CONVERSION LOANS

Stratford Evening Post, Volume II, Issue 90, 9 November 1932, Page 5

CONVERSION LOANS

Misconceptions concerning NEW ZEALAND PRIME MINISTER DISCUSSES QUESION Misconceptions concerning the possibilities of New Zealand con. , verting loans in London in the near ruture were discussed by the Prime Minister, the Rt Hon G. W, Forbes, in his speech at the Stratford railway celebration banquet on Monday, when he &a'd he was keenly awaiting the return of the Hon W. D u Stewart, who had not yet advised him of the position, although he said no large conversion could be effected 5 for some time.

“Much has. been heard of the conversion of New Zealand loans on the Loudon market now that the rate of interest has dropped so considerably there,’’ said Mr Forbes.■> "Unfortunately the only New Zealand loan that can be dealt with is that issued last year, when £5,0ut),000 5 per cent bonds were raised, repayable on July 16, 1!)34, the Government, having an option to redeem the bonds on or alter July 16, 1932, on giving three months’ notice. “Large conversion operations by the Imperial Government relate to loans that have an optional maturity date. Australia may also be able to take advantage of the position as the optional maturity date of a large number of Commonwealth and State loans has already passed, “New Zealand has a number of loans with optional maturity dates, but the time, has not yet arrived wherein the option can be exercised,’’ said Mr Forbes. “I have not yet received any information as to the result of the negotiations Mr .Stewart lias, been conducting at Home, and I presume we will have, to vyarit. .until the British conversion loans are out of the , way and the embargo which has been.operating at Home has been lifted.” 'Mr Forbes added that he was sure however, that if, New Zealand did go to Britain with respect to conversion, the Dominion would he treated as generously as she had always been.