The Southland Times FRIDAY, OCTOBER 9, 1942. The Second Liberty Loan

Southland Times, Issue 24870, 9 October 1942, Page 4

The Southland Times FRIDAY, OCTOBER 9, 1942. The Second Liberty Loan

THE TERMS of the second Liberty Loan, announced last night by the Prime Minister, are almost identical with those of the original loan. The rates of interest are the same: the short-term stock carries an interest of 2 j per cent, and the longei - term stock, 3 per cent. The maturity dates are 1948 and 1953-56, approximately one year more in each case than those for the first loan. The amount required is £10,000,000 a sum which will bring the borrowings for the year to the total of £27,500,000 which the Government set as its objective. Ten million pounds is a large amount, on top of the £17,500,000 that was obtained only four months ago, but the task of raising it must be measured not by its difficulty but by its urgency and importance. And of its urgency and importance there can be no question. Those who hesitated to make their money available a year ago, or even four months ago, may have had reasons which they thought to be valid. Some of them, perhaps, were slow to respond because they resented the Government’s failure to set the country an example in unity and sacrifice. Others may have believed, mistakenly, that the war situation was less urgent than was suggested. But today there is no justification for hesitancy. Political issues have been dwarfed to insignificance by the spread of Japanese aggression, and the grave threat it offers to the Dominion’s security. The defences of New Zealand are now very much stronger than they were six months ago. But they must be maintained at their full strength indefinitely. If the Dominion is fortunate enough to escape the horrors of war on her own land, her troops must sooner or later go overseas to help drive the enemy from the territories he has conquered. In the meantime they must be well trained and well equipped, and their numbers must be as large as possible. And in New Zealand the industrial war effort must go on and be intensified. For all these things money is wantedmore money than can be raised by taxation, more than can safely be found by inflationary means. The people must provide it from their savings. Whether their means are large, moderate or small, they have a patriotic duty to contribute to the second Liberty Loan. As the Prime Minister has pointed out, a pleasing feature of the first' loan was the number of subscriptions: the loan was more widely spread among the people than any previous loan. The second Liberty Loan should be spread more widely still. We do not mean to suggest that the wealthier people should be spared the duty of contributing in proportion to their incomes. But it is a fact that persons earning up to £8 a week have at then- disposal 60 per cent, of private income in New Zealand. Their support the Government must have if the loan is to be a success and the alternative of inflation is to be avoided. The appeal is not being made on a basis of interest rates or other advantageous conditions. It is an appeal primarily to the people’s sense of duty. And it calls for an answer more vigorous and determined than any yet given.