WAR FINANCE

Auckland Star, Volume LXXIII, Issue 235, 5 October 1942, Page 2

WAR FINANCE

LITTLE has been done by the authorities to create a favourable atmosphere in advance for the lean which must be raised very shortly for the effective prosecution of the war effort. A bald statement has been made that the loan will be offered, and business concerns have been asked to contribute as much as they can set aside prior to the opening date. But little effort has been made to impress upon the public the urgency of the loan or to arouse in the minds of the community an earnest intention to lend to the last penny required. It may be contended by the Treasury that the need is obvious, and that it will be met, but because of secret sessions and a failure to give the public any real Information as to the extent of our war effort and commitments the need is not nearly so evident as it should be. The Australian Government has a much more effective psychological approach. For instance, the Federal Treasurer, in a two-column article published in Friday's newspapers, reviewed the whole financial situation, told his people that goods and services available 'his year will be £125,000,000 less than last and therefore that there would be no outlet for the\ expenditure of that amount, gave full details of the number of people now on war work, frankly and fully revealed the necessity for transforming the economic life of the nation, and generally gave a concise and open explanation of why he was asking the public for £240,000,000 in loans this year. Why cannot our Government, with equal candour and trust, tell the people the same relative facts?

The loan to be raised shortly offers more difficulties to the investor than last, for the reason that both companies and individuals have now received their income tax assessments. Most have to find the large amounts involved from diminishing revenues, and only by really sacrificial efforts will the amount be subscribed. A full appreciation of the necessity for that sacrifice could not fail to help, yet no honest effort to make it has been made. True, appeals are being made ceaselessly for the purchase of bonds and savings certificates, but the new loan is a separate transaction, and worth at least a little preliminary preparation. The Australian Government has shown a capacity both to take the people into its confidence and to make up its mind. As an example we have had no official statement here as to the observance of Labour Day, but Australia has long known that all the usual holiday observances would be abandoned, while the people were informed weeks ago that the Christmas holiday period was to be limited to four days, from Christmas Day to the following Monday, with no break at all at the New Year. If we are taking the war as seriously as Australia we should not lag behind either in stating the reasons for the sacrifices asked for or in telling the people of the need for continuity of the civilian war effort.