DEBT CONVERSION

Wairarapa Daily Times, 16 March 1933, Page 4

DEBT CONVERSION

HUGE OPERATIONS. (Special to “Dailv Times.’’) WELLINGTON, This Day. The Government’s debt conversion scheme was advanced an important stage this morning, when, in a series of huge operations, each involving millions of pounds, .the whole of the internal debt held by the State Departments, amounting to £40,500,000, was converted under the scheme. At the same time, the conversions offered by the public rose to a total of '£36,322,147; so that, of the total internal debt, of £115,000,000, no less than £-52,122>Lji7 is now accounted for eight days applications close. - - Applications received from the public during the 24 hours ended at mid-day to-day covered £3,563,485 worth of stock. If this progress is maintained, and slightly increased, during the last few days of the period, there is every reason to believe that by 24th March practically 100 per cent of the debt will have been offered to the Government for conversion. Considering that the majority of the applications now being received are from small investors, each covering only a few thousand pounds at most, it will be understood in what a vast amount of work the Treasury is involved to reach a daily total of over £3,500,000. The incoming mail, which is being de- . livered constantly throughout the day, has reached huge proportions, and a special accounting staff which has been engaged for the work is now busy day and night. In a statement to-day, the Minister of Finance (Mr J. G. Coates) said that, . although the response so- far had been excellent, the Government was not by any means slackening its efforts to make public the details of the scheme, and to secure the fullest co-operation of the bond-holders in all parts of the Dominion.. ‘/It-is hardly necessary for me to emphasise,” said Mr Coates, “how important it is for the prestige of the country that, on 24tli March, when the applications close, we should be able to say that 90 per cent, or 95 per cent, or, as I earnestly hope, 100 per cent, of the debt domiciled within New .Zealand _ has been freely and willingly offered to the Government for conversion. Fol* the sake of equality and fairness, Parliament has provided what amounts t<* a penalty for non-conversion, but we are most reluctant to use it, and as wc see the increasing .stream of applications that pours day after day into the Treasury, and sense the ardently helpful spirit of the country, we feel that we shall never need -it. The Dominion’s reputation for patriotism, good sense and financial stability will be vastly enhanced by a debt conversion as outstandingly successful as this now promises to be, but I must remind people that, before it is done, and before the relief all so urgently need can be given, every bondholder, whether his interests a.re large or small, must cheerfully take his part.”