total about fight millions sterling. As against the totnl debt we havo a sum of accumulated surpluses in London, of short-dated investments, of some fifteen millions sterling, p.nd a very problematical amount from the indemnity from Germany. In direct taxation since tho war began no loss a sum than twenty millions lias been levied by way of land nnd income tax—two millions more than was collected through thp Cusolms—and besides this, local taxation, no less a sum than .812,639,928 for the last five ypars we have a record of, anil death duties largely payable .ny land accounted for for the fame period. Land has to keep up the roads, bridges, streets, contri'buite largely to hir.-hours and liospitals.' Much w.ealth has been dissipated in our fight to win tho rnr, and it is to tho hind that we must look to create mpro wealth to replace that which during the war has gone w;> in smoke. Ws have bson n fortunate cnuntry, however, for tho produce we grew was wanted by tho Allies, and arrangement* were made to purchase on the spot this produce, and pi>.y ■ nearly all chaiges. Something like a hundred millions sterling was paid in this way. to be very noon divided up, first by enpnlyiriß Government with over seventy millions by way of loan to carry on the war. "Wo have seen that by way of land and income tax twenty million':! were handed over to the Government as revpiuii?. A very .considerable portion of the balance went to the workers, for the deposits in the Ravings Bank have increased enormously, and despite the high cast of livinj? one is glad lo .see that tho thriftv ones-have been accumulating capital. Up to 1!I13 the increased deposits over withdrawals ran from .£400,01)0 to ,£BOO,OOO ner annum. Tho first yonr of, the war they jumped up to two millions;. 1915, to over three millions; 1916, Hiroe and a lialf millions; , the same in "!)17; ni"l in 1918, over four millions; Hdrt the Move!' quarter of this year adds another mill'on to the credit of depositors. Tho total addition to the depoeite during the war and up to March 31 last was .£17,323,710, just doubling tho deposits in five and a cranrter years, If wo : note, too, that the Customs duties havenot boon changed, and the addition this year is entirely owing to the inoreased original cost of imported articles, nnd that direct taxation has increased fivefold, it must be acknowledged that Sir Joseph Ward was, correct when ho said that in Now Zealand the worker paid less in taxation than (inv otiier country, nnd has been able to save a very large amount during the war years." [