PAYING OUR WAY.

Taihape Daily Times, Volume 8, Issue 137, 13 June 1916, Page 4

PAYING OUR WAY.

MR. BEAUCHAMP’S CHANGE OP ® VIEW,

FIVE MILLION 'WAR LOAN AT 4-i PER CENT. A i HELPED B’Y EXPORT DUTY, j GOVERNMENT ACTION FOREI CASTED. Mr. Harold Beauchamp, chairman, of directors of the Bank of New Zealand, who, ever since the outbreak of the war, has consistently maintained that the Dominion’s financial stability can best be maintained by continuing to raise its war loans with the Imperial Government, intimates that if it is the desire of the Imperial Government that the Dominion should raise some of its own finance -he is prepared to advocate a local lean of five millions, to be assisted in its redemption by an export tax of a half per cent.

Mr. Beauchamp said: T do not presume to be in the confidence of the Government in regard to their immediate financial proposals, but I should not be at all surprised if. in deference to the opinion that has been so freely expressed by the publ;<| through, out the length and breadth of the land, those proposals include someprovision for the raising of a substantial loan for war purposes,” observed Mr. Beauchamp.

DISTURBANCE OF FINANCE. “Up to the present I have not cordially suported such an idea because of the excellent arrangement that was made between this Dominion and the Imperial Government, by which money was found by the latter for war purposes,” continued Mr. Beauchamp. “I considered that the raising of a large sum, say something in the vicinity of £5,000,000, would unduly disturb this market and would increase the current rate of interest, which is not desirable. At the same time, if a definite’ wish has been expressed by the Imperial Government that we in this Dominion should carry out a mor e self-reliant policy my opposition at once disappears. “Assuming, therefore, that the Government were to proceed to raise a

; loan of £5,000,000 at 4J per cent, and, ! as in the case of the previous Public j Works loan, make the interest free from income tax, I think that thereI would be little difficulty in getting "j large subscriptions, that is, provided ' that following the example of the Australian loan, an additional attraction were offered by making the debentures issued to the in exi change for their subscriptions avail--1 able for the payment for death and | succession duties,” proceeded Mr. I Beauchamp. • f , j AN EXPORT TAX. :

“The only argumeht 1 have heard against the last-named proposal is that the finance cf the Dominion would be disturbed by the Minister of Finance being compelled annually to redeem so largo a portion of the lean by ac* cepting debentures in lieu of cash, frem executor s who are administering the estates of deceased persons. To meet that difficulty I would suggest that a tax of on-half per cent should be placed upon all descriptions of produce exported from this Dominion. On the basis of last year’s exports, the tax would yield £750,000 per annum, and, assuming that there will be a considerable drop in the value of our exports, I think we can still look to it raising not less than £500,000 to £600,000 per year. i

FARMERS NOT HURT,

I “This tax, in view of the magnificent prices realised for produce, would not be felt by the farmers.” proceeded Mr. Beauchamp, “and they 'vj-ould have the knowledge that in paying the same they were helping automatically to reduce our public debt. In the past death and succession duties have gone into the consolidated revenue. I think that a bad practice, because you are accepting as revenue something that represents a depreciation of capital, and it could be better applied to reducing cur own indebtedness instead of treating it as ordinary income, and throwing it into the common hotchpotch. I know many elderly people in’ this Dominion who to-day are keeping a large amount of money liquid—< practically earning nothing—with the object of providing their executors with the wherewithal to pay the death’ and succession duties in respect of their estates. If, therefore, the debentures of a new loan were available for this purpose, I am confident that all enormous amount would be taken up by the class to whom 1 have referred.”