SIR JOSEPH SATISFIED

Sun (Auckland), Volume II, Issue 575, 30 January 1929, Page 13

SIR JOSEPH SATISFIED

LOAN CONVERSION RESPONSE N.Z.’S HIGH STANDING Press Association WELLINGTON, Tuesday. The Finance Minister, Sir Joseph Ward, stated to-ds.y that he had received an intimation from London that the £12,000,000 conversion offer to holders of New Zealand four per cent. 1929 consolidated stock, made in conjunction with the recent cash loan of £7,000,000, had been taken up to the extent of £11,750,000. He considered that this result was satisfactory, as it indicated that the terms of the offer of £lO4 5s of 1948-5 S 4& per cent, stock for each £IOO of the old were as good as it was pcsßJble to obtain under the present market conditions. Including the £5,000,000 conversion last May, and about £1,000,000 purchased for cancellation, a total of £17,760,000 of four per cent, stock had now been dealt with. “It will thus be seen,” said Sir Joseph, “that we have already accomplished a great deal toward surmounting the most formidable financial hurdle, and the success of these most important operations is a further indication of our high standing in London, the principal money market of tba world. The statement made in a section of the Press recently that tha conversion operations were under* written is not correct, as there was no underwriting whatever for any portion of the whole sum.”

LESSON FOR AUSTRALIA!

N.Z. CONVERSION LOAN LONDON PAPER’S COMMENT (Australian and S.T.. Press Association X LONDON. Monday. The “Daily Telegraph” says that there are lessons in the placing of large New Zealand cash-conversion loans which the Commonwealth should not overlook. “Some resentment has been shown in Australian official circles at our comments on the Commonwealth loan result,” the paper continues. “The Australian loans will doubtless eventually be absorbed by investors, but that they should regularly have to bq nursed by the underwriters at the outset indicates, putting it mildly, a lack of popularity. “Those responsible for Common, wealth finance should surely realist that there must be a fundamental reason for the small response for its 5 per cent, trustee stock at £9B, when the 4J per cent, issue at £95 of tha neighbouring Dominion has beeif eagerly snapped up. “To bring this out in order that objections may be removed does not seem a disservice to the welfare of th* Commonwealth.”