FINANCE OF DOMINION

Taranaki Daily News, 4 October 1929, Page 11

FINANCE OF DOMINION

£5,000,000 CONVERSION LOAN THE RESPONSE SATISFACTORY. i UNDERWRITERS LEFT WITH THIRD By Telegra^i—Press Assn.—Copyright. Australian Press Association. United Service. London, Oct. 2. Applications for the New Zealand loan converting £5,000,000 of consolidated stock maturing on November 1 amounted to approximately £3,500,000, leaving 30 per. cent, with the underwriters, who had expected 40 to 50 per cent. Sir .Joseph Ward stated at Wellington; "My advices-indicate that the underwriters will bo loft with about 30 per cent. In . view of all the circumstances and the increase in the Bank of England discount rate to 6} per cent, during the offer, the result is satisfactory. “The whole transaction of converting the ’ £20,000,000 is now practically effected, ae arrangements to deal with the outstanding £4,700,000 on November 1 have been completed. One important feature of the transaction has been the of New Zealand to redeem a substantial amount from local issues during the past twelve months.” Discussing the loan, The Times says the result falls short of expectations, yet is by no means unsatisfactory in view* of recent unfavourable conditions, in the absence of which the whole of the amount would probably have beenconverted, as New Zealand’s steps to repay £4,703,000 of the £9,703,000 4 per cent, stock maturing on November 1 has created a favourable impression. The Morning Post’s financial editor states that, despite the most unfavourable. conditions on the market while the lists were open, New Zealand’s con-' version offer met a very satisfactory response in the circumstances.