Internal War Loans Belligerent Countries

granting that the same degree of patriotism exists in all nations.
New Zealand passed a law in 1917 requiring subscriptions
to be made on the basis of income if total voluntary subscriptions
do not cover the amount required. The law provides
that taxpayers whose taxable income for the year ended
March 31, 1916, was not less than £700 were obliged to
subscribe an amount equal to three times the total amount
of Land Tax and Income Tax (exclusive of Excess Profits
Duty) for which they Avere liable under the Finance Act of
1916. If, however, any taxpayer to whom this section referred
had subscribed to the loan authorized by Section 35
of the Finance Act of 1916 an amount exceeding one and onehalf
times the amount of tax for which he was liable, the
amount so contributed by him in excess was deducted from
the amount for which he was liable to subscribe to the War
Loan of December, 1917, Holland has followed a policy
somewhat different. She has stipulated that if her loans are
not fully subscribed, individuals who have not subscribed in
proportion to the amount of property they own will be forced
to accept bonds bearing a lower rate of interest than the
bonds originally offered. For example, in the 4/-2% Loan issued
in December, 1917, it was stated that if the loan was not
fully subscribed, all individuals not taking bonds in proportion
to their property would be obliged to accept bonds bearing
only 3% interest. Compulsory subscriptions or "Conscription
of Credit" have been discussed in many of the belligerent
countries but the loans of New Zealand and Holland
appear to represent the only definite steps thus far taken in
this direction. Such a policy should not be confused with
the more frequently discussed "Conscription of Wealth." The
former presents nothing new except the method by which
subscriptions to war loans are distributed, while the latter
means confiscation of property of the individual for the uses
of the State. Theoretically "Conscription of Credit" appears
to be feasible, but difficulty might be experienced in its application.
Australia has provided that her fourth and fifth
loans and the 4}4% bonds of the sixth loan shall be exempt
from a possible "Wealth Levy."
It has been the aim of the various governments to make
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