VICTORY LOAN

Press, Volume LXXX, Issue 24371, 25 September 1944, Page 6

VICTORY LOAN

THE PRICE OF WAR ADDRESS BY MR NASH “ The Press ” Special Service WELLINGTON, September 24. “So far as legislative enactment can provide, interest rates in the future are more likely to be lower than higher," stated the Minister of Finance (the Hon, W. Nash), when he gave a broadcast address on the Victory Loan position this evening. Mr Nash spoke of the lost lives and resources, the 8390 New Zealanders, for instance, who had paid the price in full. They gave all they had and lost it. Their wives, children, fathers and mothers, and other relatives would in sorrow and bereavement, even though sometimes tempered with pride, continue to pay the price, but all these human losses were less than half those experienced in the last war. when 16,302 paid the full price, and the total casualties were 58,000. The saved lives and lesser number of wounded in this war were caused by the more effective use of metel and materials other than men. All would agree that the saving in lives, which were unpriceable, could not be measured in terms of money, but it had increased the price of war. Both the cost and price of war must, declared Mr Nash, come in the long run out of the resources of the country, and the price in terms of money had totalled £380.000.000 to March 31. We expected this year to pay £133,000,000. It might be a little less, but, if so, there would be less to raise next year. It might be that we would have fewer men lighting, although we would have more in New Zealand to look after. Rehabilitation came in at this point, so what we did not spend on destruction we would spend on reconstruction to give the men who came back a chance to get back to where they would have been had they not gone away to fight. Obligation to State When we had paid national security and income taxes, we had, continued Mr Nash, discharged slightly less than half of the obligation we owed to the State, which was defending our families and property against the enemy. The larger the property the greater the required £2,000.000 a day during the remainder of. the time available for subscribing to the Victory Loan. Many reasons had been given for the fact that subscriptions so far had been less than normal. Some suggested that the interest offered was too low and that this might mean a fall in the value of securities, as happened after the last war. “In the last war," continued the Minister, interest rates in Britain ran from £3 16s 4d to £5 6s 5d per cent. In the United States they were 4 to 4J per cent., in New Zealand they were 3J to 6 per cent, but in this war no interest rate in any of these countries has exceeded s per ’ cent. The rates determined by policy for war and post war in Britain are at present 2J per cent, or short term and 3 per cent. for long term loans. In the United States the rates are 2 per cent, for short term and 2k per cent, for long term. In New Zealand our rates have been 2k per cent, for short term and 3 per cent, for long term, and so far as legislative enactment can provide these interest rates are likely to be lower than higher. I believe that money will inevitably be cheaper.” Another suggestion which had been heard, continued Mr Nash, was tha the Reserve Bank and the trading banks should find all the money. Anyone with experience knew the price which had to be paid for that and the chaos that had come to every country that tried such a disastrous method. Taxation Suggested “Some suggest additional taxation, but I suggest that the wisest course for anybody to follow, particularly foi those with resources, is to subscribe more to the loan. The more money by way of loan, if that money is in hand, will probably bring less, taxation at later times. There is no way to pay for war except by putting up the money either by taxation or by loan and that money, to be good money, must have goods and resources behind it, resources controlled by an individual company or corpqration. It must, in the long run. provide a transfer oi purchasing power from the lender to the State for use in feeding, clothing, and equipping the fighting man and his dependants.” . . The Minister declared, in conclusion, that New Zealand had never failed to keep faith. We did not fail in Crete when Alexandria was menaced. When the call came for extra men in Italy, our men went there. Off the River Plate our men fought in the Achilles and our cruiser, the Leander. did its work in the Red Sea. the Indian Ocean and the Pacific. Our Air Force had never failed. Our men in the Solomons. in the Treasury islands, and Nissan Island, never failed. The food our farmers raised was earned in ships whose men never failed and when, early in the war, taxation became heavy, no one grumbled. Britain had never failed us and held on with a debt of more than £20,000,000.000. America, with a larger sum, was spending more money to save itself and to save New Zealand. They had never'failed and, concluded the Minister, New Zealand had never failed yet. . RADIO APPEAL GOOD RESPONSE ON SATURDAY The radio appeal for subscriptions to the Victory Loan met with a good response in the Christchurch postal distnct on Saturday evening. Stations 3YA and 3ZB combined for the apEeal and broadcast from one studio, eaders from many sections of the community—business, and sporting interests broadcast to the members appeals to invest in the loan, and as promises were received on the 18 telephones installed in the studio for the occasion details were broadcast. When the final figures were made up £37.926 had been promised. An appeal has been made for early confirmation of investments. . , On Saturday £15,611 was invested, bringing the district total to £1,278,295. Investments up to Friday evening, with quotas in parenthesis, were:— Christchurch. £990.208 (£3,170.090); Akaroa, £9112 (£25.412): Amberley. £5328 (£21.536); Mid-Canterbury £78,859 (£383,170); Cheviot. £l2-129 (,£23,686), Culverden, £7117 (£12,768): Cust. £2988 (£6371): Darfteld, £11,194 (£22,563); Dunsandel. £2677 (£10.193); Duvauchelle £1579 (£3896); Hanmer Springs £3612 (£10344)' Hawarden. £6291 (£24,536)Hororata, £7745 (£14.741); Kaiapoi, £8334 (£58.707): Kaikoura. £11,533 (£38,745): Kirwee. £1335 (£4000): Lee sto n - Southbridge. £17.931 (£49.743); Lincoln. £4719 (£9618); Little River. £BI7B (£14.515); Lyttelton. £16.984 (£58,070): Oxford. £7501 (£26.004): Rangiora. £22.234 (£101.000): Sefton. £1955 (£7644); Sheffield. £3076 (£10.617); Tai T-mi. £996 (£6640): Waiau. £9299 (£13,617): Waikari. £12,910 (£17.768) DOMINION TOTAL £17,253,013 CANTERBURY RAISES 31 PER CENT. The amount subscribed to the Victory Loan up to Saturday was £483,965. making the total to date £17,253.013 Objective percentages obtained are as follows:—Southland, 63 per cent.; Auckland, 57; Otago, 47; Taranaki. 46; Marlborough, 45; Gisborne-East Coast. 43; North Otago. 42: Wanganui, 41; Manawatu. 37; Hawke’s Bay. 37; Northland. 37: Wellington 36; Nelson. 36; Btiller, 33; Waikato-King Country, 31; Canterbury. 31; South Canterbury, 30; ■Wairarapa, 30; Westland, 29; ThamesBay of plenty, 29.