AUSTRALIAN LOANS.

New Zealand Herald, Volume LXVII, Issue 20724, 18 November 1930, Page 10

AUSTRALIAN LOANS.

FACTS REGARDING HOLDINGS. SAVINGS OF THE PEOPLE. Some interesting facts regarding Australian loans were mentioned by the acting-Prime Minister, Air. J. E. Kenton, in a recent statement in Canberra.

" It is highly desirable," said Mr. Fentori, "that the people of Australia should realise that tlio huge amounts of the Commonwealth and the State loans are not owned by a few persons, but repiesent in the main the savings of the working classes. The outstanding securities in Australia of the Governments and municipal authorities total approximately £580,000,000. Of that sum £141,000.000 belongs to the savings banks. These institutions hold the savings of more than 5,000,000 depositors, and of those savings £141,000,000 is in Government and municipal securities. " Let us take next the life assurance companies. There aro more than 2,400,000 policies in force in Australia. The companies which are responsible for the payment of these policies when they mature have invested £65,000,000 of the moneys of the policy-holders in Government and municipal securities. Then there is the Commonwealth Bank—an institution owned by the people themselves, and one whose funds have been provided by the people. The bank holds more than £33,010,000 of Government, and municipal securities. The friendly societies of Australia have nearly 600,000 benefit members, and have funds of £13,000,000. The great bulk of this money also is invested 111 Government and municipal securities. " Taking only these four classes of institutions, we find that £250,000,000 of our loans are held by Institutions, whoso funds have been provided over a long period of years as the result of tlio saving and thrift of the working people of Australia. " In addition to this tremendous sum of £250,000,000 held in trust for the people by these institutions, it is estimated that small subscribers are the direct owners of between £150,000.000 and £200.000,000 of Government securities.

" The succors of our loan operations in Australia has always depended on the si:j"pctt of the small subscribers. In the wni time more than 833,000 persons sula< ribed to our war loans, many tens of thousands of the subscriptions being for sums as low as £lO. Taking more leccnt figures, we find that in the loans floated in tho preesnl year thero were 96,500 subscribers. Of these 76,000 persons made investments ranging between £JC and £SOO, and, in addition, £7,500,000 was subscribed out of the savings of the people held by lifo assurance societies and other institutions. Of the total number oi subscribers in the present year 31,000, or more than one-third, were depositors in savings banks. Altogether, 5,000,000 savings bank depositors havo accumulated savings in these institutions of £210,000,000, while in the life assurance and industrial assurance societies tho total - value of tho policies for which tho people arc assured is £340.000,000. Thf.';« figures conclusively prove that tho maintenance of the national credit of Australia is ft /natter of vital and direct concern to every member of the community.".