BRITISH SAVINGS

Evening Post, Volume CXIII, Issue 10, 13 January 1932, Page 12

BRITISH SAVINGS

stsSf;of Certificates

T$E vCONVERSION OFFER

A cablepam. recently. stated that the British Treasury had;\aiin6uhced that onand afters 18th.- January.holders of savings certificates.-issued before Ist April,. 1922,' might; convert their-holdings into, a conversion',,issue at 414 per cent., or into a loan maturing 1940-44; at.4 per cent., orin -P. a.*i2s?.L..sayinSs ond?j series B. The history of British, savings certificates is of interest;/. " '.■•■'•'-■■ -;f-. .:'.'

Lord Bradbury instituted the national sayuigs.certificate. in 1916 as .'a .war measure' otiniobilfsing. the funds of'small investors. The -movement: developed until by August, 1931, • initial investments in the savings certificates amounted to £524,470,000, and the amount at credit of holders o£ certificates that, had not matured,-and had not been; .redeemed, ? wlas about: £500,000,000. The,first issue of certificates was made at 15s .6d each, and'the value of the certificate after five years became.£l, giving an interest return of £5 4s 7d a year. If held for 10 years the certificates became worth •£l v6s-each,^ giving a.returri of- £5 6s 2d per cent., per aajium. In the early years the cash-value' Of the certificates increased slowly so that the annual interest yield was small,; and investors were encouraged to hold the certificates;until maturity. The first issue of: certificatea closed on 31st March, 1922, arid it is to meet the maturity of this issue, of which about 550,000,000 certificates-were sold, that the conversion ofier.has. now been made. The second issue of certificates was from April, 3922 to 30th-September,-1923, and bore a yield of interest if Jield to maturity of £i 19s 6d per cent, per annum tax free. The third issue from. October, 1923,- onwards,. bears interest if held to maturity in 10 years of i £4-2s : ..9d ; per cent, per annum tax free. Ine certificates Have proved very popular, and-form a non-negotiable security which can suffer.no depreciation, as it has a fixed realisable value at every moment of its hfe^although jf surrendared: before matur-lty4r-eave maS e:r? t? °f interest received is smaller. The: poorest persbn can acquire the certificateß by payment of instalments of as little as Id through a voluntary savings ..association. The National Savings Movement has done much propaganda work to make the certificates popular! and has done much to inculcate a habit of thrift : m Britain. Some idea of the size fact ?W° V+v 6nt m&yhf BaJned from the fact, that there are only fwo kinds of stock to-day having larger totals outstanding, the 5 per cent. larToan and 3% per cent- conversion loan.