FINANCING THE WAR
PAYMENT BY PRODUCTION. For the millionth time I repeat this war can only be paid for (using “pay” in its broadest sense) out of the current production, or. in money language. the income of the country. Only to a strictly limited extent are capital resources useful for the purpose, writes Mr Oscar R. Hobson, City editor of the “News Chronicle.” If we have gold or investments realisable abroad, we can sell them and use the proceeds to buy necessary imports. We can forgo, within limits, keeping up properly and industrial plant in their pre-war tiptop condition, i.e„ direct the income resources which represent full maintenance of capital —paint, replacements ol worn parts and what not—to the war effort and to that extent “live on capital.” But with such exceptions only goods currently produced and. not consumed by the civilian population are useful for the war; or, to state the same fact in monetary terms, the war can only be financed out ol current savings.
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Wairarapa Times-Age, 25 November 1940, Page 7
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167FINANCING THE WAR Wairarapa Times-Age, 25 November 1940, Page 7
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