TAXES AND DEBT

New Zealand Herald, Volume 78, Issue 24052, 25 August 1941, Page 3

TAXES AND DEBT

DOMINION'S FINANCES RECENT RAPID GROWTH The conclusion that it is proposed to collect almost half of the total national income in the present financial year for State and local use is reached in a bulletin dealing with the 1941 financial statement which has been prepared by the Canterbury Chamber of Commerce, after consultation with the Department of Economics of Canterbury University College. "It is not surprising that no new taxation has been imposed," states the bulletin. "It appears that present taxation has reached, and, in some cases, passed the limits at which it can safely be continued. State taxation for 1941-42 is estimated at £63,700,000 and local taxation at £8,100,000. The not national income is almost certainly less than £200,000,000. The loans estimated as requiring to be raised in New Zealand this year total £26,000,000. It appears, therefore, that about 49 per cent of the total national income is proposed to be collected for State and local use.

Illustrating the growth of debt and taxation, the following table is given: Public debt State taxation Pur head Per head a s d £ s <l 192H-20 ». 179 12 0 12 4 3 1f).",;,-36 ~ IVJ 10 O 10 0 0 1930-37 ,« ISI 4 O 1» 14 lO 1937-38 *. 180 17 0 23 1 3 1938-39 .. 187 2 0 23 8 9 1930-40 .. i, 196 18 O 27 4 8 1040-41 .. .. 214 2 0 37 10 0 1941-42 (est.) .. 249 2 0 39 2 0

"From 1939 to 1942, if the present estimates are realised, the average rate of increase in public debt will be £33,000,000 a year," adds the bulletin. "While part of this is for war purposes, expenditure of loan money on public works for the past two years exceeded £15,000,000 a year and is estimated to reach £13.000,000 in the current year. In the latest year it is estimated that £19,300,000 of tax revenue will 1)0 applied to war purposes, leaving £44,400,000, or £27 os a head for the ordinary expenditure of government."

BROKEN HILL RESULTS PROGRESS OF SUBSIDIARIES SYDNEY, August 23 The consolidated accounts of the Broken Hill Proprietary Company. Limited, and its subsidiaries for the year ended May 31 show a net- profit of £1,584,348. This result is disclosed after charging £2,010,445 for depreciation and £1,963,076 for taxation, and compares with £1,555,266 for the previous year, when £1,001,323 was allowed for depreciation and £1,091,755 for taxation. NATIONAL SAVINGS FUND BONUS FROM N.I.M.U. A notable addition to the National Savings Fund has been made as the result, of the recent decision of the N.I.M.U. Insurance Company to pav a bonus to its staff. It was arranged that half the bonus was t-o be placed to the credit of the National Savings Fund account of the member of the staff, and if no account existed one was opened for the purpose. This action was taken not only to assist the war effort, but to provide each member of the staff with a nest-egg and to encourage interest in the fund anil further contributions on the part of t.ne members.

ASSOCIATED PAPER MARKED RISE IN PROFIT A sharp increase in profit from £31,717 to £131,057 for the year ended April 30 is disclosed by Associated Mill's,- Limited,- Australia. Profit .is struck after providing £61.750 for deprecation and £OO,OOO for taxation. With i.Tl.a , carr ed forward £103,374 was available. of 6 per cent on all shares require £9,,3-'<. i' 31,.150 is appropriated to a reserve against high-priced stocks purchased during the war, /">0 730 written off loss to April 30, 1930, And £11,006 written off preliminary expenses, leaving £3lOl to be carried for 14 ' The directors report that orders on hand cover eix to seven months' production. Government demands are increasing. It is necessary to ration acceptance of orders from merchants.

SUPERPHOSPHATE STOCKS POSSIBLE AUSTRALIAN RATION The Federal Minister for Munitions. Senator Mcßride, said in the Senate at Canberra last week that he wa« unaware (hat farmers were. experiencing a shortage of superphosphate at present. A shortage was expected next >ear as a result of the destruction of the Phosphate works at Nauru. He believed the farmers in Australia next year would receive a ration of 70 per cent.

