BRITAIN'S NATIONAL LOAN.

Taranaki Daily News, 23 June 1915, Page 4

BRITAIN'S NATIONAL LOAN.

With a war expenditure of three millions sterling per day, it is obvious that the British Government has to face the necessity for an enormous loan. With most commendable confidence, the Chancellor of the Exechequer, Mr. .McKenn'a, is appealing for the vast national resources of the United Kingdom to be placed at the service' of the country in its hour of need, and it is certain that the public will appreciate tins compliment to their intense patriotism and invest their savings in the loan to which there is no limit fixed. It is many years since Government 6tock bore such a, high rate of interest as iy s per cent., and this alone should suffice to attract all the available savings of the people, as well as the unemployed funds of the wealthy. In making the loan a thoroughly national one within the reach of every person in the country, the Chancellor has acted wisely and well. It will bo quite a new departure for the masses to be iplaced in a position to become holders of Government stock. This is attained by the simple process of receiving amounts of five shillings and upwards to accumulate until the deposit reaches five pounds, when a bond' will be issued through the post office for that suim, and multiples thereof lip to twentyfive pounds, the depositor to receive 5 per cent, per month until the five pounds is reached. Here is to lie' found all the elements of a thoroughly and popular ioan that will toting home to the people, in a way that nothing else can, that they have an actual stake in the country. The proposals for conversion of holdings in Consols into holdings in the war loan are most satisfactory, Ever since Consols were reduced in interest to 2%' per cent, they have suffered in popularity as an investment, and it was only* their absolute security and ease of liquidation that enabled tfhese annuities to exist. ■ Holders will gladly welcome the chance to convert on the terms laid down in the war loan scheme. Another great result has been achieved by

the Chancellor of the Exchequer in repaying the Bank of England the one hndrcd and twenty millions advanced to the Government in the earlier stages of the war, leaving the 'bank free to watch over the exchanges and protect the country's gold reserve. This action is of far reaching import, as it will tend to strengthen the financial position of the country most materially. The rush ■for prospectuses df the new loan is eloquent testimony of its popularity, and there can be little doubt that the total amount applied for during the next faw weelcs will astonish the world.