"VICTORY" WAR LOAN'

Dominion, Volume 10, Issue 2977, 15 January 1917, Page 6

"VICTORY" WAR LOAN'

« *— GREAT RUSH OF INVESTORS HUGE SUMS POURING'IN THE PROSPECTUS .' i London, 'January 12. There was a. great rush for the war loan at tho Bank of England early this morning. Hundreds of thousands of prospectuses were handed out dur- • ing, the first hour. ' The Prudential ■'Assurance Company has applied for twenty millions of the loan.—Router. (Rec. January 14, 5.5 p.m.) ' ■ London, January 13. ' In addition to the Prudential Company's twenty million investment, three other' subscrriptions exceeded a million, while there'were several of'a quarter of a million. Dealings in tho new loan will not he allowed heforo allotment. Consols are weak, heing quoted at '£63 10s. -It is estimated that the first hundred millions were received in a few hours. Lombard Street at an early \ hour was crowded with'investors and inquirers. Several hanks required twenty thousand prospectuses apiece. ' The visitors included many 'Anzacs, some of whom have substantial private means, and are anxious to help the 7 Old Country financially. The Liverpool Corporation is applying for a million.—Aus.-N.Z. Cable Assn. ■ . detailedlrospectiis / His .Excellency the Governor has received! the following message from Imperial authorities, giving the following particulars of the prospectus'' pf the Imperial "Victory" 5, per cent. War .-..- Loan:— & Issue of 5 Per Cent. War Loan, 19291947, In Stock" or Bonds. Interest Payable ~- June 1 and December 1. ' First dividend as follows, payable June 1, 1917:—0n fully paid allot- ' ments, £1 Bs. 9d. per cent.; instalment allotments, 11b. lOd. per cent. Price of issue, 95 per cent., payable , as follows: —(1) For fully paid allotments, on application, £95 per cent. ; (2) for instalment allotments:. On application, £5 per cent:; on Friday, • March 2, 1917, £15 per cent.; on Friday, March 23, 1917, '£15 per cent."; on Wednesday, April 18, 1917, £20 r>er cent.; on Wednesday. May 9, 1917, , '£20 per cent.-; on Wednesday, May 30, 1917, £20 per cent. :■ total, '£95' per cent. -.. ■. . Issue of 4 Per Cen'f. War roan, '1929.1942. (Income Tax Compounded). In Steele or Bonds. Interest Payablo . 'April 15 and October 15. First dividend as follows, payable April 15, 1917:—0n fully paid allotments, <12s. Sd. per ceafc. Tho firsji dividend on instalment 'allotments will be the full half-year's interest, payable October 15, 1917. r Prico of issue £100 per cent., payable as follows':—(1) For fully paid f \ allbtmeifts oa application, £100 per cent/; (2) for instalment allotments: On application, £5 per cent.; on Friday. March 2, 1917, £15 per cent.; on 'Friday, Marrch 23, 1917, £20 per "• cent.; on Wednesday, April 18, 1917. £20 per cent.'; oh Wednesday, May 9, 1917, £20\pcr cent.'; on Wednesday, May 30, 1917, '£20 per cent. The stocks are. investments authorised by the Trustee Aot, 1893, and trustees' may. invest therein, notwith standing that the price may at the time of investment exceed the redemption value of £100 per cent. The Governor and Company of the Bank of < England are authorised to receive applications for the above loans, which will take tho form of stocks or bonds .....to bearer at the_ option of subscribers.' Stock_ may be inscribed as transferable in the stock transfer books or ■ . may bo registered as transferable by . ;dped. ( Applications which may be for either loan must be for sums which are multiples of fifty pounds, and may ho for either— ■ .. (1) Fully paid allotments, or (2) in- . stalment allotments. They will be received at the Bank of England Loans Office. 5 and 6 Lombard Street, London. E.C., and may be forwarded "either direct or through the medium of any banker or stockbroker in trie United. Kingdom. Treasury Bills Acceptable. British Government Treasury Bills will be accepted under discount at 5 per cent.- per-annum,"■•'■'and War Ex- . pendituro certificates will be' accepted " under discount at 42 per cent. per.annum in both cases as from February 16, 1917, in lieu of cash in payment for "fully paid allotments," provided that the entire proceeds of the bills and certificates are so applied. If not previously redeemed; the loans will be repaid at par as follows:— . 5 per cent. War Loan, 1929-1947, on Juno 1, 1947. . ■ 4 per cent. War Loan, 1929-1942, on / October 15, 1942. But His Majosty's Government reservo to themselves the right to redeem tho loans or either of them at par at any time on or after the undermentioned dates, on giving three calendar months' notice in Hie London Gazette:— 5 per cent. War Loan, 1929-1947, at any time on or after June 1, 1929. 4 per cent. War Loan, 1929-1942. at any time on or after October 15. 1929. .. Both capital and interest will bo a charge on the Consolidated Fund of the United Kingdom." As soon as tho necessary statutory authority has been obtained arrangement willibe made for tho_ acceptance by tho Commissioners of inland revenue, of stock and bonds of these loans, at their respective issue prices, with due allowance for any unpaid interest accrued thereon, in satisfaction of_ accounts due on account of. death duties, provided such stock and bonds have formed part of the estate of the deceased for a period of not less than sip months immediately preceding the date of death. Controlling the Market Price. For the purpose of providing against ,■ depreciation in the market prices of the loans the Treasury undertake to set aside monthly a sum equal to oneeighth of 1 per cent, of the. amount of each loan to form a fund to be. used for purchasing stock or bonds' of either loan for cancellation whenever the market price falls below the issue price. Whenever the unoxpended balanco of such fund reaches £11,000,000 the monthly payments will for tho _ time being bo suspended, but they will bo resumed as .soon as the unexpended balanco falls below £10,000,000. 'Dividends and Taxation. Dividends on inscribed and registered stock of .the £5 per cent, war loan, 1929-1947, will be paid without deduction of income tax, but the income derived from such dividends will be assessable for income tax in the hands of the reoipients at the rates, of tax appropriate to their respective incomes. Dividends on : tho £4 per cent, loan

