MAXIMUM SAVING URGED : CAMPAIGN TO BE INTENSIFIED

Gisborne Herald, Volume LXXV, Issue 22721, 20 August 1948, Page 7

MAXIMUM SAVING URGED : CAMPAIGN TO BE INTENSIFIED

(P.R ) WELLINGTON. Aug. 20. “I wish to emphasise the necessity m present circumstances lor adequate savings,” said the Minister of Finance, Mr. W. Nash, in his Budget speech. "There is an important responsibility on the community. To the extent that the public makes savings available by subscription to Government loans, by increased deposits in national savings accounts or in the Post Office Savings-bank or in trustee savingsbanks, it exercises an anti-inflationary influence and permits the continuance of those many development works, known in economic terms as “investment,” which, whether prompted by public or private interests, are absolutely essential to Increased production and to maintenance and raising of the general standard of living. “In limes of depression there is usually excessive saving and inadequate investment, but at present the reverse tends to be the position, and it is essential that the community seriously considers whether it is not devoting too large a part of its income to current consumption. “It is intended to intensify the drive for increased savings, and I would ask firms, businessmen, farmers, and societies and individuals with money suitable for investment to assist to the utmost in this matter. Through national savings and Post Office and trustee savings-bank accounts all workers can play an important role because their savings in the aggregate can become considerable-

“Including the Post Office and trustee savings banks with national savings accounts and bonds, the increase in savings of the community in recent years have been:— £(m.) 1942- 16.75 1943- 24.54 1944- 23.49 1945- 22.83 1946- .. .. .. 14.48 1947- 5.57

“The accumulated balances of all “small” savings at March 31, 1948, amounted to £223,493,000. "The recent marked downward trend of these figures will be noticed. No doubt that trend had relation to the considerable increase in imports and expansion of manufacturing and other production within the Dominion. The indications are for some improvement in small savings, and with greater popular support, that improvement will be maintained and expanded.”

Industrial Imports’ Priority Stressing the need for increased production in the course of his Budget speech in the House of Representatives last night, the Minister of Finance, Mr. W. Nash, said that the great need for New Zealand dairy products, meat, and wool which existed in the Homeland and elsewhere presented a challenge which we should meet. “The urgent need of others is in this case reinforced by our own need to provide the maximum quantity of exports in order to pay for much needed imports,” he added. “We must obtain for our industries the best possible capital equipment. In the manufacturing, primary, and construction industries increased horse-power through mechanisation brings increased production. The Government is making provision to supplement this need for machinery by the development of hydro-electric resources, and a high priority is accorded to industrial equipment in the allocation of import licenses.”—P.R.