LOAN CONVERSION

New Zealand Herald, Volume LXX, Issue 21450, 25 March 1933, Page 13

LOAN CONVERSION

CLOSING DATE PASSED OFFERS TOTAL £105,000,000 FINAL FIGURES NEXT WEEK [by telegraph—OWN correspondent] WELLINGTON, Friday Although official figures will not be available for somd days, when the Government's debt conversion closed to-night slightly over £105,000,000, or 91.3 per cent of the total debt, had been voluntarily i offered. Tho amount received to-day was actually very much greater than £1,000,000, but it was fouud at tho last moment that several of the larger holdings had been over-estimated in promises telegraphed to the Government when tho scheme was first launched. In view of the readjustment necessitated by these changes the final total will not bo known until next week. On the present figures the following position has been reached: — Per cent Assents . . . . £105,000,000 91.3 Silent conversions . 9,500,000 8.2 Total r i . . £114,500,000 99.5 Dissents . . .. 500,000 .5 Unless there is any material change in tho totals the conversions assented and silent will account for 99.5 per cent as compared with 97 per cent in tho Australian conversion of 1931 and 92 per cetit in last year's conversion in Britain, the conditions of which were different. There is a probability that the total of assented conversions will be somewhat advanced when the final figure's are known. Although returns were again roquisitioned last night from banks, post offices and district Treasury offices in all parts of the Dominion, no account could ba taken of the applications which are in transit direot to the Treasury. It is possible that tha Minister of Finance, th«> Rt. Hon. J. G. Coates, will be able to make an official announcement on Monday or Tuesday. "I think we have every reason to be proud of the result disclosed in to-night's statement," said the Prime Minister, the Rt. Hon. G. W. Forbes, this evening. "Tho fact that it was considered neces* sary to providei a penalty for non-con version did not impose any obligation on bondholders to come forward and volunteer to convert their stock; they could just as easily have remained silent and allowed it to be converted automatically. Tho significant feature' of the whole operation is that they did come forward and in numbers that must be an encouragement to us all.

"I am convinced that this success will enhance our credit and prestige abroad and in the end amply repay individual bondholders for the sacrifice they have been asked to make." PROVISION FOE PENALTIES CONDEMNATORY RESOLUTION [BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Friday Disappointment at the manner in which the Government brought about the conversion of stock is expressed in a resolution carried at a meeting to-day by the executive of the Associated Chnmbws of Commerce, in the following terms:—"This association, which last year advocated the voluntary conversion of the Government's internal debt, and which still adheres to the principle, records its deep disappointment at the fact that the public of New Zealand has been denied the opportunity of patriotic participation in a really voluntary scheme, since the penalty provisions in the present scheme remove it from that category." The president, Mr. A. S. Burgess, said that the Associated Chambers had suggested to the Government a scheme of voluntary conversion because it was convinced that a reduction in interest rates was essential, but when provision was made for penalties to be visited 1 on thoso holders of stock who did not convert, then the association could only view with deep regret the course that had been followed.