PARTIAL LIFTING OF BAN

Taranaki Daily News, 3 October 1932, Page 7

PARTIAL LIFTING OF BAN

LOAN ISSUES IN LONDON

LIMITATION TO THE EMPIRE

FILLIP TO BUSINESS HOPED

BENEFIT OF CHEAP MONEY

By Telegraph—Press Assn.—Copyright Rec. 5.5 p.m. London, Oct. 1

Mr. Neville Chamberlain, Chancellor of the Exchequer, announces the withdrawal of the ban on new issues except on behalf of borrowers domiciled outside the Empire or where the proceeds are remitted, abroad. It is also optional to replace existing issues by issues involving underwriting or invitation for new cash.

Mr. Chamberlain adds that with a view to co-ordinating the requirements of borrowers and. preventing possible congestion, no trustee security issue should be made without the agreement of the Bank of England regarding the amount and. the date of issue. The removal of the ban on fresh issues gives new hope to British industry, says the Daily Telegraph. New trades will be encouraged by the import duties, and besides, established industries will now be able to appeal to the home investor for c*ush. The benefit of cheap money in London will be reserved for Empire itidustr. No foreign country or industry will be permitted to raise capital here and remit the proceeds abroad. Any new cash so raised must remain in the United Kingdom. The relaxation, of the ban has been well received. The Chancellor asks, with a view to co-ordinating the requirements of intending borrowers and preventing possible congestion of the market, that no issues ranking as trustee security bo made without prior agreement with the Bank of England regarding the amount and the date of issue.

CONVERSION A TRIUMPH END OF WAR PRICE LEVEL RECEPTION ON EXCHANGE (British Official Wireless.) Rec. 11 p.m. Rugby, Oct, 1. The greatest financial operation in history was completed yesterday when the five per cent, war loan conversion offer closed. Approximately £1,920,000,000 has been converted, leaving only £165,000,000, 8 per cent, of the total, to be redeemed in cash on December 1.

The Press unanimously acclaims. the conversion as a triumph. The Times gays: “.The chief lesson learned is that the wartime level of prices, wages, profits and interest is a thing of the past and a new level is in course of being established.” The conversion figures were well received in the British fund market on the London Stock Exchange this morning but little excitement prevailed and, with the disposition to take profits, leaders mostly re-acted with declines of one-eighth to one-quarter. War loan (assented) was quoted at £lOO 17s 6d.