"ON FAIR BASIS"

Evening Post, Volume CXXXI, Issue 114, 16 May 1941, Page 6

"ON FAIR BASIS"

CONVERSION LOAN

J SUCCESS EXPECTED

"The Minister's statement that the terms were straightforward and fair was undoubtedly justified," said Mr. A. Hamilton, president of the Stock Exchange Association, referring to the new conversion loan, now open for subscription. "The return on the longdated issue approximated the yields to be obtained from other Government issues keenly sought after in a strong buying market. The offer to re-invest moreover, is entirely voluntary and there is no compulsion on the investor. If he so elects he can have repayment of his old loan in cash, but as many people who now hold these maturing issues will still desire to be in Government stock it is not at all likely that many will choose this course.

HEARTENING ASSURANCE

"One of the chief factors that will unsure success is the plain statement by the Minister that the next War Loan, which the public fully realises must come in the near future, is to be on a voluntary basis. Such a heartening assurance will restore confidence and give relief to many of the traders and industrial concerns who have anticipated a repetition of the difficult circumstances created by the previous compulsory loan.

"It is to be hoped that the second largest conversion in this country, and a voluntary one, meets with complete support and paves the way for a successful voluntary War Loan."

Mr. J. W. Frater, chairman of the Auckland Stock Exchange, is reported to agree with Mr. Hamilton that the conversion should be favourably received by investors, the terms appearing to offer a very fair basis of conversion. The yield would be virtually that which was now ruling in the open market. The importance of the Minister's announcement concerning another loan would not be lost on the market. Mr. Frater added. From this announcement investors would take confidence. At this juncture the statement: should materially assist the success of the conversion issue.

ably pretty right. From what he had seen, and learned by talking with a high rank Imperial Army instructor to the Irakian Government, he would think that the Irakian army had become a well-disciplined and. for its numbers, an effective force, split now* of course, by the clever work of Nazi influences and by the break-away, of Rashid Ali. From the time Irak was put under British mandate till the mandate was lifted there was a strong feeling in the country that Irak should be for the Irakians and that all official posts should be filled by them. The French officials were very unpopular in Syria, but they seemed to hold the people with a much tighter rein than did the British in Irak. ' The retention by France of its mandate would certainly not improve the feelings of the people of Syria towards them.