SILVER AND TIN VALUES LONDON, August 23 Silver is unchanged at. 23 7-16 d a standard ounce and 25 o-10d a fine ounce. Tj nver e Tin is about unchanged. Spot. Jiujers, £•256 5s a ton; sellers lOs. ForwardBuyers, £259 15s; sellers, £-<>o. MINING RETURN Addison's Flat (West Coast) -Four weeks to August 16: 750z. for <0 sni'ts. FOREIGN EXCHANGE Olosinc: telegraphic rates for purchases and sales of foreign exchange Auckland on overset centres on Saturday were the Bank of New South Wales as follows. August 23 T T. T.T. Buying Selling New York, dol. to £ .. 3.2542 Montreal, dol. to £ . 3. .039 3. 00 Java. fl. to £ «■!&' G.O'H Manila, pesos to £ .. 11 - Hongkong, pence to dol. 1 *,•« 1;* India, pence to rupee .. 2- -j -J- -- Cevlon, pence to rupee . 2'_ -- Singapore, pence to dol. 31 11-t>4 3.)3.-(>l S Af. £N.Z. JtS.A. lot) 123 London. t'N.Z. est. 100 121/- 6 12;' Australia, .(.'A. CN.Z. 100 100/ JO- 100 Fiji. CF. i'N.Z. 100 .. 00 88/12/6

QUOTATIONS IN LONDON LONDON, August 22 Foreign exchange rates are:—New York (dollar) *1 03; Montreal (dollar), 4.45; Switzerland' (fr.), 17.35; India (rupee). Is 5 31 -32dj Hongkong (dollar), 15d; Arßfntmc (pesos), 17.043; Stockholm (kr.), 10.90; Shanghai, 3 3-10 d. SHAREMARRET INDICES London Financial Times (1920 equals 100): Govt. Homo Indus- Gold securities rails trials mines 1940 (high) . 111.7 58.2 101.6 200.1 1 (HO flow) .. 104.8 31.9 61.1 138.8 August 19 .. 113.6 51.9 96.8 175.3 \ll"iist 20 .. 113.6 52.2 96.5 1,,i.0 August 21 . 113.6 52.0 96.1 175.0 August 22 .. 113.5 51.5 95.2 173.0 New York Dow Jones' (1926 equals 100): — 20 Rails 30lndust. Shares sold .1940 (high) . 32.67 152.80 1910 (low) .. 22.15 11 1.84 \ugust 19 .. 30.12 125.57 390,000 August 20 .. 30.21 126.01 490,000 August 21 .. 30.21 125.99 300,000 August 22 .. 30.15 125.84 860,000 August 23 .. 30.28 125.91 150,000 CALL AND DIVIDEND LIST Dividends— Duo Victoria Laundry—F., 2V a pc. .. To-day Renown —-pf., 7 p.c. p.a.; ord., lOd To-day Wright • Stephenson—F., pref., 2 1 / p.c.; ord., 2Va PC. To-morrow Dom. I. and B.—F„ A, B, 0, 3 p.c.; 3rd B and 0, 2 p.c. To-morrow Wellington Alluvials-—ld .. .. Aug. 27 Bank N.S.W.—quarterly. 0/- .. Aug. 28 K.D.V. Boxes— F„ 1 p.c Aug. 28 Southland Meal—l., Nd .. .. Sept. 1 Standard Ins.—l'".. 1/3 .. .. Sept. 1 Nth. Holler Mllg.—l., pref.. 5 1-5 p.c. Sept. 1 Argo --Id . . . . Sept. 1 l.nloma—l Ith, 1/- Sept. 8 Masonite Oorpn.—F., 4% pc. .. Sept.. 10 Woolworthn (W.A.) —1., p.c. .. Sept. 15 ITuddart,-Parker —1., pref., 3 p.c.; ord., 5 p.c. . . . . . . Sept. 18 New Occidental—l., all shares, 6(1 Sept. 22 Klec. Zinc —F., ord. and pf., 8 p.c. Sept. 26 Dunlop-Perdriau—F., pref., 5 p.c.; ord., 3Vj p.c. .. .. .. Sept. 30 Calls— Reid Rubber —con., 218 ~ .. Sept.. 6 A.C.l.—con., 5/- .. .. •»» Sept. SO Broken BLill Pty.—con., Bf* *% Nov. 29