CONVERSION LOANS

Press, Volume LXXVII, Issue 23330, 16 May 1941, Page 10

CONVERSION LOANS

COMPLETE SUCCESS PREDICTED COMMENT BY PRESIDENT OF STOCK EXCHANGE (P.A.) WELLINGTON, May 15. Asked how he thought the. investing public would respond to the terms of the conversion loans announced this morning, the president of the Stock Exchange Association of New Zealand (Mr A. Hamilton) said there should be no doubt about complete success in refinancing the loans falling due this year, and the other loan which the Government had the right to repay, even though they totalled the large amount of £21,000,000 odd. The Minister’s statement that the terms were straightforward and fair was undoubtedly justified, said Mr Hamilton. The return on the longdated issue approximated the yields to be obtained from other Government issues, which were keenly sought after in a strong buying market. The offer to reinvest, moreover, was to be entirely voluntary, and there was no compulsion on the investor. “If he so elects, he can have repayment of his old loan in cash,” said Mr Hamilton, "but as many people who now hold these maturing issues will still desire to be in Government stock, it is not at all likely that many will choose this course. One of the chief factors that will ensure success is the plain statement by the 'Minister that the next war loan, which the public fully realises must come in the near future, is to be on a voluntary basis. Such a heartening assurance will restore confidence, and give relief to many of the traders and industrial concerns who have anticipated a repetition of the difficult circumstances created by the previous compulsory loan. It is to be hoped that the second largest conversion in this country, and' a voluntary one, meets with complete support and paves the way for a successful voluntary war loan.”