The War Loan.

Mount Ida Chronicle, Volume XLV, Issue XLV, 24 August 1917, Page 2

The War Loan.

No doubt by this time the majority of our readers have made themselves pretty well acquainted with the Government's financial proposals for the year. Generally speaking the Minister of Finance has received great praise, for the statesmanlike manner in which he has with so large and difficult a question. Most of his opponents have'only been able to criticise minor matters relative- to his taxation proposals, while a few others believe that more money should be taken by taxation to meet the war expenses, and as little as possible raised by loans which posterity will have to pay off. We cannot see that in placing a fairly large share of the financial burden on the shoulders- of posterity that we are doing them Ejny injustice, inasmuch as,if the war did not take place now it would have to take place in the near future, and in fighting-ogr-own batties we are preventing those who will be the taxpayers of next generation, and also-those of generations still further away, being placed Under German domination. If the Allies\do not win the war the young New Zealanders of to-morrow would probably have to pay more in German taxes than they will in taxation on our loans. Further this generation has given of its manhood and thereby reduced its e'arning capacity considerably. For these reasons we think the Government deserves a great deal of credit for its financial proposals! The endeavour to raise £12,000,000 within the Dominion will mean a certai» amount" of strain upon our liquid assets no doubt, but with the prosperity of tQe last decade and especially with the enormous'profits that have been made by our population dur-. ing the war, there can ha no reason ±r>r I supposing other than that the money will be raised without unduly embarrassing private lf some' of the statements published in -various city newspapers recently are correct, there is a good deal of money going begging for sound investments. Recently the Lytteltoa "Tim&s referred to a glut of ready money in Christchurch awaitiDg investment. If such is the case all people wjth a few spare hundred pounds—'quite apart from patriotic reasons—should welccme the opportunity of investing them at good interest with the Government guarantee of security behind them.. Four and a half per cent, fr e of income tax, means 5J per cent, on usual investments, so that those wishing to invest capital "could go further and do worse." As the period of investment is 21 years, money so. invested will give.its Owners no more worry for that period.' But the large, capitalists are not the

only persons who sh~uld consider ca re fully the loan proposals. In order to make sure of raising so large an aihount, the Government are catering for the support of people of limited means. Bonds will be issued in denominations as low as £-100, so that a person with only £IOO to invest can & purchase one; and the interest is payable; half-yearly. For those who cannot see their way to lock their money upfor2l yfears, a, scheme of "Post Office War Bonds" has been arranged. An investor may obtain up to £SOO worth of these bond«, which have a currency of ten year?, anH carry interest at 5 per : cent; interest payable half-yearly, but they are not free of income tax. for others of very small means who. would Ike to contribute their mite towards, winning the war, a system of war loan certificates " is provided, and those with only 13s to spare can invest in one of them. They are repayablein five or ten years, but the interest must accumulate until maturity, ■;■.■. . :■ -. ■■..

In placing these offers . before the country the Government are asking those who have money to combine patriotism with profit, and no wizard of finance could make a mora liberal request. A patriotic duty is cast on the people of this Dominion to provide the. money required for our part in winning the war, and few would have complained bad they been called upon to part with a portion of their savings without profit or even without the proapect of receiving. them back again. Then let all those who can show their appreciation of the business-like proposals of. the Government by giving them a solid support. They should remember too that money must be provided, and if it is not'provided from the people's free will it will have to be raised under some form, of "conscription of wealthl" As the loan clobbs on 3rd September there is not much time for proscratination.