NO EARLY LOAN.

Auckland Star, Volume LXXI, Issue 43, 20 February 1940, Page 9

NO EARLY LOAN.

WAR FINANCE. w UNNECESSARY YET." FUNDS FROM BRITAIN. WITHOUT USUAL SECURITY. I (Special to " Star.") WELLINGTON, this day. "There is no occasion for raising an early war loan in New Zealand," stated the Minister of Finance, the Hon. W. Nash, when he was asked to-day whether the Government will take advantage of the large accumulation of deposit money in the banks to raise funds for the Dominion's war effort. Mr. Nash made it clear that while the matter is not regarded as of immediate importance it has been under the Government's consideration. Although he was not prepared to discuss the position in detail, Mr. Nash would probably agree that the pending Cyment of income tax will, meanwhile, a sufficient financial problem for the investor. New Zealand's financing of its war effort has been made easv by an arrangement with the United* Kingdom Government in respect of money required for war purposes overseas. New Zealand has the opportunity of borrowing from the United Kingdom Government, without the usual security, any sum required in respect to expenditure on an expeditionary force while it is overseas, and for equipment required for prosecution of the war.

When the programme oi war finance was last explained to Parliament by Mr. Nash he showed that the provision by way of extra taxation left a balance to be provided of £4,142,000. "It is proposed under certain circumstances," he said, "to see if we can raise some money by loan, and to prevent misunderstanding I can say that if it is necessary, all the money required in that way for the prosecution of the war can be obtained from the Reserve Bank."