The Grey River Argus TUESDAY, September 26, 1944. THE LAST WEEK.

Grey River Argus, 26 September 1944, Page 4

The Grey River Argus TUESDAY, September 26, 1944. THE LAST WEEK.

There is only one way in which any country can make war. It is by diverting to Avar the labour, and therefore the wealth, which otherwise would be devoted to the satisfaction of very many ordinary needs and very many more ordinary desires. War creates an extraordinary need, which is that of national preservation, and which must be met before ordinary needs, or else all may be lost. Many who realise the urgency of finding men and means to fight are often forgetful of the fact that it can only be done by doing without other things. This week New Zealand has to meet one more requirement, the raising of loan money—real money—to the extent of more than twenty million pounds. For five years the been meeting war requirements, but has always done so successfully. Therefore, a failure mfw' would be a blunder without precedent in our record. Australia is setting out to raise yet another loan, the reason for which is that in the Pacific war is expected to continue'for at least another year. It cannot be carried on by that country without money for men and munitions and other materials, and the same applies to New Zealand. As pointed out by the New Zealand War Loan Committee, war needs make 'war loans imperative, but the amounts, though pleasured in millions," are hot raised-without regard to the normal peace-time provision for ultimate repayment of_ the loans. The Victory Loan is doubtless going to be subscribed by the end of the week, and as soon as it has been floated, the Treasury will commence to set aside, from current revenue the amount directed, in the Repayment of Public Debt Act. 1925, to constitute the sinking fund for redemption of the loan. This system operates in exactly the same way as the familiar table mortgages, and, whatever Government may be in power, it cannot be varied unless the legislation is repealed. There are people, of course, who, while recognising that war entails that wealth and man power shall be used up in its prosecution, are doubtful about the replacement of the wealth soutilised. In fact they ask how it is going to be possible to repay the huge debt that is being created. The method of repayment is precisely that of establishing a sinking fund. War loans certainly are not spent on an undertaking which produces revenue, but that fact does not undermine the repayment system.. Repayment, over the years to come, will be made out of the productivity of the Dominion, turned to. such good riccount by an industrious population. Production resources of the country have increased as a result of the war. New factories have been opened, new industries and the land, the greatest producing asset of all, has been turned to account in a greater variety of ways. One notable instance has been the raising of a crop entirely new to the Dominion, that of. linen flax, while shipbuilding has expanded, food processing has been much improved, and attention has been focused on numerous potentialities otherwise to augment the national production and income. No doubt, an army

fights on its stomach, but it also fights on its faith. Likewise, on the home front, people work and plan with confidence in their destiny. Those, therefore, whom fear alone regarding repayment would deter from investing in a victory loan must lack faith in their country.