COST OF THE WAR

Gisborne Herald, Volume LXIX, Issue 20914, 14 October 1942, Page 2

COST OF THE WAR

NOW £3jSg,ooo A DAY LIBERTY LOAN APPEAL An appeal to the people of New Zealand to give their wholehearted siippOrt to the second Liberty Loan of 1310,000,000, which was launched_ on Monday, was made by the Prime Minister, the Rt. Hon. P. Fraser. He said the war was costing New Zealand £360,000 ■ a day, and the estimated sum required for this year “was £133,000,000. '•*

! Mr! ■ Fraser said that, apart from feelings df patriotism in subscribing-to the loan; he would like to 1 remind people that there was a sound, ; if secondary, economic consideration — the avoidance of inflation: If the people of New Zealand' were to make their b'est contribution' to the war effort by maintaining* the financial stability: of- the country, and With it the progressive flow' of essentiaf war production,' any surplus'purchasing pbwer must be absorbed in'savings ill one form or another. - It 'Was obvious that the shortages of goods and services were increasing daily. The reason was that the material demands of war in the form 1 of munitions, equipment and stores, clothing, food and shelter produced in New Zealand, involved a diversion of effort from the xwoduction bf goods which formerly'were consumed by the public.' The withdrawal of supplies and services from consumption by the civilian population must be matched with an equivalent withdrawal 61 spending power if inflation was to be avoided. : ■ ' ,v " "*" •'! ''•