Financial News.

Auckland Star, Volume LXXI, Issue 309, 30 December 1940, Page 2

Financial News.

COLOSSAL SPENDING. BRITAIN'S WAR EFFORT. NOW £11,750,000 DAILY. British Official Wireless. (Roc. 9.30 a.m.) LONDON, Dec. 29. Commenting oil the announcement of the Chancellor of the Exchequer CSir Kingsley Wood) of the issue of two Government securities, the '"Daily Telegraph" writer: — "This latest issue serves once again to emphasise the strictness with which the authorities are adhering to their principle of a '3 per cent war.' "Moreover, it is a gratifying sign of the present state of public confidence that the Government credit stands to-day fairly substantially higher than a year ago. Since the start of the great savings campaign shortly after the outbreak of the war the rate of savings, as indicated by the volume of investments, astonished some investors. Nevertheless, the number must greatly surpass previous efforts in the quarter now closed.

"The average rate of national expenditure h;is risen to £11.7.50,000 daily. If this rate is merely maintained the total expenditure for the financial vear will be about £3,7.50.000,000 or £300.000.000 more than was estimated in the .Tuly Budget. Defence and A.U P. alone will have cost about £3.000.000.000, which is nearly .50 per cent more than was foreshadowed. That shows how enormous is the expansion in the cost of the war in this coinprlratively short period. There is no sign that we have yet approached the limit."