THE WAR LOAN

New Zealand Times, Volume XLII, Issue 9740, 16 August 1917, Page 4

THE WAR LOAN

In our issue of this morning, Sir Joseph, Word offers the prospectus of the Now Zeaiand war loan which has just been authorised. On this occasion, he is a ski uk for an instalment of £12,000,000. the rate of interest being 4f per cent., freo of income tax. The terms of the loan are adequately set forth in the advertisement. It is well that these should be carefully studied. The loan appeals strongly to the patriotism as well as the self-interest of the people—but more especially to the patriotism. With a war expenditure of close 1 -upon two millions sterling monthly, it is manifest that money must be found to make good the out-going, and the only alternatives are borrowing and vastly-increased additional taxation. The method of borrowing within the country was a great success last year. There is no reason whatever to doubithat it will be a success this year By raising the loan within New Zea land, we are providing investors with a gilt-edged security, and at the same time keeping the interest payable annually in the country. This is certainly prudent finance. Already, our annual interest bui collected from us by the foreign bond-nolder is far too large. By borrowing from ourselves for the purposes of the war, we are.displaying an admirable spirit of self-reliance, and strengthening our own future, in this way, we are obeying the promptings of both patriotism and self-inter-est. But in this matter w© are entitled to look a great deal further than the mere sordid consideration of selfinterest. We have talked a great deal aoout giving the last man and the last smiling. bo tar as the last man is concerned, we appear to be m a fair way towards making good that undertaking. It is very much otherwise with the last shilling. In this loan appeal, wo are not asked to give at all, but merely to lend on terms that offer the best security and an annual return on the investment that can scarcely bo bettered in anv other direction. Surely the patriotism of the people will be more than equal to this demand upon its sincerity and earnestness.. We are on the high road to victory, hut every step of Our advance costs money, and it goes without saying that money is just as important as men. It provides the pay of the men, it feeds and clothes them, and it furnishes munitions. Therefore, if wo are to win the War, we must continue to find the money. With the increased prices of our -products, this ought not to be a difficult matter. There is a rapidlyincreasing accumulation of wealth in the country, while the avenues for safe and profitable investment are becoming more and more limited, so that it will be surprising if the Finance Minister’s modest reouest for twelve millions is not more than covered when the day is reached on which the applications close. That is the 3rd of September.