NEW CONVERSION

Auckland Star, Volume LXIII, Issue 260, 2 November 1932, Page 7

NEW CONVERSION

NOVEL FEATURE. DUAL LOAN ISSUE. Post Office and Bank to Receive Applications. £300,000,000 BRITISH PLAN. (British Official Wireless.) (Received 12.30 p.m.) RUGBY, November 1. Following the announcement of the Treasury to repay, on February 1, the outstanding balance amounting to £114,000,000 of the 5 per cent Treasury bonds 1933-35, a prospectus was issued of a new conversion loan. It states that the Bank of England is authorised to receive applications for the £300,000,000 3 per cent conversion loan redeemable at par on March 1, 1953, or at any time on or after March 1, 1948. The issue price is to be £97 10/8 per cent.

The list for applications will be opened and closed on Thursday, November 3. Interest will be paid half-yearly on March 1, and September 1, the first payment to be made on March 1, 1933. The Postmaster-General, Sir Kingsley Wood, is authorised to receive applications for a separate issue of the above loan, allotments in full to be made in respect of all subscriptions to the Post Office issue, the dividends of which will be paid without deductions of tax at the source. Applications for the Post Office issue may be for £10 or any multiple not exceeding £1000, and the first interest payment will be made on March 1. Calculated on the basis of redemption in 1948 the loan will return the investor 3 1-5 per cenf; and 3 1-6 per cent if redeemed in 1953. Mr. Neville Chamberlain, Chancellor of the Exchequer, stated in the House of Commons to-day that the cost of the cash bonus and commission in'the recent 5 per cent war loan conversion operation •was about £23,000,000.