BOND CONVERSION

Hokitika Guardian, 15 November 1933, Page 6

BOND CONVERSION

AUSTRALIAN DOLLAR HOLDINGS

U.S. CHECK ON STERLING RISE

(United Press Association —By Fiectrio Telegraph—Copyright)

NEW YORK, Nov. 13

The “Evening Post’s” financial editor declares Britain lias a strong weapon to check the rise of sterling by offering to convert the Australian dollar bonds of which some two hundred million dollars are outstanding into sterling obligations.

With the pound above five dollars, sterling bonds of from 3-j- to 4 per cent would be attractive to the holders of the Australian dollar issues, although the interest thereon is somewhat higher. The British investors, owing to the high regard in which they hold Australian credit, would buy the dollar obligations outstanding here for conversion into sterling bonds, thus creating a demand for dollar exchange, which would check the decline of the dollar and rise sterling.

DOLLAR INFLATION SENTIMENT.

NEW YORK, Nov. 14

A United Press dispatch declares that a private poll of the U.S. Congress reveals that flu-ire is a/n overwhelming inflation sentiment. Unless the Administration’s policies produce marked results by January, the legislators are likely to take the matter into their own hands, and either will devaluate the gold content of the dollar, or will issue flat money.