DOMINION WAR EXPENDITURE.

Evening Star, Issue 16086, 11 April 1916, Page 7

DOMINION WAR EXPENDITURE.

TO THE EDITOR. _ | Sir, —I notice that at a meeting of the Otago Patriotic Association yesterday Mr { J. A. Johnstone advocated the issue by | the Government of a 5 per cent, war loan. I think most people agree that the Government should endeavor to relieve the Mother Country from lending money to ns. if possible, during the war. Mr John- j stone advocates a 5 per cent. loan. Does j he mean 5 per cent, free of Income Tax. ! The last loan (a public works loan) of £2,000,000, pel' cent, free of Income Tax, yvas largely over-subscribed. The banks, insurance companies, and other j large subscribers find a 4£ per cent, debenture “free of Income Tax” a better investment than a 5 per cent, debenture ‘‘not free of Income Tax.” The Government to-day aro asking the holders of upwards of £2,777,500 4 per cent, debentures, falling due this vear and in 1917, 1919, 1921, 1922, and 1925. to accept 4$ per cent, debentures free of Income Tax with a 25 years curr'ency in lieu of the debentures at present lick! by them. In these circumstances, it would be obviously'unfair for the Government’to offer debentures to the public at 5 per cent, free of Income Tax. Possibly tiir Joseph Ward had this in view v. hen ho stated he would not offer more than U per cent, for money in Isew Zealand. A Government wav loan at 5 per cent, not tree of Income Tax would possibly be very largely subscribed for by the public, but it is doubtful whether the financial in 'i tntiems would subscribe to any great extent. Tim country is full of money. Winciter 5 per cent, when all the monev tv-’ qnired should be readily obtained at 41. per cent.?—l am, etc., , Habit ax Reeves. i April 11.