COST OF THE WAR.

Poverty Bay Herald, Volume XLII, Issue 13701, 3 June 1915, Page 7

COST OF THE WAR.

SPREADING OUT THE BURDEN

WHAT POSTERITY MUST PAY,

(Special to Herald.) WELLINGTON, this day. "How much will the present generation of taxpayers "have to pay "towards tho expenses of the war?" was a question put to the Hon. .Tames Allen, Minister of Finance, by .your correspondent last •night. Th^, Premier m Auckland had given a comforting assurance that the burden would not bo heavy, and his colleague, by indicating that posterity will be called on to shoulder a fair proportion of the load, substantially corroborated Mr Massey's views. . "It will be it fair thing for posterity to bear tho cost of the war loan.. sinking fund, because it will benefit from the war,'' said the Minister. "It , would, not be right to put it all on the. shoulders of taxpayers during the next four or fivo years. It would be fairer to spread it over a longer period. The -taxpayers of to-day will' -have to meet the interest." . ' ■ •

"The war- taxation will not be heavy?" suggested the interviewer, but the Ministerial attitude was "riot quite so sanguine as that of the Premier. "If this war goes -on for another 12 months, you calculate for yourself what it is going to cost New . Zealand. We have said about £300,000 a month, but that is not sufficient now. We must pay interest and ' sinking fund on the war loan, and also pur monthly contribution towards Belgian relief, amounting to £120,000 per annum: Out of our revenue there are pensions and provision for the ■ wounded. Profusion for this cannot be made out of loan, though it must be a heavy burden for many years to come. Then we must allow for lost Customs revenue through tho war. , Thus it is quite reasonable to hope that the taxpayer must pay more." "Can we borrow money cheaply?" "Yes, for war purposes. On/authority for* .borrowing is nearly up, but wo will squeeze through till the end of June. Then we must have a Loan Bill. We have been* materially -helped by the Post Office Savings Bank funds, for which the Government was to provide an investment. Public works requirements can easily be met for the next six months." l