WELLINGTON TOPICS.

Taihape Daily Times, Issue 220, 4 August 1917, Page 4

WELLINGTON TOPICS.

THE LOAN BILL. FIRST INSTALMENT. Special CorrespcHpmt.) WELLINGTON, August 3'..' The Loan Bill following closely on the heels of the Budget made its appearance in the House yesterday afternoon and occupied the atttention of members to the exclusion of all othersubjects up to the adjournment at a quarter past ten, when the second reading had been taken and the third read~ ing set down for to-day. The Bill authorises the Government to raise twentyfour millions by way of loan at 44 per cent interest free of income tax and the first instalment of this huge borrowing will be twelve millions to be floated as curly as the necessary arrangements can be made. The measure was closely criticised from both sides’ of the House, the new Vigilance Committee, which is composed mainly of Liberals and Labourites, finding plenty of sympathisers among the Ecformersr for the suggestions it offered to the* Minister of Finance.

THE RATE OF INTEREST. j.

There was no objection to the magnitude of the loan. Sir. Joseph Ward had made it quite plain in the Budget that the money was required and the House accepted the inevitable with ease composure and good grace. But there was much criticism directed (against the exemption of big investors from incometax while no provision was made for a similar concession to small investors. It was shown that while the small investor, would receive only 44 per cent, for his £5 or £lO or £2O the big investor, by virtue of his exemption,, would receive from 6 to 7 per cent, for his £SOOO or £IO,OOO or £20,000. The argument was plausible enough when it sought a higher rate for the small investor, but its weakness stood revealed when it demanded a lower rate for the big investor.

THE DEMAND FOR MONEY. Both the Prime Minister and the Minister of Finance protested with some warmth against the Criticism that was levelled against the Government’s proposals on this score and, of course, they were justified in resenting the suggestion that the Bill, discriminated against the small man in favour of the big man. Sir Jospeli Ward explained more than once during the course fjß the debate that while Australia aha Canada wore paying 44 per cent for their loans and exempting investors from income tax New Zealand would be simply inviting disaster by offering less attractive terms. In this view he was supported by Mr. Wilford, Dr. Newman, Mr Statham, Mr. Okey, Mr. Isitt, Mr. McCallum, and, indeed, by every member who spoke with knowledge on the subject. There was, however, a very strong feeling running through the House that a higher, rate should be paid to the small investor and it is possible the Bill will be amended in this direction.

NATIONAL GOVERMENT. The discussion of the Bill offered many opportunities for saying hard things about the National Government and at one stage of the proceedings Mr. Massey was led into a good-hum-oured defence of himself and his colleagues. He did not believe the criticism “from all sides of the House” which had been launched at the Ministers was to be taken seriously. He deprecated the idea of a general election being held during the course- of the Avar, but Avas satisfied if the GoAmmmcnt did appeal to the Avould return Avith a “thumping majority. ’ ’ The derisiA r e laughter that followed upon this statement was mostly affected, but behind it lay a pretty general feeling that circumstances were making Ministers a little too independent of both parties. To-day the Vigilance Committee is again considering the propriety of establishing an official Opposition. ALLEGE WASTE. The contribution of Dr Thacker to yesterday’s debate was another SAveeping indictment of the administration of the Defence Department. The member for Christchurch East has reiterated his charge against the Department so frequently without producing any very obvious results that they have begun to lose some of their sting; but on this occasion his indictment was supported Mr. Parr and Mr. Field, twoprominent Reformers who would not speak lightly of the services of one of their loaders, and, in a measure, by an admission from the Prime Minister, himself. Certain waste Avas inevitable in wartime, - v M\r. Mciytey said, hut everything Avas being done to keep it doAATi. The stories of waste AA'hich is not being kept down are as prevalent now as they were two years agoAfßi there is a growing volume opinion in the House favourable to «ie appointment of the board of sup< -vision suggested by the member for Aden.