A WAR LOAN.

Hawera & Normanby Star, Volume XLII, Issue 7372, 25 January 1902, Page 2

A WAR LOAN.

A financial authority in the Conservative camp conveys to me a hint (writes Mr H. W. Lucy, in the Sydney i Morning Herald) that Sir Michael HicksBeach has a card up his sleeve. His most recent utterances on the financial situation seemed to point to increased taxation as the basis of next year's Budget. My friend, after a careful study of the figures, has come to the conclusion that, even if the war is not " over " before the end of the financial year, Sir Michael will be able to tide things over without incurring for the Government the unpopularity arising out of increased taxation. This miracle will be effected by a loan, positively the last, it is fondly hoped. This will be issued in April, will wipe off all indebtedness up to the 31st March, and will leave something in hand to meet war expenses for the new financial year. In spite of falling trade and increasing normal expenditure, the authority quoted believes the Chancellor of the Exchequer will be able to make both ends meet without fresh taxation. As he points out, the full returns from the shilling coal tax will not be available till next year, when the Exchequer will also be benefitted by the increased income tax, only a portion of which flows into the Exchequer this year.