LOANS FOR WAR

Manawatu Standard, Volume LX, Issue 158, 5 June 1940, Page 9

LOANS FOR WAR

ENABLING AUTHORITY. LEGALITY ASSURED. Per Press Association. WELLINGTON, June 4. In addition to the magnificent response from business firms and private individuals in the form of gifts ana Joans to assist in financing the war expenditure, the Minister of Finance states that a number of public bodies and institutions holding money in a trustee capacity have expressed! a strong desire to join this effort, but have been unable to do so without exceeding their legal powers. Legally, said Mr Nash, many public bodies and institutions are limited by Act of Parliament or by their charter or rules to definite activities which in some cases may not enable them, to make donations or invest in an interest-free loan.

The War Loan and War Gift Emergency Regulations, which have now been gazetted, remove such legal obstacles. The position, therefore, is that all such institutions have full legal authority to make donations and lend I money either interest-free or at interest to tlie Government for the purpose of helping the war effort. The following types of institutions are specifically cited as coming within the scope of the regulations: Local authorities and public bodies, associations of farmers and industrialists, friendly societies, benefit funds, provident funds, superannuation funds, trust boards, building societies, savings banks,'' trade unions, industrial unions, private clubs, sports bodies, trade, educational, professional and political associations, public charitable trusts and similar organisations. The regulations do not apply to trustees under a will or settlement unless such will or settlement gives them power to apply moneys for the purposes, of a public or charitable trust. Mr Nash added that it was expressly required that such gifts or loans be paid into the War Expenses Account so that there would be ample safeguard to ensure that the wishes of the patriotic donors and lenders would be strictly complied with. Expressing the Government’s warm appreciation of the stirring example set by hundreds of individuals, companies, public bodies and other associations, the Minister observed that New Zealand’s effort in this connection had been admired and copied by Australia. He confidently anticipated that we would shortly be building the third million of this voluntarily subscribed free-of-intercst fund. Mr Nash announced that interestfree loans and donations now total £1,951,832. The latest loans include Dr. M. G. Louisson (Christchurch). £1000; Mr* and Mrs Charles Bell (Christchurch). £SOO for the duration and six months after.

Other loans include H. N. Kebbell. Eketahuna, £3OO for the duration and six months.