COMPULSORY LOAN

Dominion, Volume 34, Issue 126, 21 February 1941, Page 9

COMPULSORY LOAN

Subscriptions Total £9,126,000 CASH & CONVERSIONS

Default Notices Issued To

Some Taxpayers

Subscriptions to the War Loan bv way of cash applications and conversions of free-of-interest loans total £9,126,000 to date. Making this announcement yesterday, the Minister of Finance, Mr. Nash, said that a total of no less than £2,600,000 had been lent to the Government interest-free, but of this amount £1,400,000 has been converted into the War Loan and was included in the £9,126,000. In addition to these subscriptions, 1100 Post Office Savings Bank depositors had assigned the interest on their savings for the duration of the war.

Mr. Nash explained that a number

of taxpayers had not appreciated their obligation to subscribe to the War

Loan and consequently default notices had bad to be issued. The position about members of the fighting forces in this connexion had already been the subject of a public statement. It was proposed to deal with such cases on the assumption that an appeal had been lodged and that, except where the soldier had an appreciable income apart from his military pay, exemption was being granted automatically. “In other cases,” Mr. Nash continued, “it seems that little or no excuse can be offered for taking no action in the matter. The Finance Emergency Regulations, 1940 (No. 2), provide for appeal on the grounds of undue hardship and the correct course for those who feel that contribution to the War Loan would involve such hardship is to lodge an appeal."

Mr. Nash said that lie fully appreciated the heavy demands which were now being made on the taxpayer because of tlie war and consequently the satisfactory response which had already been made was most gratifying and was stimulating evidence of the manner in which all sections of the community were facing up to the position and lending very effective aid to the Government’s all-in war policy. To ensure that the Dominion’s economy was kept in a sound condition, however, and in particular to avoid inflationary influences, it was necessary to reduce private purchasing power and this, of course, necessitated heavy financial demands on the individual.

“The majority of people have fulfilled their obligations, and iu many cases only with difficulty,” Mr. Nash concluded, “and I hope that the reminders which have been sent to those who should have subscribed but who have not done so, will bring a ready response.”