LOAN BILL PASSED.

New Zealand Herald, Volume LIV, Issue 16673, 18 October 1917, Page 5

LOAN BILL PASSED.

SECOND ISSUE IN MARCH.

PROBABLY £12,000,000.

SUCCESS OF THE LAST LOAN.

[bt telegraph.—special CORRESPONDENT.] WELLINGTON. Wednesday. Tire second reading of the War Loan Purposes Bill, No. 2, was moved in the House of Representatives this evening by the Minister for Finance. Sir Joseph Ward said the measure was to give effect to the recent intimation reg;. ling the necessity for borrowing £4,000,000 additional for war purposes. The Bill provided for this and this only. The Minister said tha total amount borrowed since 1914 was £53,000,000. Tho amount of loan authorities was £10.335,000 making a grand total of £63,335,000. Then there was this last amount of £4,000,000, making the total £67,335,000. For war purposes and for general purposes a total of £46,147,000 had been borrowed in some form or the other up till September 30. Since then about £3.800,000 had been added out of the balance of authorities available. Re hoped to be able to get the British Government to accept some of our stock in part payment of those amounts disbursed by tho British Treasury for the maintenance of New Zealand troops at tho front and so avoid going on tho market for it here.

Mr. G. V. Pearce (Patea): At what rate of interest will they take it up' Sir Joseph Ward said he did not anticipate that the rate would be more than 4£ per cont. I.' wo could only get £4,000.000 this way we would have to raise the balance here. The amount to bo raised hero would depend on the amount of stock the British Treasury would accept. Necessity for the Bill. Continuing, the Minister explained that none of the incidental loans which had I been raised not directly for war pumoses ! was unnecessary. Some of them had been ; expended for purposes closely associated , with the war. It it rcere not neces- ; sary now to obtain authority for £4,000,000 more, tho House would not be asked to give it, but it was necessary to have propor provision madft for carrying on the war until the end of July, when the House could with later and fuller knowledge of the war review the financial position. Personally he recognised very fully the responsibility upon every member of the House in regard to the financial position. . The expenditure, huge as it was, had to be provided for. Mr. J. Payne (Grey Lynn) asked if it was proposed to raise this loan free from income tax, as was the case in the previous loans.c .Dr. A. K. Newman (Wellington East) asked the Minister whether he proposed to raise any part of this loan ' before

, March, and if not, how much was to be f raised in March. _ He urged that an independent communion should be apEofnted to overlook the huge expenditure y the Defence Department. 11 Mr.'H. G. Ell (Christchurch South) . ! suggested the suspension of the sinking fund payment for a few years as a, relief Jto the taxpayer.. . 1 . Sir Joseph Ward, in reply, said he I could not afford to enter upon txpevi- . ments suggested during the dej bate, such as a State bank and premium bonds, which might raise '\ opposition in quarters where it was *; necessary to cultivate friendly relations. 3 ; The Minister said that the last loan was a i f ] great success. It would not be necessary 3' to put into force the compulsory, clauses,' | , ; but. he would not hesitate \ to.do so in connection with future'loans if it was 1 necessary. The public had r sub--1 scribed nearly, all the ; money. i One of. the State Departments I had provided £250,000, and two J other ' Departments had subscribed smaller sums. The amount received for . the loan up to-: the present time, including the advances from the Departments, was £12,700,000. I j That was quite as much as the : Govern■' ment wanted just now. . The ; banks had I .! underwritten £5,000.000, but it was not ; ''■ necessary to take that money at, present. ; 1>: A sum of £700,000 had come in, since the . j date of the closing; of (he loan. He -did j i not propose to refuse any, money though . ! i it was not accepted \ through brokers. 1 Date of Next Loan. ;■ i; : • i I The 5 per cent, bonds issued through thu ' i' Post Office had amounted ;to £1,271,000. i The great bulk of the loan; had , been sub- . i scribed in the 4J cent, stock. The I war certificates sold had amounted to over ■ ■ £yOO,OOO. ■ •'" "•■'-.•, ■•■/■ '..; -••' ■•' i Inferring to the second portion/ of the ' loan, Sir Joseph Ward. said his impre.3 : 1 sion was that it would not be necessary to raise more than £12,000,000, but the , actual amount depended j upon ; circumstances. He : did not'expect: it: would be necessary to raise any : more i money I before the beginning of March. He would 'leave as much time as possible -between . . the two portions of the loan. _; He would • ". not announce prior to the ' raising of .; the j I next portion of the loan whether ' the I compulsory clauses were to'be applied ' lor not, because ' that '■ would be . ' j holding a pistol to the head of willing sub- \ ' j scribers, but after the next' loan there . would be a review of those who had. not , done their dutv. _'* ;> C'f.£vi j- Sir Joseph Ward declared that never so r long as ho was Minister _ for Finance would he yield to the jggestion that the sink-] ' ! ing funds should be suspended, nor would | J > he agree to breaking in on reserves, which | would maintain .-' the Dominion's _ strong ;■ , position and enable it to meet obligations and many new problems which would arise after the war. The motion for the second reading was agreed to on the voices, and the Bill was - then put through the remaining stages • without amendment and passed.