WAR BONDS.

Western Star, 28 September 1917, Page 3

WAR BONDS.

(Wellington ‘ Evening Post,’)

Mr J. CL Thomson asked in Parliament recently if the Government would redeem war bonds of holders , who might find themselves in financial difficulties. This question has probably been asked by innumerable present and prospective holders of war savings certificate® purchased through the Post Office 1 , It was asked by the ‘Evening Post’ in July last. Mr Thomson was informed by the Minister for Finance that he would see 1 if provision could be made for the resale of war bonds to the Treasury in small sumis by people who might unexpectedly and urgently need the money. If this can be' done, then the way is opened for probably a. very large number of people who still have small sums which they would gladly invest in war certificates. The distinction. between .bonds (and stock) and war certificates' should be kept in mind. Investors in bonds and inscribed stock have probably not put all their eggs into the on© basket; but it is not difficult for them, even if they have done so, to raise money on such securities. The investors in war savings certificates are in a different position. The rate of interest is not so important a consideration to them as the security and liquidity of their savings. They would probably be ready to lend their all for five years if they had the assurance that, in the event of some , reasonably urgent need for ready money, they could get all or some of it back. This contingency has been recognised and provided for by both the Imperial and the. Commonwealth Governments with respect to their War Loans. Such, provision has, no doubt, greatly stimulated the taking up of war certificates, 'What is to prevent traders, as has been alleged, taking war

certificates in payment for goods with a cash payment additional; and the “paper” virtually discounted by the arrangement of the profit so as to return the trader more than a booked or over-the-counter sale' would return? Again, there are people out to buy war certificates, and war bonds also, but at discount. This is an undesirable business for the State, which, if there is any profit to bo made, should have it ; and would have it if facilities were' provided for the redemption of the certificates or, bonds in small parcels. But it is to be preferred that the people who have put their savings into the War Loan (often transferred from the Post Office Savings Banks) should have what is due to- them, less administrative expenses, should they he in sudden need of a little ready money. Sir Joseph Ward can, and no doubt will, find a way out.