CONVERSION PROSPECTS

New Zealand Herald, Volume LXIX, Issue 21359, 7 December 1932, Page 12

CONVERSION PROSPECTS

LOAN OF £5,000,000

PRIOR CLAIMS COME FIRST DOMINION TO WAIT ITS TURN [BY TELEGRAPH —SPECIAL JIEPORTEn] WELLINGTON, Tuesday The possibility of converting the New Zealand loan of £5,000,000, which will normally fall due in London in 1934, was mentioned by the Minister of Finance, the Hon. W. Downio Stewart, in the House to-day. It was his first reference to that phase of his recent mission in London, and although ho did not vouchsafe a great deal of information, he indicated that New Zealand would have to await its turn before exercising her option to convert before 1934.

Opportunity to question the Minister on the subject was taken by Mr. P. Fraser (Labour— Wellington Central), when the New Zealand Loans Bill was introduced. Mr. Fraser had asked whether the bill had any bearing on loan conversion operations.

Tho Minister said there wero 0.0 New Zealand loans which had actually fallen duo, and could be converted immediately by reason of them having reached the date of maturity. One loan would fall duo in New Zealand in January, and the short-dated loan which was raised in London would be due in 1934.

New Zealand had the option of eonverting that loan now, and the prospects of that being done were discussed by him with tiie London authorities. However, it was pointed out then that thero were other applications for conversion by countries whose loans had actually fallen due. Their cases were regarded as more urgent and would receive precedence. The whole question was under consideration by the Government at the moment, but, as was stated, there was only one loan which New Zealand had even an optional right of converting.

. According to a table in the Budget, loans totalling £5,641,700 fall due in London, Australia and New Zealand in 1933. Of that amount £5,301,170 was raised within the Dominion, only £13,000 being placed in London and £327,230 in Australia.

Of tho internal loan, £1,165,020 was advanced by Government departments, and £4,136,150 is owing to the public. It is also shown in tho same table that loans totalling £77,523,728 fall due between 1932-33 and 1938-39, and of that amount, no less than £69,768,758 was raised locally. Interviewed later, the Minister said he had no desire at the moment to elaborate his statement in tiie House regarding the conversion of the £5,000,000. It is understood on good authority, however, that there is little prospect of NewZealand taking action to convert that loan until after (he end of the current financial year.