The Press Thursday, May 16, 1918. The Duty of Saving.

Press, Volume LIV, Issue 16213, 16 May 1918, Page 6

The Press Thursday, May 16, 1918. The Duty of Saving.

Our Commercial Correspondent in Welvlington, in a telegram dealing with the ' War Loan, .which, we published yesterday, made two points which have often been dealt with in "The Press," hut which, we think, cannot be too Btrongly . emphasised. The first is that in floating the new loan of twenty millions intended to he placed on the market to- ( wards the end of this year, the Government should endeavour to tap new Sources of supply. ' The second is that it is the duty of every section of the community to economise in luxuries and begin to save up in .order to put money into, the War Loans. In regard, to the first point, there is no doubt that a much more vigorous and systematic attempt should be made to induce persons of small means to participate in the loan. The Government, as is pointed ont, could increase the sale of war certificates by adopting ti vigorous publicity campaign. This is advisable, as we have often urged, not only oh acoount of .the substantial addition which might be made to the War Loan, but for the sake of the small investors themselves, to whom it is of the utmost importance that they should provide themselves with a nest-egg to enable tl-eni to meet a possible period of stress after the war. AVe must again express our opinion that a mistake was made in limiting the subscription to the 6 per cent, taxable bonds to £500 for each subscriber. Theso appeal particularly to persons of moderate incomes, who are subject either to a small income-tax, or pone at all. Such persons are usually among the most thrifty in the whole community, and ought to ije encouraged to save, and put as much as possible into the War Loan. "We certainly do not see why any person who has been thrifty and patriotic enough to invest £500 in this class of security,, should not be allowed to dobble or treble his holding when the next loan is floated. The second point made by our correspondent is of even more importance. It is- that people who are not already doing so should begin to economise and

save up for investment in war loans,

r V. At. present many companies and individnals -who Have subscribed to the jp£«; v loans have obtained advances from their ity bankers for that purpose. In not a few iimtannea. had they not obtained such jfrgf could oofc hag?

taken up tbe stock. This means that unless they intend, as opportunity offers, to sell some investment to pay off the advance, they are mortgaging future savings for the loan, instead of putting past savings into it. Obviously this is not it process which can bo continued indefinitely without reacting unfavourably upon the community. In the first' place this creation of fresh bank credits means inflation, and this is perhaps tlio chief cause of the rise in prices of which we hear so much. In tho second place, if tho investments in tho loan are to bo drawn from the hanks, instead of from fresh savings made expressly for tlio purpose, tho result must bo to bring ribout a falling-off in tlie amount of loanable ' capital available for the development of the country and its resources. To save all they can and lend freely to the Government is tho imperative duty of all patriotic New Zealanders who are not able to go to the front, but who wish to help to win the war.