BRITISH WAR LOANS

Grey River Argus, 20 March 1940, Page 4

BRITISH WAR LOANS

'LV z A I*l lili £ £iV«bu £ Stock Excharage Action [Aust. & N.Z. Cable Assn.] LONDON, March 18. The Stock Exchange Committee has fixed new higher minimum prices for eighteen British Government securities, including 21 per cent. Const 4 s 170 10s, four per cent, funding loan £lOB 10s, 31- per cent. War Loan £95, 31 per cent. Convers’oji Loan , r TS, four per cent. Victory Bonds £lO7. The minima for ah' other gilt-edged securities, including those of the Dominions, will be fixed in a few days. Financial newspapers say that this shows the l authorities intend to finance the war on a three per cent basis for stocks. Sir J. Simon announced, in the Commons, that the war loan had been over-subscribed, and said it was a very satisfactory beginning to a series of loan operations, the Government must contemplate in carrying on th e warHe paid a tribute to the support given by all classes, and in particular by small investors. Sir J. Simon proceeded to make a statement on the Government s intentions as affecting the future issue of Government securities. "The. policy of the Government is to aim at stability of interest rates, and secure that the yields offered on future loans, whatever their type, shall, after making drp allowance few such factors as ‘tire n°' W’ of the loan, be iin fctgree)meiic with the level of interest rates established by the terms of recent 2 per cent, conversion loan, and the 3 per cent, war loan just issued. In Gies' 1 circumstances, I welcome fraction taken to-day by the committee of the London Stock Exchange, in announcing a revised list of minimum prices for Government securities. The now minima bear a closer relation to existing prices than those fixed on the outbreak of the war, and may be taken as evidence of the desire on the part of the authorities concerned to co-operate in the policy of maintaining interest rates at the present level.”

Mr. Patrick Lawrence expressed the satisfaction of th« ?t' J. Simon added that the usual practice would be followed of allotting small applications in full. applicants had been allotted about 80 per cent, of the cimount cipphvd for.