The Evening Star FRIDAY, JANUARY 11, 1918.

Evening Star, Issue 16629, 11 January 1918, Page 4

The Evening Star FRIDAY, JANUARY 11, 1918.

Theee was published in our yesterday’s issue a statement by Sir Revenue Joseph Ward, Minister and Taxation, of Finance, as to the finances of the Dominion for the nine months ended December 31, 1917. It shows a very satisfactory position in view of all the abnormal circumstances; but it does not in any way ease the prospect of the necessity for still heavier taxation next financial year, with its incidence more widely distributed than hitherto has been the practice in New Zealand. There appears to be-no chance at all of a record surplus this year; and it seems, as a matter of common observation, that some of the special war legislation of last parliamentary session, in the direction of restricting certain luxuries, will have the effect of depreciating the estimated revenue from the Income Tax. For the period reviewed by the Minister of Finance the revenue increased by £164,024, as compared with the revenue during the corresponding nine months in 1915. Six departments showed a decrease of £829,252, these being Customs, stamps and death duties, railways, registration and other fees, "marine, and famf/winl TVm J n_ n ...

territorial. ihe Customs and Railway Departments experienced the most severe falling-off in revenue, the decreases respectively being £498,850 and £302,127. Tha causes were obvious; a lack of shipping and the severe curtailment of the railway traffic. t It is difficult to believe that the abnormal circumstances of the period really justified the stubborn policy of restriction practised by the Railway Department. As against those substantial decreases seven departments showed increases totalling £993,276. The most noteworthy increases were from Land Tax (£460,161), from Income Tax (£229,687), and from miscellaneous sources (£184,297). The Post and Telegraph Department, which has always been a solid and dependable institution, showed an increase of £69,261. Beer duty yielded an additional £27,490 for the nine months, and the National Endowment revenue and other receipts supplied increases of £14,152 and £7,858 respectively. All things considered, these returns are exceptionally satisfactory, and compare very favorably with conditions in the Commonwealth.

The expenditure for the nine months shows a net increase of £340,157; but this fact will occasion no adverse criticism, since the increase was principally due to the very essential votes for post and telegraphs, railways, agriculture, and education. A considerable portion of the increased expenditure was paid for the purchase of wheat, and will be repaid. There was a satisfactory decrease of £213,269 in Public Works expenditure, this , being effected in accordance with the prudent policy of the Administration. Viewed as a whole, the financial position is this: There has been a total increase of. £2,978,301, represented principally by payments of Land Tax and Income Tax during the- period. This already assures a substantial position for the Consolidated Fund for the year. Ohe Minister foreshadows a considerable increase of shipping, which will provide a large measure of relief. Products that have been held up in stores will find profitable markets. It is obvious, however, that the Treasurer will require to levy heavier taxation next financial year in order to counterbalance the war strain on revenueearning Activities. It may he necessary to widen the scope of taxation, and include incomes of £2OO a year, if not as low as £156. An increase in the taxes on the highest grades of incomes appears to be inevitable. There is also considerable scope left for a substantial taxation of certain luxuries. Many people still ignore the need of rigorous economy, and spend money on extravagances. They can give a great deal morb to the State than they have been called upon to give before they will have reason to “squeal" against taxation. If the war continues for another year—and there is no prospect of an immediate col-lapse-greater financial sacrifice will have to he made to maintain New Zealand’s creditable, but dutiful, part in the war for freedom.

We referred yesterday to the obligation Imposed upon all to prao--1 War Waste, tiso stringent economy. Every day brings fresh proof of the need. Wo published m our issue of -Tuesday last an illuminating article on the waste of war, takeS from the New York ' Times Annalist.’ A few facts deserve to be pressed into the foreground of public attention, as they will help to enforce the lesson of economy. Figures of war cost are so big that, stated in isolation, they elude intelligent grasp. The comparative method must bo employed to give thorn significance. To impress, therefore, upon the people the magnitude of the problem of nuance, which grows in bulk and complexity with tho continuance of the war, the writer in the Now York journal places the present daily cost,of war beside the daily cost of the early months of hostilities.

Starting in August, 1914, with a total daily cost for all the belligerent countries of 58,000,000, it has reached in December, 1917, £32,000,000. In attempting to measure the strain of this increasing load care must be taken to recognise tho fact that £8,000,000 a day of cost after over three years of uninterrupted war represents a heavier burden than £8,000,000 a day at the beginning of the war, when the material resources of tho nations were abundant and unexploited by destructive hostilities. How incalculable, therefore, a burden which increases fourfold in weight upon a back with greatly diminished strength to sustain it! The total military cost of the four years of war to be completed August 1, 1918, is estimated at £31,120,000,000. This means that the “Boer war is being concentrated into every eight days of this war.” It means that all the cities of the world could have been- rebuilt on the most approved hygienic and artistic plan with a portion of tho money so far expended upon the war. Tho human cost Is still more appalling. The writer to which we have referred finds that approximately 53,000,000 men have been' called into tho military camps. Of this number “possibly a fourth can be said to have been killed or injured since the outbreak of the war.” The total casualties are given at 7,004,000.

Such is the waste of men and money to which the war is subjecting the world. Fortunately, in both human and material resources, the Allies are stronger than the Central Powers. “ With America fighting on their side, the wealth of the Allies is four and a-half times that of the Central Nations.” Whilst this gives assurance of victory over German militarism, it will not save the Allies from acute economic distress when the war is over. Victors as well as vanquished will be in a state of exhaustion. The whole world will be in a lamentable state of disrepair, and mankind will have to live on a lower level of comfort for many years until this repair work is accomplished. In view’ of the present and future needs, it is in the highest degree reprehensible to add to the inevitable waste of war the waste of personal extravagance. Luxury embarrasses the conduct of hostilities now and prepares impediments for the task of reconstruction on the return of peace. Unfortunately, the National Government have but a feeble apprehension of this transcendently important truth. A scheme of national economy is wanted on a broader basis than an appeal to the children to buy war stamps instead of lollies.