The Taranaki Herald. DAILY EVENING. FRIDAY, DECEMBER 3, 1915. FINANCE AND THE WAR.

Taranaki Herald, Volume LXIII, Issue 144853, 3 December 1915, Page 2

The Taranaki Herald. DAILY EVENING. FRIDAY, DECEMBER 3, 1915. FINANCE AND THE WAR.

In his interesting, though somewhat over long, address at the half-yearly meeting of shareholders of the Bank of Now Zealand to-day, the chairman of directors, Mr. Harold Beauchamp, naturally dwelt upon the financial aspect of the war and emphasised points which should not he overlooked. Wo remarked a few days ago that Great Britain, in a financial sense, is vastly stronger than any of the other Powers. She needs to be so in order to stand the strain of the immense calls upon her purse. Mr. Beauchamp pointed out that our enemies have a decided advantage over us in more respects than one. The contiguity and compactness of their territories, and the completeness of their, strategic lines of railways, enable them to move their forces in 'large numbers with great facility and at a minimum of expense. Their men am- all within at most a few hundred miles of their fighting fronts, while Britain ha&had. to hear the

expense' of transporting- great numbers of troops half round the globe. while the enemy countries are practically self-sup-porting and their army supplies are all close at hand, Britain has had to gather her supplies from all parts of the world. Again, British soldiers are better paid, better clothed, better fed, and better cared for in every way, so that the cost per man to Germany is only fraction of what it costs Britain. German munitions are made in Germany, within easy reach of the of military operations, while Britain has to transport hers over the seas, and to a large extent across the Atlantic. Germany is able to pay for her munitions with paper money, while Britain pays in gold, and depreciated gold at that, for the sovereign will purchase not more than nineteen shillings’ worth of shells from America. It will thus be seen that Britain needs far greater stoics of wealth to draw upon than Germany, and it is evidence of her immense financial strength that she is able to help to finance her Allies’ operations as well ns find the cost of her own. Britain, too, has to keep an immense navy at sea, besides, bearing the heavy cost of sweeping the North Sea and other seas for enemy mines and submarines, while Germany’s fleet for the most part has remained idle in the Kiel Canal. We showed the other day that Britain can continue to finance the war, even at the present rate, for a long time yet; nevertheless such warnings as Mr. Asquith sounded some months ago, and Mr. Beauchamp repeated to-day, should be heeded. Hugo as is the wealth of the British Empire, an expenditure of five millions daily, or £1,800,000,000 annually upon so unproductive an undertaking as war, cannot be maintained long unless economies arc made in other directions. New Zealand is in the extrerhely fortunate position of being able to continue “business as usual”; her principal industries arc being carried on with even more than usual vigour, and since her chief products are urgently needed and their values consequently very high, she is really making a larger income than under normal conditious. Many British industries, on the other band, are suspended in favour of the manufacture of war material, and consequently are unable to supply their ordinary customers. Sheffield, for instance, instead of manufacturing cutlery and other steel goods for sale to foreign countries, is now a vast arsenal. Thus the national income is reduced. Because, howevar, New Zealand is fortunate in this respect, that does not relieve ns of the necessity to economise in our ordinary expenditure. Our prosperity should help ns to bear a greater share of the general burden than we have yet done. At the same time it should not he overlooked that after the war the values of our exports ' may drop heavily, though Mr. Beauchamp seems to take a somewhat despondent view when he says the recoil may carry us to a point of depression as abnormal as that of the present inflation. It would he wise, however, for us to prepare for such a contingency by exercising close supervision now over unnecessary and extravagant expenditure in order that we may be in a better position to face whatever the future has in store for us. If good times continue we shall be the better able, to help the Mother Country if depression occurs there after the war.

