WAR FINANCE.

Lyttelton Times, Volume CXVII, Issue 17096, 19 February 1916, Page 8

WAR FINANCE.

WHAT OF NEW ZEALAND? SHALL SHE CONTINUE IN THE ROLE OF A BEGGAR? (“Otago Daily Times.”) '' Is New Zealand, despite the fact , that her trade balances were never sa favourable ih her whole history, and despite the fact that her banks are un< precedentedly overloaded with credits, to continue to draw upon tha Mother Country for the whole of her capital expenditure upon the war? Having regard to the severity of the strain to which British finance is being ed, and having regard also to the comfortable financial position of the Dominion, wo cannot avoid the feeling that the self-respect of New Zealand is being compromised by the refusal or the Government to afford an opportunity for the flotation of a domestic loan to meet at least a portion of the cost of the war to tho Dominion. TJu action which Canada and Australia have taken in issuing local war loan* is one that throws New into a very disadvantageous light. Of course the" heavy balances that have been cm trusted to tho banks of the Dominion do not lio idly in their Neces< sarily tliev are being reprotfuctively utilised. In all probability they, are m large measure being invested m wai stock. If so, it is surely more desirable that they should, to that extent, be invested in a New Zealand loan than that they should he sent to Australia for investment or to liondon for investment in a British war loan only that they may be loaned back to New Zea< land bv the Imperial Government. In anv case, the Dominion is clearly in a position to relieve Great* .Britain of the need of supplying her with all the funds which she requires for war purposes, and we are satisfied that she is patriotic enough to respond liberally to the opportunity, if it is granted her, of subscribing a war loan. It is not creditable to her that, at a. tune like this, she should he filling the Tole of a sturdy beggar.