BRITISH WAR LOAN

New Zealand Herald, Volume LXIX, Issue 21258, 11 August 1932, Page 9

BRITISH WAR LOAN

CONVERSION OPERATION INDICATION OF FIGURES (Received August 10. 5.45 p.m.) LONDON, Aug. 10 Official returns in respect of the war loan conversion indicate that 15,(03,000 ieasb bonuses had been paid up to last Saturday, so it is inferred that the total converted by the end of July was over ... rather than under £1,600,000,000. Owing to the weakness of gilt-edged stocks and the buoyancy of American stocks assented war loan fell to £97, and later rallied to £97 15s. The regrettable fall gives an Advantage to those who exchange now from the war loan over the patriotic holders who responded to the conversion appeal in July. The Financial News says it thinks the •official announcement as to the result of the conversion, which now is imminent, will restore most of the losses gilt-edged prices may have suffered. Discussing the Stock Exchange situation treated by the war loan conversion scheme, the dav following its announcement, the Financial News said"There :was considerable confusion regarding the dealings in war loan yesterday. -Many people were under the impression that the stock would be quoted ex the cash bonus immadiately. This, however, was not so. Dealings were carried on in the stock in exactly the same way as the previous day. •Next week, however, it is anticipated that business will take place/in two classes of *tork, namely, 5 per 'cent 1929-47 war loan (non-assenting) and 5 per cent w-ar loan, 1929-47 (assenting), for holders will, i it is' hoped, start sending in their forms accepting the conversion offer immediately after receiving the Chancellor s letter. Ihe assented stock will, of course, be quoted «x the £1 cash bonus payable to holders agreeing to the reduction in their interest to 3i per cent from December 1 next. As eoon as the assented and non-assented stocks are quoted separately there will be two entirely different prices. Ihe price of the assented stock will be virtually that of a 3i per cent, loan (being quoted ex rifliis) and mav move in any direction ■with the trend of the market. The nonAssented stock, on the other hand, represents simply a claim to £IOO cash and a half-year's interest on December 1, and 'can therefore move only within very narrow limits." That explanation was given on fhiy, July 2. A report of the situation on the' Tuesday following said"For the first time dealers wero quoting war loan in two forms, namely, assented and non. assented stock. The former was called j £99- 15s ox the £1 cash bonus,_ while the non-assented finished at £lOl. j