OUR FINANCIAL BURDEN.

Auckland Star, Volume XLIX, Issue 245, 14 October 1918, Page 4

OUR FINANCIAL BURDEN.

NO CAUSE FOR PESSIMISM. Tn the course of a talk about New Zealand's war finance on Saturday Sir Joseph Ward, referring to the criticism levelled in some quarters against the freedom of the war loan investments from income, tax, remarked that theory was one thing, hut the getting of all the money essential for carrying on our share of the war quite another. Canada was raising a loan of £100,000,000 at 5} per cent., free of income tax, and the Canadian Minister of Finance, had publicly declared that the terms provided woidd ensore the loans being obtained, and that without it the country would be unable to -meet its financial obligations for carrying on the war. He (Sir Joseph) would not favour such a high rate of mtereett being paid in New Zealand. For one thing he did not agree with the opinion expressed in many quarters that interest would he high after tbe war. He believed, on the contrary, that once the present huge expenditure for war purposes stopped fresh, channels must, be found for large sums of money. As the result of close examination, m short, he had come to the conelnsion that money would not be high, either in England or overseas, for a long time after the necessity for carrying on the war had ceased.

"So far as money obligations due tc the war are concerned,*' said Sir Joseph Ward, "it will certainly be necessary for tie to meet quite a new situation. Although ono cannot speak yet with any definiteness about our war debt, there is no doubt that we are all in for a period of increased taxation. If the war continues for a further eighteen months it is certain that the heavy taxation we are undergoing will be greatly increased, but I have no misgivings on the score of our ability to meet it. The. Motherland and tbe. Dominions will he fully able to meet and gradually extinguish their new dbliprations without the general progress of the Empire being very seriously affected. A nation which has provided not only its own immense financial requirements, but has at the 6ame time afforded such assistance to its allies as Britain has during the past four years, nerd have no qualms about facing tbe future with confidence and buoyancy."

CHEAPER MONEY TITAN ANYWHERE. As a result of the good prices received for our produce money is plentiful and cheaper in New Zealand to-day than in any other part of the world, remarked Mr. Harold Beauehamp. chairman of the Bank of New Zealand, in commenting on the state of the money market. In support of the statement he pointeel out that while New Zealand bad raised her «af loans at H per cent., free of income tax« Canada was now floating a war loan of £. 100,000,000 at 54 per cent., also free of taxation. The Imperial Government had also been selling short dated TreasurJ bills in New York at a price which gavf investors 6 per cent. Money -was now obtainable in New Zealand on mortgag« at from 51 to 6 per *ent. This was, ho**' ever, subject to txation. and in the cases of persons of large incomes tht taxation maant a reduction of the ne. return to the extent of 7 1' in (He pound