THE LIBERTY LOAN

Dominion, Volume 10, Issue 3177, 30 August 1917, Page 6

THE LIBERTY LOAN

! EXPLOITATION ALLEGED BANK AND SHAREBROKER PUBLIC TRUST OFFICE COMMON " FUND The terms under which, the banks will give accommodation to persons who desire to invest money in the AVar Ix>an wero severely criticised in a letter reßd to the- House of Representatives yesterday by Mr. H. Poland. The letter was satirical in tone, and in effect it accused a bnnk, unnamed, and a shavebroker, also unnamed, of lack of patriotism, and declared that they were exploiting the patriotism of investors. ,

Mr. Poland said he had received the letter from a well-known man in Wellington who desired to invest in tho Loan. Tho letter was dated August 17, and ran. as follows:—

Wanting to feol patriotic, I wae this morning' spurred on by tho receipt from a leadinj; firm ol' shaiebvokors of a patriotic appeal iuid a lot of matter (printed, l>y tho "nay, by the Government Printer) urging me and others to be patriotic and invest our littlo bit in New Zealand's second War Loan.

Haying, as I thought, >£3000 cash, I decided to do so. 1 also understood, per morning papers, there were available patriotic banks and sharebrokers espousing the cause, and anxious, in the cause of patriotism, to help us to do our little bit. So I called on the patriotic bank, where my cash was deposited at 31 per cent., and the patriotic bank' agreed, in its sense of patriotism, as per its patriotic arrangement ■with. His Majesty's New Zealand patriotic Government, to advance mo' .80 per cent, of the amount of my cash which the patriotic bank held, viz., Mm, at I 5i per cent. (2 per cent, more than the patriotic bank wae paying me), . provided I would deposit with it my ■ inscribed stock for .£3OOO, and pay it cash as well. That is, the patriotic bank had my .£3OOO for .ClO5 per annum interest; and out of it tho patriotic bank lent me ,£2400 for ■J2132 interest per annum, and had ' the benefit of my' .£6OO cash as well .' as the .£6OO di fference between my deposit and the advance, a little annual patriotic profit to the patriotic bank of .£72 without investing or risking one penny on this patriotic transaction. Where is the benefit to the cause or the patriotism of the bank? \ ■ I thought the patriotic eharebrokeis ■would answer this question, so I went to them. 'Their first question was: "Has Tour application got our stamp on it?'" I said "Why? It is a Goternniont form printed by the Government Printer." "Oh, yes," replied the patriotic sharebroker, "but we want to know if our office boy branded our official ' rubber stamp on it, otherwise wo don't get our commission." "Your commission!" said I in amazement. "Your commission on what?" ''"Why, on patriotism, of course. Giye us your cheque, we'll deduct our commission, the Ifinistor of T?inanoe will be happy, the public won't know. ATe'U all have a. drink, and sipg Rule Britannia," ■ I said, "Well, 111 bo —!" My money is still on fixed deposit at 3fc per cent., there is J63000 leec contributed to tho patriotic loan, and the patriotic band is one member short. / Mr. Poland asked the Minister of Finance Whether it was a practice ■ throughout tho country for brokers to demand their commission in this way. .Sir Joseph Ward said that if the honourable meinbor would get his informant to give the name of the bank and of tho sharebroker he would have inquiries made. The banks had agreed with the Government to make advances up to 90 per cent, at a rate, not exceeding 5J per cent. He could not say what was being done, but in tho raising of- the last loan he had heard of no complaint of any sort or kind made by anybody about banks or brokers. Tho banks had agreed