GOVERNMENT LOANS

Mt Benger Mail, 7 March 1934, Page 3

GOVERNMENT LOANS

FAILURE TO CONVERT. The Penalty Incurred. Auckland, Feb. 28. An indication of the effect of last year’s conversion of Government loans to a lower rate of interest was afforded by the ‘isolation of a parcel of February, 193 1, 5.1 per cent dissented stock on the Auckland Stock Exchange. The interest on this loan is now taxed at the rate of 33 1-3 per cent as a penalty for failure to convert. Current 4 per cent converted loans are at a premium of slightly over 1 per cent, bn a quotation of iIUO North of 51 per cent dissented slock at £99 10s failed to attract any support from buyers in spite of the fact that at the price quoted the return to the buyer would be close upon 4 per cent., which is considerably better than that from any other loans at current prices ' The failure to convert, however, proved a losing proposition to the seller, and the lack of interest shown can only be put down to the limited market which now exists for this stock.