LOAN CONVERSION

Hokitika Guardian, 5 July 1932, Page 5

LOAN CONVERSION

REDUCED INTEREST

STOCK VALUES APPRECIATE.

(United Press Association—By Electric Telegraph—Copyright.)

LONDON, July 3

Consequent on the. scheme to reduce by per cent, the interest on £2,000,020,000 of British five per cent, war loan .siot-k, the yalues of stock securities appreciated, in the past few > days by i ail aggregate of five hundred millions sterling. The Stock Exchange opened for tlie first Saturday for five weeks. Business was active. British gilt-edgeds were quieter, investors turning attention to industrials. Australian ami New Zealand stocks advanced by ten shillings to two pounds, The trend of the gilt-edged market on Saturday was again upward/, despite some profit-making. Consolidated i four per cent. £lO6, Conversion five per cent. £ll2, with War Lon l five pc, cent. £IOIJ. India bonds -we? e gsneiallv another point up. Bair: o'. England stock has risen no less than liftmen points to 312-j. Dealers report the public support is increasing, and orders are accumulating, not only for gift-edged, but for lending to .domestic issues, The London Sunday papers both in editorials and. financial columns enthusiastically approve the conversion i scheme, and 'recommend prompt acceptance, 1 ASSURED OF SUCCESS. STEP TOWARD IMPROVEMENT. . RUGBY, July 2. The Government’s vast conversion scheme is assured o( complete success. The -welcome extended to it was spectacular and the effect on markets was 1 renewed, this morning, when business again showed great activity. 1 The operation has created worldwide admiration, and in several countries, is heralded ns a step towards improvement of international economics, * and a, bold, wise, lead to other nations. United States’ comments mdictate that accustomed as the Americans are to thinking in large figures the immensity of the scheme has amazed them, and enormously enhanced Britain’s financial prestige. Incidentally, countries as distant as Australia and China had their credit as borrowers raised bv the Briteish Government’s action, and no class of security, British or foreign, failed to feel benefit from the scheme. As far as British stock is concerned,, the capital appreciation of half , a dozen counters in the gilt-edged market exceeded a hundred million pounds on ! yesterday’s business alone.

EXCHANGE OPFNS STRONGLY LONDON, July 4

. The Stock Exchange opened strongly. There was a great rush by investors for Government securities and prices further hardened. There was considerable buying of industrials.