WAR PROFITS

Hokitika Guardian, 6 August 1920, Page 3

WAR PROFITS

HOW TO PAY WAR DEBT

WELLINGTON, Aug 4

One of the soldier members of the House, Colonel Mitchell, advised the Government to-night that it was its duty to make a levy on capital so as to reduce the war debt quicker. /He noticed that pnly £800,(1(10 a year was being set aside to reduce the debt of 105" millions. When the war broke out nobody looked to make money out ol it. They would gladly have paid half their wealth to help win the war. They said to the soldier “You go and fight, keep this country free, and we will pay for it.”. So the soldier and sailor did their bit and eventually won the war. “Is it not fair,” asked Colonel Mticliell, “that those who Imyc grown rich out of war profits should pay part of (he war debt I They have claimed they contributed towards the cost of the war, but as anything they paid came out of extra income secured through the war they really were not sacrificing a penny of their capital,” Mr Pany supported this argument with a reference to the fact that New Zealand was paying twice as much in interest on war loans as it paid to sick and wounded soldiers by tyav of.pensions.

My Luke said that New Zealand had always been a -borrowing country, therefore if it commenced to levy on capital there would lie a hardening up on railway construction and other public works, Mr P. Jones reminded the House that 17) millions had been taken out of the people during the war through taxation and invested in war bonds ioi soldier settlement. Thus these war profits would pay .off the war debt. Members: Oh! Mr Jones: Yes, because' 15 millions invested at 5 per cent compound interest becomes 30 millions in fourteen years.