CONVERSION LOAN

Gisborne Herald, Volume LXVI, Issue 20001, 28 July 1939, Page 5

CONVERSION LOAN

DOMINION FINANCE FAVOURABLE RECEPTION THANKS OF MR. NASH OFFICIALS IN BRITAIN TRADE VISIT TO PARIS (Elec. Tel. Copyright—United. Press Assn.) (Reed. July 28, 11.30 a.m.) LONDON, July 27. The Evening News states that yesterday’s announcement that applications were being invited for £16,000,000 of New Zealand converted stock, 193945, issued at £99, at 3J per cent, was well received and the prices of existing New Zealand stocks were marked up. It is explained that New Zealand has undertaken to provide for the redemption by making available sufficient sterling to repay the loan in agreed instalments. Conversion and cash applications will open forthwith and close on August 5, the difference between the £16,000,000 and the £17,000,000 is due to New Zealand holding £1,000,000.

It is stated that the deficiency of £1,000,000 in the conversion will be paid out of New Zealand’s accumulated sinking funds.

The Daily Express understands that the governor of the Bank of England, Mr. Monitagu Norm'an, ivasisted on the instalments -because of the heavy falls in the market value of New Zealand loans. Well Within. Powers The Financial News says that the rather onerous repayment terms of the conversion loan, are believed to be well within New Zealand’s powers, since it is 'possible, on the present restriction of imports, to -save £ 10,000,000 yearly, after 1939. British exporters who hoped for an early relaxation of the restrictions (were likely to be disappointed.

The New Zealand Minister of Finance, Mr. W. Nash, interviewed by the Australian Associated Press, said that the unfailing courtesy and consideration given by British Government officials had greatly facilitated the conclusion of the negotiations, on which (he was (issuing a statement before leaving for New Zealand.

“Details sstill remaining will keep me in London until the end of next week,” he said. “I am flying to Paris on Friday to discuss French and New Zealand trade. I am hopeful that when I explain the reasons for the import restrictions the French Government will co-operate in maintaining the trade of the two countries. “I .have also to discuss, the details of the trans-Tasman service and also freight contracts, after which I should be all clear to return home.” N.Z. BONDS FIRMER (Reed. July 28, 11 a.m.) LONDON, July 2? ; The stock markets are quiet with a good undertone due to the progress towards an Anglo-Russian pact. New Zealand bonds were firmer on the good reception of the conversion loan proposal. ____