FUNDS FOR WAR.

Auckland Star, Volume LXXI, Issue 152, 28 June 1940, Page 9

FUNDS FOR WAR.

NATIONAL SAVINGS.

INTEREST-FREE LOANS.

LARGE INVESTORS' SHARE.

(By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day.

That every citizen could play an important part in the war effort by curtailing his consumption of goods, avoiding waste and saving and investing every available penny in national security was one of the main points stressed by the Minister of Finance, Mr. Nash, in his Budget, in stating that special provision would be made for the general public to contribute towards the winning of the war. "In addition to loans in a form suitable for ordinary investors, provision will be made to enable the rank and file of the people to do their part by Bubscribing small amounts at regular or irregular intervals as best suite them,"' said the Minister. "This will be done through the introduction of a National Savings Scheme operated in conjunction with the Post Office Savings Bank. Each individual's contribution will l>e accumulated in a separate National Investment Account in his or her name and, if desired, will be convertible into National Savings Bonds."

Provision : for loan contributions by large investors would be made by the issue of loans with a currency of ten years or more in respect of which Government stock would be issued in the usual manner, he added. In the circumstances the Government considered that these loans should be regarded as contributions to the war effort from the material assets of those with property, and should accordingly be free of interest for a period of three years or until twelve months after the conclusion of the war, and thereafter for ten years at a rate of interest not exceeding 2J per cent. In this way the Government proposed to raise within New Zealand not only the money required to be expended in this country, but also some portion of the amount necessary to meet expenditure abroad, thus relieving, so far as was possible, the drain upon the resources of the British Government.

A start towards the provision of interest-free loans had already been made by generous voluntary effort on the part of many citizens, and to date nearly sufficient has been subscribed to balance the War Expenses Account to the end of last financial year. But that was not sufficient. It was not right that others equally capable of affording assistance should not make their due contribution. In this connection it was the intention of the Government to formulate for the consideration of the House a procedure under which all who had means would be required to assist by subscribing to loans for these purposes. Those who already had or who might in the future voluntarily lend money free of interest, might have the amount already subscribed taken into account in determining their total liability under this heeding.