OUR WAR EXPENDITURE.

Taranaki Daily News, 3 August 1917, Page 3

OUR WAR EXPENDITURE.

WILL REACH £50,000,000 NEXT YEAR. OI'IiKENT CO.?T £1,000,000 A MOXTII By Telegraph.—Press Association. Wellington, Wednesday. T.n the Budget statement, Sir Joseph ward stated: Since the commencement cf hostilities the war expenditure of the Dominion at June SO last lias reached the large sum of £25.43i>,f112, and as this expenditure is increasing in proportion to the increased number of men we are -despatching to the seat of war, it is probable that by the time the House meets again the expenditure will have reached £50,000,000, and '1 need not remind honorable members of the sacrifices which the people of tile Dominion must be prepared to maJce in -order to meet this /urge expenditure. .It is of paramount importance that this should be recognised by every one in tiiic country. Xot only has a considerable amount

of money for war purposes been raised in New Zealand through the Treasury and Post Office Departments, but funds have been provided for .carrying on other necessary services as well.'

It will be remembrtredi that during the early stages of the war the Dominion was dependent upon the Imperial Government for advances to enable it to train and equip its soldiers and maintain them at the seat of war. For a time this was necessary, ln.it as soon as it was possible for Xew Zealand to provide its owti funds for defraying the expenditure necessary for tho conduct of its share of the war it was dene.

The current expenditure in connection with the war may lie estimated at approximately £ 1,000.000 p. month. Fortunately, however, the resources of the country are able to bear tho heavy strain which is being placed upon them, and though anxious as to the future I have the utmost confidence that the people of the Dominion can be fully relied upon to provide the necessary means.

In addition to the expenses of training, equipment, transport, etc., of our troops, there are maintenance expenses being continually incurred at t he seat of war, which, for the purposes of convenience, are being defrayed by tlic Imperial Government. Claims are subsequently made by the War Office to cover this expenditure, and the claims 130 made up and provided for to December 31, 1910, amojinted to £4.500,000.

During last session of Parliament I asked the House to grant the necessary authority to enable tho Government to raise a'sum of £16,000,000 frjr the purpose mentioned, and immci liate stops ■were taken to place the pro spectus before the public for the iloi ation of a loan of £8,000,000. The response to this appeal was most gratify ing, as this sum was largely oversubscribed. The smaller subscriptions, made chiefly out of the savings of the people through the Post Office Department, amounted to no less a sum, than £1,415,000, and I want to thank, the small investors for the great usijistance they have given in providing (so large a portion of the loan.

The amount provided by the Imperial Government amounted to £14.410,000, but in addition to this amount (here was a sum of £3,250,000 advanced for the redemption of certain loans which were maturing about the end of 1!)14, making a total of £17,000,000 advanced since the commencement of tho war.

Tile Dominion gave to the Imperial Government, as security for these several advances, Treasury bills and memoranda of agreement which were renewable year by year. While in London I arranged with tjie Imperial Government to extend the oiua*ney of the greater portion of these loans until IMS and 1917. By doing so the necessity for going upon the London market during the war was avoided, and it will bo recognised that a great saving to the Dominion has been effected. It is important to remember that by deferring these heavy liabilities for so many years our financial position after the war 'will be given greater stability. LOAN FOR PUBLIC WORKS.

'Although the public-works expenditure will be kept as low as possible during the current year, it will be necessary during this session to ask the House for an additional authority of £"'>0,000. Of this amount £250,000 will be required for telegraph extension. No public loan will, however, be required for these purposes.