THE WAR LOAN.

Star (Christchurch), Issue 12086, 15 August 1917, Page 4

THE WAR LOAN.

MINISTER/'S EXPLANATIONS. FOB, POOR EQUALLY WITH RICH [From Our Correspondent.] WELLINGTON, August 14. While, explaining to the House this afternoon the provisions of the war loan prosoectus the Minister of Finance stated that he could not impress too strongly on the people of New Zealand the fact that it was absolutely essentia] that the iHl',ooo.ooo now sought should be provided. ' In referring to the issuo 01 fost Uitice war bonus ;u 0 per cent. lie expressed a hope that it would not' now be suggested, either in the House or in the country, that the Government was awing to beuelit largo investments by making the war loan one at 4i per cent free, of income, tax. The Government had done similarly to what had been done in Britain, Canada and Aus. tralia to raise the huge sums necessary for carrying 011 our share of the war. In answer to an inquiry, Sir Joseph Ward stated that ho would make provision for the necessary authority to enable any holders of certificates under last, years loan to obtain a transfer to now ten year bonds at 5 per cent if tiiey .■■■o wished. He would ask the House to authorise such transfers. The Minister went on to point out in regard to tho restrictions respecting the maximum amount to be invested by any one person Hi i'osu Uince v.'ar .jo.-us ami vi.tr loan certificates that he had found that one person had secured about £14,000 in last year's war (.eniacates in spite of the limit fixed. The object, <>f course, was to get an investment for money at. tho short period of five years. Dr'Thacker: You ought to put him on Somes Island. Sir Joseph Ward : Well I only want to call tho attention of the House to the insuring of the observance of those provisions. A declaration will have to be made by whoever invests in these small bonds that he is not an income tax payer. PiUVATE ADVANCES BY BANKS. Dr Newman asked if the banks. jvere likely to have an arrangement fir a fixed rato of interest by the banlts to people borrowing for the purpose of taking up the war loan. In England these facilities were given by insurance companies. Another suggestion was that the second half of tho war loau should be issued about March, when shearing and harvesting operations were completed and money was plentiful. Sir Joseph Ward replied that the banks had agreed to lend for war loan purchases at not more than o£ per cent. Insurance companies in England gave facilities voluntarily, and they would be encouraged in New Zealand. When members saw the taxing Bill they would find that people who had not done their duty in contributing to tho war loan were amply provided for. As to the suggestion'for the issuo of the second half of the war loan in March it depended upon the total amount of ex« penditure for war purposes actually paid out. At present it looked as il the money going to be raised now would last until tho end of February, and lie had no doubt the Government would be able to arrange for a month's accommodation, so as to ensure a plenty ful supply of money when the second half of the loan was floated.