COMPULSORY LOAN

Otago Daily Times, Issue 24419, 3 October 1940, Page 11

COMPULSORY LOAN

THE FREEZING OF CAPITAL SELECTIVE CONSCRIPTION OF WEALTH MR BODKIN’S SUGGESTION (From Our Parliamentary Reporter) WELLINGTON, Oct. 2. “Is it sound business for the State to compel every business irrespective of its financial position and obligation to freeze a portion of its assets? ” This question was asked of the Minister of Finance, Mr Nash, by Mr W. A. Bodkin (Opposition. Central Otago), in the war finance debate in the House of Representatives to-night. The conscription of manpower was now blanketed. Mr Bodkin said. - so why should not idle money or money that was not so important be conscripted first? It was futile for the Prime Minister to suggest that the Opposition opposed the conscription of wealth for war purposes. It agreed that the war had to be won and the Opposition was behind the Government in any steps necessary to gain that end. The only thing on which they were at variance was the method of conscripting wealth. He suggested to the Minister that discrimination should be used, as the greatest asset a country could have was a large number of successful tax gatherers in the form of businesses earning profits for the State, It would be ridiculous. Mr Bodkin said, to suggest that a war could be financed without creating hardship, but manufacturing and distributive companies would have an opportunity of passing on the tax of the war loan The farming community was not in such an advantageous position. Then there was the case of businesses definitely under-capitalised. Mr Bodkin said. “Many such businesses had to lean heavily on the banks, and he questioned whether it was wise to compel them to take out another overdraft. Since the loan, vtas non-productive in interest, the investment was frozen capital.