CONVERSION LOANS

New Zealand Herald, Volume LXXVIII, Issue 23966, 16 May 1941, Page 8

CONVERSION LOANS

SUCCESS EXPECTED STOCK EXCHANGE VIEW [by telegraph—press association] H WELLINGTON. Thursday Asked how ho thought the investing public would respond to the terms of the conversion loans announced this morning, the president of the Stock Exchange Association of New Zealand, Mr. A. Hamilton, said there should be no doubt about complete success in refinancing the loans falling due this year and the other loan which the Government has the right to repay, even although they totalled the large amount of £21.000,000. The Minister's statement that the terms were straightforward and fair was undoubtedly justified,. said Mr. Hamilton. The return on the long-dated issue approximated the yields to be obtained from other Government issues keenly sought after in a strong buying market. The offer to re-invest, moreover, was to be entirely voluntary and there was no compulsion on the investor. If he so elects he could have the repayment of his old loan in cash, but, as many people who ntnv hold these maturing issues would still desire to be in Government stock, it was not at all likely many would choose this course. "One of the chief factors that will ensure the success is the plain statement by the Minister that the next war loan, which the public, fully realises must come in the near future, is to be on a voluntary basis,'' said Mr. Hamilton. "Such a heartening assur-

ance will restore confidence and give relief to many of the traders and industrial concerns who have anticipated a repetition of the difficult circumstances created by the previous compulsory loan. It is to be hoped "that the second largest conversion in this country, and a voluntary one, meets with complete support and paves the way for a successful voluntary war loan."