PAYING FOR WAR

Gisborne Herald, Volume LXX, Issue 21112, 4 June 1943, Page 4

PAYING FOR WAR

NEW LIBERTY LOAN £35,000,000 WANTED PART OF PEOPLE’S EFFORT (P.D.) WELLINGTON, June 4. The New Zealand war expenses programme for the current year shows a deficit in the provision of funds of £50,000.000. It Is proposed to finance this deficit to the extent of £10.000.000 from departmental funds estimated to become available for investment, leaving £40,000.000 to be raised by public loans, including national sav- 5 i Ilf’S. The Minister of Finance, the Hon. W. Mash, in ids Budget, speech in the House of Representatives last night announced that a third liberty loan for £35,000.000 would be open for subscription as from Tuesday. It was anticipated that tiro balance ol 05 000.000 required could be obtained later in the financial year through over-counter sale;: of stock or advance subscriptions to the next loan. This war loan will be on the same basis as its predecessors—interest at 21 per cent on the short-dated securities maturing on June 15. 1947-49. and n per cent for the longer-dated securities maturing on December 15. 195356. The loan will be issued at par and will close on July 10, 1943. "I cannot stress too strongly the necessity for all to contribute to these loans to the fullest extent possible,” said Mr. Nash. ‘‘All will agree that we o\Ve it to our armed forces in the several theatres of war in which they are engaged to see to it that they are ■supplied with the sinews of war to the limit of our resources. This objective can be achieved only by either taxation or investment in war loans.

“The comparatively small number of investors in past war loans points to the generally accepted idea that such loans are applicable onlv to the large institutions or to individuals with substantial sums to invest. The demands ol .war, however, alter these conditions very materially. As the free capital at the outbreak of war becomes -absorbed in war purposes it becomes increasingly necessary for war loans thereafter to be financed from current savings. In other words, support to war loans is essentially part of the people’s war effort.”