Nothing throws a more lurid light on the state of mind of the people of the United States than tho excursion organised by Mr. Ford. Wo arc told that State governors, leading educationalists, heads of universities, manufacturers, and advocates of women’s rights are joining tho party. Those arc all people of some standing in the country, and most of them are far bettor educated than tho majority of their follow citizens. Some of thorn, no doubt, are pro-Germans, who hope to affect opinion in Allied countries by their action, but the majority are simply inspired by tho desire for peace and tho earnest wish vo stop- bloodshed. At first sight

it is amazing that they should hare so little grasp of the facts of th© war as to believe that there, is the slightest hope of a lasting peace being concluded at the present time. Germany would doubtless accept a peace on her own terras, but the Allies have not the remotest intention of granting any peace terms which would leave Germany the faintest hope of renewing tho contest for half a century. Amazement at the imbecility of these is our first idea, until wo remember that many people exist who are hypnotised, as it were, by ideas. For such persons facts do not exist, and arguments arc powerless. They aro often able men, like Sir. Bryan, but some factor seems missing in their mental outfit which prevents them realising that theories, however attractive, can never take the place of hard facts in practical life. "We shall watch with interest the doings of tho party oil tho Oscar 11. Tho statement that Mr. Ford proposes to go into tho trenches and order tho men to £o home is probably the exuberant product of tho mind of some American journalist, whom ono can hardly blame when such a magnificent field for conjecture lies open.

For the first time since the war began the Wellington Military District, of which Taranaki forms part, show's signs of failure to meet the demands made on it for tho next reinforcements. The military district has done magnificently in the past, and Taranaki better than anv other part of th© district. Taranaki is not going to fail now, onco the men who are available learn that the honour of the district is at stake and that they must enroll at once. There is no time for delay, as th© 11th Reinforcement is due in camp on December 14. Six hundred men are still needed for tho infantry, which means that a thousand men must offer themselves, so as to allow for medical rejections. Tho area office at Hawera docs not provide the press with any information ns to the numbers required locally, and the New Plymouth office is merely a centre for enrolling recruits, but it is an undoubted fact that every available man is needed at once. For Taranaki it is a difficult time for men to get away, with milking in full swing and ploughing for swedes going on. Some men are absolutely prevented from getting away for these or other reasons, but not a fow nro waiting till after tho Christmas holidays before offering themselves. To these an appeal is made to do tho hard thing instead of taking tho pleasant course. Parent© and friends would like to have the boys at home for Christmas, hut they also aro called to make the sacrifice. Auckland has already filled her list, besides subscribing a quarter of a million to the patriotic funds, and Taranaki will not bo behind. Tho wholo province will eagerly scan the papers during the next few days for the names of men who ar© going to join the 11th Reinforcements —the men who aro ready to make an oven greater sacrifice than those who have gone before.

At the Bluff on Tuesday Sir Joseph Ward, referring to the resolutions passed by farmers in regard to tho income-tax returns to ho furnished by them, said “ho was sorry to see these resolutions being passed. Evidently the farming community did not realise how well it had boon treated. Every other section of the community had been given largely increased income taxation without complaint. Sacrifices had to bo made, and money had to be obtained. Ho thought that farmers had the least cause of complaint, d.s, happily, for them, tho war had proved a remarkably good thing, and they were all doing remarkably well, largely as a result of it. The prices in New Zealand had gone up and since the beginning of the war even by 50 per cent, and 75 per cent., and the men who were getting tho largest portion of these inflated profits were the farming community. It might be i:n pleasant, but tho farmers must make sacrifices like tho rest of the country. Ho believed that tho average farmer was prepared to uo so personally. Tho £2,000,000 annual war taxation would, ho hoped, bo all that was required. Everything Hint tho Taxation Department could do to help tho farmers make up the income-tax returns would be done. Tho department would, where necessary, send out capable men to assist tho farmere in. order to enable them to make np returns. Farmers. like everyone else, must be prepared to make sacrifices, and he was exceedingly sorry indeed to receive copies of tho resolutions that had been passed by farmers during the past few days.’’ It seems to us that Sir Joseph Ward has failed to see tho point of the rysolutions. He seems to think the fanners seek to evade taxation, but so far as we are able to judge tho Taranaki farmers have no such desire. Some indeed we have spoken to declare that they would readily pay double the tax they may bo liable to under the Act. Their objection is to being called upon under a heavy penalty to furnish particulars which they do not possess and which they cannot possibly give with any degree of accuracy. A fortnight’s extension of time will not help tnem, nor can tho department give them milch assistance unless it is by telling them that if no records have been kept estimates will bo accepted. The average dairy farmer in North Taranaki will not have to pay tho tax, because the exemptions allowed will amount to more than his income, but he is put to all tho trouble just the same as if his income- were .£IOOO a year.

