The Conversion Loan There has been some criticism of the
financial stroke which was described in our City columns last week. Mr. Snowden made a full and satisfactory statement in the House on Tuesday which in our opinion amply justifies the Government's action in the matter. He pleaded the urgency of the Treasury situation with regard to maturities falling due in Jnntiark and February next, as justification of the attractive interest rate (5 per cent.), arguing that the necessary " bird in the hand " would be thus best secured.. In entrusting the financial trans- action to the Government broker, who was able to obtain guaranteed subscriptions for the amount required (X30,000,000), he said, he was only following the regular City practice, and he was influenced by the untoward fate of that other Government issue a year ago which was badly under-subscribed and which added consider- ably to the burden of the floating debt. Mr. Snowden made it clear that he did not consider this an ordinary underwriting transaction, and quoted precedents to prove his point. It was a pity, however, that the special terms offered to the "rich banking corporations" were not mentioned in the prospectus to ordinary subscribers.
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