The Taihape Daily Times AND WAIMARINO ADVOCATE. MONDAY, JANUARY 31, 1916. WAR FINANCE.

Taihape Daily Times, Volume 8, Issue 25, 31 January 1916, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE.

MONDAY, JANUARY 31, 1916. WAR FINANCE.

(With which is incorporated The Tat bape Post and Walmarino News.)

No reproach can be levelled at New Zealand with respect to its contribution of men in upholding the existence 'and honour of the British Empire, but we have realised that the honour of the Dominion was being cast into the balance in the matter of finance. Some day s ago we drew attention to the enormous costs the' Empire had to bear and instanced the fact- that While we were freely sending men, We were just as freely drawing £6,000,000 a year from the Mother Land despite her ether huge obligations. The question has now been taken up in other quarters where it is realised to be within the realms of probability that New Zealand may be invited to do something more than merely finance her own public works. When approached on the subject, the Chairman of the Bank of New Zealand said, “the huge amount of money at call in the blanks of this country to- < day does not indicate that there is no employment for the funds which now stand to the credit of various depositors, but, to my mind, emphasises the fact that depositors do not consider ■ it desirable to invest in anything in the shape of a lock-up of capital until they know the result of the present war. In fact, all classes of the community to-day are in a state of uncerCtainty.” Mr. Beauchamp goes on to say that his assumptions are proved by the high price which all classes of shares in first-class industrial companies command. In point of fact, there is scarcely any stock to-day, in a company or any importance, that will •yield investors more than 5 per cent. The Chairman of the Bank of New < Zealand's views will be shared by

most people, but what is now urged that it would be far more to the country’s honour to make use of idle capital by investing it in war loans tend ways that will assist the Empire iin it s extremity and still bring profit (to the investor. Why should money i lie idle awaiting investment while the Empire needs it in the maintenance .’of its existence anymore than our men should be withheld from fighting •its battles? We have been told that parents are withholding their sons from the risk of shedding their blood, . and now the Chairnran of the Bank of New Zealand discloses why capitalists do not invest their spare capital, that which is awaiting investment, in the Empire’s interests. He suggests that there is an uncertainty about investment while the war lasts; there may, possibly, be no uncertainty about its ownership when the war ends, 'if these men in their timidity, and shaking with fear, do not realise their cowardice and earn for this country the credit of giving both its men and its money, and even our Prime Minister i s proclaiming in strong terms and a loud voice that he will not hesitate to adopt military compulsion if the number of men he wants do not come forward voluntarily, while in 'almost the same breath he says it is impossible to compel money to be invested for the benefit of Empire. Mr. Massey will probably have realised that real Statesmen think otherwise and that they 'are now evolving justifiable means of the nation’s wealth being ' used in the maintenance of the nation’s existence. Mr. Beauchamp thinks that in view of the large acmulations of money in local banks New Zealand could, at least, follow the Canadian precedent of assisting the Mother Country by establishing a local credit for the Imperial authorities by means of a local loan. He does not think it would unduly disturb the money market if moderate loans were from time to time raised locally for this purpose. That raising two millions for public work had no ill effect is admitted by Mr. Beauchamp, and he considers that sufficient proof that none would result from loans for establishing a credit for the Imperial Authorities, which would be used for /paying for commandeered meat and 'for other produce that may be purchased for the use of our armies. There are those, unfortunately, posi sessed of the miser’s spirit, and nothing Mr .Beauchamp or anybody else may say will relieve them of the heart-stricken fear for their accumulated gold. There is only one sure ' way and that is compulsory investment. It must be understood that no greater danger could befall this land, which is doing all that a nation can do in producing that which is as necessary for the successful prosecution of the war as sending men, than to interfere with the capital that is required for carrying on these industries. It would be better to err on the side of keeping more than is needed than risk a shortage. Our producing industries, like munition factories, should be kept at their highest possible output and to ensure this the necessary money must be kept available. It is not of such capital there is any question. Without risk of starving our industries there are many millions of money that could very profitably be employed in fighting the Empire’s battles of finance, and the fact that it is required for such a purpose will compulsorily be forced on capitalists’ notice, if it does not soon dawn upon them voluntarily.