FINANCE BILL

Evening Post, Volume CXII, Issue 81, 2 October 1931, Page 7

FINANCE BILL

CONVERSION CLAUSES

EXPLAINED BY SNOWDEN

(British Offlolal Wireless.)

(Received 2nd October, 11 a.m.)

BUGBY, Ist October.

In the House of Commons to-night, the Committee stage of the Finance Bill, by' which additional taxation to balance the. Budget is imposed, was completed. v

Speaking on the clause giving stockholders tho right to continue their holdings In the 5 per cent. War Loan, the Chancellor of the Exchequer, Mr. Snowden, said that the purpose of the clause was to give to the Treasury powers which would be used at a favourable opportunity to convert this huge block of 5 per cent. War Loan, amounting to over £2,000,000,000. To a very great extent the terms of the conversion offer, when issued, would follow the conditions attached to tho present stock. . It was proposed to give three months' notice to holders of stock, and during those three months they would have the option of transferring into new stock or asking at the end of three months to be repaid in cash.

The power which was asked for was not new in operations of that kind. It provided that if the holder of existing stock did nothing he was taken as accepting the offer. If he accepted he retained the old stock, but the rights attaching to the stock would be different. In ordinary conversion operation the holder surrendered his old stock and received new. Under this continuous operation he would. retain his old security with changed conditions.

It must be obvious that if there were a large number of holders of present stock who asked to bo paid off in cash the Government could not raise that huge sum in the course of a few days, and therefore time was taken in order to see what the results of the conversion operation would be and then make provision '<for finding cash for those who wanted to be paid out. Dealing with sub-sections of the clause, Mr. Snoivdon said that ono of them gave power to tho Treasury to approve^of a very small bonus for early applications for conversion.

employment. They did not -want to do anything except what was absolutely necessary, and they wore doing it because it is extremely necessary.

A voice: "Now wo have gut our answer."

NOT SEEKING TROUBLE.

Mr. Forbes said that if thoy judged the matter freely aid fairly they must recognise the problem the Government was up against. He repeated that thoy wore examining the arbitration system with a view to seeing if something could be done to enable more employment to be provided. They were not raising the question for the purpose of creating trouble. They were trying to act in the interests of tho country and everybody in it. Possibly they might make mistakes, but they were responsible for the government of the country and whatever hardship was created would be spread as widely as possible. "So there is going to be an amendmont, then?" a member of tho deputation asked.

Mr. Forbes, reiterated that the mutter was under consideration.

In thanking Mr. Forbes for receiving the deputation; Mr. P. Fraser, M.T?., said that if there was a desire to improve conditions under tho Act Labour would assist, but if there was an attempt to depress labour conditions they would fight it..