FOR WAR LOAN

Auckland Star, Volume LXXII, Issue 205, 30 August 1941, Page 9

FOR WAR LOAN

£100,000 INVESTMENT

THE PATRIOTIC FUNDS

A decision to invest £100 000 of func » s in the Government's t N a -i r , Loan u ' as reached V 3 at a meeting of the ciHasf nl-hJ' 0V \ nCial PatrioUc Council last night. A sum of £50.000 is to be placed in the five vears 2i ner cent issue, and the balance in the lo >ears 3 per cent stock. By its action the council rejected a recent lts slanclin S committee to r'u,® /. he n ?,? ne >" in the Auckland ( ol J ncil s waterworks loan which is for CO years at 3J per cent. l lie chairman. Mr. J. A. C. Allum uiged that approval be given the standing committee's decision lie said the provincial council had decided that 80 per cent of the money subscribed to July 31 for the Fighting forces Fund campaign should be placed in a separate rehabilitation fund account. It naturally followed that the money should bo invested His own proposal at the standing committee's meeting was that £100,000 should be invested in the new War Loan at 3 per cent. However, when he was informed that the City Council would have available a loan of £125,000 at 3i per cent he at once agreed that the money should be invested in this as a more advantageous loan. Availability of Money Mr. Allum made it clear that, whether the moncv was invested in the council loan or the War Loan, its availability would be the same. The money was not invested for the term of the loan, but only until funds were required, when the debentures could be readily sold on the market.

It was the view of the deputvchairman, Mr. I. J. Goldstine, that the War Loan was the more advantageous. and he moved an amendment to request the standing committee to cancel arrangements made and subscribe the sum to the Governnient War I.oan for the 13-year period. By doing this subscribers would be given the double satisfaction of knowing that their monev was being used to help the service men and women and also to promote the country's war effort.

1 he question was debated for two hours and a half. Opposed to the view supported by many of the country zone representatives that the money had not been raised for investing, was that that investment was the best means of securing the men's interests. Further Amendment Carried Mr. Calder Mackav suggested that the position would be met by placing £50.000 in the short-term war loan and the remaining £50,000 in the long-term loan.

Although Mr. Goldstine offered to withdraw his amendment in favour of this proposal, it was decided that the amendment should be voted on. It was lost and Mr. Mackay's amendment was then seconded by Mr. Goldstine. This went forward as a further amendment and was carried on a division by a margin of two votes.