COI:NZ - VERSION POSSIBILITIES.
I suppose that more especially there was present to the mind of my correspondent the possibility of the War Loan being converted in 1929, and, of course, it can be admitted that the authorities would be only too glad to convert the 5 per cent. War Loan not only into a security carrying a lower rate of interest but into a stock where the dividend was deducted at the source. Nevertheless, I think the opinion is growing in the City that unless monetary and other conditions should change in a wholly unexpected fashion, the chances of the Government achieving such a conversion for some years to come are remote, the more so in view not only of the present size of the 5 per cent. War Loan, namely, over 12,000,000,000, but by reason of the fact that within the net year or two the amount seems likely to be still further increased by the holders of various series of short-term bonds exercising their rights to convert into the 5 per cent. War Loan. Not only so, but, assuming for a moment that the Govern- ment desired to convert the whole or a portion of the 5 per cent. War Loan, it seems reasonable to suppose that they' would have to offer such terms as to be thoroughly attractive to existing holders. In other words, those who continue to hold the stock scarcely seem likely to be caught out by any kind of Government conversion operation:
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