BRITISH FUNDS

Southland Times, Issue 21854, 3 November 1932, Page 5

BRITISH FUNDS

NEW CONVERSION LOAN £300,000,000 AT 3 PER CENT ISSUE PRICE £97 10/(British Official Wireless.) Rugby, November 1. Following the announcement that the Treasury on February 1 will repay the outstanding balance, amounting.to £114,000,000, of 5 per cent. Treasury bonds, 1933-35, the prospectus has been issued of a new conversion loan. It states that the Bank of England is authorized to receive applications for a £300,000,000 3 per cent, conversion loan redeemable at par on March 1, 1953, or at any time on or after March 1, 1948. The issue price will be £97 10/- per cent. The list of applications will be opened and close on Thursday, November 3, 1932. Interest will be paid half-yearly, on March 1 and September 1. The first payment will be made on March 1, 1933. The Postmaster-General is authorized to receive applications for a separate issue of the above loan. Allotments in full will be made in respect of all subscriptions to the Post Office issue, the dividends of which will be paid without deductions of tax at the source. Application for the Post Office issue may be for £lO or any multiple not exceeding £lOOO and the first interest payment will be made on March 1. Mr Neville Chamberlain stated in the House of Commons to-day that the cost of the cash bonus and commission in the recent 5 per cent, war loan conversion operation was about £23,000,000,

SAVINGS IN INTEREST LAST CONVERSION TILL 1934. (Rec. 8.5 p.m.) London, November 2. The new loan marks the completion of the Government’s conversions allowable at present, no fresh opportunity being available until 1934, when £156,000,000 worth of Treasury bonds will mature. The budgetary saving by the latest conversion will be approximately £5,500,000, and the total savings by the series to date, after allowing for reductions in income tax receipts, will be about £30,000,000. termsUf loan FAVOURABLE TO INVESTORS. (Rec. 9.45 p.m.) London, November 2. The Financial Times states that the terms of the new conversion loan are rather favourable to the investor. The Government could have borrowed at a flat 3 per cent, as well as recall. "A tremendous change for the better has been wrought by the National Government in a year,” it says. “No country on or off the gold standard has brought about anything approaching the revival witnessed in Britain. The foreigner still occasionally hesitates over sterling, especially when such incidents as the hunger march arc magnified beyond all relation to the facts. Here we know the real strength of the country.” NEW CAPITAL ISSUES INCREASE THIS YEAR. (British Official Wireless.) Rugby, November 1. According to statistics compiled by the Midland Bank new capital issues for last month, excluding all borrowin"s by the British Government for purely financial purposes, amount to £19,745,000 against £2,483,000 for the same month last year, making the total for ten months to October 31, 1932, £97,919,000 against £81,565,000 for the corresponding ten months of 1931.