THE WAR DEBT

Evening Post, Volume XCVI, Issue 137, 6 December 1918, Page 6

THE WAR DEBT

It was hardly to be expected that the Chairman of the Bank of New Zealand (Mr. Harold Beauehamp), in addressing shareholders to-day, should refrain from alluding to tho Dominion's war debt. Quoting Sir Joseph Ward, as Minister for Finance, Mr. Beauehamp- takes that debt at £200,000,000. It is a formidable sum for so small a country—small, that is, afi to population. The Chairman of the Bank calculates that the interest charge on this sum at 4^ PGI% cent, represents £9,000,000 per annum, or £750,000 a month. There will be, as he points out, "the heavy pension 1 bill to meet" in addition. Pensions, it should be explained, aro not met out of loan, but are a <jharge on the Consolidated Revenue. Mr. Beauehamp does not say, because the Minister hhn|elf has not yetstated, exactly to a' pound how much eaoh of the various war loans raised in the Dominion produced, nor precisely what amounts Government. Departments subscribed to each of them. For the first' loam we know the Banks subscribed £4,000,000*' of which £2,000,000 was taken up by the Bank of New Zealand; but it is understood that £40,000,000 is about the amount taken, up in the Dominion. It is a very respectable per capita subscription. Although some large corporations will rightly get credit for their generous response to the loans, it has to be remembered that they—especially mutual life assurance concerns—are but trustees for their policy-holders, the majority of whom are people of small means, but who have thus become indirect subscribers to war, loans. The Chairman of the Bank, in his review of these figures, is of opinion that the war debt "necessarily means that taxation must for some time be heavy." No doubt; but, xmtil Parliament meets again at any rate, no fresh taxation will be imposed. In the meantime, there is a vast amount of material wealth in the country ready to ship and in sight, which is being turned into money. Given sufficients shipping,! this j wealth will enable some of those who can best bear it to fade possible increase of taiaition in tihe near future with equanimity. How much of the Dominion's war debt will be recoverable from the enemy is problematical and a matter for discussion ait the Peace Conference.