LOAN CONVERSION

Evening Post, Volume CXV, Issue 62, 15 March 1933, Page 10

LOAN CONVERSION

TOTAL TO DATE

MINISTER'S APPEAL

Although the closing date is still nine days off, the last-minute rush to convert Government securities seems to have begun. At noon today applications and promises to convert received by the Treasury covered £33,755,022, compared with £31,52G,472 last night. Considering that the bulk of the money now outstanding represents small investments, the receipt of offers totalling almost £2,000,000 in so few hours is for the Government an encouraging sign of the progress of the scheme, particularly since it brings the total conversions to within a fraction of half the internal debt actually in the hands of the public. The complete operation involves £115,000,000, but of this over £45,000,000 is held by State Departments and will be converted by the Government as a matter of course. Some interesting statistics showing the progress of the scheme were issued' today by the Minister of Finance (the Rt. Hon. J. G. Coates). Among large holders of Government loans, 75 promises and applications for conversions have been received'eaeh covering between £10,000 and £50,000 worth of stock, 38 covering between £50,000 and £200,000 worth of stock, and 9 covering betiveeu £200,000 and £1,000,000 worth. There have been four offers of conversion each involving between £1,000,000 and £3,000,00t), two between £3,000,000 and £6,000,000, and one —the highest of all —above £6,000,000. , : . AN ASSURANCE. While these larger holders have come forward and accepted conversion of their stocks readily, many of the smaller holders —uncertain of the exact effects of the Government's proposals on their own securities —have held back chiefly because they fear that to convert their stock will prevent ,them from realising .on it when they wish to. They believe that 'the alteration of maturity dates involved in the con-"" version scheme will tie up their capital for ' longer than they anticipated and perhaps embarrass them when 'fhey most need it. Mr. Coates has been able to reassure many of these holders by pointing out that their securities are marketable, and morei^ readily mar-, ketable than most securities at the present day. "When Government stocks have fully maintained their values even under the unsettled financial conditions temporarily created by the conversion itself, he considers there is no reason for concern about- the future. Bondholders will be able to realise their capital, whenever they need, it; on. the stock market, and in the meantime, by easing the heavy interest burden on the State's finances, they will actually improve the security on Which their investments are based. Mr. Coates appeals, to them to put their fears on one side and help their country, as the great majority of the larger holders have already done, by agreeing at once to convert.