REAL SAVINGS

Otago Daily Times, Issue 24432, 18 October 1940, Page 8

REAL SAVINGS

IMPORTANCE STRESSED BRITAIN’S POLICY AVOIDING INFLATION (British Official Wireless) ' (United Press Association) (By Electric Telegraph—Copyright) ' * RUGBY; Oct. 16. (Received Oct. 17, at V p.m.) Speaking at a luncheon where he was the principal guest. Sir Kingsley Wood said the great gap between war-time expenditure and revenue could be filled only by inflation or taxation, coupled with real savings made to the point of sacrifice. So far the Government’s policy had enabled inflation to be avoided, but the danger was ever present if a sure and safe course in financial policy were not followed. Stating that taxation was only a bare cart of the expenditure, the Chancellor stressed the importance of savings. “We are facing a difficult and vital vear in our history.’’ he said. “No half-measures will suffice. For its part, the Government 'must do everything possible to create conditions under which the maximum response to the Government loans and appeals for national savings can be fully attained.”

It had been suggested, he said, that money was held back from Govern-, ment loans by many people because they v;ere uncertain of their financial position should their property and belongings be damaged by air raids. He hoped shortly to introduce a measure which would remove this perfectly natural apprehension by providing for full compensation for loss or damage caused by enemy action. A scheme relating to buildings would be financed by a compulsory contribution by propertyowners. aided in certain eventualities by the State. A further scheme which' provided for an opportunity to insure personal effects would be voluntary, while that dealing with the insurance of plant and machinery would in general be compulsory. These schemes would be retrospective to the beginning of the war and, would remove the uncertainty and go far to maintain confidence.

£64,000,000 A WEEK BRITAIN’S EXPENDITURE INCREASED WAR EFFORT (British Official Wireless) ft RUGBY, Oct. 16. In the House of Commons to-day the Chancellor of the Exchequer (Sir Kingsley Wood) asked for a vote for credit of £1,000,000,000, and, in giving an account of how an equal; vote gfantedvon July was spent, contrasted the war expenditure for the four weeks preceding July, a vote which amounted to some £55,000,000 a week, or a daily total of £ 7,500,000, with the total for the four weeks ehded October 12, which was £ 64,000,000 a week,. - .[)[ f .-.'•'Sir Kingsley Wood pointed out that a . great increase in expenditure had taken place since March, when the daily total fpr the fighting services was £4,000,000. compared With £7,500,000 to-day.. ; a ; “ I think the fact that: we have nearly doubled the rate of expenditure in the same short time and that the rate has gone up since July is increased evidence of our War effort,” he said. Remarking that such, sentiment; ■•was unustial from >a. Chancellor, he. •said he hoped that the rate of expenditure would be even further expanded. He made it clear that the £1,000,000,000 he was asking for was not enough for the rest of the financial year, and pointed out that, even at the weekly 'rate of £64,000,000, such a vote would not last beyond March, and when that date arrived the Government would be able to judge the expenditure for the year and discuss how such vast sums could be raised. He pointed out that the . vote of credit was not a new estimate of additional expenditure, but simplv a vote on account of expenditure foreseen and included in the July Budget. Stating, that he had previously emphasised the undesirability of too frequent changes in taxation, and reminding the House that the increases imposed amounted to £529,000,000 in seven months. Sir Kingsley recalled a statement he made on August 15. when he said it was impossible to make a fixed time table. He concluded by saying that he would welcome suggestions as to how an effort could be made to reconcile rapid prosecution of War with reasonable supervision of expenditure. ~- V A total' of oyer £15,2.50,000 was subscribed in the week ended yesterday for war bonds and loans free of interest. These figures were disclosed by Sir Robert Womersley, soeakine in London to-day'.- when he stated that the war savings campaign was asking for £20.000,000 a week by the end of the year. In view of the sum subscribed last’ week, he expressed the view that this figure would be achieved. v. ‘