FINANCE FOR WAR.

Manawatu Standard, Volume LX, Issue 255, 25 September 1940, Page 8

FINANCE FOR WAR.

LOANS AND SAVING SCHEME.

MINISTER’S EXPLANATION

WELLINGTON, Sept. 25. _ The three methods by which it is intended to raise funds for war purposes this year—a war purposes loan, a savings scheme to meet the needs of small investors, and an internal loan —were discussed by the Minister of Finance (Hon. W. Nash) in an interview. He said it was' a misnomer to call the war purposes loan, the prospectus of which would be issued in a few days, a “compulsory” loan. It would become compulsory only when it had been found that individuals expected to contribute had failed to do so, and then 'only to the extent of their income. “It is an ordinary war loan, on the terms mentioned by me when I introduced the Budget;” Mr Nash said, “and, as I have explained before, the compulsion procedure will be introduced only t 6 the extent that it is found that individuals expected to contribute, according to their income, have failed to do so. For part of the period the loan will be free of interest; but for the rest of the period, and that will be the longer part, it will carry .a low rate of interest.” Mr Nash said that it was likely that details of the savings scheme would shortly be announced. That would be organised in line with the legislation passed in the earlier part of the last session of the House of Representatives. The internal loan scheme would follow the other two, and no details of the procedure to be followed could yet be announced.