NEW CAPITAL ACTIVITY.
As anticipated, the year, although it has only just com- menced, has already given signs of activity in the matter of capital creations. The strength of Gilt-Edged securities was pretty severely tested by the announcement of a London County Council Loan for the large amount of £10,000,000 in 2} per cents. at par, which must be the cheapest rate at which the County Council has ever borrowed so far as a long-term Loan is concerned. The Loan was in the nature of a conver- sion operation, notice being given of the repayment next January of a similar amount of outstanding 3i per cent. Stock. The lists of cash applications for the new Stock were closed within a few hours of the opening, so that apparently applica- tions were on a large- scale;- but, as the conversion lists remain- open until the 23rd of this month, the result will not be known for another fortnight. It is reckoned that by this operation the County Council will save something like £75,000 annually in interest payments.
*
Previous page
