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Hokitika Guardian, 9 August 1932, Page 4

The success of the Conversion Loan in Great Britain is a triumph for British courage and resource. It- was a bold proposal to place before the people and to ask for such a concession in interest. The very boldness of the proposal was ife first aid to success, which has been at least tiiumphant. Over ninety per cent, of the five per cent, holders have agree 1 to convert to three and a-half per cent.,-while the. small Percentage of ; holders who have applied for iv.dem.pion' in cash at the end of the present year, is set down at about eight per cent, of the oriciu.il holders Britain:' will, be rel'eved of substantial interest payments over the currency of the new stock, there being a saving of thirty-shillings per dealt. This will aggregate a very substantial sum over the full period of this 'oar. Nor lia,si this been the only direct advantage. The success of the conyirrgion scheme indicates ebsolutlj- confidence in the national solvency, and as a result there has been a hardening of al) British stocky on tile market. The effect of this confidence will attract' foreign investments to Britan, and the flow of money will, assist Homo credit, and generally give an improved tone to British finance. The conversion ach'-.m?. iii in some quarters as the first and best evidence of return inert confidence, in worldly finance. It is cvmridei:;d an jrdicat’on that the tide is turning d there is now a more immediate pror-vet of recovery from the long drawn-' ut p riod of depression. This uplift m— 1-a P W in .raren/’w abroad, hut it in; at least sure in the centre responsible for so much of the world’s finance, mid from such a quar-ter-the goss-bility*-of"ft general im-

proveirigint in the tone of business and trade should radiate with some certainty. Apart from, the buoyancy cf the Homy stock market, commodity prices are showing some improvement; while pibrcad there is. a ftfah fillip to the war debts problem by reason u: a sincere desire nsahifetiting itself in the United States, to have the whcOe subject reviewed at clear quarters by an international, conference. The manifestation 'of British, credit in connection with : tho Conversion Loan has thus been very timely, and ;t promises (in addition to its Home advantages) to give*, a lead in regard also' to the bettermept of world conditions. That indeed will be 1 a triumph for British' finance.