WAR FINANCE.

Ashburton Guardian, Volume 60, Issue 36, 22 November 1939, Page 5

WAR FINANCE.

BRITAIN’S BORROWING SCHEME. BONDS AND SAVINGS s CERTIFICATES. (Received This Day, 10.20 a.m.) / LONDON,' November 21. In a statement on the Government’s borrowing programme, the Chancellor of the Exchequer (Sir John Simon)-told the House of Commons that the date had not yet arrived for the issue of the loan on the open market. He announced, however, that two securities would be on sale from to-morrow morning. This had been designed to enable all citizens, even of small or very moderate means, to make their contribution. The first of these would be a new issue of National Savings certificates to i assist to finance the war. They would replace the current issue of savings .certificates henceforward. - Tire new issue would be on exactly the same lines as the present certificates, which had behind them a successful career of oyer £{) ( years. _ The purchase price of the new certificates was unchanged at. 15s, but the interest would be slightly increased, so that the certificates would accumulate ,to 17s fid after five years and t0.20s fid after the full period of 10 years. $ Tile, second security on sale • -to-mor-row would be known as the Defence Bond and would be purchasable in units of £5. If would be issued at par nnrT would bear interest at 3 per cent. The 7 National Savings certificates would be exactly on the same lines as at present and would carry the same benefits like exemption from income j tax. , The Defence Bonds would be of a novel kind and would enable those holding a maximum of 500 certificates to continue to lend money to the State. Interest on. the bonds would be subject to income tax, but the tax would not be deducted at the source. Individuals would not be permitted to hold oyer £IOOO worth of bonds. The Defence Bond will be repayable in seven years from the day of purchase at a premium of 1 per cent, if not cashed before.—British Official Wireless.