LOAN CONVERSION

Evening Star, Issue 21469, 21 July 1933, Page 7

LOAN CONVERSION

BRITISH TREASURY OFFER SAVING IN ANNUAL INTEREST Press Association—By Telegraph—Copyright. LONDON. July 20. The Treasury announces a new conversion offer dealing with the loan of 250,000,000 dollars raised by Britain in the United States in January, 1917, for the purchase of munitions. The issue, after a certain amount of conversion, ultimately took tho form of twenty-year 5£ per cent, gold bonds, redeemable at par on February 1, 1937. These bonds were in dollar denominations. The Government now offers an exchange ou the basis that the holder shall receive 2GO sterling bonds for ever/ thousand dollars of 5J per cent, gold bonds. The sterling bonds will bo repayable in London on February 1. 1937, and bear interest at the rate or per cent, per annum, payable halfyearly. Tho first payment is due on February, 1, 1934. Income tax is to be deducted at the source. The Treasury states that the effect of the offer will be to increase the total amount of tho principal, but diminish the interest payments during tiro period remaining before maturity. The offer is the result of the recent gold legislation. • , Tho amount of twenty-year bonds outstanding is 136,333,500 dollars, or £28,013,733 at par, interest on which is equivalent to £1,540,755 a year, while the interest on sterling bonds will be £886,168 a year.