THE NEXT WAR LOAN

Otago Witness, Issue 3339, 13 March 1918, Page 37

THE NEXT WAR LOAN

TERMS OF ISSUE. OHRISTOHURCH, March 11. Asked if he had any objections to stating on what terms the war loan would be issued. Sir Joseph Ward stated to-day that provision would be made-for small investors up to £SOO receiving 6 per cent, or its equivalent, by investment in war certificates or war bonds through the Post Office. There would ba provision made for inscribed stock at 5 per oent. up to £SOO, Upon whioh income tax would be payable. It would bo strictly limited to the investors of £SOO in this branch because of the reasons he had already given—in order to prevent an inflation of the values of money in New Zealand. Provision would also be made for 4£ per cent, free of income tax, and in addition to that the compulsory clauses under the law, as it now stood, would be put into operation wherever it was found to bo necessary. FREE OF INCOME TAX CONDITION. SIR JOSEPH WARD EXPLAINS. CHRISTCHURCH, March 11. Sir Joseph Ward made a very lengthy statement to-day. in reply to critioisms that had recently been directed against the obtaining of war loans in New Zealand free of income tax. In his. concluding remarks ho asked why were the various portions of the British Empire, including New Zealand, appealing for subscriptions for war loans, free of income tax? It was because the amounts required were excessive, and at all events, in the case of New Zealand, beyond anything ever dreamt of as being likely to be asked for. The money is tied up in the war loans, in the first instance for a period of or more. There are comparatively few people in the country who can afford to withdraw money individually, or from their businesses, without obtaining financial assistance to enable them to do so. If there wero not some- incentive held out, many, who have loyally and magnificently responded, would not in any of the countries have undertaken, hi many cases beyond their means, a heavy additional responsibility. There was no country beyond New Zealand to which we could at present go and obtain money under 6£ per cent, and then with a heavy discount off our loans. In the interests of the financial safety for the country it was impossible for me to have adopted the proposals of well-inten-tioned people, who are entitled to their own views, but whose advice would be useless to me as Minister qf Finance. If an unholy mess were made of the finances of the country during war time, the confident opinions they express would be no excuse from my standpoint or to my yielding to representations of the kind. I should have greater confidence in their judgment if countries like the United States of America, like Canada, and Australia, and like Great Britain had not adopted such a polioy as that which they are now urging; but I am satisfied in my own mmd that, for reasons very similar to those which have prompted me, the course which they have suggested was regarded by experienced men as a dangerous one tipon which to embark.