will bo exempt from liability to assessment to British income tax other than supor-tax. For tho purposes of supertax and in computing total incomo for tho purposes of exemption abatement, reduced rate of income tax on earned or unearned income, etc., the incomo derived from such dividends will be treated as if tho amount received represented the net incomo after deduction of incomo tax at the full normal rate. There will, howovcr, be no title to repayment of incomo _ tax in respect of such untaxed dividends. Stock_ and bonds of these loans, and the dividends payable from time to time in respect thereof, will bo exemptfrom all British taxation, present or future, if it is shown in tho manner directed by the Treasury, thai they are in tho beneficial ownership of a person who if neither domiciled nor ordinarily resident in the United Kingdom of Great Britain and Ireland. Further, the dividends payablo from time to time in respect of stock and bonds of these loans will bo exempt from British income tax, present or future, if it is shown in the manner directed by the that these stock or bonds are in tho beneficial ownership of any person "who is not ordinarily resident in the United Kingdom of Great Britain and Ireland, without regard to the question of domicile. Where a bond belongs to a holder ontitled to exemption under these provisions, the relative coupons will bo paid without deduction for income tax or other taxes if accompanied by a declaration of ownership in sucb form as may be required by tho Treasury. 'Tho books of the loans will be kept at tho Bank of Enkland and at the Bank of Ireland. Dividends on stock will be paid by warrant, which will be sent by post. Dividends on bonds will he paid by coupons. Stock will he convertible into" bonds to bearer at any timo by means of transfer, and bonds to bearer will be exchangeable " for stock • without payment of any. fee. Powers of attorney for the transfer of inscribed stock and deeds for the transfer of registered stock will be free of stamp duty. & Issue of Allotments. "Fully-paid allotments" will be issued in one or other of the following forms as applicants may direct: — .1. "Certificates of inscription" of stock transferable rn the stock transfer books. 2. "Register certificate" of stock transferable by deed. 3. "Bond certificates" exchangeable in due course for bond (s.) to bearer. "Instalment allotments" will be Issued in the form of "allotment letters" which may either be retained until they are fully paid or may be exchanged for scrip certificates to bearer. Tho instalment payable in respect of "instalments allotments" may be' paid in full on or after the second March, 1917, under discount at the rate of 4 per' cent, per annum. AVhere payment in full is made between two instalment dates discount' will be calculated as from tho instalment date next succeeding the date of such full payment. In case of default in the payment of any instalment by its, proper date the deposit and any instalments previously paid will be liable to forfeiture. Arrangements have been made whereby holders of allotment letters will bo able to mako further payments without additional charge at offices of the principal banks throughout tho United Kingdom. Dividends due April 15, 1917, and Juno 1, 1917, in respect of allotment letters, bond certificates, and scrip certificates, will be paid by coupon. Exchanges and Conversions. Allotment letters and scrip certificates if paid in full may be exchanged' for stock on or after the following dates, viz.:—s per cent, war loan, 19291947, on or after May 2, 1917; 4 per cent, war loan, 1929-1042, on or after March 13, 1917, or they may bo retained to bo exchanged for bonds to bearer as soon as these can" be prepared. Stock will bo transferable in any sums which are multiples of a penny (?). Bonds to bearer will be lssuod in denominations of £50, £100, £200, £500, £1000, and £5000. Conversion of £4 10s. per cent, war loan, 1925-1945. —£5 per cent. Exchequer bonds, due October 5, 1919-1921; £5 per cent. Exchequer bonds, due ' December: 1, 1920; £6 per cent. Exchequer bonds, due February 16, 1920. Holders of the above issues m fulfilment of the options granted in the several prospectuses relating thereon may convert their holdings in whole or in part as on February 