TRIUMPH FOR TREASURY.

New Zealand Herald, Volume LXIX, Issue 21224, 2 July 1932, Page 9

TRIUMPH FOR TREASURY.

SECRET ORGANISATION.

BUG ANNUAL SAVING.

PUN UNRESERVEDLY PRAISED.

By Telcprnph—Press Association—Copyright. (.Received Jiily 1, 0.5 p.m.) LONDON, July 1. Hie Stationery Office lias been worlr- | ing in hot hnsto under lock and key f.ince | five o'clock on Thursday printing 3,000,000 forms to enable stockholders to indicate their intentions regarding their holdings in the 5 per cent. War Loan. These will nil bo completed in 24 hours. Tho secrecy with which the matter was organised is regarded as a triumph for the Treasury. A broadcasting programme was interrupted in order that a verbatim report of Mr. Chamberlain's speech might be 'broadcast. It is estimated that tho conversion will save £32,000,000 a year, beginning on Juno 1, 1933. -Allowing for a consequent reduction in income tax and surtax the net saving will be £23,000,000. In tin; House of Lords Viscount Hailsham re.id the Chancellor's announcement. Tho newspapers unreservedly applaud the courage of the Government in lackling tho conversion of one-third of the total internal debt, £2,000,000,000 out of .£6,329,000,000 being affected, on which tho interest, costs the Stato £276,000,000 a year. The Times describes it as a great conversion scheme. It says the Government need net be diffident about the public's response. There has been neither fear nor doubt in the keen expectancy with which the City and the public have followed the fortune.'! of Government securities.

"Proof abounds," says the Times, "that Ibis act oi conversion has been looked for and desired. It is a demonstration of social and fiscal strength unrivalled since the conversion of 1838 with the Government's credit steadily and rapidly gaining. The 5 per cent, debt is a costly anachronism which is diverting tho investor from other Government stocks."

The Daily Telegraph says: "Some holders will be disappointed that only 3i per cent, is offered, whereas they expected 4 per cent., but the vast majority will accept it. Tho present holders of the War Loan, whenever they purchased it, nave, done exceedingly well out of the investment."