DEBT CONVERSION

Evening Post, Volume CXV, Issue 63, 16 March 1933, Page 12

DEBT CONVERSION

DEPARTMENTS' SHAKE

RESPONSE- OF SMALL INVESTORS

The Government's debt conversion was advanced an important stage this morning when, in. a series of huge operations each involving millions of pounds, tho whole of the internal debt held by State Departments, amounting to £45,800,000, was converted under the scheme. At the same time conversions offered by the public rose to a total of £36,522,147, so that of the total internal debt of £115,000,000 no less than £82,122,147 is now accounted for eight days before applications close. Applications received from the public during the 24 hours ending at midday today covered £3,563,405 worth of stock. If this progress is maintained and slightly increased during tho last days of the period, there is, the Minister states, every reason to believe that by March 24 practically/100 per cent: of the debt will have been offered to tho Government for conversion.

Considering that the majority of applications now being received are from small investors, each covering only a few thousand pounds at the most, it -will bs understood in. what a vast amount of work the Treasury is involved to reach a daily total of over £3,500,000. The incoming mail, which is being delivered constantly throughout the day, has reached huge proportions, and the special accounting staff which has been engaged for the work is now busy day and night. In a statement today, the Minister of Finance (the Et. Hon. J. G. Coates) said that although the response so far had been excellent the Government was not by any means slackening its efforts to make public the details of the scheme and to secure the fullest , cooperation of bondholders in all parts of the Dominion.

"It is hardly necessary for me to emphasise," said Mr. Coates, "how important it is for the prestige of the country that on March 24, when applications close, we should be able to say that 90 per cent, or 95 per cent., or, as I earnestly hope, 100 per cent, of tho debt domiciled within New Zealand has been freely and willingly offered to the Government for conversion. For 'the sake of equality and fairness Parliament provided what amounts to a penalty for non-conversion; but we are most reluctant to use it, and as we see tho increasing stream of applications that pours day after day into the Treasury and sense the ardently helpful spirit of the country we feel that we shall never need it. The Dominion's reputation for patriotism, good sense, and financial stability will be vastly enhanced by a debt conversion as outstandingly successful as this now promises to be, but I must remind the people that before it is done, before the Telief all so urgently need can be given, every bondholder, whether his interests are'large or small, must cheerfully take his part."