EFFECT ON THE MARKET.
And yet the fact remains that the first effect of the Government's proposals has been to depress British Funds in general and the 3f per cent. Conversion Loan in particular. To some extent, of course, the movement is a natural one arising out of the favourable terms given to holders of the 5 per cent. Bonds. In other words the prospect of a large number of new holders coming in on the basis of a price of about 74 occasioned the jobbers to put down the price immediately to about 744. To that extent, of course, the attractiveness of the exchange is lessened, but the terms are still sufficiently good to warrant expectations of a large response from all save those who confessedly hold on to the maturing Bonds because of their short-dated character and the desire to obtain the actual cash proceeds early next year.
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