WAR PROFITS

Marlborough Express, Volume LIV, Issue 184, 5 August 1920, Page 5

WAR PROFITS

HOW TO PAX THE WAR DEBT

[from, our correspondent.]

WELLINGTON, Aug. 4. ..One. of. .the.soldier members of the. House, Colonel Mitchell, advised the Government to-night that it was its duty to make "a levy on capital so as to reduce the debt more quickly. He noticed that only £800,000 a year was being set aside to reduce the debt of 105 millions. When the war broke out nobody looked to make money out of it. They would gladly have paid half their. ■ wealth to help win tho war. They said.to the soldier: "You go and fight to keep this country free and we will pay'for it." So the soldier and sai'o:1 did their bit and i, mutually won the Avar. "Is it not fair," asked Colonel Mitchell, "feat those who have grown rich out of the war profits, should pay a part of the war debt? They have claimed that they contributed towards the cost of the war, but has anything they paid come out of the extra income secured through the war. They are really not sacrificing a penny of their capital. •

Mr W. E. Parry (Auckland Central) supported tlTis argument with a reference to the fact that New Zealand was paying twice as much in interest on the war loans asi it paid to the sick and wounded soldiers by way of pensions.

Mr J. P. Luke (We.Hingt.on. North) pointed out. that'Ne\y Zealand had always been a borrowing' co unify. Therefore, if it co'mKieuced a levy on capital there would be a hardeningup on railway .construction, and other public works. ;

Mr D. Jones fiCaiapqi) reminded the House fcluit 174 millions had been taken out of the people during, the war through taxation, and invested in war bonds-and soldier settlement. Thus these war profits would pay off the war debt. i

Members.: Oh ! - : Mr Jones: "Yes; because 15 millions invested at 5 per cent, compound interest becomes 30 millions in 14 years. : ,s ■ : ; .