WHERE WILL IT GOT?

Evening Post, Volume CIV, Issue 133, 2 December 1922, Page 13

WHERE WILL IT GOT?

MR. W. D. HUNT EXPLAINS.

As managing director of Messrs. Wright, Stephenson and Co., and an ex-member of the National Efficiency Board, Mr. W. D. Hunt may justly be regarded as -an expert in business and finance. In the following statement he shows what will happen when money ceases to be spent on liquor, that is to say, when the £12,000,000 now spent annually on drink is by Prohibition diverted to other channels :—

Consider a moment. If money is not spent on liquor, it must be disposed o£ in some other way. r ,

(a) If it is spent on the consumption of goods that come in through the Customs, the State gets the Custom duty. Much of the goods are carried on railways, which brings in revenue. Labour 33 employed in distributing the goods. The wages to this labour is again disposed of in Borne way, and brings in further reveiue. The traders who handle the goods have their profits added to, which means increased income tax. (b) If the money is spent on the consumption of goods produced in the country, the employment of labour on production and distribution combined is much larger than with imported goods, and the disposal of the wages received by this labour brings in revenue in many directions. Increased local production increases railway revenue, increases the incomes of the producers and distributors, and so increases their . taxation. (c) If the money is saved and put in the savings bank- it is lent to the State, which spends it on public, works, thus employing labour, the wages for which mnst again be disposed of in some way, and thus bring in more revenue. Further, public works are reproductive to the country, and add to the country's income in f utore years, instead of adding to its expenditure, which is the case when money is spent on liquor. (d) If the money is put on deposit in a bank, the bank lends the money to its customers, who use it in production and trade, which means that it creates taxable income, increases railway revenue, employs labour, the wages of which are again disposed of, and add further to revenue. '(c) If the money is invested in any other way, it employs > labour, and adds to revenue. (i) fThere is no way iri which any credit can be disposed of witbout employing labour, and bringing revenue to the State. Think it oat: it can, not be done.

RECAPITULATION.

1. The State will not lose revenue by Prohibition- It will gain revenue and reduce expenditure.

2. Prohibition will not cause unemployment : it will bring more employment. 3. There will be no loss during the change-over period. . The' improvement in State revenue and in employment will commence 'at once.