to help in every possible way, and ho Ik•lioved the;; would faithfully carry ont their promise. As for brokers, they were entitled to ii half per cent., and lie did not believe 'that any sharebroker would abuse his position to got more. Ms. Browii: The brokers in Napier are doing it for nothing. Sir Joseph Ward: For the information of tho House I may state that I have "iven instructions for the establishment in the four centres—Auckland, Wellington, Christchurch, and Dunedin—of bureaux for general. information in regard to tho loan and taxation, and special arrangements will be made to erre this information to people calling at any of the post offices throughout the country. In Wellington the rotunda in tho centre of thennain hall of the post office, which has previously been used for the 6ale of stamps, is to bo used entirely for tins purpose. Wherever: it. is possible, from end to end of the country instructions will be given to somebody to give the fullest information about the loan. Mr. E. Newman asked the Minister whether he would consider tho question, of allowing depositors in the cornwon fund of the Public Trnst Office ,to withdraw their deposits and put their money into the War Loan.' He thought a good number of people would take advantage of the opnorhimity if it were offered. Sir Joseph Ward: J will be pleased to cive the matter consideration, ihe publie Trust is investing a very large ! sum of money in the loan-some. .£200.000 or £>50.flw£a«l it will be obvioue that ae the Public Trust Office is investing such a large sum it cannot permit withdrawals from the common funid. Air Newman: It would benefit JepoMtors in the common .fund if they could dO Sh°".Toseph Ward: I will l>o very glad to look into the point and give the Houso information on it later. FINANCE MINISTER'S STATEMENT BIG CONTRIBUTION BY COIIMBKCIAL TRAVELLERS. Referring to tho War Loan in the House of Representatives last evening, fair Joseph Ward said that some people had asked him to make public the names ot people who applied tor large blocks of the War Loan and the amounts applied for It was not possible for the troyornment to comply with that request. There could be no broach ot confidence regarding the contributions of any. person or company. If subscribers wished to have tho amounts of their subsonpttons made known, the Uovernmen would meet them in the matter, but t!?ero would bo no publication ol namcb or amounts without the consent of ° persons concerned. This bad been the rule in Great Britain in connection with W TheTinance Minister said he had arranged that the amounts eutowitad to the War Loan day by day• should bo made uvnilublo for publication in the various- districts. Thnt iniormahon 'vouid enable the public to learn what uroernss was beins made. Ho had received a communication from the Wellington Commercial. Travellers and Warehousemen's Association that, ae a result of an appeal made to tho members of that body, a sum of .£60,000 had been subscribed to tho War Loan on tho first ovohins. It was expected that the amount would bo materially increaaod He thanked tho members ot the association for the enthusiasm they had Saved, and hoped that then- example would'be followed elsewhere The Minister said ho had received a tclcrnm from Gernldine, stating thnt a. mcetin" of farmers there had passed a patriotic resolution and subscribed an immediate total of .£20,000 to the War Loan. He had received, also, a letter from tho headmaster of the Northland School, a small boy had brought his savings, amounting to sixty-four threepenny pieces, for investment in a»war certificate. The children were playing their part in providing the money needed to win the war.

