SMALL WAR BONDS.

Star (Christchurch), Issue 11755, 20 July 1916, Page 3

SMALL WAR BONDS.

THRIFT AND PATRIOTISM. RESPONSE BY WAGE-EARNERS IN AUSTRALIA. HOW EMPLOYERS ASSIST. I [From Our Correspondent.] SYDNEY, July 13. It is very probable that the result of the Federal Government's action in issuing £lO war bonds payable by weekly subscription will bo to raise quite an appreciable sum. At any rate, the idea of taking up bonds "seems to be appealing to many wage-earners, and it ia very likely that many who saved nothing before the war are beginning now. A considerable number of firms are offering people in their employ substantial inducements to become subscribers, one of the most common being to advance tho capital required for purchase of bonds and' to tako repayment freo of interest on an oven more liberal system than has been suggested by the Government. For instance, some firms are suggesting that, instead of making forty weekly payments of os, a subscriber shall pay 2s 6d per week for 100 weeks, and bo credited with interest as for the full £lO. Other firms are offering to pay £1 towards each employee's bond'. There js one case of a man who offeus to give every employee receiving £2OO and under per annum a fully paid bond for. every bond the employee takes up. At the big Australian tobacco factory the employees have seen the advantages of the system of saving opened to them, and have taken up bonds representing £32,230. This will bo paid up at once by the company, repayment being taken at 2s 6d per week for each £lO. Tho company employs 4200 hands. O'f these 1590 have applied for bonds to be taken up on their behalf, the average being well oyer £2O. In this and in all other cases there is the proviso that in the event of tho subscriber leaving the company's employ the money paid towards purcha-so of a bond may be reclaimed. . A TYPICAL CASE. As an illustration it may perhaps b8 worth quoting the following extracts from a circular issued to employees of tho " Sun " Newspaper Company:— "The company has decided to bring a scheme into operation which will enable employees to tako up War Loan bonds up to a •maximum of £SO for any. one individual employee, the payment thereof to bo spread over a period of about eighteen months. "The company will pay to the Commonwealth Bank of Australia tho amount each employee is prepared to subscribe, according to the application forms, duly signed, and will accept payment for same at the-rate of 2s 6d per week for every £lO invested, such payments to be deducted weekly from the wages, commencing August 3 next. In this way tho total .repayment would be completed in eighty weelis, which is about eighteen calendar months. " No interest will be charged by tho company for tho advance made. '' Bond warrants received from the Government for the amounts invested will be held by the company until repayment of the whole amount of such bonds is made, and these will then be handed over to the subscribers according to the amount invested by him or her, together with ca-sh payment for any interest due. " Any employees) subscribing to the loan, and leaving the company's service before the expiration of the eighteen months, may:— (a) Obtain his or her bond on a payment of tho amount outstanding, or (b) Transfer his or her subscriptions to another employee on notifying the company, or (c) Arrange with the company to tako up the subscription, when the company will repay the amount paid, together with interest due thereon, to date of transfer. " As advertised by the Federal Government, the amount invested will bear interest at the rate of 4$ per cent per annum. The interest on tho bonds is payable by the Government half-yearly, on Juno 15 and December 15 in each year, and whilst tho bonds are held by the coinpaiw tho interest will be distributed to tlfb subscribers as soon as received, from tho Government. When the bonds havo been handed over to the subscribers interest thereafter will be collected direct by such subscribers. A full half-year's interest will.be paid by the Government on December 15 next."