LYTTELTON BY-ELECTION

Otago Daily Times, Issue 22630, 23 July 1935, Page 10

LYTTELTON BY-ELECTION

Polling Day, July 24 CANDIDATES T. H. M'Combs, Labour. M. E. Lyons, Coalition. E. T. Hills, Independent Labour. G. S, Hamilton, Independent. — I 1925.—J. M'Combs (Labour), 4900; M. E. Lyons (Reform), 4889. 1928.—J. M'Combs (Labour), 5022; J. W. Eeanland (Reform), 3066; W. T. Lester (United), 2734. 1931.—J. M'Combs (Labour), 5404; F. W. Freeman (Coalition), 5372; W. L. Page (Independent). . 1933 (By-election)..—Mrs E. R, M'Combs (Labour), 6344; F. W. Freeman (Coalition), 3675; E. L. Hills (Independent Labour), 269. RECENT CONVERSION LOAN LABOUR CANDIDATE’S CRITICISM BASED ON WRONG PREMISES - - » i Peb United Press Association i CHRISTCHURCH, July 22.During the Lyttelton by-election campaign the Labour candidate, Mr T. H. M'Combs has referred frequently to the recent conversion loan, stating that the operation was not such a signal success as the Government claimed, and stating also that the issue price for 98$ was too low. This, he argued, was proved by the fact that the stock had been resol’d at a premium of a quarter per cent., and so he argued that New Zealand had made a present to the bondholders of £140,000.

To-night Mr M. E. .Lyons, the Goveunment candidate, referred again to the subject, quoting a statement on the subject which he had received by telephone from the Acting Minister of Finance, Mr Adam Hamilton. Mr Hamilton stated that at the time of issue the price of 98$ for 3 per cent, stock was considered good, having regard to the prices on the London market of similar stocks. It was not correct to assume from the news cablegrams that the stock had been sold at a premium of a quarter per cent.—that it had been sold for 100$ —and so to calculate that New Zealand had lost £140,000. Actually, the stock had risen to 98f, a rise of a quarter per cent. Mr M'Combs had mentioned that 3 per cent. New Zealand stock was selling at £lOl I2s Od. Actually, this was not conversion loan stock, Mr Hamilton said. It was 1 stock of a loan which had been current for many years, and which matured in 1945, whereas the conversion loan matured in 1955. Also, on that stock there was four montlis’ accrued interest.