CANADA CUTS INTEREST

Grey River Argus, 11 May 1931, Page 5

CANADA CUTS INTEREST

ON CONVERSION LOAN ‘ t I To 41 Per Cent. I (Aus. & N.Z. Cable Assn.) • (Received May 9, at 5.5. p.m.) j OTTAWA, May 8. I The Dominion of Canada Conversion j Loan, 1931, will be offered to the pub- 1 > lie on Monday next. Mr Bennett, ] Prime Afinister, announced this in. the- < Canadian House of Commons to-dav < He stated the issue will remove from the business horizon the dark cloud < which every Finance Minister lias to j meet when the heavy borrowings are impending. He added: ‘‘’Since tho t expiring bonds are largely held by Canadians, the acceptance of these j holders of four and a--half per cent ( interest at the expiration of the bonds - interest they are to turn in—that is lone per cent lower than the oid bonds | i carried—will indicate their fai~h and ( belief is their country and will ( {also bp a striking testimony to their . confidence in the future of the conn- 7 1 ry. ’ ’ The present inteptijon, said th<» , Prime Minister, is to float, a lean of 250,000,000 dollars it being) entirely a { conversion loan and no new money is - being asked; /from; tfie holders; /who will turn in the bonds. They will re- 1 1 ceive the’ current interest rate s until,, the bonds would have expired, |and four and a r half per cent, interest, , J afterwards. The new bonds are to be] subject to taxation, both as to princi-i pal and interest. The total of Canad-1 lien loang that is maturing in the next; ( three years. is 108,300,000 dollars. The. ( bonds will be for a term of twenty- * five years, but will be callable after ( ! fifteen years. i (