LOAN CONVERSION.

Press, Volume LXVIII, Issue 20629, 19 August 1932, Page 11

LOAN CONVERSION.

ENTHUSIASM IN LONDON. STABILITY OF BRITISH FINANCE. OFFICIAL YMHZLESS.) RUGBY, August 17. Tlie success of the War Loan conversion has been receired with enthusiasm in the City. Foreign Press and banking circles, who had considered before that the conversion of £1,500,000,000 would have constituted an unparalleled success, have paid 8. warm tribute to the operation, which is considered to bo unequalled in financial history, and striking proof of the stability of British finance. The city editor of the "Daily Mail" points out that apart from a direct saving of £23,000,000 annually in future Budgets, the conversion will secure many other economies. He instances the sum of £10,000,000 standing to the credit of the depreciation fund set up to maintain the 5 per cent. War Loan if it fell below 95 per cent. vVith the disappearance of the War Loan the fund will be available to the Treasury for any purpose. He adds that £7,500,000 less will be required this year for the sinking fund attached to the 3J per cent, conversion. The fund is applicable whenever the average price is below 90 per cent., ana the conversion will be sufficient to release the balance of the fund, which is estimated for the current year at £15,000,000.