WAR FINANCE

Otago Daily Times, Issue 24412, 25 September 1940, Page 6

WAR FINANCE

THREE SCHEMES PLANNED THE " COMPULSORY " LOAN (Special ro Daily Times) CHRISTCHURCH, Sept. 24. Funds for war purposes will be raised in New Zealand this year m three different ways—by a war purDoses loan, the details of which will be announced this week, by a savings scheme to meet the needs of small investors, and by an internal loan. Details of the three schemes were discussed .by the Minister of Finance (Mr W. Nash) in an interview before he left on his return to Wellington. One thing the Minister made clear was that it is a misnomer to call the war purposes loan, the prospectus of which will be issued in a few days. a " compulsory " loan. It would become compulsory, Mr Nash explained, 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 to 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." ',.,-, ~ t Mr Nash said that it was likely that details of the savings scheme would shortly be announced. They 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.