Citizens Should Take Stock

Northern Advocate, 1 August 1940, Page 4

Citizens Should Take Stock

“In view of the emergency powers granted to the Government in respect to the conscription of all the resources of New Zealand, including manpower, materials. manufacturing facilities, property and monetary funds, it behoves all citizens to take stock of the situation," states an editorial in The Accountants’ Journal, the official organ of The New Zealand Society of Accountants. “With the great majority of our people descended from British stock, we deplore the defeatist attitude of some pessimists in our midst. It will surely now be recognised by all that, to use our Prime Minister's words, ‘this is an all-in struggle.’ The earnest and sincere co-operation of every man. woman and child in this Dominion is called for in the Empire's hour of danger, and we are certain that the clarion call which has been sounded will not fall on deaf ears. Conscription of Wealth.

“Of all forms of conscription, that which can be applied to so-called wealth is the most simple to enforce. To hear some unthinking people talk one would think that the idea of conscripting the credit and monetary resources of New Zealand was something new. Actually the conscription of wealth has been much in evidence here during the past few _ years, i.e., increased taxation for social services and other Government expenditure. Even in the last Great War, special taxation was levied to provide in part for portion of the expenditure. While some of us no doubt consider that a Car larger share of the war indebtedness incurred during that period should have been met out of the excess earnings of the war and post-war boom, the fact remains that the principle of conscripting wealth was then firmly established. “While perhaps it is not altogether fair to compare the modest Government taxation levied and paid in 19131914 with the heavy impost for the last financial year because of the charge for interest on the war loans of 1914-18, and the extra costs of pensions and social services in recent years, citizens should realise that quite apart from the present war this country normally has almost reached the peak of its" taxpaying capacity. In 1935-30 the total taxation was £25,470.372, or £l6/5/6 a head. Last vear this increased to approximately £44,000,000, or £29 6 8 a head. It is true that of this latter sum about 31 millions was for war purposes, but omitting this amount the levy a head of population was As a comparison it should be noted that this year’s British War Budget imposes taxation of £27/8/5 a head, or less than what we demanded from our people in times of peace. Credits From London.

“There is another feature of our national finances. Though it was recently announced that there was a substantial surplus on last year’s working, the fact remains that the Dominion's finances were supplemented last year by credits of £9,000,000 obtained in London, a loan of £4.500.000 floated in New Zealand, and additional credit to the extent of more than £7.000.000 obtained from the Reserve Bank. For the last financial year we had available from revenue, loans, London credits, and the Reserve Bank, more than £62,000,000, but as it is generally admitted that further expansion cf credit would be unhealthy and London credits unlikely in present circumstances, the provision of the extra money needed for war purposes is a major problem, and the Government’s difficulties should be recognised bv all.

“Lower incomes in Now Zealand are already paying about twice the income tax that is demanded in Great Britain, while the source of taxation from higher income is a diminishing quantity. While it is generally admitted that all forms of taxation will have to be increased to meet our war needs, and while no worth-while citizen of this country will cavil at having to ing to make sacrifices to meet the posimake sacrifices to meet the position, we do suggest that as all forms of private expenditure will have to be closely overhauled and curtailed, the same principle should prevail in regard to internal expenditure by the State. We have but little doubt that this aspect will be tackled by the authorities.

Harder Work Needed

“Quite a number of our development schemes of recent years will have to go overboard for the time being if severe hardship is to be avoidI ed. People generally will have to work harder, be prepared to put in I longer hours, drop avocations which | are not of economic value or importI ance under existing conditions, and cheerfully accept a lower standard of living. “In the effort which will be made by the Government to increase production, to stimulate our defence forces, both internally and overseas, to economise wherever possible and generally to put forward our maximum war effort, every citizen will be called on to do his or her best. If wise counsels prevail and the sacrifices which are inevitable' are made common to all there will be no complaint. No decent person wants to profit from the titanic struggle now threatening our Empire, and incidentally, the liberty and freedom of democracy and those who are bearing the heat and burden of the day should be backed up to the hilt not only now but in the days to come.”