WAR SAVING.
six months, please advise which of the following methods is the best to adopt in the national interests: (1) Borrow from a bank the amount and invest it in War Stock, then pay off the indebted- ness to the bank by instalments until it is wiped out, then' repeat.
(2) Save up in the bank until the amount is reached, then buy
War Stock and repeat the saving. In the first case there is the worry of being in debt, but if it is of benefit to the country then it must be put up with. As the New Year is approaching your advice may help other readers of the Spectator besides the writer
to a right decision.—I am, Sir, &c., H. Roscoe.
633 Royal Liver Building, Liverpool, December 24th.
[It is a very difficult question to answer. Our own belief, which we have several times expressed, is that the present inflation is to an appreciable extent due to the loans advanced by bankers to their customers for the purpose of investment in War Loan. If that be true, it follows that it is better for a prospective lender to the Government to save money as quickly as he can, and lend it to the Government as often as his available balance at the bank becomes large enough for such investment. On the other hand, we must not forget that the scheme invented by the Governnient under which bankers lend to their customers has in a general' view decided advantages as well as disadvantages. The man who has borrowed from his banker is under a special obligation, of which he is continually conscious, to repay the loan. Owing to this compulsion, he saves more than he would probably have had the strength of mind to save. The Government therefore are well justified in believing that under this scheme they collect the greatest possible amount of money on loan. But our corre- spondent, we think, might well act as though this were a con- cession to weakness, which is unnecessary in his case.—Em Spectator.]
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