12 
LAND & WATER 
Januarj'- i8, 1917 
in twolvc yoais. Tlii? Rives a total yield of over 5I per 
cent. If wo have our stock retjistcred, inromc-tax will 
not bo deducted at the source ; so that if wc are not 
liable to the full rate of 5s. in the pouted, we shall not 
have the trouble of recovering from the Inland Revenue's 
{inp the s>nn by which we have been overtaxed. Or, if 
we prefer it, we can have a 4 per cent, loan at par, on 
wliich the income-tax is compounded. This loan runs for 
twenty-five years at most, or for twelve years at least. 
As the tax fs compounded at the full rate of 5s., it is 
onlv attractive to those who are liable to the full rate, 
and believe that during the whole jx-riod during which 
they will hold it, income-tax will average at least 5s. 
Then it is arranged that the stock of (-ither of these loans 
will be taken at their issue price in payment of death 
duties as long as it has been in our possession at least six 
months before wc become liable to this ghoulish but 
most equitable impost. And finally, a very ingenious 
arrangement has been devised for maintaining the market 
price of the stocks, so that we may be able to sell out, 
if we are obliged to do so, on advantageous terms. 
Every month one-eighth per cent, of the total amount 
of the two loans will be set aside by the Treasury to be 
used for buying' these stocks in the market, if their 
])rices should fall below the issue price. This setting 
aside process will continue until ten milUons have been 
accumulated, and will then cease until the fund has again 
to be drawn on for the support of the market. The effect 
of this measure is, that whenever the price of our invest- 
ment falls to a level that would invoke us in loss if we 
had to sell it, there will be a strong buyer in the market 
to help to hoist it up again. Everything that ingenuity 
can devise has thus been done to make the loan attractive. 
The rate is handsome (too much so, some people think)' ; 
taxation is made as convenient as may be, and the steadi- 
ness of the market in the stock has been secured by a 
new and very cunning device. 
Such an array of attractions held out to us to persuade 
us to do our plain duty of financing the war, is a 
damning mirror held up before the patriotism, in money 
matters, of us civilians. It is not comfortable to 
reflect that, when our friends and brothers are light- 
ing for us and getting nothing but a soldier's pittance, 
wo have to be offered so much to induce us to go 
without some of the comforts or pleasures of life, so that 
our champions may bo equipped to fight on our behalf. 
The least we can do is to make the heartiest possible 
answer to the appeal. Every one of us who lias any 
control over money and spending has to put every 
available pound into the War Loan, that is every pound 
that we have now in hand or are likely to have in the 
next year. Special arrangements have been made with 
the banks, for them to make advances to their customers 
who want to invest in the War Loan, and it is our busi- 
ness to take full advantage of these facilities, borrowing 
as much as we can see our way to repaying, handing it 
over to the Government, and then setting to work to 
save as fast as we can to pay our bankers off. It is no 
use to borrow and then leave the loan to take care of 
itself. \\'e have to save and go without things, so that 
the labour thus set free may bt; put at the disposal of tlie 
Government. We need not hope to make more out of 
the nation's need by waiting for a later loan at a higher 
rate of interest. 
Mr. Bonar Law told his Guildhall audience that the 
terms he is offering are as high as lie thinks justifiod. 
and that as long as he is Chancellor no liigher terms will be 
offered ; that if these terms fail, whicli they will not, 
" the resources of civilization are not exhausted," and 
that if other measures are taken the rate alio wed will not 
be 5 1 per cent. After this plain hint of financial c^m- 
pulsion, which was cheered by the Guildhall audience 
till those historic rafters rang, we shall only have our- 
selves to thank if by neglecting the opportunity now 
given by patriotism and profit, we lay oqrsclves open 
to less comfortable treatment. 
IBlhtteiTRU. ^.'SB. 
g<^ ^ x^oCl^^SC 
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