Manawatu Evening Standard. THURSDAY, DECEMBER 6, 1917. THE VICTORY WAR LOANS.

Manawatu Standard, Volume XLII, Issue 1031, 6 December 1917, Page 4

Manawatu Evening Standard. THURSDAY, DECEMBER 6, 1917. THE VICTORY WAR LOANS.

Thk war is teaching us a much needed lesson in t-Jic matter of national finance. IJhc self-reliant policy propounded by tlie .Hon. John liallance in the early nineties of the last century failed to materia list-, probably because we never had a Colonial Treasurer, or Minister •of Finance (as we have since come to call the official head of the Treasury), who was bold enough to put it to the tent by raising an internal loan. True, under Sir Joseph Ward, Treasury bonds wtoo .sold over the counter, and large siims of money on deposit at the lost Office Savings Bank were invested in Government securities, but no attempt was made to place a loan of any extent on the local market until alter the tormafuon of the National Government, when the feasibility of raising money in New Zealand lor war purposes first came under serious discussion, and the loan of 1916 was floated. Its,«M was siuch as to justify the belief that we had reached that stage in our national existence when we could undertake to finance most, it not all, of oui national, enterprises. Tbe loan of sixteen millions raised last year has been followed by the Victory Loan of last year tlie larger half of the twentyfour millions required for war purposes having already been subscribed, leaving a balance of ten or eleven millions to be raised in March next. ISew Zealanders have surprised themselves with the facility with which these sums have been raised, all classes of the community having taken a band in subscribing tbe amounts required. In this, however, we have but followed the example Of Canada and the Commonwealth Government the sister Dominions having adopted the common policy of, as tar as possible, financing their share or the cost of the war from moneys. available locally, thus freeing the Mother Country from the necessity of providing the funds, and enabling her to help tbe : smaller States that have been drawn into the maelstrom of war. Ihe latest War Loan (they are all spoken Of as "Victory" War Loans) is that raised bv Canada, totalling over eighty millions sterling, and said to be the record breaker, in the matter ol individual subscriptions, to date. Our Canadian friends, if that is the case, have done remarkably well. Relatively, however, New Zealand will do better, if we raise the balance of the £26,000,000, which parliament has authorised as the amount of our 1917-18 "Victory" loan • Canada has a population of seven and a quarter millions to work upon, | whereas our population is only a little lover one million. On the actual results, : we could probably make a better showing allowing for the difference in population. But, if we are to continue to hold the small investor, and to increase (the number of those who take up War Certificates, the loans ot the future

must bomhilo morn attractive. A promise to pay, in live .years, tho sunt of 20s for every sixteen shilling invostrd, docs not ofTor to tho average man ot small means tho inducement that is needed. Ho doesn't like to feolth.it his money is locked up for that period, and thai he has nothing coming in to show for it. II the War Certificates wore ottered on similar terms to the War Bonds, ihat is, subject to the interest being paid half-yearly, it would probably help matters. To popularise tho sale of these Certificates tho Government needs to show a certain class of people that they are getting some return for their money, and it seems to us that an investment ol 20s with interest (say at 5 per cent.), payable hallyearly, would fill tho bill hotter than the 16s investment redeemable in live years tor 2Us, and would be more acceptable to the .small investor. Tho deposits in the Savings Hanks continue, to increase, and may he expected to do so, because the investor there knows ho can obtain what money he from tho amount at his credit in n very short time, however far removed lie may be from the office in which ho has his account, added to which ho sees the interest placed to his credit from year to year. If the War Certificates wore put im tho same footing in regard to the payment of interest, and were redeemable at their face value in cases of emergency, we are inclined to think the Minister of Finance would find his next issues taken up in far greater proportion to the main loan than has hitherto been tho case. This question of popularising tho War Loans should receive the attention of the Minister of Finance and his colleagues, before the balance ol our Victory War Loan is offered lo the public, if it is to he subscribed on lines that will mako for success of the character desired.