WISE SPENDING.

Manawatu Standard, Volume LIV, Issue 283, 27 October 1934, Page 6

WISE SPENDING.

The habit of thrift is strongly at work in New Zealand. As recorded recently, for the first time in eleven years deposits have again exceeded the sum withdrawn from the Post Office Savings Rank, the favourable balance in the past year being more than a million and a half pounds. It seems rather surprising, when economists are advising people that there is no better time than now to spend their money as greater value can be got for it than when prices are high, there should be such a pronounced excess of deposits. It simply shows that, generally, saving is more popular than spending for the time being*. On the other hand, however, there must be many people saving as much as possible for the season of great spending in the year which will be soon at hand, and no doubt a very fair amount of the £45,000,000 to the credit of depositors in the Savings Bank will be put into circulation. There are some people who prefer to delay their purchases until the very last minute, but the wise buy early. That is a very good principle, for it gives a healthy stimulus t 6 business. The outlook generally is brighter at this period than during most recent years, and this must be reflected, in business when the Christmas season, arrives. Thrift is a splendid virtue, but carried to excess loses most of its fine points. When, times were very good it was difficult to get people to save; now that they are harder the habit has become ingrained. To loosen the purse strings whenever the opportunity is presented will do everyone good, so long as the spending is judicious. The savings of small investors in Britain is amazing. In the Post Office Savings Bank, the Trustee Savings Bank, and in national savings certificates there are investments amounting to £1,234,000,000, and in building societies and the like a sum of £1,309,000,000, or a grand total of £2,543,000,000. A considerable part has been put aside for emergency, but none the less a great deal will be required for the spending season, when, its disbursement through various channels will react to the benefit . of wide interests. Similar spending in the Dominion will play a large part in increasing the confidence that is steadily spreading through the country.