DOMINION WAR LOANS.

New Zealand Herald, Volume LV, Issue 16824, 15 April 1918, Page 7

DOMINION WAR LOANS.

TOTAL NEARLY £80,000,000. MINISTER DEFENDS POLICY. [BY TELEGRAPH.— rRESS ASSOCIATION.) WELLINGTON, Sunday. Drniso his reply prior to the carrying of the second reading of the Finance Bill, the Minister for Finance defended the policy of freeing the war bonds from taxation. He contended that Great Britain, Canada, Australia, and America would not have taken that course, unless there was good reason for it. In New Zealand the reason was that, not being a country accustomed to borrow from . internal sources, it was necessary to encourage the people to lend. At the samo time he contended that this system was the cheapest in' the end, because, if we paid 6} per cent, on thi £80.000,000, which our war loans would shortly RMiount to, it would cost £48.000,000 more, in 30 years th%n wo have to pay at 4J per cent. This was a much larger sum than wo were losing in income tax by freeing the bonds of taxation, so that the Dominion would gain largely by adopting the system proposed in the Bill. More than that, freedom from income tax had insured the raising of the necessary money, which comprised a Mini much larger than anyone would have conceived possible to raiso six months before the war. He denied that there was any intention to use the compulsory powers harshly. Discussing war expenditure, he stated that up to April 8 outgoings under this head totalled £41,000,000. He justified the increased unauthorised expenditure asked for, as it was undesirable that the authority should bo exhausted before Parliament could meet. In defending the repeal of the war profits tax. lie said this had been done because it did not promise sufficient revenue. Canada had adopted the same course for the same reason, which went to prove that a great misconception existed regarding that form of taxation. POST OITIOE F.EOEIPTS. AUCKLAND TOTAL, £233,973 , The amount of £13.195 3s was received in subscriptions to'lhe war loan at the Chief Post Office, Auckland, up to noon on Saturday, making the total received to date £233,973 3s. Saturday's total was made, up as follows :—4J per 'cent, war loan bonds, £6875; 5 per cent, post offico inscribed stock, £3900; war certificates, £2420 3s.