POLITICAL DIALOGUE

New Zealand Times, Volume L, Issue 11437, 6 February 1923, Page 3

POLITICAL DIALOGUE

What is going to happen when Parlia xnent meets next Wednesday?—Harry is going to give Tommy, Bill’s job. But Tommy cannot finance the debts of this country—Yes, he can; he’s going to float a State Bank and issue money in millions But Tommy’s money might collapse like the German mark?—There is no fear of that—for Tommy is a lawyer, and lawyers never advance money without security. But Bill has pledged all our securities, and there are none left for Tommy?—Yes there are; Tommy will lift the moratorium and use State notes to buy these securities, which Bill is unable to do, to the tnne of many millions. What rate of interest, will Tommy charge tor his State notes?—Five per cent, per annum; 3 per cent, will be State revenue, 1 per cent, sinking fund, -and 1 per cent, for working Expenses. How is Tommy going to raise enough revenue to pay the country’s debts? —By means of a 3 per cent, tax on all money invested in this country. Then no money will come to this country for investment?—So much the better for Tommy, for then his Stajo Bank will find all the money' and earn all the more revenue. But why should Tommy only tax money to pay the country’s indebtedness? —Because money and nothing else can yield the revenue wanted. But land should he taxed as well as money?—Land is taxed enough by local bodies, and Tommy will only tax the money invested in land, not the use of the land. Will Tommy collect Customs taxes?—Yes, for the purpose of encouraging local industries and diminishing importations. But what revenue can Tommy get from local industries?—He will get 3 per cent, from all the money employed in these industries. But what about goods that we cannot produce ourselves?—Our wool, meat, butter, etc., will pay for all that are essential several times over. But Tommy owns no wool, meat or butter? —No; hut when ho floats a State Bank this will finance the export of wool, meat, etc., and use the proceeds to pay for imports and the redemption of Home loans. Then Bill’s idea that Tommy cannot govern this country Is erroneous?—Yes. quite erroneous; Tommy knows finance from A to Z, and his new methods will work wonders. [Published by arrangement.)