INTERNAL DEBT

Nelson Evening Mail, Volume LXIV, 19 June 1931, Page 3

INTERNAL DEBT

THE CONVERSION SCHEME

LIFE ASSURANCE, OFFICES TO CO-OPERATE (By Telegraph—Press Association) DUNEDIN, 17th June. Mr George Bruce Smith, general manager_ in Sydney of the Australian Provincial Assurance Association, Ltd., who is at present, in Dunedin, has received advice that the Life Offices Association of Australia has promised co-operation in the scheme formulated recently for the, conversion of the internal public debt of I lie Commonwealth, provided all other sections of the scheme arc carried out simultaneously and in their entirety. Mr Smith told a repni-lm- I bill the Association at a meeting on Bth June passed (lie following resolution, a copy of which had been forwarded lo the Loan Council: —-“That the. Life Assurance Offices arc prepared to co-operate in the (scheme for the conversion of llio public debt put, forward by the committee of economists and under-treasurers in its report of 23rd May, 1931, on condition that all other portions of the scheme in their entirety are carried into effect simultaneously as indicated broadly in the, report.” The seven offices comprising the Association controlled assets totalling £108,866,928, of which £55,913,722, or 51.3 per cent., took the form of Government securities!. The amounts held by these offices were as follows :

Australian Mutual Prudent Society 43,882,923 Mutual Life and Citizens’ Assurance Co., Ltd 10,337,958 Assurance and Thrift Association, Ltd 12,823 Australian Metropolitan Life Assurance Company, Ltd 361,662 Australian Provincial Assurance Association. Ltd. 1,032,683 Commonwealth Life (Amalgamated) Assurance, Ltd. 150,722 Provident Life Assurance Company 125,951

Mr Smith said that if 1 lie Association’s offer was accepted the companies’ securities, which were at present drawing from 51 to 6 per cent, interest!, would, on conversion, in accordanoe with the new scheme, draw not more than 4 per cent. This meant in effect that the offices mentioned would he making a gift to the Commonwealth Government of between £1,250,000 and £1.500,000 per annum.