NATION’S FINANCES

Hawke's Bay Tribune, Volume XVII, 10 December 1927, Page 5

NATION’S FINANCES

ISSUE OF PREMIUM BONDS ENCOURAGEMENT OT THRIFT. M.P.’s NOTICE OF MOTION. [British Official Wireless.! (Received 10, 11.20 a.m.) Rugby, Dec. 9. In regard to the suggestion for premium bonds upon which Conservative members have been circularised. Sir Clement Kinloch Cooke has given notice that he will ask the Chancellor of the Exchequer in the House of Commons whether, with a view to assisting national finances and providing means of securing money on cheaper terms than has hitherto been found possible to meet requirements of social reform to which Parliament is committed, he will consider the possibility of making an issue of investments in premium bonds and so encourage thrift among a largo section of the community which has not hitherto regarded the conditions governing investments as suffifficlently attractive, and at the camo time offer further opportunity for all citizens to possess direct interest in the funds of the State. An overnight cable stated: A proposal to issue premium bonds as a means of raising money for the State on advantageous terms has been made, and Conservative members of the House of Commons are being circularised on the subject. The circular is signed by Colonel Gretton and Sir Frank Nelson, chairman and secretary of the Conservative economic group, and it asks for the views of •■members on rhe proposal. A scheme has been worked out, and it is contended that by tho 'introduction of the element of ehance, with substantial money prizes, large sums should be raised by the Government at two or two and a half per cent interest. Representations may bo made to the Government early next session if the opinions expressed are favourable. It may be recalled, however, that Mr| Baldwin has already expressed his disbelief that such method of raising . revenue would be generally acceptable. Any such proposal would, indeed, undoubtedly be the subject of acute controversy.