THE VICTORY LOAN.

Manawatu Herald, Volume XLI, Issue 2037, 4 October 1919, Page 3

THE VICTORY LOAN.

Patriotic fervour having somewhat fallen in temperature, the Victory Loan now open for subscription in the Dominion may be calmly looked at as an investment, says the Post. This is not the nobler way to regard it; but the fact remains that the loan is an excellent busi- 6 ness proposition. Its return is 4-t per cent, free of income tax; its security the Dominion. It is issued at par; Dial is, £IOO, and no more is to )>o paid for it. Looking down the Stock Exchange list for September, it will be found that the return in interest on insurance companies’ shares at market prices averages £3 Os'3d per cent.; bank shares, £5 4s per cent. These are considered to be gilt-edged investments, as apart from Government stocks. There is open to investors, of course, the placing of funds on fixed deposit in the banks at 4 per cent, for two years, or on current account at no return by way of interest. The Savings Bank rate up to £3OO is 3;i per cent. But people, as a rule, put their money into the banks for safe keeping rather than investment. Of course, the money in the Savings Banks and on current account can he withdrawn at any time, and with respect to fixed deposits, if (he funds are urgently needed, hankers, although not bound to do so before the due date, may permit their withdrawal. But, how often do people need to suddenly withdraw every shilling from the Savings Banks or close fixed deposit accounts before due dale.’ Wry rarely. "With respect to war bonds and stuck, they are no less negotiable than bank or insurance shares, and there is no question of their future popularity with investors, us soon as the financial world recovers, as it will recover, from the reaction following the enormous tension of the war. Facilities have been provided by the banks and certain life assurance offices for enabling persons in receipt of steady incomes, buDwithout emmediate ready money, to invest.in this loan. Many have already aaailed themselves of the opportunity by these means to do so. This way is certainly preferable to being compelled lo subscribe-; and it is understood that the Government will, if needs be, exercise Die power it possesses- to enforce subscription. The rale of interestwill not then be 4-1, but 3 per cent, per annum.