THE WAR LOAN

Evening Star, Issue 16211, 5 September 1916, Page 3

THE WAR LOAN

£700,000 FROM SMALL CONTRIBUTORS. A graphic idea, of the response made by the small investors in War Loan certificates is provided by the fact, officially stated, that from August 8 to August 31 a total of £661,688 12s had been invested in that form of patriotism. The figures for the various offices arc as under ; £. s. d. Auckland 83,435 16 0 Blenheim 8,303 4 0 Christchurch 100,355 12 0 Dunedin ... ' 82,012 4 0 Gisborne 11,808 ! 0 0 Greymouth 9,705 12 0 Hokitika 4,124 16 0 Invercargill 40.158 0 0 Napier 30,840 16 0 Nelson 22.730 16 0 New Plymouth 27,987 4 0 Oamarn 8,396 16 0 Thames 10,382 0 0 Timaru , v 28,271 12 0 Wanganui ... T. 33,827 16 0 Wellington 151.222 8 0 Westport 8,128 0 0 Total ... £661,688 12 0 On Friday the sales in the chief centres amounted to £39,000, bringing the total up to over £700,000 —a remarkable achievement for nearly throe weeks. IN THE EARLY DAYS. People have been so accustomed to New Zealand raising loans outside the Dominion that it is probable few are aware that the present war loan is not the first that wa-s raisediu the local market. The Auckland Star’ points out that old newspapers fur•u: hj some interesting facts of what happened m_;lie early days. ' In 1845 the Government were compelled to raise money by issuing debentures which carried interest at the rate of 8 per cent. At a time like the present, when people are subscribing freely to a war loan for which they will receive debentures and certificates, it is of interest to note that in 1845 debentures were forged, which resulted in a loss to the Government of £250. One man was caught, and sentenced to 10 years’ penal servitude for having forged a debenture for 20s. In those days people’s ideas were modest in the matter of loans. The Government had issued debentures for £6,000. The Government had to face a financial panic shortly afterwards, owing to the fact that the. Home authorities notified that they had, no authority to raise that £6,000 by the issue of debentures. The seriousness of the financial position may be estimated from the fact that the colony was staggering under the enormous indebtedness of £i4,000, and that the cash in the Treasury amounted to £l9 10s 3d. It was, however, true that the Government had a credit standing in the bank at that time of £3 Is 3d. Fortunately South Australia had a surplus of £6,000 that year, which was lent to the New Zealand Government to enable them to tide over the crisis.

In round figures ten and a-quarter millions have been subscribed to the war Joan to date. According to Mr Campbell (Secretary to the Treasury), of this amount £700,000 is in loan certificates, and the balance in bonds. Money is still coming in freely for certificates, the issue of which will be continued till the end of the year.