IN THE COMMONS

Hawke's Bay Tribune, Volume XIX, Issue 282, 13 November 1929, Page 7

IN THE COMMONS

THE CONVERSION LOAN

OBVIATING LEAKAGE OF INFORMATION,

MINISTER TAKING NO RISKS,

(United Prue Aseociatlon—By Defile— Copyright.)

(Received 13, 12.25 p.m.)' London, Nov. 12. In the House of Commons the BL Hon. Philip Snowden, replying to,a series of question regarding the conversion loan, said that the contract for placing 30 millions separately at £99J was not an ordinary underwritting transaction. Arrangements for it could not be made until the day following the issue of tho prospectus lest there should be a premature leakage of information. It was therefore not mentioned in tbe prospectus. He was influenced in this matter by the difficulties of the present period, the imr minonce of maturity and especially by the results of the Government issue last year, when the floating debt was increased by 50 millions. Having regard to the present figure of the floatting debt ho could not run any risk. He repudiated the suggestion that a subsequent offer altered the term of the prospectus. Apart from the 30 millions there had not been any change from normal methods regarding the term of issue. 'While he hoped that the price of money would decline it was necessary to prevent

an increase in the floating debt. Sir H. O’Neill:—Does not the heavy depreciation of Government stocks im. ply that the conversion loan offered an extremely fine investment at unnecessary eost to the countryf Mr Snowden: Undoubtedly it is si favourable investment. Ido not attach importance to the fall of some Government stocks for a few days. If you repeat the question in three weeks I will have a different answer. • .V.C. PENSIONS. XJJtI The Rt. Hon Tom Shaw, in answer to a question, said that provision existed for increasing Victorin Cross pensions to £75, Inclusive of other pensions, wore recipients art unable to earn a livelihood through reason of age or medical infirmity. Mr Lambert Ward: Then there is a means test! Mr Shaw: The practice of ths last few years implies a question of means. * i