COST OF THE WAR.

New Zealand Herald, Volume LV, Issue 17040, 23 December 1918, Page 6

COST OF THE WAR.

GERMANS ABLE TO PAY.

POSITION OF DOMINION.

Discussing the question of war finance on Saturday, the Acting Minister for Finance, the Hon. A. M. Myers, said that with regard to recompense for the monetary losses sustained in the war by the Allies, there was fortunately a general consensus of opinion that sot only would reparation have to be made for the damage done to those countries which had been overrun by the armies of the Central Powers, but that indemnities would be exacted from the enemy commensurate with the amount it had cost to defend the liberties of the world. This sum was estimated at a total of £24,000,000,000. Tho interest and sinking fund on this amount, say £1,200,000,000 per annum, was well within the ability of the enemy countries to liquidate. » " There is a universal feeling on the part of the democratic ■ nations of the world that the authors of the war be put, on trial and punished for their crimes, and that the junker, militarist, and moneyed classes of the enemy populations be heavily mulcted in the fine that will be imposed upon the disturbers of tho world's peace," said Mr. Myers. "Such war taxation as has been levied in Germany has been imposed almost wholly on commodities which are used and paid for by the masses of the people; 60 that the resources of the wealthy classes are almost untapped, so far as the war drain is concerned. If the big Prussian land owners and Pan-Ger-mans arc drawn upon for the indemnity that will be demanded, their contributions toward the cost of their country's crime would probably do a great deal to bring home to them the lesson that ' war does not pay.' "Coming to New Zealand's share of the cost of the war," added the Minister, "our war expenditure to November 30, 1918, is some £54,000,000, and war loans to date amount to £64,000,000, the interest and sinking fund of which latter sum will be about £3,500,000 per annum. In dealing with our war indemnity it will also be necessary to capitaliso our annual payments of war pensions, etc., which will amount approximately to some £12.000,000." Th!o Minister added that under tho Finance Act, No. 2, power was given to the Government to raise a further £10,000,000 for war purposes. This sum would probably be the amount to bo placed on the New Zealand market in ; March or April, carrying the same terms i as previous loans, namely, 4.} per cent, j free of income tax. Meanwhile, however, the Treasury was prepared to accept money for investment in the new loan forthwith, any money 60 invested to bear interest from the date of lodgment. Mr. Myers said the present financial position warranted the assumption that the amount of the loan would be forthcoming. It had also to be rememberel that the compulsory clauses of the original Act were still ouerative. He did not doubt, however, that the same enthusiasm would be displayed bv the public in subscribing to what mieht. be called this last great Victory Loan.

NEW SOURCES OP INCOME.

STATE ENTERPRISE ADVOCATED. [bt telegraph.— association.] CHRISTCHURCH, Sunday. Speaking at Aranui school yesterday, the Hon. G. W. Russell said there lay before the statesmen of New Zealand the problem of how to pay the cost of the war and still keep the country prosperous. " Our object must be to endeavour to create sources of income for the State other than taxation," he said. "It seems to me that tobacco, petrol, and things of that kind are goods the State might easily declare a monopoly over and make a profit from their sale, and still sell the articles at a lower price than the public is paying for them now. When we were paying 3s 6d a gallon for petrol the same quality of petrol was selling retail in the United States at lOd a gallon. If the Government ie prepared to adopt a bold course and take a monopoly over various articles there should be a material increase in the income of the State, thus lessening the need for taxation."