DROP IN NATIONAL SAVINGS

Chronicle (Levin), 11 October 1947, Page 5

DROP IN NATIONAL SAVINGS

Reeeived Friday, 7.0 p.m. LONDON, Oct. 9. At a timo when the British Government is proposing to introduee measures to check inflation, there is a great deal of curiosity at the slump in national savings. Figures for the half year to the end of September, show the public's net savings in 1947 are just over £20,000,000 compared with £152,000,0UU during the sauie period last year. Tlie national savings committee has deeided to undertake a nation-wide investigation into the causes. Various reasons have already been advanced. These include the theory that the people spent their money with entlnisiasm during the best summer Britain has had for vears. Another theory is that there is a disinclination to subscribe to funds which may be used to further socialism. Mr. Dalton 's eheap money policy is also blamed and it i.^ suggested that the people prefer to invest on the stock exchange to secure more favourable rates of interest than that paid by defence bonds. Another possibility is that after years of saving during the war, the publie are not interegted in thrift par-1 ticularlv as there are more directions in which money can be spent today than during the war. It is also tliought that with the growth of social services and with a government iiolicy of full emplo.vment, the people don't feel the' need to put money by for a rainy day.