LOAN BILL PASSED.

Taihape Daily Times, 20 October 1917, Page 2

LOAN BILL PASSED.

SECOND ISSUE IN MARCH. PEOBABLY £12,000,000 SUCCESS OF THE LAST LOAN. WELLINGTON, Oct. IS. The second reading of the War Loan Purposes Bill, No. 2, was moved in the House of Representatives this evening by the Minister for Finance. Sir Joseph Ward said the measure was to give ef'fect to the recent intimation regarding the necessity for borrowing £4,000,000 j additional for war purposes. The Bill ; provided for this and this only. The Minister said the total amount borrowed since 1914 was £53,000,000. , The amount of loan authorities was £10,335,000 making a grand total of £(53.335,000. Then there was this last amount of £4.000,000 making the total £{'.7.335,000. For war purposes and for general purposes a total of £46,147,000 had been borrowed in some form or the otUor up till 'September 30\ then about £3.500,000 had been added or,v of the balance of authorities available. He hoped to be able to get the British Government to accept some of our stock in part payment Of those amounts disbursed by the British Treasury for'the maintenance of New Zealand troops at the front and so avoid going on the market for it here. Mr. G. V. Pearcc (Patea): At what rate of interest will they take it up? Sir Joseph Ward said he did not anticipate that the rate would be more than 4* per cent. If we could only get £4.000,000 this way we would have to raise the balance here. The amount to be raised here would depend on the amount of stock the British Treasury would accept. NECESSITY FOR THE BILL. Co::! : -"uing, the Minister explained that none of the incidental loans which had been raised not directly for war purposes-was unnecessary. Some of them had been expended for purposes closely associated with the war. If it were not necessary now to obtain authority for £4,000,000. more, the House would not be asked to give it, but it was necessary to have proper provision made for carrying the war until the end of July, when the House could with later and fuller knowledge of the war review the financial position. Personally, he recognised very fully the responsibility upon every member of the House in regard to the financial position. The expenditure, huge as it was, had to be provided for. Mr. J. Payne, (Grey Lynn) asked if it was proposed to raise this loan free from income tax, as the case in the previous loans.

Dr. A.. K. Newman (Wellington East) asked the Minister whether he proposed to raise any part of this loan fc iore March, and if 'not, how much was to be raised in March. He urged that an independent commission, should be" appointed to overlook the huge expenditure by the Do-fence Department. Mr. H. G. Ell (Christchureh South) suggested the suspension of the sinking fund payment for a few years as a relief to the taxpayer. Sir Joseph Ward, in reply, said he could not afford to* enter upon experiments suggested during the debate, such as a State bank and premium bonds, which might raise opposition in quarters, where it was necessary to cultivate friendly relations. The Minister said that the last loan was a great success.. It would not be necessary to put into force the compulsory clauses, but he would not hesitate to do so in connection with future loans if it was necessary. The public had subscribed nearly all the money. One of the State Departments had provided £250.000 and two other Departments had subscribed smaller sums. The amount received for the loan up to the present time, including the advances from the Departments was £12,700,000. That was quite as much as the Government wanted just now. The banks had underwritten £5,000,000, but it was not necessary to take that money at present. A sum of £700,000 had come in since the date of the closing of the lean. He did not propose to refuse any money though it was not accepted through brokers. DATE OP NEXT LOAN. The 5 per cent bonds issued through the Post Office had amounted to £1,271,000. The great bulk of the loan had been subscribed in the 4| per cent. •stock. The war certificates sold had amounted to over £900,000. Referring to the second portion of the loan. Sir Joseph Ward said his impression was that it would not be necessary to raise more than £12,000,000, but the- actual amount depended upon circumstances. Ho did not expect it would be necessary to raise any more money before the beginning of March. He would leave as much time as possible between the two portions of the loan. He would not announce prior to the raising of the next portion of the loan whether the compulsory clauses were to bo applied or not, because that would be holding a pistol to the head of willing subscribers, but after the next loan there would be a review of those who had not done their duty. Sir Joseph Ward declared that neve:'

so long as he was Minister for Finance would he yield to the suggestion that the sinking funds should be suspended, nor would he agree to breaking in on reserves, which would maintain the Dominion's strong position and enable it to meet obligations and many new problems which would raise after the war. The motion for the second reading was agreed to on the voices, and the Bill was then put through the remaining stages without amendment and A $ passed.