CANADIAN WAR LOAN

Wairarapa Times-Age, 23 March 1940, Page 6

CANADIAN WAR LOAN

OVERSUBSCRIBED IN THREE DAYS. ADJUSTING THE NATIONAL ECONOMY. OTTAWA. Canada’s 200.060.000 dollar war loan which was opened to public subscription on January 15 was oversubscribed by more than 100,000,000 dollars in three days. This is the answer of the Canadian people to the appeal made by the Canadian Government for funds to prosecute the war upon the economic front. Part of the proceeds cl this war loan will be used to pay Canada's share of the cost of the British Commonwealth Air Training Plan whereby, with the co-operation of the British, Australian and New Zealand governments, advanced training will be undertaken in Canada by thousands of Empire airmen. Under this scheme, Canada is called upon to pay many millions of dollars for the building of aviation schools, modernising existing aerodromes and building additional ones, and to build up and maintain a large instructional personnel. In addition, Canada will have to pay her share of the operation expenses as weil as providing many aeroplanes. The Canadian Government is at-

tempting to pay for its wartime expenditures by special taxation, but. as the Hon. Ernest Lapointe, Canadian Minister of Justice stated in a war loan appeal, "the national economy is not yet functioning at full force and the Government is not yet receiving from special war and peacetime taxes the amount of revenue which will be available when our industries are working at capacity. The Gcvcrnlinent. therefore, is resorting to a loan I to make up tlie difference between its revenues and the extraordinary exIpenses of this time." It was considerI cd advisable to float a domestic loan i whereby the people of Canada, "may subscribe for the purpose of assuring victory to our arms." rather than by a loan floated outside of the country. nr by a direct loan through Canadian banks. Canada's 200.000,000 dollar war loan will be retired between 1948 and 1952 in five separate instalments which will make it easier for the Dominion to pay them oil when the time comes and ■ indicates the Government's desire to overtake the ultimate costs of the war. as soon as that is reasonably possible."