ALL HAVE PROFITED.

Star (Christchurch), Volume XLIV, Issue 601, 3 November 1932, Page 1

ALL HAVE PROFITED.

\ British Conversion Loan Operations. HAD GOOD EFFECT. British Official Wireless. (Received November 3, 11.30 a.m.) RUGBY, November 2. Commenting on the new conversion loan and other operations this year. “The Times’* says: “The savings to the Exchequer, important as they are, do not exhaust the advantages and benefita of conversion. Other coun : tries, particularly the Dominions, have profited from the leadership of the British Government, for they have seen for the most a rise in their securities and have been enabled to convert relatively dear loans into exceptionally cheap loans. The municipalities gained in the same way. The British Government’s action brought advantages to British industrial and trading companies, which nov able to raise fresh capital more cheaply than has been possible at any time since the war, as well as renew old capital on appreciably better terms. Lightening the burden of the debtors, whether governments, corporations or traders, has become the one most pressing economic problem, owing to the fall in the price level over the last twelve years, and voluntary conversion offers the best possible solution.” The announcement of the conversion loan issue was received with enthusiasm by the City and great activity developed in the gilt-edged market on the London Stock Exchange, and, although earlier sharp advances were not fully maintained, quotations remained considerably higher on the balance. War Loan Assented closed at £IOO ss—well under the best.

An increased demand for sterling and all-round improvement in rates was recorded on the London foreign exchange market.

The budgetary saving by the latest conversion will be approximately £5,500,000, and the total savings by the series to date, after allowing for reductions in income tax receipts, will be about £30,000,000.

The new conversion loan marks the completion of the Government’s conversions allowable at present, no fresh opportunity being available until 1934, when £156,000,000 of Treasury bonds will mature.