LOAN CONVERSION

Hokitika Guardian, 29 July 1932, Page 8

LOAN CONVERSION

ITS-EFFECT UPON BRITAIN. LONDON, July 28. Confidence in the ultimate triumph .of the War Loan conversion scheme dias 1 been strengthened all last week. For this assurance the authorities do not rely oh the daily announcement of the number of applications, but on indications tending to show the view which is now being taken regarding the future of. gilt-edged for some' time the' future of gilt-edgeds for some time overwhelmed by applications, and dven ;- an increased* -avalanche i-s expected . before July 31st, the last day for con - version. Already over half of the 3,.(X30,000 holders have assented to conversion, and though the total converted has not been published it is known that the applications already received, including those for the big ; blpoks held by the largest financial institutions, cover the bulk of the tota. holding.

s A new development last week has been the number, of large firms who are. not only converting their entire holdings, but are buying more in the market expressly in order tq convert them. Financial Writers emphasise that both conversion' and purchase ,ipr conversion; are sound business propositions, as the chance of stiffening money rates are remote. '-.'The “Financial News” incidentally refers to the fundamental (inherence between the Australian and the British' scheme, pointing out under the Australian plan holders were asked to make a- sacrifice for the good of the State, while here holders are asked tu convert not as a-charitable gesture, but as a sound investment, as 3£ pe. ceht; or a little better is destined to ba the average basis of British Government long-term credit in future, no;' ithiat the post-war interest .rates have gone. ■ ' THE KEY OF PROSPERITY. Liir Walter Layton describes the conversion as the key- move in the campaign to’ end economic depression. He says the- i’tnmense volume of the •5 percent. Wax Loan'lias been a millstone ycund tile neck of British credit. The success of the present conversion will make; it possible to" reduce: inter-, e&t charges on a considerable part of the 1 remainder" of the--National Debt, ancl vvilLi have a i stimulating effect-, thioughout thei world, re. .v ■ V lhe Stock been quieter during;. the past week, but the sectional sagging which has '-occurred, mostly in the foreign market, has only emphasised the' underlying firmness. Naturally during’ the War ; Irfan' conversion Govetipndnt 'funds’Hiave monopolized investment ihtdi-fcst with much dealing both in' homeT'and Dominion lines?; paftieulhr confidence befog shown in: Australian’ securities; • id ' 4 '■ ADVANCES IN WOOL PRICES. . : I \' < ; •’ ..v . / .‘V.‘ • , ■ . • Commentators • agree- that .substantial advances at the. wool sales jusi closed were more due r-to the fillip of thd International Conference, the Lausanne Conference, and the British Conversion Loan than' to’ the- actual increase in wool consumption. Neither manufacturers' nor spinners have yet received any - great'' influx of orders. Th ire/has been an improved turnover by obVwing previous commitments, but no substantial autumn season’.-' orders have yet- been" - placed.