CANADA’S CONVERSION LOAN

Greymouth Evening Star, 11 May 1931, Page 5

CANADA’S CONVERSION LOAN

REDUCTION OF INTEREST.

[by CABLE —PRESS ASSN. —COPYRIGHT.] OTTAWA, May 8. The Dominion of Canada Conversion Loan, 1931, will be offered to the public on Monday next. Mr Bennett, Prime Minister, announced this in the Canadian House of Commons to-day. He stated that the issue will remove from the business horizon the dark cloud which every Finance Minister has to meet when the heavy borrowings are impending. He added: * Since the expiring bonds are largely held by Canadians, the acceptance of these holders of four and a-half per cent, interest at the expiration of the bonds interest they are to turn in that is one per cent lower than the old bonds carried —will indicate their faith and belief in their country and will also be a striking testimony to their confidence in the future of the country.” The present intention, said the Prime Minister, is to float a loan of 250,000,000 dollars, it being entirely a conversion loan and no new money 4s being asked from the holders, who will turn in the bonds. They will receive the current interest rates until the bonds would have expired, and four and a-half per cent, interest afterwards. The new bonds are to be subject to taxation, both as to principal and interest. The total of Canad ian loans that is maturing in the next three years, is 108,300,000 dollars. The bonds will be for a terms of twentyfive years, but will be callable aitei fifteen years.