NEW WAR SECURITY

Nelson Evening Mail, Volume LXXIII, 30 December 1940, Page 5

NEW WAR SECURITY

TO BE ISSUED IN BRITAIN GOVERNMENT’S BORROWING A SUCCESS LONDON, 27th December. The Chancellor of the Exchequer Sir Kingsley Wood, in a broadcast tonight, announced that the Government will place on sale on 2nd January a new security to raise funds for the prosecution of the war. This new security is designed to meet the demands of those who require a medium-term investment. It will be called the 3 per cent Savings Bonds, 1955 to 1965. | The issue will be made at par and repayment will also be made at par in 1965, or if the Government gives notice during or after 1955. In announcing the issue, Sir Kingsley Wood traced the successful record of Government borrowing since the beginning of the war, “I know,” he said, “that the system of keeping loans on tap is generally welcomed. It is convenient both to the lender and to the Government, and I propose to continue it. The 2\ per cent National War Bonds, 1945-47, which have been on sale for the past six months, have realised so far no less a sum than £429,000,000 —a fine achievement. Since November, 1939, the British Government (has raised the colossal sum of £1,269,(000,000 by means of loans.” Sir Kingsley paid a tribute to the patriotism of the British public in contributing these huge sums in the form of loans. “I thank you for it,” he said, “but I ask for more. The need for the best weapons for our men and for all modern warfare demands, is I think, clear to all.” “THREE PER CENT WAR” [British Official Wireless] RUGBY, 28th December. Commenting on the Chancellor’s announcement, 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 is, moreover, a gratifying sign of the present state of public confidence that the Government credit stands to-day fairly substantially higher than it did a year ago. “Since the start of the great savings campaign shortly after the outbreak of the war the rate of savings as indicated by the volume of investments astonished some investors. Nevertheless, the number must greatly surpass the previous efforts. In the quarter now closed the average rate of national expenditure has risen to £11,750,000 daily, and if this rate were merely maintained the total expenditure for the financial year would be about £3,750,000,000, or £300,000,000 more than was estimated in the July Budget. Defence and A.R.P. alone will cost about £3,000,000,000, which is 50 pe_- cent more than was foreshadowed.

“That shows how enormous is the expansion in the cost of the war in this comparatively short period, and there is no sign that we have yet approached the limit.”