NATIONAL SAVINGS FALL AWAY IN UNITED KINGDOM

Wanganui Chronicle, 22 January 1947, Page 5

NATIONAL SAVINGS FALL AWAY IN UNITED KINGDOM

(Special N.Z.P.A. Correspondent) Recd. 6 p.m. London, Jan. 21 For the first time in the history oi the national savings movement in Britain the amount paid out in interest and redeemed certificates has exceeded new investments. During the first nine months of the present financial year payments exceeded receipts by 19,400,000. It has also been revealed that Post Office Savings Bank deposits show a similar trend, and that at present the amount being collected in small savings—national savings certificates, defence bonds and post office and trustee savings banks—are only about half the target figures.

The total amount collected in small savings during the past nine montihs has been 1813,000,000. but repayments amounted to £62,000,000, leaving a nett saving of £191,000,000. If the withdrawals continue at the present rate the amount of new money collected by the Chancellor ot the Exchequer during the present financial year will be less than £250,000,000. or half the target figure. Acceleration of withdrawals was first noted last spring, when it was attributed to the holiday demand tor cash, but it has continued ever since. It is considered that a substantial proportion of the withdrawals are being made by returned servicemen who are using the money to set up their own homes.