LETTERS TO THE EDITOR

New Zealand Herald, Volume 81, Issue 25054, 18 November 1944, Page 6

LETTERS TO THE EDITOR

Treatment of Third Division Sir, —"Disgusted" asks for equality of sacrifice and yet protests against her husband .being sent overseas again. This obviously means that he has not completed his term of "more than three years' overseas service" and has, quite rightly, been called again to do so. Yes, many folk are watching for the grade 1 stay-at-home, unskilled workers also to be called for service. As for your husband's new suit, "Disgusted," it will keep in moth balls all right for the rest of his term. You were lucky to have seen him so soon. My husband's suits have been so cared for for more than four years already and he is still overseas. Bth Army Volunteer's Wife. Price 01 Bank Snares Sir, —Would not the current price of Bank of New Zealaud shares have regard to the dividends being tax free to the recipientP Put another way: If the shareholders had to pay taxes on their dividends, would not the price of the shares be lower? If this is the case, why should extra, compensation be paid to them if the Government decides to buy their shares? On the other hand, if some additional compensation is warranted, I suggest a computation should be made of how much the bought-out shareholder might lose over a period of, say, five years, by reason of his having to invest his money in shares which are not tax-free, and that this sum should be added to the market price. Information Please. State Trading Bank Sir, —The remarks H. M. Kirk makes are perfectly justified and timely. Any idea that the Government may be entertaining concerning the nationalisation of the banking system (which would be inevitable if the State controlled the Bank of New Zealand) would be an irrevocable step toward socialism. .Is there no regard for the vahie of private enterprise? Granted that State control is necessary for certain types of undertaking, but it should be limited to those alone. If banking were controlled as efficiently as coalmining, New Zealand finances would rapidly reach a parlous condition. Currency will need the most careful control during the post-war period if inflation is to be prevented from reaching too great heights. The mere use of Reserve Bank credit for long-term finance such as housing has an inflationary tendency. One can well imagine the effect if the resources of the Bank of New Zealand were also employed. But these would only be the immediate effects. Of more lasting significance is the fact that a solid and immovable foundation would be laid to State control of future as well as present enterprise. Control of financial resources is the most effective bar and should not be permitted. G. W. Pae. Local Government Sir, —Your correspondent who shelters behind the anonymity of "Sound Finance" writes a somewhat sardonic letter concerning counties'- in general and the hospital rate in particular. Here are some facts. During the last five years the ratepayers of the VVaitemata County have been called upon to pay £49.930 in hospital levies, the annual amounts increasing from £7986 to £12,589. To these and other financial burdens which county ratepayers have to carry add sinking funds to repay loans, plus'the interest chargeable upon those loans, all of which are raised to carry out and maintain national works, such as country roading, bridging and other amenities used by the public in general but paid for by.the ratepayers. Moreover, as progress demands an everincreasing rate of expenditure, posterity will have to shoulder liabilities in perpetuity, inasmuch as« under the present system the raising of loans necessary to administer public works involves the payment or staggering amounts of interest. Is it any wonder that county councils are striving to secure avenues of relief for their ratepayers ? Regarding hospital rating, my council does not advocate the abolition of hospital boards, but it docs demand a substantial reduction in the levies payable thereto. At present the council paj's a levy of |d in the pound, based on the capital value of the* county, but the levy increases according to the increasing financial requirements of the hospital board. Incidentally, although the council has to pay the full amount of the levy, by no means does it collect that amount, for defaulting ratepayers are ever with us. Apart from financial relief to ratepayers, were the levy reducible to. say, \d in the pound, and the assessment fixed or "pegged." the council would then bo able to forecast its legitimate commitments for public works on a basis far more stable than that at present existing. H. T. Gibson, Chairman, Waitemata County Council.