WAR, FINANCE AND SAVINGS

Dominion, Volume 35, Issue 270, 13 August 1942, Page 4

WAR, FINANCE AND SAVINGS

The real sinews of war are the men, munitions and materials that are, or can be made, available now. War finance, though of admitted importance, is not in exactly the same category. But, as the recent reference made by the Acting-Minister of Finance showed, financial plans must be laid well ahead and Mr, Fraser’s appeal for prior subscriptions to the next war loan should certainly not be overlooked by anyone with money available for investment. The sums applied for will bear interest from the day they are lodged at the rates governing the prospective issues. The prior applications received in connexion with the Liberty Loan showed that many people —including probably many trustees—took advantage of the opportunity to invest. New Zealand, in its war finance, has not Taken steps to i elate present plans to those of the post-war period in the manner adopted in the United Kingdom and Canada. The countries mentioned have devised plans whereby some of the income collected by way o taxation will be refunded to the payers in the post-war period. In Great Britain, for instance, the extra taxation which people with small incomes have to pay because of the reduction of personal and earned income allowances will be credited to them after the war in the Post Office Savings Bank. In the same way 20 per cent, of the net excess profits impost (less tax) will be refunded after the war provided it is to be used for industrial reconstruction and readjustment. . In Canada, according to official reports of the Budget introduced in June last, “a substantial portion of the new taxes payable will be refunded after the war with 2 per cent, interest.” Tins refundable portion is termed the “minimum savings requirement. It is contended by the advocates of this system that it will provide the - State with revenue required for war purposes now and ensure a return to the taxpayers during the post-war period when they will be desirous of making replacements or additions both personal and domestic. The Canadian Minister of Finance, Mr. J. L. Isley, said : “The savings made now will be available after the war. Then we can replenish wardrobes, build our houses, and take more leisure, knowing that not only will we be increasing the comfort and vitality of our families but providing work and pay for thousands of people who will come out of the war services and industries once more to earn then livelihoods in civilian industry.”