FURTHER CONSIDERATIONS.
At the same time there is, of course, another aspect of the matter to be considered. There are other stocks; which are practically irredeemable, and some of these are creeping up in value, on the long view that sooner or later investment securities must appreciate and that these irredeemable stocks will then command •a high price. To take one stock alone, it may be noted that the 3f per cent. Conversion Loan at the present price of 751 gives a yield of about 13s., while, allowing for the accrued dividend in the price, the present quotation of the 5 per cent. War Loan gives a yield to the investor of just under_ 5 per cent. In view of the options accruing to the Government to _convert, it seems unlikely that the 5 per cent. War Loan can rise very much above par, while, on the other hand, given a general appreciation in gilt- edged securities owing to cheaper money or other causes, the prospects of an appreciation in the 31- per cent. Conversion War Loan are very much greater, especially having regard to sinking fund operations. One furthr point too, which might, perhaps, be urged in favour of reinvesting in the irredeemable stocks, is the presumable desire on the part of the Government to produce, as fir as may be possible, those conditions in the money market best calculated to enhance the national credit as reflected in market quotations of securities.
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