THE MONEY MARKET

Evening Post, Volume CXV, Issue 12, 16 January 1933, Page 7

THE MONEY MARKET

NEW ISSUES OF CAPITAL

RESTRICTIONS REMOVED

TREASURY STATEMENT

(British Official Wireless.) RUGBY, 14th January. The Treasury has issued the following announcement:— "Now that the series of operations directly associated with the conversion of the 5 per cent. War Loan is about to be completed by the. repayment on Ist February of the 5 per cent. Treasury Bonds, 1933-35, the Chancellor of the Exchequer thinks that the time has come when he may safely withdraw hisprevious request regarding new issues of capital, except in the following eases:— "(1) -Foreign issues, namely issues on behalf of borrowers domiciled outside the_ Empire or issues the proceeds of which would be remitted directly or indirectly to countries outside the Empire. "(2) Optional replacements "of existing issues "by new issues if those new issues rank as trustee securities and involve either underwriting or an invitation, to the public to subscribe new cash. The Chancellor, still asks, however, that with a view to co-ordinating the requirements of intending borrowers, and so preventing possible congestion of the market, no issue ranking as trustee security may be made without prior agreement with, the Bank of England regarding the amount and date of issue. "The Times" City Editor says that the capital market is now open to domestic and Empire borrowers ex- x cept for the replacement of existing by new issues, with tho option of conversions ranking as trustee security enabling borrower's generally to replace debentures on easier terms.