WAR FINANCE

Wairarapa Times-Age, 22 November 1939, Page 5

WAR FINANCE

BRITISH GOVERNMENT I POLICY | — i LOAN ON OPEN MARKET DEFERRED. NEW ISSUE OF CERTIFICATES & BONDS. (British Official Wireless.) (Received This Day, 10.20 a.m.) RUGBY, November 21. In a statement on the Government's borrowing programme, the Chancellor of the Exchequer (Sir John Simon) told the House of Commons that the date had not yet arrived for the issue of a loan on the open market. He announced, however, that two securities would be on sale as from tomorrow morning, which had been designed to enable all citizens, even of small or very moderate means, to make their contribution. The first of these would be a new issue of National Savings Certificates, to assist in financing the war. which' would replace the current issue of savings certificates henceforward. The new issue would be on exactly the same lines as the present certificates, which had behind them a successful career of over twenty years. The purchase price of the new certificates was unchanged at 15s, but interest would be slightly increased so that the certificates would accumulate to 17s 6d after five years and to 20s 6d after the full period of ten years. The second security on sale tomorrow would be known as a defence bond and would bo purchasable in units of £5. It would be issued at par and would bear interest at 3 per cent. The defence bond will be repayable in seven years from the day of purchase, at a premium of one per cent if it has not been cashed before the maturity date.