THRIFT CAMPAIGN

Dominion, Volume 14, Issue 274, 13 August 1921, Page 8

THRIFT CAMPAIGN

TO SOLVE UNEMPLOYMENT PROBLEM PROPOSALS OFN.Z.R.S.A. THE GOVERNMENT’S REPLY At the recent meeting of the Dominion Council of the N.Z.R.S.A. the question of soldier unemployment was fully discussed and a remedy sought. It was ultimately agreed that a Central Special Committee, with Mr, C. W. Batten as convenor, should be set up to formulate a scheme or policy whereby much of the hardship existing would be alleviated. The following resolution expressed the feeling of the conference on the matter: ‘‘That this council calls upon all returned soldiers to take a leading part in the fighting of the trade depression by the practice of thrift, industry, and good-will; and trusts that the same spirit will permeate all classes of the country.”

The special committee mentioned above eventually framed proposals which were presented fa the Government in the name of the U.S.A. The association expressed to the Government its belief that the best solution of the problem of unemployment was to 'be found in the creation of new capital out of tho savings of the people, and the application of the capital so created to the carrying on of necessary public and local bodies’ works. Thors was no doubt, the association believed, that in this young country there was ample scope for the investment of such capital, or that the works carried out would provide employment for all. The association suggested that in order to raise tho money measures should be taken to increase the sale of Post Office investment certificates. These lire of two denominations: Ils. 9d. buys a certifiicate for Al payable m ten years, and 15s. Id. buys a certificate for £1 payable in five years. The association advocated the making of a special appeal to the people to undertake a special saving campaign,- with a view to investment in these certificates. In addition, it suggested that as a special inducement interest should be at 6 per cent. Hydro-electric Works. The money so raised in a provincial district should be applied to hydro-elec-tric works in the district, as works of this nature were considered to be of the greatest utility and capable of absorbing the maximum number of men. brum inquiries made it appeared to the association that the whole scheme' could be put into operation at once, and that immediately money began to como in work could lie started. For the benefit of subscribers who had not much ready cash it was proposed that in cases of proved hardship certificates should be discounted, say, at 4 per cent, interest. It was further proposed that books or cards should ba issued with spaces for affixing stamps, and that when Us, 9d. worth of stamps had been affixed a certificate should be issued. This, the association thought, would encourage even the poorest to eave. Not Possible at Present. The Acting-Prime Minister recently forwarded to the association the following letter:— "Cabinet has given careful consideration to tho proposals of- the N.Z.R.b.A. relating to a national savings and employment guarantee fund. “The Government recognises tho interest in the public finance, and especially in tho provision for unemployment shown by the association, and thanks the association for tho care it has taken to define not only the proposal on general lines, but the machinery by which effect could be given it. "The Government is, however, unable at the present time to adopt the method suggested. It is not considered that it would be possible to compete by means of Post Office certificates with tho class of investment that is now being offered at high rates of interest, to which much of the savings of tho people are at the moment directed. The Post Office Savings Bank itself is the surest and safest and cheapest mode of investment of the public savings, and it seems undesirable to increase tho alternative Post Office method of inviting investment in a form which results in an accumulation, payable over in one sum at a fixed period.”