WAR EFFORT

Wairarapa Times-Age, 5 April 1940, Page 2

WAR EFFORT

HOW SAVING CAN HELP. “In the first days of the war much advice was sought and given on the vexed question of spending and saving,” said Mr Edwin Fisher, chairman of Barclay’s Bank, in addressing shareholders at the annual meeting. “The advice given was often conflicting, and the individual was left somewhat in doubt as to which course to pursue. As our war effort grows, as more and more of our labour force is absorbed in the fighting services, and as more and more of our industrial organisation is diverted to the production of munitions, the call to spend gives way to the call to save. By limiting our own consumption we shall not only reduce unnecessary imports, but shall also set free supplies that can be exported. We all know that increasing war requirements will leave less of current production available for the needs of the civil population. If, however, the contraction in the supply of goods is not accompanied by a reduction in the demand of individuals, we are bound to suffer the evils of rising costs and prices. Rationing alone would not provide the solution, for, although valuable as a means of securing equitable distribution of limited supplies, it would tend to divert demand to unrationed articles. To some extent the adjustment will be accomplished by the higher taxation which Britain is now bearing, and which will result in the transfer to the State of an increased share of the purchasing power of the individual citizen, but taxation, oven at its existing high level, will not furnish a complete solution. The individual is therefore being urged to save, and to the extent that he saves Government expenditure will be facilitated and the competitive bidding up of prices will be avoided. In return for his effort and the sacrifice he is called upon to make, the individual is entitled to expect that the Government is getting good value for money wisely spent."