BRITAIN’S BIG LOAN.

Waikato Times, Volume 112, Issue 18697, 25 July 1932, Page 7

BRITAIN’S BIG LOAN.

RUSH TO CONVERT. I t BANKS ALMOST OVERWHELMED. BULK OF HOLDINGS COVERED. United Press Assn. —Elec. Tel. Copyright. LONDON, July 23. Confidence in the ultimate triumph of the conversion scheme was strengthened all the week, not only by the dally announcement of the numbers of applications, but by indications tending to show the view now taken regarding the future of gilt-edge .stocks for some .time to oome. The banks have been almost overwhelmed with applications and even an Increased avalanche Is expeoted before July 31, the last date when the cash bonus can be claimed. Already over half the 3,000,000 holders have assented to conversion, and though the total converted has not been published It Is known that the applications already received, including those for big blooks held by the largest flnanoial Institutions, oover the bulk of the total holding. A new development in the past week has been the number of large firms not 'only converting their entire holdings, hut buying more in the market expressly In order to convert them. Flnanoial writers emphasise that both conversion and purchase for conversion are sound business propositions, as the ohanoes of stiffening the money rates are remote. The Financial News incidentally refers to the fundamental difference between the Australian and British scheme. It points out that under the former, holders are asked to make a sacrifice for the good of the State, whereas here the holders are asked to convert, not as a charitable gesture but as a sound investment, as 3i per cent, or a little better, Is dostlned to be the average basis of British government long-term oredlt In future. -The abnormal post-war interest rates have gone. Sir Walter Layton, editor of the Economist, describes the conversion scheme as the koy move in the campaign to end economic depression. He says the immense volume of the 5 per cent, war loan has been a millstone round the neck of British credit. The success of the present conversion will both make It possible to reduce the Interest charge and a considerable part of the remainder of the national debt. This will have a stimulating effect throughout the world. The London Stock Exchange has been quieter In the past week, but such sectional sagging as occurred mostly In the foreign market. This only emphasised the underlying firmness. Naturally during the conversion Government funds monopolised investment interest with much dealing both in home and Dominion lines. There is particular confidence in Australian stocks.