FINANCIAL HELP.

Star (Christchurch), Issue 12175, 26 November 1917, Page 4

FINANCIAL HELP.

THE SOLDIER AND THE STATE.

A RESERVIST'S QUERIES. ("Lyttelton Times.") TO THE EDITOB. Sir.-In view of the fact that the Second Division has been called up could you supply your thousands ot readers with some information regardin- the grants made by the Financial Assistance Board. . A reservist, for instance, has £3OO invested ra a leaving £SOO on mortgage, it appears to he generally that in these circumstances the. hoard will pav the interest on the mortgage. Another reservist, however, " hving m a rented house, and has £3OO n to Post Office Savings Bank, which he has been accumulating tor years, with the idea of purchasing a Will the board pay the house ent ra that case? If not it means that on the soldier's return in say, two.years time, his wife may have been compelled to draw on her husband s savings l™t the other soldier on his return finds that his money invested in house property is intact. Again, what is the position ra iegard to the pavment of insurance pieSun,; (life a P nd fire), ohildiWs prance, children's education and music, time' payments of J™ rates and taxes and the othei manj incidentals to a home.' I am giving below the cases of three friend? who *ach desire to know their pos'tit in regard to the Financial Assistance Board. Each is roighb in t<J ceipt. of £250 or over per annum, anrf each has now a comfortable and well furnished home. , (\) Reservist with no childien (who, bv the bv, has already been called up and passed as fit); is buying house and paying interest and principal eombiled bv weekly instalments of 1-s 6d, husband's father pays £1 a week hoard; nephew pays 10s a week board; insuianres total £l2; is paying 5s a tfeek off piano, which was purchased two years ago. , ~. . . "(B) Reservist with one child; is buying house for £9OO, of which £SOO is on mortgage; interest due halt-yearly; insurances total £lB. (C) Reservist with two childrenn; has £3OO in P.O. Savings Bank, living in re.nt.sd house. £1 2s 6d a week; insurances total £23. The above instances are typical of hundreds, and I should be much obliged if von could supply the information, which is of vital importance to every man and woman of the Second Division. —I am, etc., SECOND DIVISION. WHAT THE OFFICIALS SAY. INQUIRIES IN WELLINGTON. A copy of "Second Division's" letter was' forwarded to the Wellington representative of the " Lyttelton Times" so that first-hand inquiries might be made and the best information secured on the points raised. 'Hie result is the following telegram dated Wellington, November 25:

" Almost every Second Division man who is called up to serve his country in the Expeditionary Force presents a. fresh aspect of the problem which the Soldiers' Financial Assistance Board was set up to solve. Consequently, it is impossible tio lay down in fixed regulations or scales or allowances what any man is entitled to under this scheme. All that* can be done is to indicate the general lines of the board's policy, and to add—as 1 can fairly do after looking into the board's work—that it interprets its powers in a fair and liberal manner. _ "The most serious criticism heard, is that the assistance scheme is not 01 much use to thrifty men, buti that it puts a premium on improvidence. It has also been vsaid that the existence of a, ' nest-egg' in the bank places the soldier out of reach of State assistance. This is not so. However, it is -well to admit that the improvident man who enlists and leaves obligations will get more out of the State than one who in civil life has lived within his means. and not incurred obligations which he could not have met out of his income. But this is true not only of soldiers, but of the generality of men. Those who squander their income on luxuries, to the detriment of their dependents. can secure free* hospital treatment, even food and clothing for their children, if they become destitute, though the'careful" man will never reach th :.s condition of dependence on the community. Grants bv the Soldiers' Financial Assistance Board are not charity, but this general principle does apply, that the careful man will probably get less on the average than the; thriftless, though his savings have not to be exhausted, or even decreased, to enable the scheme of grants to benefit his dependents. "The general principle underlying the decisions of the board, is that it will prevent hardship to a soldier by reason of the fact that his military pay and allowances are insufficient to meet obligations which in civil life he ■was able to carry on his usual income. Income is the deciding factor, not capital. If the soldier has a credit in the bank, the board does not say to his wife. ' Come to us when the money is gone.' It only takes into account the fact that there is a sum comingj in as interest, -which goes to increase the income of the soldier. To that extent onlv is the bank balance considered, for the hoard will make such a grant as will enable obligations specified in its regulations to be maintained without" trenching upon the soldier's savings. THREE CASES ANSWERED.

"The correspondent in the 'Lytte'lton *Times' raises three specific cases of reservists who are in doubt as to the extent of the probable assistance from the State when fchey enter camp. These were placed before the responsible officers, and their answers noted. Each reservist, it was stated, is in receipt of a civilian income of about £250 per annum, and has a comfortably furnished home. (A) Reservist with no children, is buying house and paying interest and principal combined by' weekly instalments of 17s Gd ; ' usband's father pays £1 a week board; nephew pays 10s a. week hoard; insurances total £l2; is paying 5s a v.eek off piano, which was purchased two years ago. " In this case it is obvious that the wife will continue the home. She will' get about £lO9 per annum in pay and allowances. If the 10s a week boarder is not paying sufficient for his keep the board could not help to maintain this young man, and thus the situation is slightly too complicated to give a final "answer without going into rlie individual merits of the case. The board, assuming that the facts are correctly stated, would pay the rates and insurances on the home, and also the interest on the mortgage, but riot the principal, for the. latter can be suspended until after the war. " The payment of principal has been thoroughly discussed in connection with mortgages under the State Advances Department, where principal and interest are paid in regular instalments. The Financial Assistance Board in these cases pays the 'interest, and has arranged with the Department to suspend the demands for principal until after the war. The amounts usually due each half-year will not pile up, but the payment of principal will simply be suspended for the time. So in this case the wife would be completely relieved during the war of any payment in respect to the mortgage. " (B) Reservist with one child ;us buying house for £9OO. of which £SOO is on mortgage, interest due half-yearly; in-

surances total £lß.—' We would pay the lot,' was the comment of the officer who has to do with these claims. { "(C) Reservist with two children; i has £3OO in the Post Office Savings ; Bank; living in rented house, £1 2s 6<l j a week; insurances total £23—As the j reservist is a man who has been earn- , ing £2oo per annum, the board, which consists of business men of wide experience, would regard this rent as reasonable, and would pay it, as well as the insurances. There is one im- i porta nt point ab'o'at insurances whic.l ? should be made, and it is that the board will not countenance the taking out of insurance policies when a man j has enlisted, so that the State has to ! bear the special burden of an obliga- ' tion he would not have undertaken out of his ordinary income. Without hesi- | tation it pays the loading on a current, policy for war risk, but it will not un-j dertake to pay for additions to the policy at or after the time of enlistment. The only concession under thist heading is in regard to new policies up! to £2OO if no policy was previously va.) existence, and where the soldier has de-j pendents towards whose support he is I contributing. In such a case the board 1 will finance his policy. It also keeps | up instalments on furniture bought be-j fo*re enlistment, but this has to be, watched carefully, owing to the way m which the grants have been abused..! Expensive pianos and articles of furni-1 ture have ueen bought under an impression, fostered by SGme salesmen,] that the State will foot the bill. ( " The way in which a reservist carr, apply the f;cheme to his own circum-j stances is to assume that if his sol- ( dier's pay and allowances will not meetj his current obligations, and enable hifi' wife and family to live up to their j ordinary standard, then the State will' pay the difference, by grants in respect I to rent, rates, insurances on mortgages." / ' l *'* , "