WAR LOAN AND CONSOLS

Evening Post, Volume LXXXIX, Issue 151, 28 June 1915, Page 8

WAR LOAN AND CONSOLS

Some misapprehension existing as to the terms and conditions upon which Consols and the former British war loan of 3£ per cent, issued at 95 per cent., can be converted, the chairman of the Bank of New Zealand (Mr. Harold Beauchamp) was interviewed by The Post, and he furnished the following explanation :—: — " Holders of Consols can convert, provided that, before applying foi; conversion, they have made cash application for the new war loan equal to double the amount of the stock they will receive in respect of their Consol conversion. The , amount of war loan stock which a converter will receive is two-thirds of the> amount of his Consols. Thus a holder of £600 in Consols, can convert his Consols into £400 of war loan stock, but, before he can do so, he must subscribe in cash (fully paid) £800 to the new war loan, and his total holding of new war loan stock, after conversion, will be £1200. The old war loan 3± per cents, can be converted if the holder subscribes an equivalent amount in cash to the new war loan and pays £5 per cent, on the old war loan converted. Thus a holder of £1000 old war loan must, in order to convert, subscribe in cash (fully paid) £1000 > to the new war loan. He can then convert his old war loan on payment of £50 (i.e., £5 per cent, of his old war loan), and his total holding of new war loan stock, after conversion 'of old stock, will be £2000."