THE MONEY MARKET.

Auckland Star, Volume LXI, Issue 262, 5 November 1930, Page 4

THE MONEY MARKET.

GOVERNMENT FINANCE. CONVERSION OPERATIONS. (By TeJegrapW.—Press Association.) WELLINGTON, Tuesday. A statement regarding the redemption of debt which recently matured in the Dominion was made to-day by the Hon. E. A. Ransom, acting-Prime Minister. In each case holders were invited to accept in exchange 5% per cent securities of seven years' currency, subject to income tax. The loans comprised £974,480 at 5M per cent, which matured on July 1; £294,640 at 5 per cent, which matured on July 15; and £4,855,340 of war loan, issued in 1916, bearing interest at 4% per cent, free of tax, which matured on September 1. The total amount was thus £6,124,460. Mr. Ransom said that approximately £1,700,000 was renewed on the application of the original holders. Redemption funds to the extent of £1,670,000 were, utilised in paying off matured securities. This comprised £1,186,000 from the repayment of public debt account, £290,000 from reparation moneys and miscellaneous war credits, and £194,000 from capital moneys available in separate accounts. Proceeds of the present issue of 5% per cent over the counter sales were applied in redemption of maturing loans to the extent of £490,000, and the balance of cash necessary to meet redemption was provided temporarily from various Treasury accounts. These temporary loans are being replaced from the proceeds of further issues of 5% per cent securities with currency to September 1, 1937. •' i SOUTH AFRICAN LOAN. , FAVOURABLE ISSUE. (Received 1 p.m.) LONDON, October 4. A South African five million sterling 4% per centum loan, issuing at £95 10/ and redeemable in 1955-75, has' been underwritten. These are the best terms South Africa has obtained since 1914. There was a rush for prospectuses at bank offices necessitating applicants queueing-up. THE CANADIAN DOLLAR. \ . (Received 11, a.m.) v MONTREAL, i November 3. The Canadian dollar is quoted to-day at $4.85 1 /4 to the pound sterling.