WAR LOANS.

Timaru Herald, Volume CVIII, Issue 16822, 30 May 1919, Page 8

WAR LOANS.

NEW ZEALAND'S EXPERIENCE. (Per Press Association.) WELLINGTON, May 29. Exhaustive reference to taxation and war loans was made'to-day by Mr J. G. Harkness in his presidential address before the Wellington, Chamber of Commerce. He said that the adverse °'^ sm re gnrding the raising of from ±-40,000,000 to £50,000,000 locally was' unwarrantable. Whatever opinions might be held on the subject it was a matter for congratulation, that the Dominion was in a position to help itself when the Imperial Government was burdened with the obligation of raising enormous sums for war purposes. It was, \e considered, unreasonable for this Dominion to expect assistance from Britain, in such a time df financial strain. .I.he policy adopted in Britain was to repay portions of loans out of revenue. It was practically impossible to place a heavy burden on the shoulders ol the taxpayer by immediate repayment, as that would mean the depletion of the capital required for' the development of our resources and * e expansion of oirr present industries. So hold that interest pavable on war loan investments should be subject to -income, tax was to overlook the fact that- without some inducement the money would not have been obtained. I o obviate that • difficulty . the rate of interest would have been increased which would be no good to the Domini ion financially. No one objected to the extra revenue raised by the Government during the past live years but, exception might reasonably be taken to the incidence of taxation and that the land tax had been' left severely alone, the contention being that it was a matter for the country settler to arrange. This, he maintained, was not a policy which was conducive to the best interests 1 of the community. . •