WAR LOAN CERTIFICATES.

Pelorus Guardian and Miners' Advocate., Volume 30, Issue 23, 22 March 1918, Page 6

WAR LOAN CERTIFICATES.

VALUE OF INDIVIDUAL EFFORT.

NEW ZEALAND’S FINANCIAL POSITION.

WELLINGTON, March 19,

Speaking at the final public function of the Red Triangle campaign to-day, Sir Joseph Ward said that the purchase of War Loan certificates by the public showed how large a sum might be raised by small individual effort. War Loan Certificates were first offered to the public in August, 1916. They were specially designed to meet the requirements of those who in an ordinary sense could not be called investors, the interest upon them being computed at 41 per cent, compounded and payable at the end of the term of five years for which they were originally issued. Up to the end of February last the amount of cash received by the Post Office for the sale of War Loan certificates reached a sum of no less than £2,900,340. Last year a further innovation was made by issuing certificates with ten years’ currency. These are sold at 13s for every £1 face value, and the interest is computed at 4i per cent, compounded, and at the end of ten years the public received £1 for every 13s paid in. For the five-year certificates the public received £1 for every 16s paid in. A special issue of Post Office war bonds was made in 1917. Sales were limited to £SOO for each holder, and the interest was fixed at 5 per cent. This was to meet the requirements of those who, having a small amount of capital, could not afford to postpone the receipt of interest until the period of the loan expired, the Post Office war bonds providing for payment of interest halfyearly. This scheme proved a very great success, the sales up,to the end of February reaching a sum of £1,540,465.

In dealing with the general loans, Sir Joseph Ward said that the position was that the total authority granted by Parliament for raising -war loans was £56,000,000. The total amount raised up to February 28th, 1918, was £46,000,000, of which £19,500,000 was borrowed in London and £20,500,000 was borrowed in New Zealand. The total war expenditure to February 28th, 1918, was £30,000,000. This includes outstanding imprest accounts. In addition to this expenditure there were several months’ contributions at the rate of £650,000 per month in arrear to the Imperial Government for maintenance of troops. The total amount borrowed since the commencement of the war for all services amounts to £52,000,000, of which £19,500,000 was borrowed in England and £32,500,000 was borrowed in New Zealand.

Sir Joseph Ward added that the revenue for eleven months showed an increase of £2,515,138, and the expenditure for the same period an increase of £771,398. The net increase of revenue for the eleven months was £1,744,740. Ho was glad to affirm that the position at the end of the year would be very satisfactory, but he said all the increased revenue would be required, and he was glad to repeat the assurance that he recently gave that there would bo no increase in taxation.