ECONOMIES OF WAR.

Auckland Star, Volume XLVII, Issue 66, 17 March 1916, Page 7

ECONOMIES OF WAR.

NEW ZEALAND FINANCE. PROFESSOR BEDFORD'S VIEWS. (By Telegraph.—Press Association.) DUNEDR7, Thursday. The recently-appointed professor of economics at Utago University, Professor Bedford, addressed a public meeting to-night on the unsoundness of New Zealand's war finance. He concluded an elaborate examination of the principles underlying the economics of war wilh the following proposals: —(1) All borrowing from Britain should cease, and We should lend to her. A great loan should be raised in New Zealand to enable the Government to say to the Imperial Government: '"You can ha\Lfive or ten millions' north of produce on a term of credit to last while th'd war lasts." (2) To ensure diversion ot the Dominion's money from luxury and accumulation for purposes of investment, taxes on such things as totalizator dividends, alcohol, and picture show receipts should be so heavy as to compel 'a substantial diminution of indulgence; (3) to minimise the inflation of the currency and increased prices and the cost of living occasioned by internal loans, the whole «>3t of the training and equipment of the Dominion's Expeditionary forces should be borne by revenue obtained by increased taxation, tbe burden of which should fall first on war profits; (4) with a view 'to speedy rehabilitation after tbe war and preparation for settlement and the employment of returned soldiers, the State should borrow locally for strictly reproductive works as miich of the surplus wealth as is available consistently with the needs for the war, and with power to get the necessary labour. By means of leans and taxes we should endeavour to draw off all the money now devoted to luxury.' ,