WAR LOAN BILL

Hokitika Guardian, 4 August 1917, Page 3

WAR LOAN BILL

SHARP DISCUSSION IN THE HOUSE. I (Per Press Association — Copyright) I > WELLINGTON, Aug. 2. j The War Purposes T rv-io Bill was introduced into the House yesterday by Governor’s Message. Sir Joseph Ward said he did not desire to claim urgency for the Bill, but ho asked the House to pass it ns quickly as possible as it was necessary to do so boforo tlio prospectus for the loan was prepared in connection with which there was a groat deal of work. A sharp discussion followed members freely criticising the conditons under which it was proposed to raise the local loan. Sir Joseph Ward in reply said that a great deal of the criticism had been based on positions which uid not exist in the Bill. The idea of the rich being favoured at the expense of the poor was a misconception and the people who raised this bogey forgot that if tho rich people did not subscribe then the loan could not be be raised. In the last loan he gave the poor people an opportunity to subscribe but only 125 peoplo from the North Cape to the Bluff purchased £5 bonds. Such a result had led to a fiasco and no \ loan could be raised on that basis.

In reply to the argument that'the loan should lie raised at 5J per cent subject to taxation, Sir Joseph said the investment would return tho inch man £3 8s 9d per-cent., and if the loan wore raised at 5 per oent it would return him £3 2s d. Was anyone insane enough to suppose that such a return as that would induce anyone to invest in a loan like that. To prove that the small investor was getting encouragement to invost ho quoted a circular in connection -with the last L to sliow that tho holders of the certificates received 5 per cent.

Regarding tho terms [of tho loan the experience of the last loan slurthat tlie majority of the investors favoured twenty fivo years hut all cla' were being catered for lienee the different periods were arranged for in the Bill. Tho comparison between the rates of interest paid in New Zealand end in Britain was out of the question, because conditions word not. normal. It was tho mature decision of tho Government that the loan must he raised in tho Dominion, and, though they had been told that the rich people wero going to rush the loan, his opinion was that it would not be raised without a campaign, and he asked everyone to assist such campaign to the best of his abilities.

Ho believed that if the necessity arose tho people of the country would ho ready to give up all they possessed to save tlie Empire, hut the notion of the conscription of wealth suggested the debate was nothing short of robbery, while the method proposed in the Budget was legitimate; He was not going to turn off the acknowledge-, ed paths to raise tho revenue necessary to maintain th© soldiers in the field. At this juncture the duty of the Government and of the people was to.get the money to enable us to wintho war, ana we must do it in such a way a s not to contravene the principles of political honestly. A disaster to this loan would mean disaster to the Empire. Tho Bill wa s read a second time and the House rose at 10.12 p.m.

THE BILL IN COMMITTEE. WELLINGTON, Aug. 3. After dealing with questions tins afternoon, tho House at ‘ 3.10 o’clock went into Committee on tho War Purposes . Bill. After considerable criticism, a division was called for on Clause 4, (the exemption from injeome tax clause) and it was retained. The remainder of the clauses were passed unoontested till Clause 7 was reached. This clause validates the payment of interost and commission to banks carrying on business in New Zealand in respect to subscriptions to tho last war loan.

The clause was passed and the Bill was reported from Committee unamended. EVENING' SITTING. On the House resuming at 7.30 p.m. on the third reading, Mr Payne reiterated hia arguments against freeing interest from taxation. Shortly beforo 8 o’clock Mr. P. C. Webb took his seat. The Bill waa read a third time, after a division by 40 votes to 4, Messrs Payne, McCombs, Webb, and Walker voting against it. The Bill wa s then passed and the House rose at 10 o’clock.