WAR EXPENDITURE

Evening Post, Volume LXXXIX, Issue 34, 10 February 1915, Page 7

WAR EXPENDITURE

INCREASED REVENUE WILL BE NECESSARY MB. MASSEY QUESTIONED. (BY TBLEGIUPH,— PRESS ASSOCIATION.) AUCKLAND, 9tli February. A question as to whether the Government contemplates an increase of taxation on account of the Dominion's war expp.nditure waß put to the Prime Minister by a Herald representative this even* "Increased revenue will undoubtedly be necessary," said Mr. Massey. ",It is quite impossible yet to say what the war will cost New Zealand, but we must have sufficient revenue to pay the interest and to provide sinking funds for tho war loans- We do not want to take more revenue from the public than is absolutely necessary for the carrying on of the business of the country and doing our duty to the Empire. Every increase of taxation means lessening the spending power of the people and interfering with what may be called the wages fund, and I need hardly say that we do not want to interfere with either one or the other any moze than we can possibly help. "The revenue has kept up wonderfully well co far, and the indications go to show that • there is a probability of it remaining good right through the present year. The Post Office Sayings Bank returns are particularly satisfactory, but when increased expenditure takes place there must be increased revenue. We shall not ask for any move than is absolutely necessary, but it is impossible just at present to make an accurate estimato of the amount that will be required." In reply to a further question as to the form that the increased taxation may be expected to take, Mr. Massey said that he could give no information ot> that point at present. "I can only say,"' he said, "that when the time comes we shall ask the people to contribute in proportion to their ability." Mr. Massey added : "New Zealand has f«lt the pinch of the war probably less than any other country in His Majesty's Dominions, and there is no occasion for any anxiety. The prices of our staple products are so good that I believe the present prosperity will be continued right through. There is a feeling of confidence all over the Dominion. Employment is plentiful just at present, and the Government will endeavour to keep the public works going "so as to provide employment fop those who otherwise may be unemployed. The public works are now being Kept fully up to the usual standard. M

The nine New Zealanders who have passed the examination for admission to the military college at Duntroon, New South Wales, will leave for Sydney by the Manuka next, Friday. In Eketahuna (reports an exchange) the bakers have taken their carts off the road, and are selling bread at 4id cash over the counter,