MONEY FOR WAR

Dominion, Volume 36, Issue 217, 9 June 1943, Page 4

MONEY FOR WAR

Safeguards Against Extravagance APPEAL FOR SUPPORT FOR LOAN “I am not going 'to say that no extravagance or waste has occurred, particularly in the early stages of the war when the organization was not as complete as it is at present, and when immediate action was the prime consideration, but I do say that reasonably effective safeguards are now in operation,” said the Minister in charge of War Expenditure, Mr. Hamilton, in an appeal la»t evening for support of the £3o,090,1)00 war loan. “All new proposals involving financial commitments are submitted by the department concerned, reported upon by Treasury, and then submitted for review and approval by the War Cabinet. “After the expenditure has been incurred, a further review by .treasury takes place to ensure that the terms ot War Cabinet’s approval have been adhered to, that the prices are right and that the necessary accounting and stores records have been completed by the department concerned. Finally, the accounts are subject to review by the Audit Office and the Controller .and AuditorGeneral in his annual report to Parliament draws attention to any special featU“When account is taken of the proportion of war costs financed from taxation, and the reasonable rates of- interest at which war loans are being financed, it will be generally agreed that the basis on which this war is being financed is much more satisfactory and equitable than has been the position previously. We have to remember that all war involves waste, and yet it must be admitted it wins for us the greatest blessing man can enjoy —freedom and the right to live our lives in our own way.

Criticism of Expenditure.

“Criticism of expenditure is always needed, and is generally healthy. We have, however, to remember our good tortune in New Zealand in not having had to endure the painful experience of being attacked, or even of being shelled or bombed. The enemy has at times been very close, but our homes and our properties are all intact. In this respect, we have been saved from much distress and suffering. “Let us then remember our good fortune with gratitude, and contribute our maximum amount to the war loan. Lius is no great sacrifice, as money put into war loans is a good investment, lhe rate of interest, though not high, is reasonable, and the money can be readily obtained back again at any time re ' quired by selling the bonds. Making a special appeal to the farming community, Mr. Hamilton said if there was any particular class of servicemen which the farmers should remember with special gratitude, it was the men of the Mercantile Marine. These men endured the hardships and dangers of stormy and enemy-infested waters, to do their important job in the total war effort. While farmers were being asked, even pressed, under difficult, conditions to increase production, they were now asked ' also to take up their full quota in the War Loan. “A few pounds in Government loans is always a handy security,” said Mt. Hamilton. “A few hundred pounds—or even a few thousand pounds—is even better if you have it to spare, or your credit allows you to draw it. Money put •into War Lohns is still a first-class investment, and can be realized upon at almost any time. The need is urgent and the call is a. personal one (to all investors with means, large or small. It is not a question of politics, but of the necessity of meeting the requirements of our men and women in the armed forces,”

WAR LOAN PLANS

Financing Workers In Purchase Of Stock

EMPLOYERS’ RESOLUTION

Representative Wellington employers at a meeting yesterday pledged one phase of their support of the ±35,090,000 War Loan in a resolution which covered three avenues of encouraging investment among their employees. It was explained that they would be separately approached concerning investments by their firms or companies. “We can do it, said the mayor, Mr. Hislop, who is chairman of the Wellington War Loan Committee, to the meeting. There were large sums of money piled up seeking avenues of investment. The money must not come from a few; that would not be a true expression ot the people’s spirit. They wanted the £s's, fill’s, £so's and £loo’s, not only because this would ensure the loans success but for an expression of truly united effort. , . „ .. Mr. J. M. A. Hott, chairman of the Wellington War Loan Committee executive, said that the pre-war debt of New Zealand was £340,000,006 which included remaining debt from the last war but £229,000,000 had been spent on this war to date. That should emphasize the need for money to fight. Wellingtons loan target was £3,500,000 and there was enough loose money about to make it. The Prime Minister had pledged the word of this and succeeding Governments that the savings of the people were a sacred trust. They had the assurance of Mr. McLagan. M.L.C., president of the Federation of Labour, that this organization with a 200,000 membership was behind the loan and every union and branch was being asked to support it. As well, the head office of the federation would invest a substantial sum at once.

With workers generally, the man on £5 odd a week, with several children, could not help much, but the worker earning good wages with overtime could. The committee looked to the employers to do all they could to assist employees to invest. Already the Self-Help Co-op had decided to assist its staff by financing the purchase of war bonds, and securing repayment by weekly instalments spread over a year, holding the stock meantime as security. By Saturday last £5OO had already been promised as the result of this.

“The extent of the response from employees will depend largely on the example, encouragement and suggestive influence of the heads of firms,” said Mr. W. B. Russell, Wellington organizer. He stressed the value to rehabilitation of the workingman’s war savings and investments. There was already £10,000,000 tj the credit of 300,000 war savings contributors in whom were included 120 groups saving amounts from a few pounds to probably £lOO a week and more. In 1045. these 300,000 persons were going to have £10,000,000 to spend. "That is going to be of enormous value in rehabilitating your businesses and industries and any employer who today encourages or assists his employees to invest in the war loan or savings is helping to re-establish his business for postwar conditions and expansion which will mean the employment for those sailors, soldiers and airmen to whom we owe so much. There will be war investments falling due for repayment right through from 1945 to 1955: money that will help boost tlie spending power to keep your faetorieS going to full pressure.” Mr. Amos suggested that firms which paid bonuses to employees give them this year in war bonds instead of cash. The meeting resolved (1) to urge increased national war savings investments through existing groups, such increase, if not for the duration of the war, to be for some months, say up to March 31, 1944. (2) that firms themselves purchase parcels of War Loan bonds for subsequent resale to employees on the instalment plan over a period of several months. (3) to encourage the formation of staff groups within their own establishments to purchase bonds on the instalment plan, the order of issue to be determined. if necessary, by -ballot at the end of each contributing period.