THE FINANCIAL SITUATION.

Taranaki Daily News, Volume LVII, Issue 243, 23 March 1915, Page 8

THE FINANCIAL SITUATION.

MR BEAUCBAMP OPTIMISTIC,

Auckland, March 21, M Harold Beauchamp, chairman of directors of the Bank of New Zealand said m regard to the financial conditions' that he did not apprehend any likelihood of trouble in the immediate tuture. Unconsidered New Zealand was particularly strong financially. Speaking personally, he did not see any cause for pessimism.

The position could not be otherwise while high prices for products were ruling. A s one connected with a number of trading concerns, he could say that all engagements up to the .present had boon roiuarkably "well Touching on the. cost of living, he said: "Having regard to the shortage of so many articles of food, it is 9n !y conceivable that high prices will rule" He commended the Government for enlarging the proclamation by which flour could bo imported duty free, and in importing large quantities of wheat from Canada, California and Australia. 15uv for the importations of wheat and flour bread in New Zealand would doubtless be touching almost famine prices. Farmers should be encouraged by all possible means to grow more grain this year. Speaking on the war tax, he said he considered it wisest to avoid anything in the nature of a specific class tax, if large sumg for collection should also'be avoided. That was why lie suggested a drag/ict tax of 1 per cent on the total amount of imports and exports, which would yield say £500,000 yearly' Taking the total cost of the war to New Zealand at between £5,500,000 and £O,000,000, the amount suggested would extinguish the capital cost in, say, fourteen years, which' would constitute no mean achievement. His proposal would be in his opinion the most equitable tax conceivable, as no one would be called on to pay more than his means allowed. In the case of the working man with a family of four or five, his outside liability would not exceed £1 per annum. He did not agree with the suggestions to increase postal charges, to raise the tax through the totalisator, or a tax on theatre tickets, nor would it be in the best interests of the community to increase the income or land tax.