WAR DEBTS.

Hawke's Bay Tribune, Volume XV, Issue 148, 29 May 1925, Page 7

WAR DEBTS.

(To the Editor.) Sir, —One could have wished that your correspondent “Geo. Bell” had elaborated his suggested financial remedy io his letter oi this evening. 1 take it, that the vcrtual repudiation of its National Debt by the German Government amounts in effect to a capital levy. If, then, a capital levy in Germany has stimulated her trade and put her in possession of market, why should there have been such tremendous opposition to tho same imposition iu England on the grounds that it would be in restraint of trade by absorbing capital that was, required to finance industry? 1 can understand that a capital levy would be unfair if applied only to war loan holdings, putting tho whole of the , burden or sacrifice upon the shoulders of those only who subscribed to each,' the others who cither did not, or could i not do so, escaping. I should like to be further enlighten- 1 ed as to his suggested cash system, for • it seems to me that many of our needs can only be met by tho ue of vast aggregations of small amounts of capital subscribed by many holders which, of course, is what is done at present. What would a company do upon finding itself burdened with a loan of capital that had no existence in fact, bu-. upon which a fixed dividend had to be paid ’ Assuming that our present usurous financial system is an unmittigated evil, what other way in fairness can be sub- * atituted and by wbat means? —I am, ; etc., L.B.M. Hastings, 28/5-25.