THE CONVERSION LOAN.

Waikato Times, Volume 113, Issue 18927, 22 April 1933, Page 5

THE CONVERSION LOAN.

VERY FEW “DISSENTS.” HON. J. G. 'COATES PLEASED. AUCKLAND, Saturday. The Minister of Finance, the Rt. Hon. J. G. Coates, in an address to the Auckland Creditmen’s Club yesterday, said: “I say the conversion operation was voluntary. Certainly a polite letter was written to the holders of -securities, hut it would have paid some of them to dissent, notwithstanding the interest tax.” The Minister announced that the “ dissents ’’ had been reduced from £780,000 to about £500,000, and further “ dissents ” were being withdrawn each day. He pointed out that £99 15s was offered by buyers for converted stock last week and there were no sellers. Willi brokerage, that meant £.IOQ ss. It was a great to the success of the conversion that* stock had never fallen below £97 l'Os, and had since recovered almost to par. The Minister said it might not be generally known that a loan of approximately £5,000,000 was due to mature on August 15 next. The Government might reasonably have anticipated that a fairly large percentage of the holders of that loan would elect to dissent from conversion and obtain repayment of their capital on the existing maturity date. He was pleased to say, however, that securities to the value of less than £500,000 in that loan had been the subjeot.of dissent notices. , „ ■ „ Mr Coates said the Local Government Loans Board had been asked to co-operate with the Governmen, in keeping interest rates at the new low level fixed by Statute, There need he no l’ear that new issues would come on the market at higher rates, and thus tend to depreciate the securities oi present holders. The Loans Boaid was also considering the question ol conversion schemes for local authorities, and it was imped to formulate, model schemes shortly.