LOAN CONVERSION

Evening Post, Volume CXV, Issue 64, 17 March 1933, Page 6

LOAN CONVERSION

(To tho Editor.)

Sir, —In your last two issues references have been made to the progress of the loan conversion scheme, but there is no mention of tlie intention of Cabinet to correct the proposed injustice to holders of the 5 per cent. 1940 loa::. Unfortunately private investors are not banded together in associations able to approach the Government as a bod;.-, cr this matter would, I feel sure, have received the neces- ! sary alteration. We are therefore in the position of having to rely on your kind offices for giving publicity to the fact that holders of the 5 per cent. 1940 loan are ■badly hit. The 5 per cent, loan is free of the 10 per cent, stamp duty, und gives investors practically the same return as the various 5% per cent, loans, yet under the conversion scheme the 5M per cent, receive a premium of £2 17s 2d per £100, and the 5 per cent, free of stamp tax receive no premium. Estimated on an investment of say £1000 it means that on the new currency of loan, say twelve years, after reckoning interest for period on the premium, the holders of the 1040 will be at a disadvantage o£ more than £40 when compared with holders in all other Government.

If Mr. Coates desires the confidence of investors he should remove this stigma from the loan conversion scheme, and do bare justice to the holders of the 1940 loan. It naay be said that Parliament having adjourned it is too late to amend but a promise by him that he will pro-pose-.during the next session to place 1940 loan holders on the • same footing as holders of other loans will be quire sufficient, if the matter cannot be .rectified by Order in Council. —I am, etc.,'