BRITISH WAR LOAN.

Poverty Bay Herald, Volume XLII, Issue 13718, 23 June 1915, Page 3

BRITISH WAR LOAN.

BUSINESS MEN RUSH FOR , PROSPECTUS. ' LONDON. June 22. The; pospectus fo the new loan has been issued. / M r McKenua said the strongest citicism isms of the loan were that the terms were too generous. The Government wanted to raise the money, and did not. want people to say they would wait for better terms, later. With reference to the suggestion that they ought to raise taxation, Mr McKenna declared it was best to take one step at a time. If further large sums were required, there must be further taxation, but the time was not yet. He then moved to amend the resolution m the direction of giving him 'power to cancel Treasury Bills now issued. The resolution and amendment were adopted. Directly Mr McKenna concluded his speech enormous queues of. city men commenced to assemble at the Bank of England to await the prospectus. The general opinion is that the m- < vestment is the most attractive one of modern' times, and particular approval iff given that facilities are offered small subscribers. . Dozens of vans carried .consignments of the prospectus to the railway termini for distribution m ,the provinces. (Received June 23, 9.30 a.m.) LONIJON, June 22. The prospectus of the war loan shows plainly that only holders of the new war loan, will have the option of converting the old loan ov consols. The Treasury points out that the loan embodies war loan and great funding operations. It is estimated that 35U millions of .consols are m the hands of the public and it is expected ' the holders of 250 millions will -convert which would mean the subsrription of 330 millions. Similarly it is expected that two hundred millions of the old war loan will be converted. This will carry a subscription of 210 millions. Neither war stock nor consols can be converted unless the 'holder subscribes an equivalent to the market value of the new stock. The official expectation is that consols will probably drop to 57 or 58 m October. The gain to the State, will be the wiping out of a third of the earlier capital indebtedness, if all consols are converted. . Though the amount of the loan, is" not stated, it will not be unlimited, as the House of Commons' resolution confines it to the supply voted m the present, yeai'; that is between nine hundred and one thousand millions. . Mr McKenna stated that the Governmont would not be disappointed if it got six hundred millions of new money. The Financial Times fears that m view of the new basis of credit established some severe readjustments will have to be made m the value of certain Colonial Government and high class corporation issues. (Received June 23, 12.30 p.m.) LONDON, Jun« 22. Mr McKenna, m the House of Commons, said the Bank of England whs prepared to rediscount Treasury bills to enable holders to subscribe to tho new loan.