THE SINEWS OF WAR

NZ Truth, Issue 578, 15 July 1916, Page 4

THE SINEWS OF WAR

Democratic Loan-floating

The Commonwealth's Latest Venture

When the question of allowing the people Of Australia to furnish their share of tho necessary silver bullets was first mooted as a democratic alternative to further bargaining with financial magnates and institutions on the othor aide of the globe, Melbourne "Truth" gave prominence to and strongly supported the contention of Hlllalre Belloc, the noted publicist, that loan-fioatlng, to be really democratic, must be on a basis that will enable every section of the community to contribute, With that idea m view, it was suggested that bonds or coupons ot as low as live shillings be made available. In Britain, the lowest-priced bond was fixed at £5, while m connection with tho two loans already raised In Australia a minimum subscription of £10 was fixed, but tho .third issue of the Commonwealth War Loan which has Just been launched goes further than has previously been attempted with such a scheme.

No longer will it be possible to dnclar© that war loans are investments for roonied people only, for, m addition to allowlnß contribution* to be made In fivo monthly instalments— with the first half year's. Interest payable only a month after U»Q last instalment has been paid— the Federal .Treasurer* latest scheme provides for »n extended instalment system, under which applications for bonds may be made by employers on behalf of their employees. Ten per cent, of the amount applied for la to be paid on application, and the balance In nine further monthly payments of 10 per cent. each, the- final Instalment being due on May I. IJI7. while a full year's Intercut will be paid a month later. When subscriptions have been fully paid, bonds will be Issued to ttao individual employee:- applicant* as detailed In lh*> employer 8 application schedule The imnalment plan may also bo availed of by persons applying direct to the Commonwealth liank.

The Treasurer has adopted this com-mon-sense method of reaching the 61Q.S5S pernona act out by the Commonwealth Statistician as receiving under £200 a year, and ho points out In a circular that the payment of &« por week for a period of 40 weeks, commencing on August 1. 101 C, will entitle the subscriber t«> a war bond of £10, bearing a full 12 months' Interest at i% per cent, per annum, payable on June 30. 1917. and Interest at th« f«mft rate each succeeding half-year to th«« -laio of the redemption of the loan m U>2s. There cun bo little doubt that this rnothod of rnisin^f the *lncwfl of war will prove eminently successful.

It Ik mj»p<*ct<*il that "nwcet rtn'rf swrnly It '« t<» tll«' f"r mu-'M country W!\n written by v inun who ha<t t»vory hop.' of it frr«'*n «>'<! si^«--. U n-4iu>-nhlo ihnt th «.-.»•*• who art* i-pp^uUru; is ♦•how no vxi'i'i<»ivti haw to t>r«ctJH>' i(. Ail m :i!l. thlti jti Ofitf i»f Ui«r ft.V UitnKS In ihlß world r<">r whh'h tlsorc i«i «i» dixgnicvful fU7nmitb)«' for $u*et:trdcnco.