SPENDING WISELY

Hokitika Guardian, 4 August 1932, Page 3

SPENDING WISELY

CITIZENS’ DUTY MADE PLAIN

NO “COWARDLY SAVING.” ♦ WELLINGTON, August 2. Addressing the- British National (Savings Assembly recently Major-Gen-eral J. E. B. 'Seely, chairman of the National Savings Committee, .said that at the time of -last year’s meeting it looked as if their financial year was going to -be 'a year of exceptional achievement in’ the matter of purchases of Saving Certificates. But the crisis had it* inevitable effect on the work. In the first five months, ended in August, purchases, of certificates were approximately 4,500,000 higher than. in the corresponding period of 1930-31-The next six months showed a reduction of 7,000,000, ’ but March was the best March since 1922, and the first two months of th e present financial year— April and May—from the point of view of certificates purchased were the best April and May since 1919. Encashments were naturally heavier during the year; but the thing that stood out to the surprise of the would was the fact that both purchases and encashments- remained iso steady in the circumstances.

Discussing the remarkable increase iri the amount of savings of all kinds by the small investors of the country. General Seely said that in 191 l the total small savings amounted to £492,000,000, or £l2 per head of the popu’a. tion. In 1916 when the National: Savings Movement first really came "into being with the formation of the National War (Savings Committee, the total small savings had increased to £687,000,000, an average of. £l6 pet head. In the five years from 1916 to 1921 th e figures were doubled, reaching £1,418,000,000, or £33 per head of the population. -By the end of 1931, in spite of the difficult period, the total small savings had risen to the amazing figure of £2,244,000,000, or £SO per head of th e population.

If they equated the figures to the cost of living in the different years so as to express them in present-day purchasing power they found that a decrease occurred between 1911 and .1916 from £l3 to £l4 per head ; that by- -1921 the amount had increased to £25 per head; and that in the next ten years, .to the end of 1931, this figure had risen to £SO i per head. On the usual computation of - between four and. five per family,this yneant Approximately £225. per family in Great Britiain. The question now arose; What advice should they give to the millions of people Who,invested- in National Sawings? -Should they spend, -or should they save? The answer was that they should do both. The course which th* average citizen should pursue could he' 1 quite .simply stated. He ought to ba - since Hi-s budget if he could. He should malfe provision" fori" the maintenance of --h?S* jjbme aridTjhe .education-..0f; his children. little, so that haVmiabf, be helrv his friends in their and have a sum in years to come, Whiqh He could tend on something of permanent u«e. ' 'Thereafter he -should not aim at, bri’b 1 - ing up a big sum, blit he should spend it as wise’y hs dig could, so far as possiblo in directions which were most useful to him and to the community. Their doctrine, in the .National Sjm- : ipo-s Movement wn« to condemn cowardly -saving—the refusal to take anv risk in business. -. the withdrawal of -charitable subscriptions, th e , reduction of staffs which thev could rcollv to keep. All t.hes ft d- 1 harm, not oiriv to the State, but to th-» national character.