THE CONVERSION LOAN

Waipa Post, Volume 46, Issue 3309, 30 March 1933, Page 5

THE CONVERSION LOAN

FINAL FIGURES AWAIT OVERSEAS ADVICES.

LATEST OFFICIAL ANNOUNCEMENT.

(By Telegraph.—Special to Post.) f WELLINGTON, This Day. On account of certain unavoidable delays the final result of the Government's internal debt conversion will ftot be known for some weeks. Bondholders who are abroad and companies who have their head offices overseas have had to be allowed until June Ist to make their applications, and since the stock they hold may amount to some hundreds of thousands of pounds it will be impossible for the Minister of Finance, Mr Coates, to announce the final figures until after that date. In addition a small portion of the -outstanding-stock is still sdbject to correspondence between the Treasury and the holders, and the fate of this also is unlikely to be determined for a week or two. - Although the scheme closed last Friday applications from distant parts are still being received by the Treasury., The volume of the mail is rapidly decreasing, howover, and it is expected that by to-morrow most ■of the stock will have been dealt with except that held over on account of the reasons stated above.

The position to-night was as follows: — Assented conversions £105,770,000. (Silent conversions £8,500,000. 1 Total conversions £114,270,000. Dissents £730,000. ' 'lt will; be noticed that the..'stock covered by dissents has increased in the last Jew days, but it is still considerably less than three-quaTters of one per cent of the total conversions, and is likely to be further reduced as a result'of correspondence notar in train between the Treasury and the holders. "So many interests co-operated with the Government in making the conversion a success that it is difficult to apportion our thanks," said Mr Coates, in a statement to-night Members of the N.Z. Stock Exchange not only placed their expert knowledge gratuitously at the disposal of bondholders, but took an active part in the campaign in the press and over the radio. We are indebted to them and also to the banks, which gave valuable personal service to bondholders, and which allowed their offices to be used as clearing houses for conversion applications. The legal profession took its part well andgrave material assistance. I must specially commend the support given to us by the press of New Zealand. Newspapers were <a valuable medium for our advertising and gave our progress reports every consideration in their news columjns. A Government is very fortunate which can depend on such support for a national cause. I have to thank also YA. and B. class broadcasting stations for giving us all the opportunities we desired to make personal explanations and appeals to their listeners. Advertising companies and picture theatre proprietors generously made available another important field. Among cur own departments I must pay particular tribute to officers of the Treasury, who on top of their aduous work (during the last few weeks of the Parliamentary session have had to face the even more difficult task of ;3jahdTring tens of thousands of conversion applications and dealing with the volume of correspondence that arose from them. The organisation ©f the post office again proved of substantial assistance, and I am grateful to its officers for shouldering this "special burden in addition to their already heavy duties. As for the Government bondholders who came forward- so willingly and in such great numbers to accept the reduction we asked of them, it will show what an important part they have played in restoring stability of public finances and reviving enterprise and prosperity. among our people. In the meantime they have giveh a decisice lead to all other investors and financial institutions to help reduce interest rates to a substantially lower basis. They can rest assured that the Government- will take every care to protect the values of their c hew securiteis. on the market by controlling new issues and by asking the Local Government Loans Board in respect of local body loans to have regard to the interest reduction policy laid down by Parliament."