CONVERSION OF DEBT.

Waikato Times, Volume 108, Issue 18168, 5 November 1930, Page 5

CONVERSION OF DEBT.

STATEMENT BY ACTING-PREMIER. A TOTAL OF £6,124,460. (By Telegraph.—Press Association.) WELLINGTON, Tuesday. A statement regarding the redemption of debt which recently matured in the Dominion was made to-day by the lion. E, A. Ransom, acting-Prime Minister. In each case holders were invited to accept in exchange 54 per cent securities of seven years’ currency, subject to income tax. The loans comprised £974,480 at 5i per cent., which matured on July 1; £294,640 at 5 per cent., which matured on July 15; and £4,855,340 of war loan, issued in 1916, bearing interest at 41 per cent., free of tax, which matured on September 1. The total amount was thus £6,124,4 60. Mr Ransom said that approximately £1,700,000 was renewed-on the application of the original holders. Redemption funds to the extent of £1,670,000 wer utilised in paying off matured securities. This comprised £1,670,000 were utilised in paying off public debt account, £290,000 from reparation moneys and miscellaneous war credits, and £194,000 from capital moneys available in separate accounts. Proceeds of the present issue of 5J per cent, over the counter sales were applied in redemption of maturing loans to the extent of £490,000, and the balance of cash necesary to meet redemption was provided temporarily from various Treasury accounts. These temporary loans are being replaced from the proceeds ot further issues of 54 per cent, securities with currency to September 1, 1937.