16, 1917, and receive in lieu thereof . £5 per cent, war loan, 1929-19.47, and or £4 per cent, war loan 1929-1942, at the rate of £105 ss. 3d. for £5 per cent, war loan 1929-1947 for each £100 converted, or £100 £4 per cent, war loan 1929-1942 for each £100 converted.Holders desiring to convert must give notice ip the prescribed form to tho Bank of England! not later than Feb16, 1917, but the actual conversion in the bank's books will not be completed until Monday, July 2, 1917. Between February 17, 1917, and Juno 30, 1917, inclusive, holdings to be converted will bo unchanged' as regards amount, and description, except that holdings which aro to be converted into £5 per cent. >war loan 1929-1947 will be designated "B" stock and bonds, and those to be converted into £4 per 1 cent, -war loan 1929-1942 will be de- - signatcd "C" stock and bonds. The first dividends on holdings to be converted will be as follow:— On June 1, 1917.—£4 10s. per cent. war loan, 1925-1945, "13" £2 9s. 3d. per cent.; £5 per cent. Exchequer bonds, 1919 and 1921, "B" £3 7s. per cent.; £5 per cent: Exchequer bonds, 1920, "B" £2 lis. 4d. per cent.; £6 per cent. • Exchequer bonds, 1920, "C" £110s. 3d. per cent. ; On April 15, 1917.—£4 10s. per cont. ■ war loan 1925-1945 "O" £1 lis. Bd. ■ per cent.; £5 per cent. Exchequei i bonds, 1919, and 1921 "C" £2 9s. sd. per cent.; £5 per cent. Exchequei ; bonds,' 1920, "C" £1 13s. 9d. per cent. £6 per cent. Exchequer bonds, 1920 • "C" £0 125.: 6d. per cent. Note. —The above dividends represent \ interest accrued to February 16, 1917 F upon the old holdings to be converter > together with interest from Februarj l 16, 1917, upon tho new holdings whiol : will result from such conversion. Ii: i the case of £5 per cent. Exchequei ? bonds, 1921, issued after October 5 3 1916, the dividends will be subject t< . a deduction in respect of the interva . which elapsed between October 5, 1916 f . and the issue of tho bonds. 1 Bearer bonds lodged for conyorsioi 3 will bo exchanged for bond certificate! 5 for a corresponding holding of "B' y or "O" bonds,, to which will be_ at 5 tached a coupon for tho first dividen< payablo thereon. These certificates wil bo exchangeable for holdings of thi t new loans on and after July 2, 1917 f Bonds lodged for conversion must b< 3 accompanied by all coupons subse .. quent to February 19, 1917. t N.Z.—Applications for the conversioi •i of stock inscribed or bonds registerei r in tho books of the Bank of Englam should bo forwarded to the Bank o , Ireland, Dublin. Stock registered ii j the books of the General Post Offici e and bonds issued by the General Pos Offico will not bo convertible at tb Banlc of England. They will be con I vertiblo at the Post Office under th arrangements, set forth in the separat prospectus issued by lI.M. Postmaster Genoral. Holdings of these issue d not carry any rights of conversioi '- into any future issuo that may be mad i. by His Majesty's Government. '■- Commission. o s A commission of one-eighth per cent x will be allowed to banker, stockbrokers J. mid financial houses on allotments mad [j in respect of cash application for thi

issuo bearing their stamp, whether paid for in achial cash or by tho discounting of Trteasury bills or war expenditure certificates, but no commission will bo allowed in respect of application ' for conversion. Application forms for cash applications-. (IS For "fully-paid allotments," (2) for "instalment allotments," may bo obtained at tho Bank of England and at the Bank of Ireland, at any bank or nioney sl brder office in the United Kingdom, or Messrs. Mullens, Marshall, and Co., 13 George Street, Mansion House, E.C., and the principal stock-brokers. Application forms for conversion applications may be obtained: (1) For conversion of (a) holdings registered or inscribed in tlie books of tho Bank of England; (b) bonds to bearer (at the Bank of England, London, E.C.). (2) For conversion of holdings registered or inscribed in the books of tho Bank of Ireland at the Bank of Ireland, Dublin. Applicants for conversion application forms must state the description of holding which it is desired to convert. The lists for cash and conversion application will bo closed on Friday, February 16, 1917. Bank of England, January 11, 1917. (Signed) Treasury.