War Loan.

Pukekohe & Waiuku Times, Volume 5, Issue 201, 18 August 1916, Page 3

War Loan.

TO THE EDITOR. f Sir, —Patriotic citizens will, I am sure, appreciate the leader in your last issue urging upon them the desirability ot investing moneys in the Government War Loan. 1 would take advantaee o? your columns to urge this matter upon all residents. Not that the matter is not made clear by the Government advertisements and your leader, but it is well to emphasise the fact that in this matter, we are a united nation; and that every local body and other institution, as well as every private citizen, is very heartily at one with the Government; and backs the Government up in its realisation that the success of this loan is a very vital part of New Zealand's effort in this war. Money has always, at least for many centuries past, been regarded as the sinews ol war, but in modern times this is true in an infinitely greater sense than it ever has been in the past. You rightly point out the great amount of money there is in the country at the present time. The extraordinarily high price of all shares, in addition to the other matters mentioned by you, is a fair indication of the plentitude of money. This War Loan should be especially suitable for the requirements of the people of Pukekohe. Now this loan offers a comparatively high rate of interest for gocd security, and is based on the very best security, namely, the credit of the whole country. In particular, these who have monev in the Savings Bank should find it advantageous to invest it in the War Loan; tor while th« rate of interest is very much higher the security is exactly the same. In other words, those investing will be very far from suffering for their patriotism if a patriotic motive is one which induces them to invest, because the investment is an admirable one as such.

Take again the case of one who is in tbe habit of lending his money on mortgage. This rate of interest, -after allowing tor the exemption from !ncome tax, works out. as you mention, at five and ahalf per cent. A man would not easily get more than six per cent on good mortgage security to-day; and he Jwould still have to pay mortgage tax out of that six per cent. When the mortgage rate falls back again to what it was a few years ago, as it doubtless will wben the effects of the war have vanished, be will have great difficulty in getting his rive and a-half per cant, and bis security, however good, will not be as good as that of the War Loan; nor. as you point out, will it be in such a bandy form. All considerations therefore, wheHher of patriotic or of business, concur in urging local people to apply largely for this Loan.—l am, etc.,

H. G. K. MASON, Mayor of Pukekohe