CONVERSION LOAN

Te Awamutu Courier, Volume 53, Issue 3829, 4 November 1936, Page 4

CONVERSION LOAN

PRIME MINISTER’S REMINDER. “OPPORTUNITY TO ASSIST YOUR COUNTRY.” A chance is offered to holders of 4 pet cent, securities in the New Zealand Government’s loan issue of 1937-1940 to convert their holdings at 3 per cent, for five years or 34 per cent, for 20 years. This offer will be open only until to-morrow (Thursday, after which date the receipt of applications will not be possible. A reminder of this was given by the Prime Minister, Rt. Hon. M. J. Savage, as acting-Minister of Finance, in an interview last Monday evening. ADVANTAGES OF CONVERSION. “The Government in offering this conversion,” said Mr Savage, “is in effect exercising the option obtaining in respect of the 4 per cent, securities whereby they may be paid off within three years of the final maturity date on giving three months’ prior notice. The intention of the Government to repay this particular issue was formally published in the New Zealand Gazette of October 14, and has been widely advertised through the Press. “In order, however, that the present large volume of money awaiting suitable investment may not be increased and result in a most unsatisfactory position insofar a s New Zealand’s economic position is concerned, the Government is offering reinvestment for further periods, one of approximately five years at 3 per cent, and the other of 20 years at 34 per cent., an option being reserved to repay the new issues before final maturity within two years and four years respectively. “The Government’s offer has been favourably commented upon in financial circles, and the new rates offered for the short and long-term issues are m conformity not only with presentday interest yields from gilt-edged securities, but also with the policy of lightening the burden on the people of New Zealand. “It should be remembered that the business of running the finances of the country is the people’s business, and the Government as their representatives must necessarily take advantage of the circumstances which enable it to refinance a considerable hloek of the internal indebtedness of the Dominion on more favourable terms. There will, of course, be some who will require the proceeds of their investments for definite purposes. To meet such cases and also to provide for the redemption of short-dated securities issued in New Zealand in respect of the Southland Electric-Pow-er Board loans which were paid off in London in September last the Government is inviting cash subscriptions to the new 3 per cent, and 34 per cent, issues. This invitation provides a very favourable opportunity for the safe investment of funds which have possibly been lying idle for a considerable period.