HEAVY WAR TAXATION.

Taranaki Daily News, 21 September 1917, Page 6

HEAVY WAR TAXATION.

NEW ZEALAND'S BURDEN. COMPARATIVE FIGURES. 'The amount realised by direct taiation in New Zealand during the year ended March 31 last showed an increase of £4,130,556 over tiie figures for the last complete year of peace, or 1C2.4 per cent.," said the Hon Arthur M. Myers, Minister for Customs, etc., at Auckland the other day. Indirect taxation," he said, "increased during the same period by £483.513, or 13.G per cent. In addition, during the current financial Jear, direct taxation Jts estimated to yield £7,250,000, which is an increase on pre-war figures of 155,0"2 per cent. It is worthy of notice that, owing to the alteration in the incidence of taxation, whereas direct'-taxation for the present financial year is estimated to yield an increase over that of 1916-17 of £575,721, or 8.62 per cent, indirect foxation will, it is expected, on the other hand decrease to the ex'tent of £802,028 under last year's figures—a drop of ID.S7 per cent. In Britain, indirect taxation during the Dresent fiscal vear is some £102;000,000, or nearly 48 per cent. Great as is this increase, it is dwarfed by comparison with the figures in connection with direct taxation, which, in 1913-14, realised £93,000,000, whilst in the present year the total is £466,000,000, an increase of £373.000,000, or AOl per cent. To date, the war has cost Britain well over £5,000,000,000 Of this she has raised no less than £l,300.000,000 by taxation, and the remainder by internal loans and other forms of borrowing. "In this connection a comparison of the rates of interest paid by the various portions of ;the Empire for the provision of the 'sinews of war' by means of internal loans, discloses the fact that of the £3,000,000.000 raised in this manner in the United Kingdom some £1,000,000,000 was raised at an average rate of 3% per cent, interest, and the remainder at a rate varying between 4 per cent. Germany, however, pays something over 5 per cent., whilst Austria appears to be paying interest at a rate somewhere in the vicinity of 10 per cent., taking into consideration the price of issue and the special terms she is compelled to offer as an inducement to her luckless citizens \o part with their wealth.

'The present war is a war largely of financial and economic exhaustion. Bearing in mind the over-subscription of war loans in every part of the Empire, and the manner in which ever-increasing taxation proposals are received on each and every occasion that the question ol raising war funds is placed before the British public, there can be no two opinions as to which of the two opposing forces in the present struggle will be the later to show any signs of financial or economic exhaustion—especially now that the resources of the United States of America are arrayed on the side of the allies' Mr. Bonar Law recently placed the present position very succinctly by stating that both Britishers and Americans now understood that victory is merely a question of nerves and staying power, thereby implying that all other necessary support is absolutely secure."