The Daily News. THURSDAY, SEPTEMBER 6, 1917. LOAN RAISING.

Taranaki Daily News, 6 September 1917, Page 4

The Daily News. THURSDAY, SEPTEMBER 6, 1917. LOAN RAISING.

Although tiie penal clauses of the Finance Act have not yet become operative,, j and the first portion of the Liberty War Loan has been far more than covered by voluntary subscriptions, the novel and drastic method of compelling subscriptions to war loans and penalising nonsubscribers very heavily, is one that marks a now era in the legislation of the Dominion. No upright member of the community has any sympathy for the wealthy men who have systematically refused gifts to patriotic funds, schemed to evade income tax, wilfully refrained from subscribing to war loans and with smug satisfaction have sneered at those who have honorably and loyally come to the aid of the country and the Empire in the hour of direst need. Nothing but a daring raid on their wealth will bring such people into line, but for j others, who are only too willing to subI scribe, yet for various reasons, which [are un'-'-'verable, have not the money availab.o for lending to the Government, the matter assumes a far different aspect. It would almost seem that the Finance Minister resembles very closely thai Dutch Governor so quaintly described by Washington Irving, in that he is possessed of such great ideas that they have no room to turn in his head and so be cannot see the other side. If it were not so 'ho would have realised it docs not follow that because a person has a given income of even comparatively large proportions ho may not 'be able to find a stated sum at short notice, without injustice to himself, his family and his business. There are quite a large number of men in business who at the present time (possibly always) havo their money so tied up in business that it is practically impossible for them, without endangering the success of their undertakings, to find funds for the war loan without being iinaneed in such a way that their future operations are not crippled. It is these, men who are taking a large part in building up the prosperity of the Dominion. If Sir Joseph Ward has not received protests from this class it is because they rightly hesitate to have their financial position discussed. Take the case of a man with an income of £IOOO, nvho is ordered to invest £l5O in a war loan. If ho did not subscribe £75 to last year's loan he must now find something like £223, and on top of that cut into his resources comes £7O for income tai', so that nearly a third of his income is annexed by the Government, and yet itus same Government plans to reduce land taxation on large estates, takes the duty off war gains and offers the big capitalists equal to £7 4s per cent, for war money, while forcing the moderate men to lend at a much lower rate. Some people might call this a heroic policy, but it bears the impress of a combination of all possible heroic financial measures. Another grave consideration is tho introduction of retrospective penalties and claims. The precedent is one that may have far reaching effects unless checked, but the members of the House seem prepared to accept any proposal submitted by the Government, no matter how mischievous may be its hearing nor how drastic may be its nature. With only a few exceptions there has been no attempt at constructive criticism, hut plenty of valueless talk. Wo are not losing sight of the fact that provision has been made for appealbut for all practical purposes that provision need never have been enacted. For the present the coercive clause may be a

dead letter, bub the po'wor exists and is capable of-causing grievous harm. A man with a capital of £IO,OOO out on mortgage is exempt from compulsion, Those who havo money invested in companies may also escape, while professional men and others needing all their available money in their businesses will be heavily penalised. The shirkers will still find, a loophole of escape and the hard-pressed business men will have to suffer.