SAVINGS AND THE WAR LOAN

Dominion, Volume 11, Issue 178, 17 April 1918, Page 6

SAVINGS AND THE WAR LOAN

(To the Editor.) Sii, —On behalf of the many thousands who have money in the Post Office Savings Bank, and who aro willing to buy War Loan stock, may 1 ask a clear answer to Ihe following questions :— (1) How will it help if we draw our money out and xubscribe? The Savings Bank funds aro nearly all invested permanently. Suppose v,e drew out a million, the bank would havo to borrow to pay us! If it tried to sell its investments, what conceivable buyers are •there except tho very people who are' being pressed to \ut every pound into the War Loan? And wherever could the hank borrow? Pray don't suggest printing a million j.oiind-notes lor the purpose, llussia's example, with her rouble worth threepence,, ought to be sufficient. (2) Suppose a simple answer is found to the above, what provision is made for the sale of War Loan stock? In England there is a daily quotation, and you can sell in a few 'minutes and know exactly what you are doing. Why cannot there be a similar quotation here? If a man has saved, say, £'50 to £100, and relies on it for illness or fire, he does not. want to have to take his stock to a money-lender and yet about half its value.—l am, otc THRIFT. tl. The way in which Savings IJank depositors will nelp the loan if tlioj withdravf their money from the bank and place it in one of the three classes of securities offered will be that the Government, instead of having the' money at call, will havo it for a fixed period of five, ten, or twenty years, as the case may lie. It is much easier to finance borrowed money if it is known exactly when tho pnvinent will havo to bo made. The linanciii" m connection with the Savings Bank "may safely be, left to :hose who control it. It is known that Savings Bank depositors have already invested over £3,u00,000 in War Loan i-uoflrities, but so far the Savings Bank uuthorities have had no difficulty in meeting the demand for withdrawals. 2. New Zealand War Loan stock may ho quoted on tho New Zealand exchanges, and tho Minister 01 finance has promised to make arrangements for its quotation in London as soon as the war ceases.]