People Spending Too Much, Says Mr. Nash

Chronicle (Levin), 20 August 1948, Page 3

People Spending Too Much, Says Mr. Nash

"I wish to emphasise the necessity in present circuinstances for adequate saving," said the Finance Minister in liis Budgot speeeh last night. '.'There is an important responsibility on the community. To the extent that the public niakes savings available by subscription to Government loans, by increased deposits in national savings accounts or in the Post Office Savings Bank or in trustee savings-banks, exercises an anti-inflationary inflnence and permits the continuance of those many development worlts, known in eeonomic terms as ' ' investment, " which, whether proiuoted by publie or private interests, are absolutely essential to increased production and to maintenanee and raising of the general i : ,

standard of living. - v , - . . * . a "In times of -depres'sion there is usually excessive saving and inadequato investment, but at present the reverse tends to be the position, andit is essential that the community seriously consider whether it is not devoting too large a part of its income to eurrent consumptiOn." • ' . • " It is intended to intensify the drive for increased savings, and I would ask firms, businessmen, farmers, and societies and individuals with, money suitable for investment to assist to the utmost in this inatter. Through national savings "and Post Office and trustee savings-banlc accounts all workers can play an important role because their savings in the aggregate can become considerable.- ' ■ •• » t ■ . Jn.eluding the Post Office. and trustee savings-banks with national savings accounts and bonds, the increase in savings of the community in reocnt vears have been: — 1942-43, £16,750,000; '1943-44, £24,540,000; 1944-45, £23,490,000; 1945-46, £22,830,000; 1946-47, £14,480,000; 1947-48, £5,570,000. The accumulated balanees of all ".s'mail'' savings at March 31,' 1948, amouhted to £223,493,000. "The recent marked downward trend of tliesc figures will be noticed. No doubt that trend had rolation to the considerable increase in imports and expansion of manufacturing and other production witliin the Dominion. The indications are for some improvement, in small savings, and with greater popular support, that improvement will be maintained and expanded." " — — - ■' — — »• — .■ — ■■ — . iMMi | ■ — Mi | i ■■—i | | — II | i W l !■» I