No Need For Immediate N.Z. War Loan

Northern Advocate, 20 February 1940, Page 6

No Need For Immediate N.Z. War Loan

[Special to "Northern Advocate ”] WELLINGTON. This Day. "There is no occasion for raising an early war loan in New Zealand,” said the Minister for Finance (Mr Nash) when he was asked today whether the Government will take pdvantage of the large accumulation of deposit money in the banks to raise funds for the Dominion's war effort. Mr Nash made it clear that while the matter is not regarded as of immediate importance, it had been under the Government's consideration. Income Tax First Althogh he was not prepared to Although he was not prepared to would probably agree that the pending payment of income tax will, in the meantime, be a sufficient financial problem for the investor. New Zealand’s financing of its war effort had been made easy by an arrangement with the United Kingdom Government in respect of money required for war purposes overseas. New Zealand lias the opportunity of borrowing from the United Kingdom Government, without the usual security, any sum required in respect to expenditure on an expeditionary force while it is overseas, and for equipment required for prosecution of the war. Reserve Bank Source. When the programme of war finance was last explained to Parliament by Mr. Nash he showed that the provision by way of extra taxation left a balance to be provided of £4,142,000. “It is proposed under certain circumstances," he said, "to see if we can raise some money by loan, and to prevent misunderstanding I can say that if it is necessary, all the money required in that way for the prosecution of the war can be obtained from the Reserve Bank."