The Taihape Daily Times AND WAIMARINO ADVOCATE TUESDAY, MARCH 19, 1918. A MODERN JOSEPH.

Taihape Daily Times, 19 March 1918, Page 4

The Taihape Daily Times AND WAIMARINO ADVOCATE

TUESDAY, MARCH 19, 1918. A MODERN JOSEPH.

With which is incorporated The Taj hape- Post and Wahaarino News).

The war has had a notable effect upon the finances of this country, nothing to be compared with that it has brought about upon the finances of the Old Country, of course, but quite sufficient to make those who follow the conduct of public business tfcink v-ery deeply. In "1915 the collected revenue was, in round figures, twelve millions, in 1917 it had increased to righteen millions, a rise of just about 50 per cent. The public debt increased in the same period from ninety-sJ?i 'millions to one hundred and twentyfie millions. The expenditure also considerably increased but in nothing like the same ratio as revenue. Therefore, it will be seen that the ordinary busines of the Dominion need not concern the people much at the present time; but it is the consideration planning and provisioning made now that will save them from disaster in the. not very distant future. We should like to impress upon all our readers that the huge expenditure of public and private means must result sconer or later in the appreciation of money. It is not that, however, that a producing will suffer so much from as the depreciation of all commodities and, as a corollary, of that from which production comes. We have said that in two years the public revenue increased by fifty per cent, and it may be added that private wealth has increased in the same period to nearly a similar extent. Despite the fact that the Cost of living has, in many necessaries of life, gone up to an undeniably dishonest extent, there has been next to no diminution of consumption. From tbie it ie gathered that the spending" power of the masses has grown, although not uniformly, to a level that prevents sucn keen hardship as would tend to popular rebellion. In other words this country's finances are at the moment in a very flourishing condition. The majority of people have no occasion to stint themselves, while many are able to indulge in many luxuries. In the year of plenty is the time to provide against coming years of famine; fortunately, New Zealand has a Joseph to lay up its stores of wealth in Government bonds as the ancient Joseph laid up wheat in Government barns. No greater provision against lean years could be made than by adopting such schemes as prevents the plenty the community now has from leaving its shores. The public debt, has been increased 50 per cent, in two years and yet we can say that the money, or the greater part of it, has not gone out of the country's possession. The money is not lost; Sir Joseph Ward is merely taking it out of one pocket and putting it idto tlfe other. The interest that is payable on it does not go out of the country, it is paid to the New Zealanders who put their money into Government bonds and they pay it out again for labour in production and industries to make more money, and in only a few years the whole sum total lent will be returned to the lender, which will enable still further extension of wealth production. Sir Joseph Ward, in floating loans locally is encouraging this country's money being kept in the

country. The interest on loans is being distributed to New Zealanders,

not to foreign Shylocks, and when the loans mature they are paid to New Zealanders and the huge sums do not leave us for ever as was the case in previous borrowing. These loans are distributed amongst the men in NewZealand, who, by helping -their country and Empire in time of unprecedented stress, have laid up a store for themselves of a value that is now incalculable. The man with any stake in this country is increasing the value of that stake by investing in the war loans, be that stake much or little. While the finances of countries whicn are compelled to borrow extraneously are crippled with the weight of taxation to pay interest to foreigners New Zealanders will be in tEe happy position of having interest on war loans doled out to them every three or sixtmonths, and, with it. all. the mon- ; ey laid up in Government war bonds is almost as negotiable as a banknote, and can be passed from one to another with somewhat similar facility. They are security with banks, and uuUke a private investment on flat mortgage, the money is not entirely locked up beyond any other use and control. If money is wanted from banks on security of war bonds there is no costly or irritating investigation necessary, the bond has Its unalterable face value and the banker has ao hesitation in dealing with it. When ' a business-man borrows from a bank he knows that he has to pay interest and repay the amount borrowed, bur if he only takes from one department | for specific use in another he is no poorer, although he may formally credit the lending department with interest. So it is with this country's war loans, millions are being borrowed for specific purposes but not a penny goes out of the country's control and it will eventually all be redistributed amongst New Zealanders. In laying up stores in the War Loan in these years of plenty we are just merely providing against the lean years that are almost sure to follow such a devastating war as the Empire is now engaged in. We do not, perhaps, fully appreciate the provision now being made by our modern Joseph, but It ! needs no prophet to predict that the 1 time will'come 'when this laying up stores of our money with the State will be subject of much satisfaction. Apart from performing a patriotic duty, there is no investmnet equal to that offered in the War Loan Prospectus which appears in another column. Securities are not locked up, they maintain throughout the currency of the loan a sufficiently liquid nature to give them a value that no mortgage can give. The security is not surpassable and the investor is freed from income tax on his investment. -If anything more attractive is desired by any man he is recommended to go to Germany, where compacts are made and scrapped while you wait.