WAR LOAN.

Waipawa Mail, Volume XXXVII, Issue 7916, 9 August 1917, Page 3

WAR LOAN.

LEGISLATIVE COUNCIL CRITICS. WELLINGTON, Last night. When the War Loan Bill came up for discussion in the Legislative Council, the Hon. J. T. Paul said he felt it his duty to protest against the terms upon which wealthy people could invest in the loan. The Government was surrendering the people to the financial institutions of the country. The Budget had given it forth that everyone was to contribute according to his means but tile Loan Bill did not bear this out. The income tax graduation stopped at £6400.

“What in the name of Heaven is the use of talking about patriotism,” said Mr Paul, “ when wealthy men are putting their money into this loan? It is not patriotism at all. I do not believe we are adding to the lustre of the history of the Dominion when we are putting forward something like this.”

Continuing, Mr Paul suggested that the new loan should have been raised in two parts, one part to be invested in free of interest. They would then be able to see if there was anything at the back of the patriotic talk of the wealthy people of the Dominion. He believed that there were wealthy men who would invest in the loan apart from any freedom from income tax.

The Hon. R. Moore disagreed with the previous speaker. The suggestion to make a portion of the loan free of interest was absurd. Would the hon. member give up his salary as a Legislative Councillor? Mr Paul: “I would if I could afford it. I will tell you what I will do though. I will give half of my present wealth if you will give half of yours. ’ ’

Mr Moore (laughing): “Qh, I have heard an offer like that before.” The Hon. Mr Eamshaw said the Government was making a grave blunder in giving this gilt-edged security to the wealthy institutions of the country. It would have been much better had the Government increased the rate of interest in the loan and kept the income tax exemption out of it. He would not have objected to the loan even if the duration of the investments ended after the war. The Government were being bullied by the financial rings in the Dominion. They had to do what they were told. This was the plain English of it. No man could say there was equality of sacrifice in’the present state of affairs. Sir Francis Bell said the majority of the money to be invested in the loan would be capital put in by banks representing money held in trust. The money was accumulated funds of insurance companies and money belonging to the Public Trustee. Tile tirade against the War Loan Bill arose from the delusion that every wealthy man had an income tax of £6500 a year. As a matter of fact the man who owned £50,000 and who invested in the War Loan would lose. He could get a better return by investing at 5f per cent, elsewhere and paying income, tax. Further, it would be unfair in view of the loan already raised to make the new loan on different terms. Tile Government had made mistakes, possibly this was one, but mistakes were inevitable as this was a time for prompt action by the' Government.

The bill was put through all its stages and passed.