HUGE TRANSACTIONS

Hokitika Guardian, 3 December 1932, Page 5

HUGE TRANSACTIONS

STOCK EXCHANGE LOAN CONVERSION WIND-UP. (United Press 1 3sociation—By Electric Telegraph—Copyright) LONDON, December 1. Toiday on the .Stock Exchange was one of gigantic monetary transactions, nearly seven hundred million sterling being involved in the day’s turnover. Lombard Street made the most careful preparations not to disturb the flow of credit and to prevent a money squeeze.

The “Daily Telegraph’s” city editor expects, the expansion of available credit to lead to a heightened demand, for first-cla s s investment stocks.

In the city to-day the turnover of credits, exceeded the magnificent previous record that took place. Approximately £900,000,000 will be paid into or disbursed by the Bank of England. These huge credit displacements mark a final winding up of the P a st year’s conversion operations. The chief .disbursements ar’e in respect to the repayment of the principal of the unconverted war loan of' four and a half per cent, war loan and of four and a half per cent. Treasury Bonds. As regards the war loan there are divided payments, while the chief payment:) to the Bank of England, are in respect of calls of 5| per cent, on the 3 per cent, conversion loan, arid ’95 per cent, on the two per cent. ’Treasury Bonds. On balan.es markets the supplies of cash will be increased to a moderate extent.

There vrtis a further substantial improvement in the dollar sterling exchange when the foreign exchange market opened in London to-day. The New York rate opened at 3 dols. 21 03iits to the pound sterling, and advanced to 3.24. The Paris rate, after opening 82 7-16 francs to the pound, advanced to 82g francs.