N 7 RONVFR^inN MAN

Evening Post, Volume CXXVIII, Issue 23, 27 July 1939, Page 10

N 7 RONVFR^inN MAN

.TERMS STATED

SIX-YEAR PERIOD

3-1 P.C. INTEREST

REPAYMENT BY EXPORTS

(By Telegraph—Press Association —Copyright.}

(Received July 27, 11. a.m.;

LONDON, July 26

Applications are being invited for a £16,000,000 New Zealand conversion Stock (1939-45) at £99, the rate of interest being 3-| per csnt., payable on January 1 and July 1. Holders of the 1940 Stock may ex-1 change their holdings, receiving a cash payment of £1 per £100. The lists will close on August 5. j New Zealand undertakes to pro-! vide redemption from funds accruing from exports, sufficient to meet instalments of £2,000,000 in 1940 and £3,500,000 eacli for the four following years. The City Editor of the "Daily Telegraph" considers that the terms of the conversion ensure an adequate response from investors and financial institutions. The "Daily Mail's" financial writer's opinion is that the the loan settlement is proof of New Zealand's willingness to face facts and it is a vindication of the view that a financial crisis in the Dominion at this juncture must be avoided. In the view of the "Daily Chronicle" i'c was impossible to secure the underwriting of the loan, but arrangements were made by which a full subscription, either by conversion or by cash, is now assured. BRITISH GENEROSITY. "The Times," in a leader, says that the British Government is putting its hand in its pocket on behalf of New Zealand to such an extent that it cannot be reproached with lack of generosity. The Dominion must prove its worthiness if future assistance is more easily to be forthcoming. There is no desire to interfere with principlesin New Zealand, but the Dominion must recognise that it cannot again saddle Britain with the burdens of her own extravagances and must order her affairs accordingly. The £17,000,000 falling due in January, 1940. was first issued in 1889 at 3g per cent., and in October of that lyear £2,700,000 was taken up at an average of £95 16s 8d per cent The | balance was issued from time to time iin the conversion of debentures issued !at different times, but the maturity date was the same, January. 1940.

From the terms of the conversion operation, as outlined briefly above, it would appear that proceeds of New Zealand exports for the next five years are to be used in the complete redemption of the £17,000,000 loan in five years from January 1, 1940.