LOAN CONVERSION

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

LOAN CONVERSION

(To the Editor.)

Sir,—Mr. Coates is quoted in your issue of_ today as having made the following statement: "I knbw that some of the details of the scheme have been subject to some public criticism."

In the absence of a clear description of the details referred to, I feel justified in assuming that the reference is to the injustice and loss that holders of the 5 per cent, loan will be subjected to under the present schedule. Mr. Coates and members of the Cabinet cannot help recognising that it is proposed to convert the 5 per cent. 1940 loan on an unfair basis as compared with all other loans, and, if so, it is distinctly their duty to immediately correct the wrong proposed to be inflicted on a wide circle of investors. If it cannot be effectively remedied durin<* recess, an authoritative statement should be made that Parliament will at the beginning of the next session be asked to approve that the 5 per cent, free of stamp duty loan be converted at the same rate as that of the 5*6 per cent, loan subject to 10 pev cent, stamp duty. The.present return to investors is practically the same for both issues, and should be converted on the same terms, particularly as it was stated in the circular issued to holders of the 1940 loan that the intention was to convert all loans on a relative actuarial basis.—l am, etc.. 1