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Wairarapa Times-Age, 2 August 1939, Page 5

Accordingly, in May last a Government loan of £4,500,000 was offered to the public in New Zealand. The loan was substantially oversubscribed. The proceeds are being applied, in, terms of the prospectus, to public works and general developmental purposes, 'lncluding capital expenditure on defence works. The terms of issue for that loan were fixed on a basis designed to enable as large a section of the community as possible to invest. It was recognised, however, that .many people of limited mean:-:, though willing to help, would not have a lump sum available for investment during the short period the loan was open for subscription. As a corollary to the main loan, therefore, the Government proposes to inaugurate a scheme specially designed to enable the wage and salary earners and persons of small means to invest portions of their incomes. Full particulars of this scheme will be made available at an early date, but, briefly, the proposal is to open up an avenue of investment, in Government funds for sums of money, however small. The investment can be built up by small payments over a period bearing interest at a rate comparable with that of the recent loan.

The term will bo for a fixed period of four or five years. Each individual’s contribution will be accumulated in a separate National Investment Account in his name and, if desired, will be convertible into National Savings Bonds. As the most convenient means of bringing this scheme within reach of the public the organisation of the Post Office Savings Bank will probably be utilised to handle the details. Legislation will be brought down at an early date to give effect to these proposals.