TAX-FREE WAR BONDS.

Hawke's Bay Tribune, Volume XII, Issue 234, 15 September 1922, Page 3

TAX-FREE WAR BONDS.

TERMS OF OPTIONAL CONVERSION. The Prime Minister made a statement in the House on Wednesday afternoon as to what is to be done m regard to New’ Zealanu z Government’s per cent tree-of-income tax securities. The position is, he said, that holders of 4| per cent free-of-income tax inscribed stock of debentures domiciled in New Zealand nwiy, up to January Ist next, convert such securities into inscribed stock to mature September Ist, 1941, hearing interest at the rate of 5} per cent, per annum, not free of income tax. The Minister tor Finance reserves the right to redeem at par, on any half-yearly interest date falling on or after September Ist, 1927. the whole or any portion of the 51 per cent securities mu issued, on giving three months notice in the “New, Zealand Gazette. Holders who desire to convert nr obtain forms and lodge applications at the Treasury, Wellington, the District Treasury Office, Auckland, or at any postal money-order office or branch of the Bank of New Zealand in the Dominion. ~ , , That meant, he added, that persons holding 4} per cent debentures free-of-income tax. and there were 4d,(X)() such holders in New Zealand, might, if they felt inclined, convert them into 51 per cent debentures not free of income tax. They had the right to do so up to December 31st this year, and the term of the debentures would be until September Ist, 1941. The Government, however, reserved, the right of redeeming them at par after five years. Sir John Luke: Is the conversion compulsory or optional* Mr. Massey: It is optional Mr. G. W. Forbes (Hurunui): VShen do thev fall due now ? Mr. Massey: In 1923.