FINANCING FOR WAR

Southland Times, Issue 23932, 26 September 1939, Page 8

FINANCING FOR WAR

NEW ZEALAND’S LAST EFFORT \ — MOST OF FUNDS RAISED BY LOAN In view of the amount of speculation over the financial measures to be adopted in New Zealand to meet war expenditure, and of the virtual certainty that as much as possible of the funds required will be raised from revenue, it is of interest to recount the measures taken in the Dominion during the 191419 war, says The Christchurch StarSun. Loan moneys then accounted for an overwhelming percentage of the total —in fact £68,500,000 out of total receipts of £69,086,000. The extent to which funds will be required now depends, of course, on the duration of the ,war, but the average yearly expenditure from 1914 to 1919 of £12,000,000 gives an least an approximate idea of what may be needed. Now, as 25 years ago, a War Expenses Account is being set up to handle all financial arrangements. v LOAN AUTHORITIES For this account in the financial year 1914-15 authority was given the Minister of Finance to raise £2,000,000. This was duly raised, and later loans brought the total at March 31, 1919— the close of the last financial war year, to £68,500,000. Expenditure for the first year’s operations of the account were £2,172,000, for the second year £5,938,000, for the third £14,392,000, for the fourth £17,014,000, and for the fifth £21,592,000. Total expenditure to March 31, 1919, was £61,106,235. At that date there was a credit balance in the account of £7,980,000, receipts having reached the figure of £69,086,000. Supplementary taxation adjustments in the Great War began in the year after the outbreak of hostilities, when 33 1-3 per cent, was added to the former rates of income tax, the incidence of which was extended to cover incomes derived from land and mortgages of land. The intention was to let increased taxation fall on those making increased profits from the sale of wool, meat and dairy produce. Additional Customs duties were placed on a number of import items, plus an almost universal primage duty of 1 per cent. New scales of beer duties, stamp duties and totalizator taxation were introduced; and charges for certain public services such as railway travel and post and telegraph services were increased. EXCESS PROFITS DUTY In the following year the principal item in additional taxation was the imposition of an excess-profits duty of 45 per cent, on excess income in the 191516 year, compared with the “standard” or average income assessed on previous years. Further, all incomes, subject to the usual exemptions, were taxed an extra 6d in the pound on assessable incomes up to £9OO and an extra 1/- on incomes over £9OO. Slight increases were also made in certain stamp duties. The excess profits duty was not reimposed in 1917 owing to insuperable assessment difficulties cropping up. But Customs . duties were again increased, beer duty went up again and tobacco manufactured in New Zealand was subjected to additional excise duties. Also in 1917 a new form of tax—the now well-known “amusements tax” —came into being as a wartime measure, but no alterations in taxation law were made during 1918.

MANY VOLUNTEERS IN PALESTINE

DIVISIONS ALREADY BEING TRAINED

(Received September 25, 7.10 p.m.) LONDON, September 24. More than 25 per cent, of Palestine’s Jewish population has registered for emergency service, either at home or overseas, says the Jerusalem correspondent of the Associated Press of America. This embraces 135,000 men and women, including 100,000 men of military age, representing 85 per cent, of those eligible. Several divisions are already being trained.

More evidence came today that Arabs in the Middle East, and especially in Palestine, have ranged themselves completely at the side of the British Empire in this war. The High Commissioner in Palestine (Sir Harold Mac Michael) reports he has just been entertained at Beisan by Sheikh Mohammad Zanati, who delivered an address of loyalty to the Government and to the Allied cause in present struggle. The guests, who numbered between 500 and 600. came from all the tribes and villages of Beisan and sub-districts and included members of municipal councils and other notable persons.