WAR FINANCE.

Lyttelton Times, Volume CXVII, Issue 17079, 31 January 1916, Page 8

WAR FINANCE.

, > . WE SHOULD. DO MORE. GROWING FEELING; THROUGHOUT NEW ZEALAND. (•' Auckland Star.") The feeling is growing that we in New Zealand should be doing a great deal more than we* are in helping the Empire to finance, the war, and the advisability of following .Canada's example should be considered by our nervously cautious National Government, so morbidly reluctant to boldly lay its hand on war profits. . Our position is similar to that of, Canada, in that our exports have risen greatly in value, arid so far as nnssible we should try to lighten the "effect of this rise on Britain's balance of trade. The news that the Imperial Government is going to impose further restrictions on imports shows that the position is viewed seriously, and may be commended to our Government as another reason why a financial policy at mice more selfreliant ' and more helpful to Britain should be adopted. STRAIN ON ENGLAND. DOMINION LOAN OF £0.000.,000 ADVOCATED. A correspondent writes to the editor of the Wellington " Post " : Sir,--Seeing that the strain on England's resources is so great in meeting the pressing requirements for war material and assistance to our Allies and dependencies, do you nojb think that such of our colonies as are able to assist financially should now come forward? New Zealand has been extremely; prosperous for the past three years, as is shown by the large surpluses of exports over import*, and I think we should consider ,tho desirability of coming forward to assist the Home Government by offering to float a war loan locally, for some part, of our war requirements, instead of throwing the entire burden on the Home Government. I feel sure that a war loan of five millions could be successfully floated here, and, small though that amount may appear, it would at least show that it is our desire to do the correct thing at such a time of stress. So much call money is lying in our banks and sayings banks! that the retention of it is likely to lead, to extravagance, at a time" when everybody should be economising as much ns possible. ( A war loan of £5,000,000, bearing interest at 4£ per cent, free of income, tax, and with the privilege of being available for death and succession duties, would appeal to the whole community, and I do not think this would affect the general trading companies or banks, now that any unnecessary expenditure on public works or improvements f bv local bodies can, and should be, restricted until the war is over. ,