WAR FINANCE.

Taranaki Daily News, 26 June 1915, Page 8

WAR FINANCE.

J.HA.VS AX!) 'I'AX lis. UK AW BOKP.OWIXG FOl!!'.SUAnoWKI). . ft'ivm Our Own (.'oiTe.-pomloiit). Wellington, Yesterday. •, The most important duty to bo uv dcilal-cii- by li'arliamciit i!iuin;r il:e session will be tln> adjustment of tl::' national finance to the'conditions creai- , I'd bv the war. The Minister of Finance bus "indiciitcd already that there must be additional taxation, presumably warninrkcd for war purpo-c-., and abo thai tli« Government will require increased borrowing powers. The existing loan authorities are practically exhausted, and it is understood that, a, certain amount of floating debt has* been incurred within the Dominion, while the expenditure due directly to the war has grown even more rapidly than was tintiripaled. The proposals of the Government will not be made known until the Minis)".of Finance is ready to state the needs of the situation from his place in Parliament, but there is r":.'Mei to bclicv that this year's borrowing will be heaviest by far in the hh.tory of New Zealand.' Marly in the year the Minister of Finance' stated- that the Dominion was spending money for war purposes at the rate of something like .£300.(10:1 a mouth, or C;S,000,000 annually. Since that time the expenditure in connection with the training, despatch and main- ' ieuam-i' of troops, the hiring of tran.,- ; ports, the provision of hospital uecoiu- [ niedation and so on has grown rapidly 1 ami probably amounts aI- the present * time io between fJfi.OOO.OUO and CU.OOO- - 000 a year. No proci.se figures are avail--1 able, but this estimate is not an extravagant one. The new loan must cover a year's oxI pendilure at the present rati', which is ;' still growing, and probably will continue io grow until the end of the war. The '•' Minister of Finance must also ]i!'e ( ide *' it is understood, for floating debt witiis in the Dominion. If" this should prove >' to be the case, the war loan for the cur•s rent year may amount 1° between II ,CS 000.000 and' t10,000.000. The figures n are startling at first glance, but lliey h are eonlirmod by well informed opinion. 5- It is presumed that whatever loan the ir New Zealand (lovernnient has decided ■3 is required for war purposes will be in- ■ ■ cludeil in the great war loan now being 3 raised by the Imperial authorities. The '•' Government in the Mother Country lias i assisted the Dominions in this way durs iug the early stages of the war, and d doubtless will continue to do so. The n rate of interest on the Imperial war o loan is approximately 44 piy cent. If i, New Zealand had to go upon the money g market independently at the present juncture the rate probably would be i- considerably larger. o Kegurding war taxation, a certain d amount of misapprehension appears to if exist in some quarters. The Govorny ment does not intend, to raise by moans •t of additional any considerable part if i- the money that is being spent on war e services. The new taxation will be re-

.' quired to cover (I) interest and siukin; i) fund on war loans, and (2) dedeionees i> t, other resources of revenue, notably ens I turns, which liave been si Heeled by tin ;s war. Tiie amount required to be raise< 1, over and above the existing taxathn d flurini; (lie current y<'ar will be, eoiii :- piiViitholv sneaking, small. « 'l'ln- nature of the new taxation is i >r Cabinet secret, but there is reason i.i believe that an important part of tin proposals will be an increase in the cus loins and excise duties of beer rim c " spirits. Some additional land taxatioi and an increase in the income tax an ■*' foreshadowed. n __________ it