BRITISH FINANCE

Hawke's Bay Tribune, Volume XXV, Issue 299, 4 December 1935, Page 9

BRITISH FINANCE

New Government Issiks CHEAP-MONEY POLICY British Official Wireloss Service. RUGBY, Dec. 3. Two new Government issues arc announced. The first is a short-term bond redeemable on February 1, 1911, or any time alter February 1, 1939, at the option of the Treasury alter three months notice. This bond will bear interest at one per cent, and will be ollered ior subscription at £9B, showing an interest yield "ith redemption at the latest date of £1 8/5 per cent The total amount ol this issue, which will, of course, appeal chiefly to the money market, is £100,900,660.

The second issue is a medium lungterm loan £200,000,000 in (be form of a 21 per cent, luuding loan 1956-61. the issue price being £9(l 10/-, mid the yield, allowing lor redemption at the latest rate, £2 13/10 per cent.

“A new milestone n, British finan cial progress,’’ is the “Daily Mail’s” description of this conversion. “The boldness in dealing with the national finances iu this comprehensive fashion shows that the Treasury still has a sound grip on the situation, its cheap money policy being curried out with skill and foresight.”

'lhe “Daily Tcdegiaph’’ notes that the loans are announced in the latel'ul week when the prospect of further sanctions against Italy lias cirst a faint but perceptible gloom over the financial horizon. '1 lie Government ty advertising the loans now, bus manifested the view that a safer, not a more insecure, world is being moulded by its foreign policy. “The Times” says; “Fresh life will be nut into the gilt-edged markets, which interpret the issue to mean that the Government is of the opinion that there is no need to defer a domestic operation owing to the cloudy international outlook.”