MORE DEPOSITS

Press, Volume LXXVIII, Issue 23750, 23 September 1942, Page 5

MORE DEPOSITS

« —_ NATIONAL SAVINGS ACCOUNTS CHRISTCHURCH IN FOURTH PLACE Last week, the third week of the "Spring Offensive on the Home Front,” 73,477 deposits were made to the 307,192 national savings accounts now open, compared with 66,138■ in the first week, and 79,636 in the second week. The second week, however, included 15.000 deposits from the railways savings group, so that individual deposits in the third week show a substantial increase of 8841. Cash receipts from deposits (excluding sales of bonds) were considerably higher last week at £62,348 as against £47.242 for the previous week.

In announcing the results the chairman of the New Zealand National Savings Committee (Mr T. N. Smallwood) said that as was to be expected. there had again been several changes in the positions of the 18 postal districts. Wellington, which led in the first week '"d was third last week, had again taken first place, but only by the very narrow margin of .4 per cent, from Westport, which was now in second place. Last week the Christchurch district was first, with Auckland second. This week these two districts had reversed their positions, and Auckland now filled third place and Christchurch fourth place, being separated by .1 per cent, only. The Auckland district for the third week in succession held the record of accounts opened with 312 of the 1017 new accounts. Excluding 20,000 special group deposits unallocated, the North Island with 34,209 accounts used out of 191,257, again led the South Island with 19,268 deposits to 115,933 accounts, the percentages being 17.9 against 16,6. "My committee has often been asked why it is that such an active campaign as the national savings campaign should be conducted wheij there arc easier ways of raising money to pay for the war,” said Mr Smallwood. “The easiest ways are not always the soundest ways, however. Although funds from national savings are used for war purposes, (hey provide only a small part of the finance necessary to win the war. "War loans and taxation provide the bulk of the money spent in prosecuting the war and the importance of national savings lies more in the field of war economy. Taxation is a valuable counter in reducing spending on goods which cannot be replaced and national savings is allied with taxation, and there is a relation between both in bridging the inflationary gap between purchasing power and restricted goods and services. “While taxation and national savings are equally important from a national aspect, from the individual point of view national savings have a definite advantage in that they will be returned to the investors on a fixed date, five years from the date of purchase with national savings bonds and on June 30, 1945, with deposits in national savings accounts.”