The Daily News. THURSDAY, OCTOBER 11, 1917. THE SUPPLEMENTAL LOAN.

Taranaki Daily News, 11 October 1917, Page 4

The Daily News. THURSDAY, OCTOBER 11, 1917. THE SUPPLEMENTAL LOAN.

According to the statement made by Sir Joseph Ward at the close of the round table conference of supporters of the National Government on Tuesday, a serious financial position has arisen necessitating the raising of a further loan of four millions. There appears to be some difficulty in arriving at the exact nature of this position referred to. The Finance Minister in referring to the reason for the caucuses, intimated that unexpectedly increased demands bad been made by the Imperial authorities in connection with our forces at Home, but this is not borne out by his statement in the House wherein it appears that the Dominion Government's expenditure had been underestimated and the revenue over estimated. It matters very little who is to blame; the extra loan is said to be needed and will have to be pro. vided. New Zealand's Premier has proclaimed that the Dominion is prepared to spend its last shilling in winning the war, so that a few errors of a few millions must not bar the way to ultimate vici •}-. At the same time there is evidently need for greater care and accuracy in the matter of estimates and in allow-1 ing for emergencies to happen. The more money that is borrowed, the heavier must be the burden on the people, j directly or indirectly, but of the country's ability to provide the money for all just and reasonable war purposes there can be no question. The private deposits in the trading banks of the Dominion for the quarter just ended amounted to almost ten millions and three quarters more than in the corres-, .onding quarter three years ago, having risen to £35,707,000, while the margin of deposits over advances is still more remarkable, having increased from £539 - 087 in 1914 to £7,292,185 in 1917, demonstrating that the net credits are now thirteen and a half times larger than when the war commenced. There is no mystery about this augmentation; it is mainly due to war profits on trade in the Dominion and overseas. Seventeen millions seems a fairly large scoop out of inflated war prices, but no one who haa paid serious attention to the high cost of living can be surprised at this increased accumulation of savings drawn Tom the purchasers. There has, of >urse, to be taken into account the growth of the excess of post office de. osits over withdrawals to the extent of about ten millions, and in this connection it is worthy of note that last year the number of these accounts having a credit of £OOO or over increased by thirty per cent., thereby emphasising the ontention that the war profits made by u comparatively few amount to a very rge sum in the aggregate. To revert, however, to the Finance Minister's statement. The Minister, in the light of revised estimates, anticipates that by September 1918 a further eight millions will be required, but deems four millions sufficient to last until Parliament reassembles. There may be a feeling of relief when it is known that no additional taxation is to be proposed this session to meet the ever increasing demands 'on the Treasury for' interest, sinking fund and other purposes. Pension liabilities are growing, but so far as the Second Division claims are concerned they can only slightly affect the current nnancial year's figures, asth» -t of the men will only just be in camp by March. Additional allowances of course, will be payable to the married men already serving, and the increased pensions will also be payable as from the beginning of the year. It is

i|i;ite possible even that there are errors in the revised estimate* o that probably Sir Joseph Ward ia ■vise in only proposing to raise one half ;>f the eight millions. .Naturally he has not the time to check the figures for himself and is dependent on departmental officers, and the unwonted excitement of growing millions where thousands formerly did duty seems to have had a dazzling effect. What really matters is at New Zealand is becoming self-re-liant financially, and war profits, coupled ith restricted imports, have been and ■o a factor in this welcome change. :inisters need not get "nervy" over war nance. The country can and should shoulder its fair share of the burden and do so with commendable grace. The departmental officers have been loyally upeld by the Minister, but they should not commit any further errors of a similar nature or they may render previous the tenure of portfolios by the present holders.