LATEST RETURNS

Evening Post, Volume CXV, Issue 71, 25 March 1933, Page 14

LATEST RETURNS

OVER 90 PER CENT.

PRIME MINISTER GRATIFIED

The latest return from the Treasury this morning shows a slight increase in the total conversion offers, which now stand at £105,293,622, or 91.5 per cent, of the -whole internal debt. Applications are still arriving by mail from all parts of New Zealand, and it is unlikely that the final figures will be available until the middle of next week. On the present approximate figures, the following position has been reached: — £ Per cent Assented conversions .. 105,300,000 si 5 ' "Silent" conversions .. 9,150 000 s' Total conversions 114,450,000 09 5 Dissents 550,000 '.5 ' Unless there is any material change in the totals, the conversions, assented and silent, will thus account for 99.5 per cent, of the debt, as compared with 97 per cent, ia Australia (1931) and 92 per cent, in Britain (1932, under different conditions). The dissents represent slightly less than one half of one per cent., compared with three per cent, in the Australian conversion. The Treasury has communicated with all dissenting bondholders, and judging by the replies already received the amount of £552,000 may be considerably reduced.

The total amount of stock handled by tho Treasury yesterday covered £15,674,374 —a record for the whole period of the conversion. A large part of this was represented by applications in rederiiption of promises. There were, however, many new applications, and tho reason why . the grand total did not show a greater advance over the previous day's was that at the last moment several of the larger holdings were found to have been overestimated in promises telegraphed to the Government when the schemo was launched.

It is very probable that the total of assented conversions will be still further advanced when the final figures are known. Several of the North Island mails have been delayed on account of floods, and no estimate can yet be given of the applications wMch are in transit direct to the Treasury at Wellington. Extensions of time- have been given to companies with their headquarters outside New Zealand and to residents abroad. These applications will not come to hand for some time, and it is expected that they will include some substantial sums. PROUD OF THE RESULT. Gratification at the . country's decisive response to the conversion appeal was expressed today by the Prime Minister (the Et. Hon. G. W. Forbes). "Although the official figures will not be known for a few days, 1 think we have every reason to be proud of the result disclosed in today's statement," said Mr. Forbes. "As much as 91* per cent, of the internal debt has been voluntarily offered to the Government for. conversion. The fact that it was considered necessary to provide a penalty for non-conversion did not impose any obligation <,n bondholders to come forward and volunteer to , convert their stock. They could just as easily have, remained silent and allowed it to be converted automatically. The significant feature of the whole operation is that they did come forward, and in numbers that must be an encouragement to us all.

'.'I feel that a good deal of our success is to be attributed to the inspiration we Teceived from the British Government's huge war loan conversion last. year. This was the greatest operation of its kind in all financial history, and it has undoubtedly had a very definite influence on the process of economic readjustment in every part of the world. Although the conditions imposed in New Zealand were necessarily different, our success has been no less than theirs. I am convinced it will enhance our credit and prestige abroad, and in the end amply repay individual bondholders for the sacrifice they have been asked to make. Yet the fact that in the long run the conversion will be proved wise in their own interests must not be allowed to rob our bondholders of the credit that is duo to them for a truly patriotic action. On behalf of the country I wish to thank them and all the other citizens who have contributed towards the achievement of such a triumph."