BRITAIN’S NEW LOAN

Greymouth Evening Star, 30 December 1940, Page 3

BRITAIN’S NEW LOAN

MEDIUM TERM BONDS. [BY CABLE—PRESS ASSN. —COPYRIGHT.] LONDON, December 27. Issue of a new British war loan to suit the needs of medium-term investors was announced to-day by the Chancellor of the Exchequer (Sir Kingsley Wood). Sales of new bonds will begin 1 on January 2, and they will be known as 3 per cent. Savings Bonds, 1955-65. They will be redeemed at par in 1965, or at par any time after 1955 if the Government gives notice. Sir Kingsley Wood said that the system of keeping loans “on tap” which was favoured by the Government, was also convenient for the lender. The two and a-half per cent 1945-47 loan had raised £429,000,000 in six months —a fine achievement. Since the start of the loan campaign in 1939 no less than £1,269,000,000 had been raised. ENORMOUS EXPENDITURE.’ ’ RUGBY, December 29. / Commenting on the Chancellor’s announcement of the issue of more Government securities the “Daily Telegraph” writes: “This latest issue serves once again to- emphasise the strictness with which the authorities are adhering to their principle of a “three per cent, war.” It, moreover, is a gratifying sign of the present ■state of public confidence that the Government credit stands tb-day fairly substantially higher than a year ago. Since the start of the great savings campaign shortly after the outbreak, the rate of savings, as indicated by the volume of investments, has astonished some investors. the - number must greatly surpass previous efforts in the quarter now closed. The average rate of national expenditure has risen to £11,750,000 daily. If this rate is merely maintained the total expenditure for the financial year will be £300,000,000 more than estimated in the July budget. Defence and air raid precautions alone will have cost about three thousand million for the year, which is 50 per cent, more than had been 'foreshadowed. That shows how enormous is the' expansion in the cost of the war in this comparatively short period'. There is no sign that we have yet approached the limit.