FINANCIAL OUTLOOK

Dominion, Volume 8, Issue 2415, 22 March 1915, Page 6

FINANCIAL OUTLOOK

MR. HAROLD BEAUCHAMP'S VIEWS WAR TAXATION (By Telegraph.—Preß6 Association.) ~ Auokland, March 21. Mr. Harold Beauchamp, chairman of directors of the Bank of New Zealand, in an interview, said that in regard to financial conditions he did not apprehend any likelihood of trouble in the immediate future. He considered that iNew Zealand was particularly strong financially. Speaking personally, he cud not see any causa for pessimism. . could not be otherwise while high prices for productß "were ruling. As one connected with a number of trading concerns, he could say that all engagements up to the present had ■ been remarkably well met.. Touching on the cost of living, ho 6aid that having regard to the shortage of so many articles of food, it was' omv oonceirable that high prices would rule. Ho commended the -Government for enlarging the -proclamation by which flour could be imported duty free and in importing large quantities of ; wheat from Canada, California, arid Australia. But for the importations" of wheat and flour'bread in New Zealand ' would doubtless be touching almost famine prices. Farmers should be encouraged by all possible means to grow more grain this year. Speaking on a war tax, he considered that it would 'bo wisest to avoid anything in the nature' of a specific class tax if possible.. Any .method involviflg a large sum for collection should , also be avoided. That was why he suggested a drag-net tax, one per cent, on the total amount of imports and exports, which would yield, - say, to £500,000 yearly. Taking the total cost of th« war to New Zealand/ between £5,500,000 and £6,000,000, the amount suggested would extinguish the capital cost in, say, fourteen years, which would constitute no mean achievement. His proposal would be, in his opinion, the most equitable tax conceivable, as no one would be called on to pay more than Ma means allowed. In the case of a working man with a family of four or five,, his outside liability would not exceed £1 per annum. He did not agree with the suggestions to increase the postal charges, to raise a. tax through the totalisator, or to tax theatre tickets, nor would it be in the best interests of the community to increase the income nor land tax. Mr< Beauchamp returns to Wellington on Tuesday.