BIG CONVERSION LOAN

Wanganui Chronicle, Volume 74, Issue 109, 11 May 1931, Page 8

BIG CONVERSION LOAN

CANADA TO ISSUE BONDS ONE PER CENT LOWER INTEREST [By Telegraph—Press Asaociation Copyright.] Received May 10, 5.15 p.m. OTTAWA, May 9. The Dominion of Canada conversion loan, 1931, will be offered to the publie on Monday next. The Prime Minister, Mr R. B. Bennett, announced in the Hou ? of Coni mons to-day that it will remove from the business horizon the dark cloud which every Finance Minister has to expect when heavy borrowings are ini pending, and since the expiring bonds are largely held by Canadians, acceptance of the 4-1 per cent, interest at the expiration of those bonds (they are to turn in one per cent, lower than the old bonds carried), will indicate faith and a belief in their country and will be a striking testimony to their con fidcnce in the future of their country. The present intention is to float a 250,000,000 dollars entirely conversion loan. No new money is being asked for. Holders who turn in bonds will receive current interest rates until the bonds would have expired, and 4| per cent, afterwards. The new bonds are subject to taxation on both principal and interest. The total loans maturing in the next three years amount to 1,083,000,000 dollars. The bonds will be for 25 years' callable in 15.