CONVERSION LOANS IN BRITAIN

Timaru Herald, Volume CXXXVII, Issue 19330, 3 November 1932, Page 9

CONVERSION LOANS IN BRITAIN

SUCCESS OF GIGANTIC OPERATIONS SUBSTANTIAL SAVING TO TREASURY United Press Association —By Eleflt.le Tel egraph—Copyright (Received November 2, 8.30 p.m.) LONDON, November 2. The proposed loan of £300,000,000 at 3 per cent, makes the completion of the Government’s conversion operations allowable at present, no fresh opportunity being available until 1934, when £156.000.000 treasury bonds will mature. The Budgetary saving by the latest conversion will be approximately £5,500,000, and the total savings by the series of conversion operations to date, after allowing for reductions in income tax receipts, will be about £30,000,000! Press Comment.

“The Financial Times” comments that the terms of the loan are rather favourable to the investor. The Government could have borrowed at a flat rate of 3 per cent., and it is well to recall the tremendous change for the better wrought by the National Government in a year. No country on or off the gold standard' had brought about anything approaching the revival witnessed in Britain. The foreigner still ocasionally hesitates over sterling, specially when such incidents as the hunger march is magnified beyond all relation to the facts. Here we know the real strength of the country. TERMS OF NEW LOAN. INTEREST AT THREE PER CENT. British Official Wireless RUGBY, November 1. Following the announcement that the Treasury, on February 1 would repay the outstanding balance, amounting to £114,000,000 of the 5 per cent Treasury bonds, 1933-35, the prospectus has been issued for the new conversion loan. It states that the Bank of England is authorised to receive applications for £300,000.000 £3 per cent, conversion loan, redeemable at par on March 1, 1953, or at any time on or after March 1. 1948. The issue price will be £97/10/-. The list of applications will be opened and closed on Thursday, November 3, 1932. Interest will be paid half-yearly on March 1 and September 1. The first payment will be made on March 1, 1933. The Postmaster-General is authorised to receive applications for a separate issue of the above loan. Allotments in full will be made in respect of all subscriptions to the Post Office issue, the dividends of which will be paid without reductions of tax at the source. Applications for the Post Office issue may be for £lO, or any multiple not exceeding £IOOO, and the first interest payments will be made on March 1.