INDEMNITIES

New Zealand Times, Volume XLIV, Issue 10273, 7 May 1919, Page 4

INDEMNITIES

Aa it is announced that the amount and apportionment of the indemnities vo be paid by Germany —we mean tho proportion of the war costs of tho Allies —is fixed in the Peace Treaty, it may bo well to devoto a moment in passing to tho possibilities thus opened up for this Dominion. If Germany agrees, as seems not unlikely, 10 meet that proportion of cost, the- Dominion will bo.substantially relieved. Half of the Dominion cost would be relief to the extent of £30,000,000. If that is vo be tho extent of relief, it will be right to consider whether tho fifteen millions of the aggregate surplus now invested in London in liquid securities ought not to be released for use in the forward policy of tho Dominion. The advantage would; of course, be the expenditure of vhat sum without a> single penny of liafbility to the New Zealand taxpayer. Tho Dominion would be able with that money to rapidly complete very important works of now railways, cleotric power ' installations, and others; securing returns. A further advantage would be the repayment by the enemy iof thirty millions gradually, according to the terms fixed. In that case it would bo right to consider the devotion of the money to further developments, thus converting■ , to' profitable investment moneys raised to bo dissipated in the smoke of war.. On the basis of a recovery of one-half of the costs of, iho war there would, therefore, be a prospect of a secure finance for development purposes of forty-five millions, without i recourse to the money market. Allowing five years for the expenditure of the fifteen millions of surplus, and twenty for- the recovered loan.principal, there..would.be a,.-pros*, pect of''freedom from the money market for a quarter of a century. It is impossible to speculate on the matter until it is known what proportion of costs is fixed as indemnity, and whether tho enemy will pay, nnd what security for the payment will bo exacted from him. But it is permissible and pleasant to reflect, at tho present stage, upon vhe possibilities presented by the -.prospect" of tho indemnities; More than.that, it is necessary to consider how the oportunity can, : should it be forthcoming, best be utilised. No doubt tho course we have broadly outlined has suggested itself .to many minds, and will, for the sake of its obvious advantages, be the object of serious discussion iu the immediate future.