LOAN CONVERSION

Hokitika Guardian, 4 July 1932, Page 5

LOAN CONVERSION

A GOOD RESPONSE t SATISFACTION AND EXCITEMENT. ' , (United Press Association—By Electric 'telegraph—Copyright.) . LONDON, Ju-’y 3. Mr NevilleQbamberl-ain and Major Elliot signed the first application). i,form converting their own \V-ar Loan holdOn the -Stock Exchange-; there was intense excitement folio,vvjing the. Chancellor’s announcement ohothe conversion, with spectacular jumps i>nu all British fund,s -and 'heavy buying." The leading dealers in the consols market wore summoned to -the Bank tab-Eng-land to confer regarding th e basis for dealings. 'lmmediately they returned active business was, resumed. An immediate response was accorded the great conversion scheme, where- , by it is proposed to convert the whole of the 5 per cent 1929-1947 war loan, j amounting to over £2,000,000,090, ' which is in the hands of! 3,000,000 holders and to continue the loan at 34 , per per cent, interest. The’ news has J -f givfett intense Satisfaction, ; ' Viscount Snowden described the of- j "fei* as El bold venture) but one fully justified by the greatly improved national financial position and fee strength of British ..credit, He added: “It may well be the beginning of a great' trade revival; Tt will renew confidence, which is an essential condition to prosperity. The success of the operation will have a profound influence throughout the-world;” The optimism engendered by the Government’s announcement was evident in commercial and industrial circles throughout the country to-day and immediate beneficial results to trade I are anticipated from the distribution \ of ; the special bonus of 1 per cc nt tc ! all who convert this month. The net j saving of £23,000,000 effected by the interest reduction gives; added' hopes of lower taxation. ••• \ i; The huge task ,of printing the -forms for the conversion scheme began immediately after the Chancellor an-

nounced the project last night. Om-

ials will print 15,000,000 forms and i dispatch them 'by < post' • in neany • 3,000,000 envelopes, within twentyfour hours! , Mr Baldwin, in .a broadcast speech on the conversion scheme, -said that if he might judgfe by what he saw ( in the House of Commons -and in the papers' to-day, and- what he heard b§4ng said everywhere) there was not a of doubt that the public would "bee this thing through; “We have gone a long Way -sirice the dark days

tof. last -aututfin/ti-heiiiSaid,; ",bUt--.vinuch

p&m&iht to bd done, One, ,cf- the eb- / Hacks is th© ..burden ,of taxation j and Ait Is the duty of the Government to tei tt every chunc# of reducing expenditure, and thus reducing the amount to b t taken from the people in taxation. It i» providential that jus&’Vhen our burden most needs reducing there comes this chance of making a very large saving in debt interest, whilst scrupulously. ..observing every obligation to which, the faith of the country, has been pledged. . “The greatest pre-war scheme for the conversion of debts in,, this country was that effected by Lord Goschen in 1888. The immediate saving A then effected was £1,400,000 yearly, fljhe immediate saving aimed at in the present scheme is about' -sixteen times as great. Lord Goschen was dealing practically with the Whole of the na- . tional debt at that time. Our scheme relates only to the War loan, which is less than a third of the present national debt. The scheme is of equal importance for industry, 'jhexe it, great mass of £2,000,000,000 in stock -bearing '5 per cent, interest which has been a dead weight on the capital market for many years. Neither the State nor local authorities nor British industries could obtain capital on such cheap terms as our restored national credit really • justified. This scheme when it is through, will -enable industry to get the money it needs more (.noc-ply, and will do more than any other new thing the Government or country can do at -the present moment .--set the wheels of industry going (again.” Mr'Baldwin read a letter from the Prime -u.iuster ix> the (Jhancel.or. in which th e former said: “The holders of the loan, large and small, will I am confident, respond .-to the Government’s patriotism, which the British peopie have always .shown -when a greai national' effort, is required. If every -holder of the war loan plays his part bv responding quickly another great , s t. ? p forward will have been takep towards tho restoration of national prosperity.” MANY APPLICATIONS RECEIVED. A (Received this day at 9.25 am) lON-DON, July 2. / The first post brought ty;o thousand applications for loan conversions. Pprcia'l leads were given by H-arrods’ and its associated companies, by converting £600,000. The National Union of Teachers converted £172,000.