The Times. PUBLISHED ON TUESDAY AND FRIDAY AFTERNOONS. "We nothing extenuate, nor set down aught in malice." TUESDAY, JUNE 25, 1918 THE BURDEN OF THE WAR

Pukekohe & Waiuku Times, Volume 7, Issue 386, 25 June 1918, Page 2

The Times. PUBLISHED ON TUESDAY AND FRIDAY AFTERNOONS. "We nothing extenuate, nor set down aught in malice." TUESDAY, JUNE 25, 1918 THE BURDEN OF THE WAR

The problem of adjusting the war debts of the countries concerned will, when hostilities cease, become one of the most pressing importance. How is the burden of debt to be lifted, and what are the steps to be taken in order to make an equitable distribution of it ? Mr H. Beauchamp, chairman of directors of the Bank of New Zealand, referred at some length to this great problem in the course of the lengthy and carefully reasoned address which he delivered at the annual meeting of shareholders in Wellington last Friday. His remarks should command the earnest attention of all classes of the community. Already, said Mr Beauchamp, the glib tongues of the unthinking are busy with the catch-phrases " Conscription of Wealth " and " Levy on Capital " terms which, to a certain section of society accustomed to only superficial examination of complex problems, haw a particularly- alluring sound and appear to be considered as affording an easy way to a solution of the difficulty. If by " Conscription of Wealth " is meant merely that the vast expense of war must be met largely by those who are best able to pay for it no one could raise any just or valid objection. Rut when the phrase is used merely as the antithesis to " Conscription of life," it implies that those without property have been forced to give their lives, whereas the moneyed classes have not, and that, to make the sacrifice equal, the latter should he compelled to surrender their wealth, or else the former should refuse to make further .sacrifices. In Mr Beauchamp's estimation, no imputation could he more unfair or unjust. But, supposing the imputation ivere true —which it is not who would contend that the sacrifice of life on tlu- one hand could be equalised by a cash payment on the other ' Then, again, what would be the practical result of a " levy on capital " ? It would, says Mr Beaurhainp, he nothing more than a penalty 011 thrift. The man who, by dint of core and self-denial, has laboriously built up a little capital out of his savings—and it must be

understood that the phrase include all degree?: of capital and not merely large accumulations—is to he taxed, while the man who l*as spent, year after year, the whole of his income in perhaps riotous living, is to get off scot free. Could anything be more mischievous 5 Furthermore, how i--, such a tax to he assessed ? Are a man's cash and investments only to he taken into account, or must all his possessions he included 1 Surely it must he the latter, otherwise the man who put his money into war loans would be worse off than the man who invested in pictures, pianos or pearls, which is unthinkable. If, for the purpose of this levy, houses and lands, stocks, machinery, plant, works of art, personal jewellery, motor cars, and the hundred-and-one items which make up a man's estate have to be valued, when would the process be completed, and what would be the ultimate cost ? Is the tax to fall only upon the present possessors of capital, and is the capitalist of to-morrow to get off scatheless ? The war is being waged not merely for the benefit of the people of to-day, but also for the generations yet unborn, and Mr Beauchamp's contention is that it cannot be held to be fair or just that the capitalist of to-day should bear the whole or even the larger proportion of the burden. Apropos of the subject, Mr Beauchamp remarks that an income tax, which even in New Zealand rises to 7s 6d in the £, may, in a sense, be regarded as something approaching " Conscription of wealth." That we are living in abnormal times is undoubted, and that exceptional measures may have to be taken to cope with the situation is probable ; but let us, he says, in conclusion, determine that they shall at any rate be practicable and as far as possible fair to all the iuterests concerned, Do not let us waste time in considering merely academic questions, selfishly searching for measures which will penalise one class whilst allowing the class to which we belong to escape scot-free.