Ashburton Guardian Magna est Veritas et Prævalebit TUESDAY, JUNE 12, 1945. ECONOMIC STABILITY

Ashburton Guardian, Volume 65, Issue 205, 12 June 1945, Page 2

Ashburton Guardian Magna est Veritas et Prævalebit TUESDAY, JUNE 12, 1945. ECONOMIC STABILITY

There are several aspects under which the Victory Loan now 'before tihe people of New Zealand may be discussed, not the least important of which is the economic. In time of war, when the incomes of the people are enlarged and when the need to concentrate on war production limits the quantity of consumer goods, the clangers of inflation are ever present. The large volume of money in the pockets of the people becomes an embarrassment, and if damage to the country’s economy is to be avoided and if the people themselves are to be safeguarded against the suffering that follows inflation, money must be drawn off from channels where it cannot ,usefully be employed. By subscribing to war loans and to national savings the people relieve the pressure on the limited goods and services available, help the •Government to meet in the soundest way the financial and other obligations into which it has entered on their behalf, and build up for themselves a nest-egg of savings for more profitable use when goods and services become freely available. This country is still faced with the necessity of concentrating largely on production for war purposes. For a time fo come there will not be sufficient consumer goods to absorb all the spending power, especially in view of the fact that over a wide field there has been a considerable increase in spending power. If this is not to lead to the undermining of economic stability by inflation a great part of the surplus must be saved —put aside for the time when there are more goods to buy. Otherwise there will be dangerous pressure on a limited market and buyers themselves will not have the best value..ln the interests of the nation and of the people themselves, therefore, a | full response to the Victory Loan is essential. A maximum subscription by all is a duty and saving is common sense.