HUGE TRANSACTION

Hokitika Guardian, 8 March 1933, Page 6

HUGE TRANSACTION

APPEAL TO HOLDERS OF STOCK

“A NATIONAL NECESSITY.’

WELLINGTON, ;,iar C n 7

The broatD grounds of national necessity form the basis of an appeal made to-day to the 70,000 -holders of New Zealand Government stock .and debentures to convert faclr securities to the lower rate of .interest.

Accompanied in each case by a prospectus and a conversion application form, th e appeal, which is a-b'we the signatures of Mr Forbco and Mr Coates, is couched i.n the following terms;

“With every confidence we make this personal appeal to you to take part in assisting the Government to convert to a lower rate of .interest the whole of the internal public debt. Thistransaction, involving as it does £115,.000,0C0, represents -a financial undertaking of a magnitude never beiore contemplated in the Dominion. Its sticcess will depend upon the response made by every 'holder of Neu- Zealand Government securities. The Government had Doped that the present world-wide depression would lift and make unnecessary this further demand for sacrifice.

“As you are well aware, far-reach-ing measures have already been taken to restore the Dominion’s cial stability, biit in themselves they have not been sufficient to counteract the tremendous shrinkage in .national income and t-n pi} abl?> tyado -and industry to be carried on with any degree of success nt the prices ruling to-day. Accordingly it hag -become necessary for us to itu-opt measures which ’ ilinvA a wider purpose than merely the immediate balancing of the National Budget. That, indeed, is a secondary consideration. The' first and primary: purpose of . conversion is to induce a new low level of interest rates throughout thy whole field or investment, “INCALCULABLE BENEFIT ” “Interest is .a major item of cost In all industry, and an iur'Mcukble benefit must result from the stabilisation o! interest charges rates mor e in keeping with, present day prices “Our appeal is made, on the b roa d grounds of national necessity We. as a people, are justifiably proud of our prestige abroad. This prestige, so esseMial to a. young and growing nation, will be vastly enhanced by the successful conversion of. our internal debt, which, we emphasise again, can be ■brought .about only with your .co.operation.”

The letter concludes with a request to the bondholders to fill in thp application form and forward it without delay to the 'Secretary of tb P Treasury, Wellington. Applications will cAso *n March 21.