New-York tribune., 1917-07-20
s4o0.0O0,00o in a Year.


in Great Britain.
s4o0, 5000 in a Year.
Mr.. Bracket explained that the
heavy drain Of war expenditure IN
England has resulted in the develop
ment of a system of borrowing the
funds OF small investors cheaply and
effectively. Through the operation OF
this system over $4,000 900 has been
raised in the last year and a quarter
for the prosecution of the war. At the
same time a national thrift campaign
Of great Importance has gained
strong impetus.
Based upon the recommendations OF
a special committee sanctioned by the
government. over $4,000 War Savings
Associations have been formed in
Great Britain. The general work Of or
ganizing these associations and spread
ing propaganda, Mr. Bracket explained,
is carried on by about ] 800 local COM
mittees under the general supervision
of the National War Savings Commit
tee in London.
The war savings associations are
voluntary organizations, emphasizing
the importance Of thrift in general and
Investing the funds contributed by
their members in special war savings
certificates issued by the government.
These certificates, distributed by the
postoffice, are purchasable at nat
price Of Is shillings and 6 pence, and
can be cashed at any time on short
notice. At the end Of twelve months
a certificate can be cashed for 10 shlll-
ings and pence, and thereafter its
cash value increases at the rate OF
one penny month. until, at the enc
of five years, it can be cashed 1or al
This allows a rate of over per cent
at compound interest. The certlhcates
are non-negotiable and tax free, put
the number issued to any one person
is limited to 500. The certihcates
place within the reach Of all an at
tractive form of investing small saw
ings with the government, while avoid
ing the administrative difficulties re-
sulting from the periodic interest pay
ment on bonds in very small denomina-
tions.
Government Not Responsible.
In creating war savings associations
advantage has been taken Of existing
groups, such as schools, churches, fac
tories, etc, but associations may be
formed by any group of people willing
to work together for this purpose. In
this way opportunity is afforded for
the creation of associations in every
community. Affiliation with the na-
tional committee is conditioned upon
the acceptance of an approved financial
plan. AS these associations are en-
tirely voluntary the government cannot
be responsible for the safety of their
funds prior to investment in war saw
ings certificates. To do so, Mr.. Brack-
EFT said, would require the development
of elaborate government machinery,
which would destroy the fexibility and
independence which have contributed
so much to the success of these So
cietes. Effective safeguards, however,
have been found in provisions requir-
ing periodic audit, and the immediate
investment of funds as received.
The success of the whole movement
is measured by the first annual report
of the National War Savings Commit
tee, which shows that during the first
FIVE months of the war. small invest
ors were withdrawing from the govern
ment more than they were depositing
During the year 1915 the amount con-
tributed by the small investor aver
aged 100000 weekly. On the first of
January, 1916. the restrictions as to
the amount any one depositor could
deposit in the post-offices or savings
banks were removed. In the year 1915
the rate of deposit still further in
creased TO fl,600,000 a week The
rate of accumulation showed a marked
rise from July onward. In January
and February, 1917, including post
Office subscriptions to the war loan,
and allowing for Withdrawals from the
savings banks, the total subscriptions
for the small. investor were at least
ei0,000,OO0 net
Large Gain.
Since the outbreak of the war TO
the close of 1915 the sums invested
with the government by small investors,
excluding War Saving Certificates for
$500, amounted TO no less than fllS,-
'S,VVV. AZ lHe DcRlHHlilG- tHe new W dt
Savings Associations formed no part
of the machinery by which this result
was obtained. The propaganda of the
National War Savings Committee has
been aimed in the first place at rein
forcing the work Of existing organ
izations, and as evidence of this it may
be noted that during the last year de-
posits in the savings banks have in
creased by nearly f12,000.000. While
the amount subscribed to War Savings