English and American mails, via ’Frisco, will arrive here to-night. Mails dispatched from here on October 13 arrived in London on the 26th ult. (two days late). At Mangaweka yesterday A. K. Coventry, E. King, H. Floyd and A. Lohs, for not returning personal service in compliance with the Defence Act, were each fined £5. Floyd was deprived of civil rights for three years. A pleasant reminder of visits to tho circus comes in the shape of a Christmas card from the Winh Brothers, of Melbourne. It contains a photograph of a performing seal on the back of a piebald pony, a most appropriate subject in the circumstances, Tho ladies’ committee in charge of the afternoon lea at “Aotea” on Sunday will bo very glad of contributions of cakes, scones, etc., which may either bo brought to the grounds on Sunday or left to-morrow at Messrs. Bole Bros.' shop, Devon Street. To-morrow will be Christmas Cako Day at tho Red Cross Market. There is every indication that there will be a largo stock of cakes, and these no doubt will meet with a ready sale. Two of the cheeses from Puniho will also be on sale, and tho luro of £l4 10s (concealed in the six cheeses) should prove irresistible to purchasers. At the Central School Carnival_ on Thursday an interesting competition, which was responsible for much enjoyment, was tho discovery of “Abe Potash.” A certain gentleman was set down as “Abo Potash” and tickets were sold to people, who were required to seek the gentleman. They could accost anyone, and on discovering the man they would receive half a sovereign. Th© winner was Bracken Wilson, who found that Mr. J. W. Hayden was posing as “Abo.”

A very pleasant evening was spent at th© feast End on Thursday night. Tho Mayor mado a presentation 1o Trooper A. Hardgrave on behalf of tho committee. His Worship made a few remarks, which were vociferously applauded, and Trooper Hardgrave suitably responded. During tho evening items were given by Mrs. E. Croot, Miss M. Danks. Captain Allen, and the two little Misses Ilurle, which were much appreciated. For some time past the ferry steamer Mararoa, which is always considered a very consistent steamer as regards steaming, has been keeping rather-er-ratic time. The vessel was dry docked at Lyttelton for cleaning and painting, and the cause of tho trouble was then discovered. A piece of 6iu, rop© was found wound very tightly round the shaft between the propeller and stern tube. The ropo was jammed so tightly that it took some strenuous work to dislodge it, and it had to bo cut away in small sections. Palmists aro reaping a harvest just now (says the British Weekly). Women worried about their husbands or lovers, officers on tho evo of going to the front, overcome with forebodings about their fate, come in a steady stream to tho discreet little rooms dotted about the West End, where Madame This and Mademoiselle That practise their cunning trade. There is something especially obnoxious about tho business in war time. Not infrequently tho soothsayer will convey the idea. That a terrible destiny awaits her client or the client’s loved ono. A gloomy event is prophesied for a certain time, and the client is urged to return for further advice.

M i find that there ar© to-day in England 700,000 more acres under clover and rotation grasses than there were m 1895, and 600,000 acres fewer of other land under tho plough,” stated Lord Selbornc in a speech at Bristol recently. ‘ ‘Added together, it shows that there are 1,800,000 acres less of arable land in England to-day than in 1895. What is wanted in tbo present emergency is to increase tho arable land. *Wo should plough not only for cereals, but for meat. \Vhat .1 want is meat, bacon, milk, choose, wheat, oats and potatoes. I next appeal to women to help the farmers, and I ask tho farmers not to bo so shy of making use of the women. It is most necessary that our home-grown supply of meat should bo preserved. We have begun th© second year of the war with a larger total of head of cattle in England than we have ever had before. 1 ask the farmers to set an example to the trade unionists, and I make the same appeal to xhe landlords. Depart from customs in which you are rooted. 1 I ask the landlords to helj* the farmers in time of war hv relaxations, if necessary, for which there will'be no necessity in times of peace. I ask the fanner to root himself out of his time-honoured habits and customs, and show England one© moro that in time of a great crisis he can set an example which may save the country.”