DOMINION LOAN SUCCESS

Taranaki Daily News, 30 January 1929, Page 11

DOMINION LOAN SUCCESS

CONVERSION OF £11,750,000

PRIME MINISTER'S SATISFACTION.

SURMOUNTING OF HIGH HURDLE.

By Telegraph.—Press Association.

Wellington, Jan. 29

Sir Joseph Ward stated to-day that he bad received intimation from London that the £12,000,000 conversion offer to holders of New Zealand 4 per cenr. 1929 consolidated stock, made in conjunction with the recent cash loan of £7,000,000, had been taken up to the extent of £11,750,000. He considered this result satisfactory, as it indicated that the terms of the offer (£lO4-5 of 1948-58 4$ per cent, stock for each £lOO of the old) were as good as it was possible to obtain under the present market conditions/ Including the £5,000,000 conversion last May and about £1,000,000 purchased for cancellation, a total of £17,750,000 of 4 per cent, stock had now been dealt with.

“It will thus be seen,” said Sir Joseph, ‘that we have already accomplished a great deal towards surmounting the most formidable financial hurdle, and the success of these most- important operations is a further indication of our high standing in London, the principal money market in the world. “The statement made in a section of the Press recently about conversion opera-ti-ns being under-written is not correct, as there was no underwriting whatever for any portion of the whole sum,” said Sir Joseph. “There are lessons in the placing of large New Zealand cash conversion loans which the Commonwealth should not overlook,” says the London Daily Teelgraph yesterday. “Some resentment was shown in Australian official circles at our comment on the Commonwealth loan result. Australian loans will doubtless eventually be absorbed by investors, but that they should regularly have to be nursed by underwriters at the outset indicates, putting it mildly, a lack of popularity. “Those responsiblefor the Commonwealth finance should surely realise that there must be a fundamental reason for the small response to the 5 per cent, trustee stock at 98, when the 4} per cent, issue at, 95 of a neighbouring Dominion is eagerly snapped up. To bring out this fact in order that objections may be removed, does not seem a dis-service to the welfare of the Commonwealth.