COST OF THE WAR

Press, Volume LIV, Issue 16404, 26 December 1918, Page 7

COST OF THE WAR

GERMANS ABLE TO PAY

POSITION OF DOMINION

Discussing the question of war finance, at Auckland, tho Acting-Minis-tcr of Finance, the Hon. A. M. Myers, «aid that with regard to recompense for tho monetary losses sustained in tho war by the Allies, there was fortunately n general consensus of opinion that not only would reparation have to ' be mado for the damage done to those countries which had been ovor-run by tho armies of the Central Powers, but that indemnities wouid bo exacted from the enemy commensurate with the amount it hnd cost to defend the liberties of the world. This sum was estiat a total of £U,000,000.000. The interest - and sinking fund on this amount, snv .£1,2CO ; 000.000 per annum, was well within the ability ol tho euoniy countries to liquidate. "There is a universal feeling on the part of the democratic nations of the world that" tho authors of the war .bo put on trial and punished for their crimes, and tha*t that the junker, militarist, aiid moneyed elceses of the enemy populations be heavily muletod in the fine that will be imposed upon the disturbers of the world's peace," said Mr Mvijrs. "Such war taxation as has boon levied in Germany has boon impeded almost wholly on comr-oditics whioh are used and paid for by the masses of the people; so that tho resources of the wealthy classoj aro almost untapped, ro far*as the war drain is concerned. If ,tho big Prussian land owners and Pan-Gormans are drawn upon for the indemnity that will be demandol, thoir contributions toward the cost of their country's crime would probably do a great deal to bring home to thom the lesson that 'war docs not

pay.' "Coming to Now Zealand's sharo of the cost of the war," added tho Minister. "our war expenditure to November 30th, 1918, is some £54,000.000, and war loans to date amount to £04.000,000, the interest an:? sinking fund of which lattor sum will bo about £3.500,000 per annum. In dealing with our war indemnity it will also be nbcessary to capitalise our annual paymerits of war pensions, etc., -which will amount approximately to some £1'?.000.000."

The Minister added that under the Finance Act, No. 2, power was given to /Government to raiso a further £10.000,000 for war purposes. This sum would probably be the amount to be placed on 1 tho New Zealand market in March or Aj>ril, carrying the same terms as previous loans, namely, 4J per cent free of income tax. Meanwhile, however, tho Treasury was prepared to accept money for investment in the new loan forthwith, any money so invested to bear interest from tho dato of lodgment. Mr Myors said the present financial position warranted the assumption that the amount of the loan would bo forthcoming. It had also to be remembered that the compulsory clausos of the original Act were still operative. He did not doubt, however, that the same orithtisiasm would bo displayed by the public in subscribing to what might be called this last great Victory Loan.