NEW ZEALAND LOAN

Wairarapa Times-Age, 11 August 1939, Page 5

NEW ZEALAND LOAN

INDIFFERENTLY REGARDED IN LONDON

OPENING OF ARTIFICIAL CHARACTER. BALANCE WELL GUARANTEED. By Telegraph—Press Association—Copyright. LONDON, August 10. The lack of interest in the New Zealand conversion loan is unique in the history of the Stock Exchange. Apart front the market’s general disinclination to deal in bonds, the conversion was launched al a most inopportune time —the middle of tiie holidays. There were only four unimportant dealings yesterday, one at £99 for converted stock, another at £99 Is 3d for fully-paid cash stock, and two at £4 15s for cash stock, £5 paid. All involved only a few thousand pounds.

It is assumed that these deals were intended to provide a basis for the market quotation, for which public interest is nil.

The market tends to regard the secrecy surrounding the extent of the conversions with academic interest in view of the unusual method of guaranteeing. If, as is believed, the conversions and cash subscriptions do not cover more than a quarter of the-total the balance will be well guaranteed, for there is no question of necessitous selling. The strength of the holders is reflected’ in the artificial character of the opening. The Australian Associated Press says that, officialdom has drawn a veil of secrecy around the New Zealand conversion loan, which when it opened was quoted at a discount of one-eighth and has gone to a premium of onesixteenth.

There are very few dealings, and no information is forthcoming as to what banks have assumed guarantees.

Leading dealers, the Bank of New Zealand, and the High Commissioner’s Office have no information to give regarding the arrangements. It would seem that the ultimate response of the public will be preserved as a close secret