MR. NASH’S REPLY TO DEBATE

Dominion, Volume 34, Issue 9, 5 October 1940, Page 13

MR. NASH’S REPLY TO DEBATE

Conscripting Wealth LOAN ONLY PART OF POLICY

“This is only part of the Government’s policy with regard to the conscription of wealth,” said the Minister of Finance, Mr. Nash, when replying to the three-day debate on war finance. The Minister gave a further explanation of aspects of the internal loan of £8,000,000, and a justification of the course adopted by the Government.

“The Government will continue to carry the war on with the maximum effectiveness,” he continued. “It will not argue the matter. We will take everything required that is to the credit of this country so that we can put up a creditable fight. You cannot, however, logically put conscription on those who get £4 or £5 a week.”

The Minister said the Government would use its powers to get the necessary money, voluntarily or unvoluutarily, to carry on tiie defence of the country. It would be fair with the people, but it would not argue with them. It had to defend the country, and the only way to do so was to take the necessary goods and fight. Number Involved.

“The number of taxpayers involved in connexion with this loan is, I think, slightly over 18,000,” he added. “Of tills total some 15,000 are individuals, and 3000 are companies.”

Mr. Nash admitted there would be difficulties in connexion with some taxpayers who were already paying 10/or 15/- in the pound in taxation. The loan would take some of their capital, but they would still have securities representing half their total contributions. The appeals committee would also be there to assist in solving such cases, and would take into consideration the circumstances of each taxpayer whose case came before it. To the extent that taxpayers had not the money to pay, then obviously some steps would be taken to help them over the difficulty. “The loan is free of interest for three years, this period being based on the estimate of the duration of the war,” the Minister said. “Of course, we cannot tell. It might' be one year, but I think it might be four or five.”

The question had been asked why no interest was being paid for the estimated war period. A free-of-inter-est loan transferred from one person to another or to the State the right to use certain goods without charge, and the Government claimed that it should have the right to the goods required for the war for three years without paying anything for the privilege. After that it paid £2/10/- a year for each £lOO worth of goods it used. At tiie end of the loan period it gave back the goods. The Minister spoke against credit being used without goods to back it, and described the practice as the greatest treason ever done in any country against the working people. It was nothing short of complete treason to suggest that difficulties could be overcome by issuing a lol: of money without goods behind it. Mr. Polson (Opposition, Stratford): That is just one thing in which we are in agreement with you. “I think that infiation means not the control but the uncontrol of currency and credit,” the Minister added. He said the Government was pledged to control credit and currency, to bring into being the maximum quantity of goods for the benefit of the people. The issue of money without goods behind it would not achieve this. Mr. Goosman (Opposition, Waikato) : We say “hear, hear” to that. Mr. Nash: That does not make it right. (Laughter.) However, some of the best people in this country are being deceived by that propaganda which is being put over with no belief behind it.

‘There is no compulsion at the moment for those who want to subscribe,” Air. Nash said, when replying to complaints concerning the compulsory provisions of the loan. He paid a tribute to people who before the loan proposal was announced subscribed £l,506,000 free of interest, and to those who had given money for the war effort.

“There has been no disagreement that the money must be found,” he concluded. “I believe this country will subscribe every penny required for this loan.”