The Grey River Argus MONDAY, May 14, 1945. VICTORY LOAN.

Grey River Argus, 14 May 1945, Page 4

The Grey River Argus MONDAY, May 14, 1945. VICTORY LOAN.

No country engaged in the War has .financed its campaign more successfully than New Zealand. The fact that .it . has been spared destruction which other lands have suffered may enable citizens to invest more than they otherwise could, but meantime experience has taught them that lending for victory has been the most payable proposition that has 'been, possible in wan time. There is admittedly a great deal more money about than in pre-war times, and it has been. a. potential danger, but the fact that the Government set out to keep down the wqr debt to the utmost doubtless induced the public to co-operate on': the lending front, and thereby limit very greatly the risk of inflation. One effect has been to keep down the cost of living in such a degree that everybody participates still in a comparatively fair standard of living after nearly six-years of warfare. Had a prophet six years ago foretold what the country was destined to do in the way of war finance, he would have been told that il was an impossibility, whereas funds are such that the Victory Loan can be easily floated, and nobody will be any the worse off. whilst a great many will be much better off in the final reckoning. When the issue opens to-day it is hoped that of the twenty-five millions, twelve or thirteen millions will be as good as raised, which is itself a proof that investors are even better satisfied now than they wore at any previous stage of the wav to plank, their money down quickly. The subscriptions running into many millions which have made - a success of every previous loan have in the event proven the best buttress for the security of the nation, for they have simply helped towards the victory which renders the future return more certain than ever. The rate of interest might not compare too well with those of pre-war days, but it will compare favourably with, post-war rates! For a much longer period than the Avar’s duration, interest rates have been scaling down all over the world, and they are going to stay down. But the main question is not what profit- is immediately to accrue. The vital point is everybody in the country who can afford anything ought to have as good a stake as possible in the Victory Loan. Not only will this assist the transition to a peace basis internally, but it will be one more demonstration, for all of the United Nations that if the Dominion has fought as hard as any for freedom, it lias done so with a confidence equal to any that the fight will bring greater prosperity as well as greater liberty. The loan nevertheless requires that each and every class shall invest. If there are those who already have contributed largely to past loans, there are still many who are in the position to make this time a decidedly bigger investment than they have yet made. This is their opportunity. The committees in each district have a real 'job to do, aud if the citizens will lose no time in subscribing as well as they are able, the task will eased,' and also belter distributed. In years to come, the savings represented for the investors will go to procure a much greater return than now would be obtainable by the way of goods or services, which must remain for some time relatively limited in volume. Not. even when the final shots divert energies to the interest of consumers, but only when the. decimated countries are somewhat restored will the purchasing power of money rise steadily. Meantime (he State must meet its com-1 mitments, and to the extent that! the loan avails will it be possible] to hold taxation at the present levels. There is indeed every

justification for over-subscriping this loan, whereas there is absolutely no argument for those who can subscribe to hold back at all.