CONVERSION SCHEME

Nelson Evening Mail, Volume LXVI, 1 July 1932, Page 5

CONVERSION SCHEME

BRITISH WAR LOAN - ANNOUNCED BY CHANCELLOR (British Official Wireless) RUGBY, 30th June. . Mr Neville Chamberlain announced‘in the House of Commons to-night a scheme if or the conversion of the great 5 percent. war loan, of which over two" thousand million is now outstanding. Mr Chamberlain said: ‘‘The Government intend to repay the loan in cash on Ist ' December next to any holder who decides to apply for repayment withinthree months from to-day, but holders in the loan at- the same time are invited to continue in the loan on altered - conditions, and it is my confident hope that the great mass of holders will re--spond to this invitation.” The Treasury, in accordance with the prospectus of llth January 1917, will' redeem the outstanding amount of the loan at par on Ist December, 1932. At the same time they invite any holder of stock or bonds who wishes to do so to continue his holding in the loan after the redemption date, subject to certain modifications. The principal modifica-_ tions are, firstly, the rate of interest to be reduced as from Ist December 1932 to 3£ per cent, per annum ; secondly, the loan to be redeemable at the option of the Government at any time after Ist December 1952 but not earlier either in a single operation or by instalments; thirdly, the title to be changed to 3£ per cent, war loan. Dividends will continue as before, to be paid without previous deduction of income tax and ex-» isting exemptions from United Kingdom .. taxation in favour of holders who are domiciled and resident outside the United Kingdom will continue in .force. Holders who notify their assent to, con-, tinuance not later than 31st July will be paid a cash bonus at the rate of £1 per £IOO nominal of stock. Under the special provision which was embodied in an Act of Parliament last autumn; .any holder who by 30th September has neither applied for his holding to be continued nor applied for redemption, will be treated as if he had accepted the offer and will have his holding continued.