The Dominion.

Dominion, Volume 8, Issue 2557, 3 September 1915, Page 4

The Dominion.

FRIDAY, SEPTEMBER 3, 1915 WELL DONE AUSTRALIA! .... —«

The news to hand* of the remarkable success of tho Australian £5,000,000 war loan is a convincing evidence < of tho splendid spirit in which the peojjle' of Australia are facing the heavy financial obligations imposed by the war. The loan was the first instalment of a £20,000,000 loan which the Common 1 wealth Government had decided to raise locally for war purposes. The result has-been that in response to the invitation to subscribe £5,000,000 the people of Australia as individuals and through various financial institutions have subscribed over £13,000,000. The Commonwealth is to be congratulated on the splendid ■success of the loan. nitrocluc $6 Loa»BilU]ie tederdPriwo

Minister gave a very full and clear account of the position of Australia in respect of war expenditure and war finance. It was estimated that tho cost to the Commonwealth Government of war services up to June 30 last was follows:— Expeditionary Forces— _C Naval ..... 3,399,368 Military ■ 9*469,367 Other services 1,15,100 | Total 13,003,835 The Government had borrowed from the Imperial Government for war purposes up to - December next £24,500,000, and to date (July 22) had received £15,600,000. It seems that while the. Home Government had agreed to finance Australia's war expenditure to the end of the present year, and had rendered the' position clear up to the- end of December next, it had suggested that so far as the cost of war services beyond that date was concerned it would appreciate any effort which the Commonwealth could make in the way of raising money ' locally. According to Mr, Fisher: The Imperial Government on July 6 last made it known to the Government of the Commonwealth that Nit would be very agreeable to it if the Common-wealth oonid raiee the money to meet expenditure on its own forces. It was difficult (Mr. Fisher added) to attempt to reckon the sacrifices it was his duty to invite the country to make to meet the expenses of the war. Much'would depend upon duration, but' assurfling; that war lasted to the end of the financial year (June 30) it was estimated that their requirements for war purposes only during, the financial year '■would'lie,not less than .£40,000,000. " In these circumstances the Government felt that it devolved upon it. to appeal to the people of< Australia to provide the Commonwealth with a loan of. ,£20,000,000 to be used for war purposes only. We ' know to-day how splendidly the; people of Australia have-, responded to that appeal. A first instalment of £5,000,000 was asked for— the people gave £13,000,000. The loan was issued at 4i per cent, at par, with a currency of ten years, and as the. Government had decided to accept any . sum that might be subscribed beyond the first £5,000,000 asked for, it is, according to the figures now cabled us, in the happy position of having at . its service £13,000,000 of locally-raised money to meet its war expenditure after the •funds borrowed from the Mother Country are exhausted. The magnificent success of this transaction— an effort which prior to the war would have been scouted as a sheer impossibility—is a fine/ tribute both to the patriotism and to the wealth of the Commonwealth. Three things stand out in connection'with the loan which cannot fail to impress themselves on the minds of' thoughtful people. The first of these is the fact that tie Imperial Government should deem it necessary to suggest to the Commonwealth Government the desirableness of endeavouring as far as possible to finance its own war expenditure. There is a hint in this which should not be lost upon tho people of this Dominion. The second point worth attention is the enormous war expenditure which the Fedoral Prime Minister anticipates the CommonwealtTi will have Jo meet during the current financial year, assuming the war lasts to . June 30 next. His estimate for the is £40,000,000. This is much more in proportion to population than we in New Zealand are likely to be callcd on to bear at the present rate at which we are dispatching troops to tho front. The third feature is the splendid response of the Australian peopb to tho call for funds to finance the war. Mit, Hassey, we note, builds hopes on tho succcss of the Australian loan : for asimilar success for the two million loan to bo raised in this Dominion by the National Ministry. It is quite absurd for the National Government to. pretend that it is possible to compare the two loans. The Commonwealth loan was raised and tho money is to be'utilised "for war purposes only." The success of tho loan was largely due to /the fact that the money was required for the conduct of the war. Tho two .million loan to be raised in New Zealand is for public works purposes—works which in many cases could and should be allowed to stand over lintil the war is oyer:. We need not repeat here our contention that the whole financial resources of this country should ;bo utilised as far as possible .for war purposes, and in promoting increased production; but we would' again urge the. Minister of Finance .and tho National Ministry to revise their proposals regarding tho loan and public works expenditure. While the war is on, and with the end beyond our ability to foresee, tho only sane and safe policy to pursue is to ruthlessly curtail all expenditure that is not imperatively necessary to meet tho needs, of the spocial circumstances of the times.