The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. FRIDAY, FEBRUARY 18, 1916. WAR BURDENS.

Southland Times, Issue 17660, 18 February 1916, Page 4

The Southland Times. PUBLISHED EVERY MORNING. Luceo Non Uro. FRIDAY, FEBRUARY 18, 1916. WAR BURDENS.

Mr Asquith’s statement in the House of Commons foreshadows additional heavy taxation. The war expenditure is rated at £5,000,000 per day and at that figure it is likely to stand. Mr Asquith holds out no hope of any reduction in this huge bill, which the nation must make up its mind to accept and to meet. The next British Budget will, therefore, contain proposals for additional taxation. No doubt the income tax will be still further increased. Last year the exemption was lowered from £IBO to £l3O. The tax was increased so that an income of £2OO, which formerly paid a tax of £3. last year paid a tax of £7 4s, and for the current year will pay a tax of £8 Bs. On'an income of £4OO the tax under Mr Lloyd i George’s Budget of 1915-16 was £18; under last year’s Budget the tax was increased to £25 45,-and the scale provided for a further increase of £29 8s for the financial year which begins in May next. On incomes over £3OOO a very heavy tax and supertax were imposed, but no doubt under, the stress of continued war expenditure the rate will be still further increased. Then, as the Government is

insisting with even greater emphasis upon the necessity for economy and particularly for the restriction of imports, a substantial increase will probably be made in customs duties. Last year a duty of per cent, ad valorem, or specific duties at that rate, was imposed upon imported motor cars, motor cycles, cinema Aims, clocks and parts, watches and parts

and musical instruments, and increases were made on sugar, glucose and

molasses. The tax on motor spirit was increased by 3d per gallon, and a 50 per cent, increase was made in the previous duties on tea, coffee, cocoa, chicory, dried fruit and tobacco. The Chancellor of the Exchequer has not been sparing upon the British taxpayer. While it is necessary for Britain to borrow and to borrow heavily, she is still providing for a large part of the war expenditure from revenue. In none of the dominions is direct taxation so heavy as it is now in Britain, and we in New Zealand arc certainly getting off very lightly. In fact the question that it is now necessary for us to consider seriously is whether we are doing all that we ought to do in view of our financial position and of the heavy burden which the Mother Country is carrying with such splendid courage. According to Mr Allen New Zealand s war expenditure now considerably exceeds £500,000 a month. Probably the annual expenditure approximates to £7,000,000. What proportion of this sum is the dominion meeting from its own resources? What proportion ought the dominion to meet? At the present time we are paying our war bill by borrowing from Britain at a rate of about £6,000,000 a year, in other words we are doing nothing to lighten the burden upon the British taxpayer, but are increasing it. References have been made at Home, in terms of gratitude, to the assistance which the oversea dominions have given in this war. The magnificent troops that have been sent out from these countries deserve everything that is said in their praise. These troops have rendered service to the Empire in this crisis to their fullest capacity and their consciences are clear.

But what particular service has the non-combatant population of this country rendered? A vast quantity of produce has been sent away which has been used in Britain to make clothing for the soldiers, to feed them and to provide them with equipment, but for all that produce Britain has paid extremely high prices, sp high that as between 1915 and 1913 there was an increase of almost £9,000,000 in the value of New Zealand’s exports. For what the British consumer has paid for, and paid for handsomely, no gratitude is due to us. In what other way have we rendered assistance? Of all the money that New Zealand has borrowed since the outbreak of war only £2,000,000 was raised within the dominion —this local loan, which we might otherwise have obtained in London, is the measure of our selfreliance. With the value of our exports at a figure unprecedented, with the margin between deposits and advances at the banks also unprecedented, with a general level of direct taxation lighter than that imposed in Britain, Is it not a shabby thing to dip so deeply into the British Exchequer? We are aware that the question is not an easy one, and that both Sir Joseph Ward, the present Minister of Finance, and the Hon Jas. Allen, his predecessor, advocate strongly that as far as possible the dominion should raise what loans it requires iu Britain, but we are looking at the matter not so much from the point of view of the expert as with a view to answering the question, what is a fair thing in the circumstances? Here we have the Chancellor of the Exchequer increasing British taxation enormously. We know that the Allies have to rest upon Britain, and that Britain has to provide not only for her own requirements, but for those of her friends as well. We know that the British people are being urged to practice rigid economy in order that they may assist the State through a difficult time. We know that so far as we can avoid asking the British Government for money the Imperial purse is relieved to that extent, and though £5,000,000 only defrays the cost of the war for a single day it is nevertheless a considerable sum. Is it not a fair thing that we should reduce our call upon Britain to a minimum? That w r e can pay half our annual war bill without any inconvenience is not open to doubt; the dominions trading and bank retnrns are convincing proof on that point. We are aware of the views held by Sir Joseph Ward and Mr Allen, hut it seems to us that the time has arrived for a modification of those views, and we trust that during the next session the Minister of Finance will submit proposals for increased taxation (and particularly taxation upon war profits), which will enable New Zealand to discharge out of revenue a very large part of its annual war bill, and provide ways and means from local sources so as to reduce the call upon Britain to a comparatively small sum. There is no part of the Empire better able to pay its way at the present time than New Zealand, and it seems to us a matter for great regret that more is not being done iu this direction.