The Best Investment for Small Savings
Sir John Simon's announcement of the new plans for enlisting the savings of small investors as a contribution to war finance comes at a moment when much attention has been give to Mr. J. M. Keynes's proposals for univeral compulsory saving. Sir John, for the present at any rate, is content with the voluntary method, which can go some way towards achieving the same end if large numbers of small earners are willing to restrict their spending and lend the difference to the Government. The conditions of the loan have been made attractive, and therefore it was necessary to restrict individual holdings so as not to stand in the way of the major War Loan which must come later. The National Savings Certificates are already well known to the public, and the new issue provides a most favourable investment for anyone who does not want his money back within ten or even five years. No individual may hold more than 500 Certificates, but beyond that point there are now open to him the new Defence Bonds, purchasable in units of £5 up to a maximum of £I,000, repayable in seven years at £I per cent. premium, or earlier at par. Everyone investing in these securities has the threefold satisfaction of knowing that he is helping to keep down current spending, that he is financing the war, and that he has made a good investment. These are cogent arguments for use in a nation-wide appeal.
Previous page
