AN INTERESTING CONVERSION.
Of the many fresh issues of capital and conversion operations special interest attaches to the recent conversion of what has for so long, been known as Transvaal 3 per Cents. That issue was guaranteed by the British Government. Allowing for the operation of the sinking fund the total amount out- standing which had to be dealt with was £11,000,000 and holders of the old stock have been given the right of exchange into a new Union of South Africa 3 per cent. Inscribed Stock at par, cash applications being also invited on the same basis. The interesting point about the operation is that although the new stock will carry no guarantee from the British Govern- ment, the issue resting entirely upon the credit of the Government of the Union of South Africa, there was never- theless quite a rush of cash applications, and it looks as if holders of the new stock will also convert very freely. The new loan is, of course, a trustee stock, as was the previous Transvaal 3 per cents. while the prosperity of the gold mining industry in South Africa has done much to enhance the credit of the Union Government.
A. W. K.
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