WAR TAXATION.

Auckland Star, Volume XLVI, Issue 67, 19 March 1915, Page 3

WAR TAXATION.

fTo the Kdltor.l Sir.—There seems to be an impression that taxation is only necessary to provide interest and sinking fund on actual war expenditure, and that loans for all other purposes will be easily procurable. Such opinions arc quite erroneous. No person can estimate, within many millions, what the cost or the war will be universally, how long it will last, or how far-reaching in extent and time, or how or when the industrial and financial aftermath will end. It is the imperative duty of the Government to get out of the old ruta of taxation and raise an enormous sum to carry on national, and, by loans to local bodies, local' public works. Otherwise such works, will have to cease, the effect on all: industries will be felt immediately, and thus bring about a depression of such magnitude and length that will be ruinous to the Dominion. The war in Europe is certain to be followed by I severe commercial depression and lack of employment. One does not wish to appear as an alarmist, but facts must be faced. The Government's duty is to note the signs of the times and prepare for all possible emergencies. It is very necessary that the public works should go on, but it must not be taken for granted that the English investors will in no circumstances fail us. Should they fail us, and it is probable, there will be unemployment, destitution, and an exodus of population to the Commonwealth, where there arc at least signs of an economic activity which will to some extent ease the situation. In such a crisis party tactics might well be suspended. The Finance Ministershould make a straight-out statement that would give confidence in many directions and not keep the country In a state of uncertainty until the Government's intentions appear in the Governor's Speech. The Premier should call a conference of experienced ex-Minis-ters, a financial expert, a professor of economics, and other experts not in the interests of persons or party; but for the present and future welfare of the whole Dominion. One cannot help thinking, especially at this juncture, that the public will yet regret that many men of wide knowledge, experience, and ability, were rejected at the late election for nondescript politicians who are merely the servants of petty interests.—l am, etc., g. Mcknight. Greenland