WAR LOAN CONVERSION

New Zealand Herald, Volume LXIX, Issue 21225, 4 July 1932, Page 9

WAR LOAN CONVERSION

SPLENDID RESPONSE.

fine lead to nation. ■ / USABLY' APPLICATIONS. 200(1 I> T 'FIEST POST. COMMEBCIAL OPTIMISM. jjy —Press Association—Copyright. (Tteceived July 3, 5.5 p.m.) British Wireless. ' RUGBY. July 2. The immediate response accorded the great conversion / scheme, whereby it- is proposed to convert the whole of the 5 ' pgr cent 1929-19h7 war loan, amounting . to over £2.000.000.000, which is in the hands of 3,000,00ty holders, and to continue the lean at the rate of interest of ok per cent, has given .intense satisfaction. The firnt post brought 2000 applications for conversion. Splendid leads were given by Harrods. limited, and associated companies, which converted £500.000 worth of loan. The Rational Union of teachers converted holdings amounting to £172.000. The Chancellor ci the Exchequer, Mr. ■JTeviOe Chamberlain, and the Financial Secretary to the Treasury, Major W. E. ESiioii, ;.icried the first application forms, converting their y own holdings. The optimism engendered bv the Government's announcement was evident in / commercial and industrial circles throughoat the country to-day. Immediate beneficial results to tya.de are anticipated from ihe distribution of the special bonus of 1 per cent, to all who convert this month, and the net saving of £23.000,000 effected bv the interest reduction gives added hopes for lower taxation. The huge task of printing forms for the scheme was begun immediately after the Chancellor announced the project. Officials printed 15,000,009 forms, despatching them by pest in nearly 3,000,003 envelopes yithin t!4 hours. Viscount Snowden described the offer a bold venture, but one fully justified bv the greatly-improved national financial •position and the strength of British credit. He added: "It may well be the beginning of a great trade revival It will renew confidence, which is an essential condition of prosperity. The success of the 'Operation will have a profound ■ influence thronghout the ■world." At the Canadian Dominion Day dinner at the Savoy Hotel, Prince George, who waij speaking on behalf of the Prince of Wales, expressed the hope for a favourable response to the loan conversion appeal, might prove to be the beginning of a return to better •things. BBITISH 7 STOCKS BISE. EXCITEMENT ON EXCHANGE. SPECTACULAR advances made. LONDON. July 2. There was intense excitement on the London Stock Exchange as a result of the announcement of the conversion scheme, with Spectacular jumps in all British funds and heavy buying. Leadia.jr dealers in the Consols market were summoned' tr> the Bank of England to confer regarding the basis for dealings. Immediately tbev returned, active business resumed-in per cent. Consols at an advance oi £3 7s 6d above the preday's closing rate. Four per cent. Consols advanced £7 2s 6d, 3»j per cent. Conversion Loan £3 ss, and the 4 per cent. Funding'' Loan. £2 7s 6& Many leading British industrials thorred sharp rises. Activity was continued throughout the day. There were numerous transactions in all gilt-edged stocks, including Australian and New . Zealand. There was some profit taking, bat prices were onlv slightly affected. 1 <*