HARBOUR BOARD'S CONTRIBUTION VOTES x-iO,m. On the recommendation of the Wharves and 'AccounUs Commitlee, tho Wellington Uarbour. Board last evening Uucideu iu invest tho sum of J;;iO,0O0 in tho Liberty Wai' Loan. The chairman said that tlio monuy would come from the "W'hak*riri" insuranco lund. Tho dredge cest M2,<M, and when it was purchased it was to have cost .£12,000 for insurance, but instead of paying it; out they lormcd au insurance fund, which now amounted to soino .£'21,000, out of which they pioposed to take tlic money for investment in the loan In answer to a question the chairman said that the money was held ia various institutions. The motion was seconded most heartily by Mr. M. Cohen, who said that it ivoukl 6et an example to other similar bodies. Mr. A. H. Hindmarsh raised tho question as to whether the board could rot invest more than ,£20,000, and he r.ski>d for information about the board's finances. Ho thought they should invest at least .£50,000. The board's secretary (Mr. H. K. Nioholls) said that he and the chairman had been carefully into tho matter and hud come to the conclusion that this insurance fund was the only fund they could trench upon. The rest of the money '.vms on fixed deposit, mortgages, and debentures. Other than these they had sonic X'ldOd fluid. Mr It. A. Wright supported .Mr. Hindmarsh in saying that arrangements could be made for money to be raised that would enable them to invest at least .£50,000. The moral effect had to bo considered, and he felt they should make an effort to make the amount J;50,flO0. Mr. Wallis also supported tho last two speakers. Mr. Harkness said that ho was behind no ono in wishing to mako the loan a success, but they had to remember that they were dealing with other people's money, and. later on, when tlip next anpeal was made, tlioy would still be able to invest a further sum of -£30,000, or even .C.i 0.000. Mr, M. Welch was surprised at the artion of Messrs. Wri.sht and Hindniarch. Fopin? that the recommendation of tho Wharves and Accounts Committee, of which they werp members, had been to invest only .CIO.OOO. _ ' On the motion beine put it: was carried without a. dissentient rote. AN INFORMATION BUREAU TO BE OPENED AT THE POST OFFICE. I The- secretary of the Post and Telegraph Department announces that an information bureau has been opened at the General Post Office fjr the purpose of affording all information to the public in connection with taxation and War Loan matters. j POSITION OF SECOND DIVISION MEN I SCHEME OP THE PURCHASE SUGGESTED.. By Telegraph—Press Association. Auckland, August 29. 1 The Citizens' War Loan Committee has sent the following -telegram to Sir Joseph Ward (Minister of . Finance):—"Men liable for service in tho Second Division are hesitating to assume liability for the War Loan. Can you provide for repurchase from bona tide soldiers requiring help of bonds th.cy may apply for now? Some provision is very important with an immediate pronouncement." COMMERCIAL TRAVELLERS' EFFORT ' UP TO £72,135. Up till la3t evening the contributions of individual niembers of tho Wellington Commercial Travellers' and Warehouse- < men's Association to the Liberty Loan amounted to .£72,435. Members are now confident of being able to make the contribution a round .=£loo,ooo. DUNEDIN INVESTMENTS .£43,000 FEOM THREE PERMS. By Telegraph.—Press Association. Dunedin, August 29. The following firms liavb decided to invest in the War Loan:—Halleustein Bros., .£10,000; Standard Insurance Co., .£23,000; D.1.C., 4:10,000. COMPULSORY SUBSCRIPTION "NO TERROR TO THE MAN WHO DOES HIS DUTY." The president of tho Associated Chambers of Commerco of New Zealand (Mr. James Macintosh) was interviewed yesterday on tho subject of compulsory subscription to the War*. Loan. Mr. .Macintosh favours compujsory subscription. This, he says, is a new thing,, and it is quite proper tl/at the Government should make subscription compulsory. If taxation was not compulsoiy few would pay taxes; and this is every bit as important as ordinary taxation. The laws oi! the -land carry compulsion with them, but only those to whom law and order are irksomo object. A while ago "compulsion" seemed objectionable to ufi, but it had beon applied to the securing of men for the reinforcements, nnd now. wa said that it was the only fair way to get men. , ~ ~ i •, "To put it iu ii nutshell," he said, "the law/ is no terror but to the evildoer, and this compulsory provision r.ne no terror to the man who doea his duty. It is only n, stick in the hands of tho authorities to compel those who would not otherwise do their duty: The Feildin? Drraids' Lodge is investing XSOO in the Wax Loan, states a Press Association messige. A Press Association telegram from Dunedin states that the directors of Kempthorne, Prosser, and .Co. e Jew Zealand Drus Company have decided to subscribe .£IO,OOO to the War loan. The Wairarapa Automobile Awociation is investing .£2OO in the Liberty L At n 'Geraldine stoclc sale yesterday two ot ttweo short speeches were made regarding the War Loan, nnd m response to the appeal forty among the farmers present subscribed X20,000.-Press Assn.