LOAN CONVERSION

Otago Daily Times, Issue 21688, 5 July 1932, Page 7

LOAN CONVERSION

BRITAIN’S VAST SCHEME WORLD-WIDE ADMIRATION (British Official Wireless.) (United Press Association.) (By Electric Telegraph—Copyright.) RUGBY, July 2. The Government’s vast conversion scheme is assured of complete success. The welcome extended to it was spectacular, and the effect on the markets was renewed this morning, when business again showed great activity. The operation has created world-wide admiration, and in several countries it is heralded as a step towards improvement in international economics and a bold and wise lead to other nations. United States comment indicates that, accustomed as the Americans are to thinking in large figures, the immensity of the scheme has amazed them and enormously enhanced Britain’s financial prestige. Incidentally countries as distant as Australia and China have had their credit as borrowers raised by the British Government’s action, and no class of security, British or foreign, has failed to feel the benefit from the scheme. So far as British stock is concerned, the capital | appreciation of half a dozen issues in the gilt-edged market exceeded £100,000,000 on yesterday’s business alone. The trend of the gilt-edged market to-day was again upward, despite some profit-taking. At mid-day typical prices were: —Consolidated 4 per cent. 10(5} and Conversion 5 per cent. 112, with War Loan 5 per cent. 101}. India Bonds were generally another point up. Bank of England stock has risen no less than 15 points to 312}. Dealers report that public support is increasing, and orders are accumulating not only for gilt-edged securities, but for leading domestic issues. PRESS APPROVES OF SCHEME. LONDON, July 3. The Sunday press, both in its editorial and financial columns, enthusiastically approves of the conversion scheme, and recommends prompt acceptance. The values of Stock Exchange securities have appreciated in the past few days to an aggregate of £500,000,000.