GILBERTIAN FINANCE

Wanganui Chronicle, Volume LX, Issue 17060, 13 August 1917, Page 6

GILBERTIAN FINANCE

(To the Editor.)

Sir, —Probably the seriousness of the times has hidden the Gilbertian comedy contained in the speech of the Chancellor of the Exchequer. He offers to the rich man a loan which he says is equal to a 65 per cent investment (and so it is). "Come and invest!" To the poor man he says "Here is a safe-'4s per cent. I know you can get 6 per cent, on a sound mortgage, but be patriotic! If I offer a Higher rate," he says, " I shall put up the rate of interest in New Zealand." Surely his present scheme will do so equally, for the rich man or corporation will not lend at 6 per cent in view of the.attractions of this loan; while' the poor man, alas! has no say in the rate he has to pay. Why not at least offer part of the loan at 5^ .per cent, (tax payable) to people with limited incomes, making it convertible to tne 4^ per cent, at option?

An able committee has recommended that an additional duty shall be imXjosed on luxuries to reduce the importation and curb extravagance. Probably just as many luxuries would be bought, with much higher duties. But supposing there was a loss of revenue, would not five times the equivalent, in money be kept in the country and be available for the loan, or additional taxation ? The Chancellor says he is prepared to force loans from the wealthy. • Could he not devise a scheme for obtaining from the wealthy part oV what they now spend in luxuries? Other statements present similar anomalies. Doubtless the Minister has convinced himself by sound arguments, but he has not as yet propounded them to the " man in the street," who walks amazed.

SCRUTATOR