The Bay of Plenty Beacon Published Tuesdays and Fridays. FRIDAY, AUGUST 11, 1944 FORTY MILLION POUNDS

Bay of Plenty Beacon, Volume 7, Issue 98, 11 August 1944, Page 4

The Bay of Plenty Beacon Published Tuesdays and Fridays. FRIDAY, AUGUST 11, 1944 FORTY MILLION POUNDS

ON August 28th will commence the campaign for the launching of the greatest internal loan in the history of the Dominion. The sum of £40,000,000 under the heading of '1944 Victory Doan' is required by the Government for war purposes, and the terms of the loan are identical to those pertaining to last year's effort when £35,000,000 was over-subscribed. In 1943 the Thames-Bay of Plenty postal area subscribed £543,000 —over half a million which was considered a highly commendable performance. This year the levying of the quotas will be upon a population basis coupled with the ability of the districts concerned, to pay. The question exercising the minds of those behind the floating of this new loan, is how to overcome a certain apathy and disinterestedness which in these days of anticipated speedy victory is beginning to influence, many persons. There is also the question of the ability of the State to meet its commitments in connection with the annually recurring war loans. By way of reassuring the general public on this score it is interesting to reflect that there is a guaranteed safeguard against a sudden collapse. This is due to an arrangement by the Treasury, which in 1925 initiated a sinking fund sufficient to cover all national indebtedness. Thus should the present war collapse suddenly, New Zealand would continue: to live within her domestic revenue with the .comforting assurance that the whole of her external debts would be liquidated in sixty-one years. Economists are satisfied that this large sum could be: com-< fortably offset by reason of the fertility and productivity of a land such as ours. The safety of the loan from an investors point of view is therefore unassailable and it is jthe obvious duty of all who can afford to do so, to subscribe to the utmost of their ability. From the point of view of availability, it is also interesting to reflect that there is to-day, in excess of £200,000,000 of money in circulation (including £30,000,000 in bank notes). In the interests of economy it is desirable that as large a sum as possible be drawn from this source. Where there is "a preponderance of money and a scarcity of goods prices tend to become meteoric. The withdrawal of substantial sums either by way of taxation qr by voluntary subscription by way of loans is the only way to arrest the drift which might easily develop into a serious position. The loan xvill be used entirely for war purposes and in passing it is once more of interest to recall that last year New Zealand's war expenses amounted in round figures to £150,000,000 —an expenditure of more than £280 per minute. Our total indebtedness, internal and external is £550,000,000, which is certainly a staggering sum to be carried by a population of less than 11 millions. On the other,hand when speaking so glibly of millions it is with singular surprise we note that the present war, with all its longdrawn horror, its tedious futility, its suffering and utter wastefulness, its destruction of life and property has no yet lasted four million minutes. Only by subscribing to the new loan which is dedicated to our greater and more efficient war effort can we hasten the conclusion of this tolly and make for a speedier return of peace.