WAR FINANCE

Grey River Argus, 4 June 1943, Page 2

WAR FINANCE

PAYMENT FROM SAVINGS. • •“The war expenses programme for ihe current year shows a deficit of £50,000,000, in the provision of funds," said Hon. W. Nash, in presenting the Financial Statement to the House ol Representatives last evening. -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 war loans, including national savings. In view of the necessity to obtain this huge amount to finance our wa’r effort I have to announce that a third liberty loan for an amount of £35,000,000 will be open for subscription as from Tuesday next. June 1 8. it is anticipated that the balance of £o>000,000 required can be obtained later in the financial year through overcounter sales of stock or advance subscriptions to the next loan. “To meet the needs of all classes of investors methods of subscription have been provided. In the first place, payment in full may be made with the application and interest will accrue from that date. A second method is £3O per cent, on application, £3O per cent, on the 25th August, and the balance of £4O per cent, on the 6th October, 1943. The third method and in this a new feature has been introduced, is for subscribers to pay £3O per cent, on application and £lO per cent, on the 11th August and the 11th of each succeeding month up to and including 11th February, 1944. To enable persons with small means to assist, the National Savings Scheme has been incorporated in the loan programme. Under this scheme anybody.; may buy £lO and £1 bonds, which will return £ll 7s 6d and £1 2s 9d respectively in five years. Contributions to existing National Savings Accounts or to new accounts opened for the purpose will materially assist the loan. ‘"‘The comparatively small number of investors in past war loans points to the generally accepted idea that such loans are applicable only to the large institutions or to individuals with substantial sums to invest. The demands of war, however, alter these conditions very materially. As the free capital 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 part of the people’s war effort.”